Legal

A new approach to smash-and-grab adjudications

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The decision in Flexidig v M&M [2020] EWHC 847 (TCC) demonstrates a ‘third-way’ approach to the ‘smash-and-grab’ adjudication. Here, an adjudicator used s111(8) of the Housing Grants Construction and Regeneration Act 1996 (as amended) to depart from the sum specified in a valid Pay Less Notice (PLN) to determine whether more, or…

Duty of care: cladding remediation activity during COVID-19

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The Grenfell Tower tragedy prompted a radical overhaul of UK building safety regulations. And remediation of unsafe cladding remains a government priority, even in the midst of COVID-19. Contractors with the right skills now have an opportunity to undertake cladding remediation at a time when other projects may have paused.…

EfW case brings clarity to payments under hybrid contracts

Tim Atwood associate CMS

Readers will be aware that the Housing Grants, Construction and Regeneration Act 1996 (the “Act”), which came into force on 1 May 1998, applies to “construction operations” carried out in the UK, save for a certain narrow set of exemptions provided for by section 105, which include the “assembly, installation or…

Don’t duck dialogue about contractual delays

Legal gavel

Earlier this month, the Cabinet Office issued a set of broad guidelines intended to head off a costly wave of contractual disputes in the wake of the coronavirus. While only taking the form of good advice, rather than any kind of legislation to modify contractual terms, it may nonetheless prove…

Business as usual: how adjudications are operating despite COVID-19

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COVID-19 has seen the UK’s courts and tribunals take unprecedented steps to transform the justice system. This means allowing applications and trials to be heard remotely, using telephone and video-conferencing software such as Skype and Zoom, as parties, legal representatives, and everyone in between continues to adapt to home-working. This…

Old debate over performance-bond payouts is settled

katherine butler associate cms

The recent decision of the Technology and Construction Court in Yuanda v Multiplex and ANZ Banking Group has found that an adjudication decision is sufficient for damages to be “established and ascertained” under the Association of British Insurers (ABI) form of guarantee bond. In this instance, Mr Justice Fraser held…

Could PFI be rebooted in the wake of COVID-19?

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The COVID-19 health emergency may prove to be a pivotal moment in the relationship between the public sector and the PFI/PPP industry. When the government published its guidance for schools on key-worker status on 19 March, the list of key workers included those working in the health and social care…

How alleged fraud can derail an adjudication award

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It is only on rare occasions that the courts will refuse to enforce an adjudicator’s decision. This is usually due to the decision being made outside the adjudicator’s jurisdiction or where there has been a breach of natural justice. However, there is another reason why the courts may refuse to…

Drafting a contract? Don’t get caught out by COVID-19

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The COVID-19 pandemic has led to a flurry of contractual worries for many in the construction sector. While there are many fantastic pieces of advice out there, few have touched one knotty problem: contracts that were being negotiated when the pandemic hit. Every contract will invariably differ in its aims…

Contracts and site closures: taking the right steps

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As the coronavirus pandemic spreads, the construction industry is being tested to the limit. In these past two weeks the landscape has changed dramatically for contractors working on site. The new social distancing guidelines, as interpreted into new Site Operating Procedures (SOPs) by the Construction Leadership Council (CLC), have had…