Construction Law: May 2024

Editor’s comment
Work will flow soon from giant water investment programme
The water industry’s giant AMP 8 investment programme will place procurement under the spotlight, says Editor Nick Barrett.

News
Our regular news round up includes a survey saying collaboration is on the rise; Network Rail promises a partnering approach in its new framework; and a warning that carbon reduction policy risks legal challenge.

Legal terms explained
Isabella Salame of Herbert Smith Freehills LLP explains what is meant by non-delegable duties.

Guest editor
JCT 2024 ducks the difficult issues
JCT’s Design and Build contract has been updated for the first time in eight years. Guest Editor Barry Hembling of Watson Farley & Williams LLP asks whether the updates are keeping pace with fast moving developments in construction law?

Legislation state of play table
Our regular update on the progress of regulations and legislation affecting construction and procurement compiled by Alignment Media.

Reports from the courts
Our latest Reports From the Courts series article comes from Andrew Croft, Ben Spannuth and Daniela Miklova of Beale & Company Solicitors LLP who look at a judgment confirming that, whilst a defect must be more than only aesthetic or inconvenient, the design intent of the property in question is relevant and that the measure of damages must reflect the likely outcome had the services been provided in a professional manner; and another that provides some clarification for parties seeking or responding to Building Liability Orders.

Analysis
Construction awaits clarity on energy investment
Is the UK making credible progress towards securing our energy supplies or is it, as researchers suggest, actually going backwards in terms of achieving commitments made only two years ago?

“Worst client in the UK” issues revised terms and conditions
New, in-house terms and conditions of contract are to be used by Transport Scotland for the Tay Crossing to Ballinluig project, part of the much delayed £3.7 billion A9 Dualling programme. This might be good news, but given that the new terms and conditions are being issued by the alleged “worst client in the UK” should any great hopes be raised just yet?

CL guides
Force Majeure, Frustration and Construction Contracts
In our latest Construction Guides series article Tom Manley of DLA Piper UK LLP explains the legal principles behind Force Majeure clauses and their practical implications.

Artificial Intelligence
The Future of Artificial Intelligence in Resolving Construction Disputes
Andrew Drennan and Niall Tutt of Alvarez & Marsal Disputes and Investigations review the role of the construction expert in conjunction with the rising use of artificial intelligence (AI). Disputes might benefit from early analysis of delays, cost overruns and evidence-based mitigation made possible.

Contractor insolvency
Where there is a (living) will, there is a way
Isobel Moorhouse and Jane Hughes of Trowers & Hamlins LLP explain what a ‘Living Will’ is, and ask whether the concept be adapted by employers to apply to contractor insolvencies?.

Adjudication
Smash and grab adjudications – getting your money back
Doug Wass of Macfarlanes argues that the Construction Act has been working in so far as industry cash flow has been improved, but the principle that a payor must pay the payee the Notified Sum if the payor fails to issue a valid payment notice or pay less notice has given rise to some risks of injustice that the courts are still grappling with.

Arbitration
Restructuring versus arbitral awards – will the debt survive?
Paul-Raphael Shehadeh of Duane Morris analyses a dispute that will be of great interest to insolvency and international arbitration practitioners, that highlights the benefits of a negotiated dispute settlement.

Insurance
Joint names clauses under scrutiny again
Our insurance expert John D Wright of JD Risk Associates examines Joint Names Clauses which have been in use for over 40 years and were hoped to result in less litigation, but the industry still struggles to gain the benefits and court analysis of clauses themselves is common.

Alternative dispute resolution
Conditions Precedent and Amendments to Contract – a Cautionary tale for Scottish Contractors
Cheryl Ferguson of Dentons UK and Middle East LLP looks at a Scottish case that provides a cautionary tale on acceptance of amendments that rob the contractor of alternative routes of recourse.