No need for casting in stone

Our contracts watchdog Michael Phipps, Principal of Thurston Consultants, examines the always thorny problem for contractors of acting without written instructions. How three contracts tackle the issue is examined, but all are found wanting.

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Reports from the courts: July 2011

Our regular round up of cases of most relevance to construction from Professor Michael Furmston of Bristol University includes an appeal court decision relating to set-off; and a decision centring on whether a contract was a construction contract for purposes of adjudication.

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Progress on reforming health and safety?

Injuries and fatalities have decreased considerably in the construction industry over the years, mainly due to the increased legislation in the area.

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State of play table: 162

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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Exclusions of liability under subcontracts

Guest Editor James Doe of Herbert Smith says the legal position is unclear relating to whether liquidated damages are direct or consequential loss. When drafting clauses, he urges identifying losses that should, or should not, remain recoverable from the subcontractor in a ‘carve-out’.

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Legal terms explained: Negligence – the basics

Construction projects are set up using contracts and it is no surprise that the law of contract generally plays a bigger role than negligence. Nonetheless, the law of negligence has an important part to play, especially if there is no contract between the parties. It is therefore worth looking at the basic principles and issues that come up when looking at claims for negligence.

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News in brief: July 2011

Construction disputes are on the rise globally, according to a survey by EC Harris. Disputes take an average of nine months to resolve and are most often caused by poor administration.

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Schools body caned

A new wave of school building using the Private Finance Initiative (PFI) as the procurement route could be unleashed with news that Partnerships for Schools, the body responsible for the abortive Building Schools for the Future (BsF) programme, is to be abolished.

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OFT gives up on appeals

The Office of Fair Trading (OFT) has decided not to appeal against any of the judgements handed down by the Competition Appeal Tribunal (CAT) relating to cover pricing by contractors, and will review its penalty policy for breaches of competition laws.

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Government procurement revolution

Details of what is being hailed as a revolution in government construction procurement strategy have been unveiled, aiming at a 20 per cent cut in costs by the end of this Parliament.

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