Reports from the courts: January 2012

Our regular round up of the court decisions of most significance for construction from Will Buckby of Beale and Company focuses on the first reported judgment in relation to an adjudicator’s entitlement to fees where a decision has been held to be unenforceable as a result of a breach of the rules of natural justice.

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State of play table: 167

This table, prepared by Clyde & Co, provides a regularly amended guide to new and proposed legislation that will affect the construction industry. In addition to EU Directives and UK legislation, the table includes notes highlighting discussion papers issued by both government and non-government organisations, and commentary on the latest developments.

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Reform of European insolvency

The European Insolvency Regulation (1346/2000/EC) (the Insolvency Regulation) has been in force since 2000. The European Commission has to evaluate the Insolvency Regulation and submit proposals for reform to assess its application in practice and identify areas where it can be improved before June 2012.

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Unwritten contracts create a minefield

Guest editor Kim Teichmann of Thomas Eggar argues that although adjudication is now open to parties without written contracts, the reform opens up the possibility of a number of new jurisdictional challenges.

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Legal terms explained: Fitness for purpose or reasonable skill and care?

As every lawyer knows, the common law imposes on a professional person a standard of reasonable skill and care (Bolam v Friern Hospital Management Committee [1957] 2 All ER 118). This means that the works must meet the standard of a competent professional.

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News in brief: January 2012

Lanes Group said it will take its case against Galliford Try to the Supreme Court following a Court of Appeal verdict that could have long term implications for adjudication.

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Project Bank Accounts revolution

The Cabinet Office has announced that 20% of total government spending on construction will go through Project Bank Accounts (PBAs) within three years, ensuring that suppliers are paid within fi ve days of due dates.

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Small site safety crackdown

The construction sector is still the most dangerous sector of industry in which to work with more deaths than any other industrial sector, according to Health and Safety Executive figures.

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MPs slam PFI again

The Private Finance Initiative (PFI) has come under further attack from the influential Treasury Select Committee as the government concludes a review of the controversial procurement method.

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Not the last word on PBAs

It is rare for a government procurement initiative to be so well received as has been the announcement that 20% of government construction spending will be routed through Project Bank Accounts (PBAs) within three years (see News).

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