Liquidators can use, but not enforce, adjudication in construction contracts – OUT-LAW.com

‘Companies in liquidation can theoretically refer claims to an adjudicator under construction law but it would be a futile exercise as the decision could not be enforced in most cases, the Court of Appeal in England has ruled.’

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OUT-LAW.com, 4th February 2019

Source: www.out-law.com

Does Cannon v Primus mean an end to general jurisdictional reservations? – Practical Law: Construction Blog

‘It was only published at the end of last week, so I’m not sure if you’ve had chance to look at Coulson LJ’s judgment in Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd, Cannon Corporate Ltd v Primus Build Ltd. If not, then you should. It contains some important stuff about liquidation and CVAs, and when it is appropriate (and possible) to adjudicate if the referring party is subject to one of those processes.’

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Practical Law: Construction Blog, 30th January 2019

Source: constructionblog.practicallaw.com

Practically complete or completely impractical? Navigating the pitfalls of what constitutes practical completion – Practical Law: Construction Blog

‘Many a construction dispute turns on defects. A significant subset of those turn on whether the existence of defects prevents practical completion from taking place. It’s not surprising that these situations are contentious: contractors are keen that practical completion is certified so as to avoid or limit their liability for liquidated damages, trigger the return of retention monies and, often, to bring about an assessment of sums they consider due under the final account. Employers may be understandably reluctant to take possession of a property which they consider defective and by resisting practical completion an employer can put pressure on a contractor by withholding sums that would otherwise become due. Practical completion is therefore an important concept in construction contracts, although one that is often not precisely defined, which can cause uncertainty and hinder the operation of the contract.’

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Practical Law: Construction Blog, 23rd January 2019

Source: constructionblog.practicallaw.com

With friends like these…Burgess v Lejonvarn: Christmas cheer for construction professionals – Practical Law: Construction Blog

Posted December 20th, 2018 in appeals, budgets, construction industry, contracts, costs, duty of care, news by tracey

‘As we all get into the festive spirit you may well find yourself chatting to family or friends about their latest project. Some may ask for your opinion or advice. But don’t get carried away; remember the cautionary tale of Burgess v Lejonvarn before offering any free advice.’

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Practical Law: Construction Blog, 18th December 2018

Source: constructionblog.practicallaw.com

After Makdessi and GPP, the question is, are your LDs commercially viable? – Hardwicke Chambers

Posted December 14th, 2018 in construction industry, contracts, damages, news by sally

‘Liquidated damages (LD) clauses are a fixture of construction contracts. As we all know, they are a secondary obligations to pay an agreed sum of money, arising upon breach of a primary obligation of the contract. In the case of a construction contract, this will invariably be in the event of delay: the failure to complete the works by a specified date.’

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Hardwicke Chambers, 3rd December 2018

Source: hardwicke.co.uk

Synergy Gas Services v Northern Gas Heating [2018] EWHC 3060 (TCC) – Hardwicke Chambers

Posted December 12th, 2018 in construction industry, contracts, enforcement, news by sally

‘An adjudication decision was made in favour of Synergy Gas Services against Northern Gas Heating on 8 August 2018. The present case concerns an application by Synergy Gas Services for enforcement of the adjudication award.’

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Hardwicke Chambers, 3rd December 2018

Source: hardwicke.co.uk

Letters of intent – what you need to know – Hardwicke Chambers

Posted December 12th, 2018 in construction industry, contracts, interpretation, news by sally

‘With the recent Court of Appeal decision in Arcadis Consulting v AMEC [2018] EWCA Civ 2222 highlighting the risks involved in working under a letter of intent, it is worth having a recap on this area of law.’

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Hardwicke Chambers, 5th November 2018

Source: hardwicke.co.uk

Mears Limited v Costplan Services (South East) Limited & Others [2018] EWHC 3363 (TCC) – 4 New Square

Posted December 11th, 2018 in construction industry, contracts, housing, landlord & tenant, leases, news by sally

‘Mears Limited v Costplan Services (South East) Limited & Others [2018] EWHC 3363 (TCC) concerned the development of student accommodation in Plymouth. Mears Limited (“Mears”) alleged that there were substantial and material deviations from the contractual drawings and sought declarations preventing the certification of practical completion, the practical effect of which was to allow Mears to terminate its agreement to take a lease of the accommodation.’

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4 New Square, 10th December 2018

Source: www.4newsquare.com

Government to review safety advice amid new high-rise cladding fears – The Guardian

Posted November 28th, 2018 in building law, construction industry, fire, health & safety, news, regulations by tracey

‘The government has ordered a review of building safety advice amid concerns that scores of tall buildings fitted with combustible cladding and insulation may have been missed by a testing programme following the Grenfell Tower fire.

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The Guardian, 27th November 2018

Source: www.theguardian.com

Commercial Court upholds hot works “exclusion” in Contractor’s Liability Policy – Practical Law: Construction Blog

Posted November 27th, 2018 in appeals, Commercial Court, construction industry, contracts, fire, insurance, news by tracey

‘Aspen Insurance UK Ltd & Liberty Mutual Insurance Europe Ltd v Sangster and Annand Ltd is a case that concerns a fire at a Scottish hotel, and liability under a Contractor’s Liability Insurance policy. It was heard by HHJ Waksman QC (as he then was) in the Commercial Court in June and, earlier this week, the Court of Appeal refused permission to appeal.’

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Practical Law: Construction Blog, 23rd November 2018

Source: constructionblog.practicallaw.com

North Midland Building v Cyden: apportioning risk for concurrent delay in the UAE – Practical Law: Construction Blog

‘In North Midland Building Ltd v Cyden Homes, the Court of Appeal held that parties to a construction contract are free to apportion risk in the event of concurrent delay.’

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Practical Law: Construction Blog, 7th November 2018

Source: constructionblog.practicallaw.com

Saved by silence: Letters of intent and Arcadis v Amec – Practical Law: Construction Blog

Posted October 26th, 2018 in construction industry, contracts, news by tracey

‘Employers under construction contracts often find themselves under time pressure to get started with construction of their projects prior to concluding negotiations with their preferred contractor and before the building contract is entered into. In such a scenario, employers commonly choose to rely on a letter of intent. This should give the contractor comfort to proceed with certain elements of the construction works, while the parties continue to negotiate the full contract terms. Unfortunately not all “letters of intent” are clearly formulated in advance, and the parties may find themselves proceeding with the works on the basis of a series of exchanges and correspondence, as was the case in Arcadis Consulting (UK) Ltd v AMEC (BSC) Ltd.’

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Practical Law: Construction Blog, 24th October 2018

Source: constructionblog.practicallaw.com

‘Common sense prevails’ when work began before contract finalised – OUT-LAW.com

Posted October 23rd, 2018 in appeals, construction industry, contracting out, contracts, limitations, news by sally

‘The Court of Appeal has upheld a limitation of liability clause negotiated between the parties on a defective construction project, when work began before the parties formalised those terms.’

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OUT-LAW.com, 23rd October 2018

Source: www.out-law.com

Ointment for a sting: Arcadis Consulting v AMEC – Practical Law: Construction Blog

Posted October 15th, 2018 in appeals, construction industry, contracting out, contracts, limitations, news by tracey

‘The Court of Appeal has come to the aid of Arcadis Consulting (UK) Ltd by overturning Coulson J’s judgment in ​Arcadis Consulting (UK) Ltd v AMEC (BSC) Ltd – a case described by the judge as one “with something of a sting in its tail”. The sting in question was Coulson J’s finding that a contract between Arcadis and AMEC did not incorporate any term that limited Arcadis’ liability. As a result, Arcadis faced a potential loss of £40 million.’

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Practical Law: Construction Blog, 12th October 2018

Source: constructionblog.practicallaw.com

Construction and the Modern Slavery Act: Tackling exploitation in the UK – Home Office

Posted October 9th, 2018 in construction industry, reports, trafficking in human beings by tracey

‘This report examines the UK construction industry’s response to the Modern Slavery Act.’

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Home Office, 9th October 2018

Source: www.gov.uk/home-office

Combustible cladding ban set to be announced – BBC News

Posted October 1st, 2018 in construction industry, fire, health & safety, news by sally

‘Combustible cladding is to be banned for all new schools, hospitals, care homes, student accommodation and residential buildings in England above 18m (60ft).’

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BBC News, 30th September 2018

Source: www.bbc.co.uk

Arbitration clause “trumps” Part 8 application to overturn adjudicator’s decision – Practical Law: Construction Blog

Posted September 20th, 2018 in arbitration, construction industry, contracts, costs, news, stay of proceedings by tracey

‘When I was a kid, Top Trumps were all the rage. I know from my own boys that they still are. Back then, it was all about whether you had the fastest car or the most popular footballer (even Star Wars characters featured, but how did you decide if Hans Solo was better than Princess Leia?). Now, just about every topic is covered by a set of cards.
I mention this because a recent TCC judgment demonstrates that the arbitration clause in the JCT standard building contract can “trump” a Part 8 application for declaratory relief, with the court granting a stay of those Part 8 proceedings.’

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Practical Law: Construction Blog, 18th September 2018

Source: constructionblog.practicallaw.com

Risky business: Offshore drilling and using force majeure as an exit route – Practical Law: Construction Blog

Posted September 12th, 2018 in construction industry, contracts, news by tracey

‘A contract can be a long term commitment. Over the course of a contract, things happen. Circumstances change. Force majeure clauses generally allow parties to allocate contractual risk, by limiting liability, excusing performance or providing for termination, if unusual or unfortunate circumstances arise. However, the recent case of Seadrill v Tullow reminds us that it is not all that easy for a party to seek to avoid obligations it has freely undertaken.’

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Practical Law: Construction Blog, 10th September 2018

Source: constructionblog.practicallaw.com

Discontinuance, costs, and multiple Defendants: BAE Systems Pension Funds Trustees Ltd v Bowmer & Kirkland Ltd [2018] EWHC 1222 (TCC) – Zenith PI

Posted September 12th, 2018 in construction industry, contracts, costs, news, warehousing by tracey

‘This case is a reminder, if any were needed, of the difficulties facing Claimants in deciding whether or not to pursue multiple Defendants.’

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Zenith PI, 10th September 2018

Source: zenithpi.wordpress.com

Vinci v Beumer: the case that keeps on giving (and giving) – Practical Law: Construction Blog

Posted September 6th, 2018 in appeals, arbitration, construction industry, contracting out, contracts, news by tracey

‘It is the start of autumn and July seems a long way off now, with the summer holidays all over and the World Cup just a distant memory. Consequently, it may be easy to have forgotten about Vinci Construction UK Ltd v Beumer Group UK Ltd, which had its latest outing in the TCC at the end of that month. This time it was Jonathan Acton Davis QC (sitting as a deputy High Court judge) who enforced the adjudicator’s decision and dismissed Beumer’s (the sub-contractor) arguments that the adjudicator was in breach of the rules of natural justice.’

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Practical Law: Construction Blog, 4th September 2018

Source: constructionblog.practicallaw.com