State of play table: 166

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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Unwritten contracts – a good idea?

Guest editor Hamish Lal of Jones Day is sceptical about hopes that removing the need for contracts to be in writing to bring them under the scope of adjudication will lead to cost savings for smaller companies. Litigation might work out cheaper for some.

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Legal terms explained: Economic duress

Parties often complain that they were forced to agree unfavourable terms. Applying commercial pressure does not necessarily constitute economic duress. The previous view was that where economic duress had occurred, the consent of the innocent party to enter into the contract had been vitiated.

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News in brief: December 2011

A TCC ruling will force contractor PC Harrington to pay an adjudicator’s fees despite his ruling being judged unenforceable. Mr Justice Akenhead said adjudicator Philip Doherty was entitled to £22,000 plus VAT from the contractor. which lost its case at adjudication against Tyroddy, which had claimed money owed for reinforcement works, but succeeded in having the decision ruled unenforceable.

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Safety record improves

The latest statistics from the Health and Safety Executive (HSE) show construction injuries at work have fallen by 25% since 2007–2008, while fines for health and safety breaches have risen by 22% in the past year.

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New procurement standard

A new procurement standard for the construction market has been launched by the British Standards Institution (BSI).

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OFT loses costs cases

The Office of Fair Trading (OFT) has been ordered by the Competition Appeals Tribunal to pay the £1.5m legal costs of 11 contractors who successfully appealed against the level of fines for cover pricing offences.

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OFT penalties reform on way

Embarrassment continues to be handed out to the Office of Fair Trading (OFT) as the cover pricing debacle rumbles on. The latest slapdown for the OFT is over attempts to prevent legal costs being awarded to the contractors caught up in its investigation into allegations of bid rigging in construction.

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Arbitrators are not employees

In our latest alternative dispute resolution series article, David Owen and Rebecca Podd of Clyde & Co examine a Supreme Court ruling allowing parties to arbitration freedom to ignore antidiscrimination legislation in the appointment of an arbitrator.

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Employers’ risk and insurance responsibility

Clients also have substantial potential liabilities when they enter into construction contracts. Insurance expert John D Wright of JD Risk Associates outlines what clients should think about when considering cover.

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