‘The UK’s Competition and Markets Authority (CMA) will target “industries that are at a greater risk of cartels forming” as part of a new campaign to crack down on anti-competitive behaviour.’
OUT-LAW.com, February 2018
Source: www.out-law.com
‘Do long-term contracts need to be construed in a particular way? Do contracts that require the parties to work together and cooperate over a period of many years have their own special rules? Do they demand special treatment when it comes to questions of contractual interpretation? Those are some of the questions raised by the judgment in Amey Birmingham Highways Ltd v Birmingham City Council, in which the Court of Appeal had to grapple with the complexities and oddities of a PFI contract.’
Practical Law: Construction Blog, 27th February 2018
‘One of the interesting features of the recent decision of Coulson J in Ziggurat (Claremont Place) LLP v HCC International Insurance Company Plc is the effect on a guarantee of a contractor becoming insolvent many years after a construction project has been completed. In Ziggurat, the amended ABI model form of guarantee bond had not yet expired. This allowed the employer to make a claim under the guarantee arising out of the contractor’s insolvency, notwithstanding the fact that the contractor’s employment had already been terminated and the project had achieved practical completion.’
Practical Law: Construction Blog, 21st February 2018
‘Changes to England’s planning policy could finally come into effect this summer, more than a year after initial legislation was published, as housebuilders pin difficulties getting more homes built on the complicated system.’
Daily Telegraph, 12th February 2018
Source: www.telegraph.co.uk
‘In 2014 we posted “Ignorance of the Faculty Jurisdiction Rules is no excuse…”, and expanding on this theme, “Risks of disregarding the faculty jurisdiction” in June 2016. The recent case Re St Peter & St Paul Pettistree [2017] ECC SEI 6 concerned a “deliberate and avoidable” breach of the terms of the faculty by a professional on the list of DAC-approved architects.’
Law & Religion UK, 6th February 2018
Source: www.lawandreligionuk.com
‘I haven’t blogged about alleged breaches of natural justice for a while, so here goes with the first reported judgment from Joanna Smith QC, who was sitting as a deputy High Court judge in the TCC. In my view, the judgment in Victory House General Partner Ltd v RGB P&C Ltd is very well written: it is clear, concise and very readable. Before diving into the natural justice issues, I should just mention the warning about using Part 8, a warning that Jefford J first gave last year in Merit Holdings Ltd v Michael J Lonsdale Ltd. I looked at that judgment at the time and note Victory House is another example of a case where the TCC is trying to crack down on what the judges perceive to be an abuse of the Part 8 process.’
Practical Law: Construction Blog, 6th February 2018
‘Over the past few months, a number of large construction companies have been making headlines for facing severe financial difficulties. However, sub-contractor insolvency can also cause considerable problems for other parties on construction projects who have contractual relations with that party.’
Practical Law: Construction Blog, 24th January 2018
‘I read the decision in Ziggurat with some incredulity. I hadn’t intended to trespass on Karen Spencer’s territory, and overall I’d agree with her conclusion that the amendments made to the ABI form seem to have confused rather than clarified matters. I’d also agree with Roddy Cormack’s comment that more radical surgery is needed if the employer wishes to secure earlier payment following the contractor’s insolvency. But I did want to offer some thoughts on what the decision tells us about wider issues in the surety bonding market.’
Practical Law: Construction Blog, 17th January 2018
‘Nearly 20 years after the Construction Act 1996 was introduced to stamp out bad payment practices, you would be forgiven for thinking there must be a voluminous pile of case law in relation to the all-important final account. But you would be disappointed. While there is plenty of guidance from the TCC on interim payments, the courts have not had much to say about final accounts, particularly post 2011. This is why Systems Pipework Ltd v Rotary Building Services Ltd is so welcome. Coulson J draws together the authorities on interim and final account payments and concludes (in a characteristically clear and to the point judgment) that the same rules apply to both.’
Practical Law: Construction Blog, 20th December 2017
‘One of the fears relating to adjudication is that a referring party will attempt to achieve success by grinding the responding party down through serial adjudications until it achieves the result it wants or the responding party gives in. In Benfield Construction Ltd v Trudson (Hatton) Ltd, Coulson J issued a clear warning that such an approach would not be condoned, stating.’
Practical Law: Construction Blog, 20th December 2017
‘Staff turnover in the construction industry can be particularly high and finding the right person to give evidence on all issues in a case can sometimes be difficult. Parties are often suspicious when they know there is someone who should be able to give evidence for their opponent, but whom their opponent does not plan to call. There is an obvious risk in a party calling that witness when there has been a seemingly positive pre-existing relationship with the opposing party. Consequently, it is more common for a party to invite the court to draw an adverse inference where a witness should have been called to give evidence, but is absent from the proceedings.’
Hardwicke Chambers, 22nd November 2017
Source: www.hardwicke.co.uk
‘Speech by Lord Justice Jackson: Does good faith have any role in construction contracts?’
Courts and Tribunals Judiciary, 29th November 2017
Source: www.judiciary.gov.uk
‘Construction analysis: One year after the second edition of the Pre-Action Protocol for Construction and Engineering Disputes (the Protocol) came into force, David Pliener looks at how it has been used in practice. He notes that while it has generally been well-received, the Protocol’s full impact has not been felt yet, and there are still areas where uptake has been slow. Nevertheless, over the past year, indications point to the overall success of the new regime.’
Hardwicke Chambers, 3rd November 2017
Source: www.hardwicke.co.uk
‘It is often the case that, when parties negotiate the parties’ rights to terminate a contract on particular terms, one party will often wish to have an opportunity to rectify any potential termination default that they have committed, whereas the other will wish to retain the discretion to determine when a contract will come to an end in the event of a termination event. The issue in the case was essentially about contractual interpretation, and a conflict within a termination clause which meant either the main contractor was entitled to serve a termination notice immediately on its subcontractor, or that there was a requirement that the main contractor provide an opportunity to the subcontractor to remedy the default before serving a termination notice.’
Hardwicke Chambers, 16th November 2017
Source: www.hardwicke.co.uk
‘A plethora of issues were raised, and disposed of, by Fraser J’s recently handed-down judgment in Riva Properties and others v Foster + Partners Ltd, the most awkwardly entertaining one being the sense of pantomime arising from the court’s clear disapproval of the architect’s behaviour, which was described at various stages as “grubby”, “disingenuous” and “wholly unprofessional”.’
Hardwicke Chambers, 10th November 2017
Source: www.hardwicke.co.uk
‘The recent decision in Riva Properties Ltd v Foster + Partners Ltd, considers the duties that an architect owes to its client, specifically in the context of working in accordance with the client’s budget. Helena White and Matt Malloy have recently written about issues of contributory negligence and evidence arising out of the case. One of the most interesting aspects of the decision for me is that, over the course of a searing 313 paragraph judgment, Fraser J delivers a forceful reminder that client service is at the heart of the construction industry. Although the case specifically concerns the provision of architectural design services, it is a cautionary tale of the consequences of failing to put clients’ objectives first, which is just as relevant to lawyers, professional advisers of any specialism and indeed to all parties involved in the delivery of construction projects.’
Practical Law: Construction Blog, 15th November 2017
‘In Interserve Construction Ltd v Hitachi Zosen Inova AG, the court was asked to interpret the termination provisions of a contract to determine whether there was a condition precedent clause.’
Practical Law: Construction Blog, 15th November 2017
‘When I read Fraser J’s judgment in Riva Properties Ltd v Foster + Partners Ltd, the thing that struck me was how, in adjudication, we don’t always get the benefit of seeing the evidence tested to the same degree as you do in court or arbitration proceedings.’
Practical Law: Construction Blog, 14th November 2017
‘On 1 May 2018 it will be 20 years since the Construction Act 1996 came into force. I think it is fair to say that, despite initial reservations by some about its introduction, most people would agree that, overall, the statutory adjudication and payment provisions have been successful. That said, like any adolescent, its teenage years have been somewhat difficult, which is mainly down to the 2011 amendments (introduced by Part 8 of the LDEDC Act 2009) to both the Act and the Scheme for Construction Contracts 1998.
Therefore, I was delighted to receive an email from a friend a couple of weeks ago letting me know that the Department for Business, Energy & Industrial Strategy (BEIS) had published a consultation on the 2011 amendments. The consultation can be accessed here and you have until 19 January 2018 to submit your thoughts.
Not only that, but the government has also published a consultation on the practice of cash retention under construction contracts (with the same January deadline). Although it is a very relevant and worthwhile consultation, it is the consultation on the 2011 amendments that I want to focus on today.’
Practical Law: Construction Blog, 7th November 2017
‘In Adam Architecture Ltd v Halsbury Homes Ltd [2017] EWCA Civ 1735, the Court of Appeal has confirmed that section 111 of the Construction Act 1996 (and the requirement to serve pay less notices) applies to payments due following completion or termination of a contract, as well as interim payments.’
Practical Law: Construction Blog, 2nd November 2017
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