News in brief: June 2012

Two construction firms have been fined for health and safety breaches by Liverpool Crown Court after a 79 metre tower crane collapsed onto a city centre apartment block in the city, resulting in the crane driver being paralysed from the waist down.

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Late payment plea

Business support group, the Forum of Private Business has thrown its weight behind industry campaigners calling for government action to end late payment practices.

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Treasury support lacking

The Treasury is failing to engage with the Major Projects Authority (MPA) – a key organisation set up as part of the drive towards more efficient project delivery – as strongly as government spending watchdogs at the National Audit Office (NAO) had hoped.

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Review finds cost savings

The government claims to have identified savings in infrastructure costs representing half of the £3,000 million annual savings target of its Infrastructure Cost Review programme.

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CDM is money well spent

The Construction (Design and Management) Regulations (CDM) have been with us since 1994, since when they have been revised only once, in 2007. The original Regulations had gone some way towards putting responsibility for safety where it could most effectively be handled, starting with the design, while also ensuring that no one in the supply chain, including clients, could wash their hands of safety.

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When advice on the law is not legal advice

Edward Freeman of Clyde & Co points out that a recent case has highlighted that clients and their advisers need to give serious consideration as to how and by whom advice is given in adjudications and other forms of ADR.

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Risk financing and management

Insurance expert John D Wright of JD Risk Associates says risk management is no longer the new kid on the block but has evolved to become a key management tool. The insurance market has responded.

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Insurance policies not fit for purpose?

Fitness for purpose warranties often do not provide the cover that parties imagine they do, warns Peter Stockill of Berrymans Lace Mawer in this review of the relevant features common to most insurance policies.

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FIDIC provision might be no alternative

For disputes under a main contract and back-to-back sub-contract to be heard in a single arbitration, the parties still need to be party to the same arbitration agreement after the new ICC 2012 Rules. Estelle Katsimani and Michael Mendelblat of Herbert Smith ask if a new provision in FIDIC’s subcontract offers any relief.

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The concept of time at large

The issue of time at large usually arises when an employer’s own actions prevent completion dates being achieved. Andrew Batty of Pinsent Masons spells out the implications for both employers and contractors.

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