Construction Law: December 2023

Editor’s comment
Evolution can disrupt more than revolution
The new Procurement Act comes into force next year. Editor Nick Barrett says much detail on how the new regime will work is still awaited, and should be carefully scrutinised when published.

News
Our regular news round up of construction law and procurement stories reports on two highly critical reports of government spending plans for schools and hospitals; and record fines being levied on a landlord and property management company for fire risks.

Legal terms explained
In our latest legal terms explained article Sienna Kim of Herbert Smith Freehills LLP looks at the often thorny issue of retentions.

Guest editor
Getting to the CRUX of project disputes and overruns
Guest Editors Charles Wilsoncroft and Helen Collie of risk mitigation and dispute resolution consultancy HKA explain the thinking behind their company’s research into the causes of project disputes and overruns. The programme, called CRUX, is based on expert diagnosis of claims and disputes.

Legislation state of play table
Our regular update of the progress of legislation and regulatory and Parliamentary scrutiny affecting construction compiled by Construction Law staff writers.

Reports from the courts
Our regular round up of the court cases of most interest to construction comes from Andrew Croft, Ben Spannuth and Daniela Miklova of Beale & Company Solicitors LLP who report on a decision that serves as a useful reminder that the right to adjudication only extends to “construction contracts: as defined in legislation; and one which, although not a construction dispute, reinforces the courts’ approach to exclusion clauses.

Analysis
Public sector investment shortfalls reaching crisis proportions
Nick Barrett looks at what has been a period of unusually heavy criticism of the government and its investment performance in crucial areas of transport, schools and hospitals. Few signs of hope are given that things might change for the better soon.

CL guides
CIS and the VAT reverse charge
Our latest Construction Law Guides series article comes from Tom Manley of DLA Piper, examining how the VAT reverse charge scheme works and recapping on the Construction Industry Scheme tax legislation.

Procurement
Verifying the Gold Standard of Construction Procurement
Professor David Mosey CBE, Centre of Construction Law & Dispute Resolution, King’s College London, explains the newly launched Gold Standard verification scheme for frameworks and alliances, the aim of which is to improve value, reduce risk and achieve net zero on projects.

Claims
Building a case by extrapolation – should failure be the default?
Thomas King of Pinsent Masons LLP analyses recent case law with implications for the process of sampling and extrapolation which allows cost effective ways of dealing with complex claims. Presenting and proving a case before a tribunal on the basis of a sample should not be seen as novel, suspicious, or as requiring a special elevated standard of proof, he argues.

Building Safety Act
Safe as (qualifying tenants’) houses? Leaseholder protection under the BSA 2022
Building safety has had a high profile since the Grenfell tragedy and the introduction of the Building Safety Act, but some provisions in the Act relating to leasehold buildings have been relatively overlooked. Georgia Whiting of Ardmore Construction and Chris Bryden of 4 KBW examine the case law relating to remediation costs and leaseholder contributions under the Act.

Costs
Security for costs: a lottery or an established well-honed process?
In a climate where the financial position of parties to construction litigation is increasingly precarious, Karen Gough of 39 Essex Chambers revisits the principles upon which security for costs may be granted by the Court.

Insurance
The moment of truth – making a claim
Our insurance expert John D Wright of JD Risk Associates looks at the process of making a claim under an insurance policy, which generate a lot of court attention. There are pitfalls for the unwary, he warns – and for the insurers as well.

Alternative dispute resolution
AI’s value in Dispute Resolution is growing – but keep your human brain engaged
In our latest Alternative Dispute Resolution series article Tracey Summerell and Aileen Banks of Dentons UK and Middle East LLP welcome the use of artificial intelligence in the law, but caution against blind over reliance.