Construction News

Post-Insolvency Adjudication and Third-Party Funding

There has been a long-standing debate regarding the (in)compatibility of the statutory adjudication regime and the assessment of the respective liabilities of parties after one of them has entered an insolvency process. One particular aspect of the debate is...

When is a payment notice valid under a hybrid contract? The confusion around "construction operations" continues

The decision in C Spencer Ltd v MW High Tech Projects UK Ltd has provided some useful clarity on whether the distinction between construction and non-construction operations is necessary for serving a valid payment notice under the Construction Act 1996...

Collateral Warranties - when your claim is kicked into touch Part 2

Readers may recall the discussion in the September 2018 issue on the case of Swansea Stadium Management Company Ltd v City & Country of Swansea & Anor which concerned the limitation period for bringing claims under collateral warranties. In...

Clarification of Delay Damages post-termination: Better late than never

The question of whether an employer is entitled to levy Liquidated Ascertained Damages (LADs) after the employment of the contractor has been terminated has received some welcome clarification from the Court of Appeal. Previous Court Decisions The...

Ground control - when risk allocation isn't what it seems

The allocation of risk for unforeseen ground conditions is often a key part of building contract and development agreement negotiations. Employers will generally seek to shift this risk onto the contractor (as the expert whose skills the employer is relying...

Are we finished yet? - what does the "practical" in practical completion really mean?

Whilst the NEC and PPC2000 contracts define completion , the only JCT contract which does so is the Major Project Form which simply lists a number of requirements to be satisfied before practical completion (PC) can be certified. Given that the vast...

Insolvent Abuse - a warning for companies in liquidation

The judgment in Michael J Lonsdale (Electrical) Ltd v Bresco Electrical Services Ltd (in Liquidation) concerned the issue over whether a company in liquidation may pursue adjudication proceedings in order to claim payment of monies alleged to be due. ...

Collateral Warranties - when your claim is kicked into touch

In Swansea Stadium Management Company Ltd v City & County of Swansea & Anor , the court provided some useful guidance as to when claims made under collateral warranties are time barred. This case concerned alleged defects at the new Swansea City...

It's only a matter of time - or is it?

Since the TCC’s decision last year on concurrent delay in the case of North Midland Building Ltd v Cyden Homes Ltd , the industry has been keenly awaiting the outcome of North Midland’s appeal.  The dispute concerned contractual terms in...

Run for Cover - or when is an insured not an insured?

In Haberdashers' Aske's Federation Trust Ltd and another v Lakehouse Contracts Ltd and another the Court provided guidance in relation to project insurance and whether sub-contractors who have existing insurance obligations can benefit from...
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