Articles in ‘Construction and Engineering’ Category

The Court of Appeal has today handed down its decision on the appeal by Grove Developments Limited against the first instance decision by Coulson J, in which he decided that a party who had failed to issue an effective payment or pay less notice against a contractor’s application for interim payment could refer a dispute as to the true value of the Contractor’s works to adjudication.

This week saw Parliament speak out against a No Deal Brexit, the Leader of the Opposition encourage the Government to rule out a No Deal Brexit, and Brussels confirm that a negotiated orderly exit is the preferred option. And yet, despite all this, in the absence of a definite deal, commentators suggest that No Deal is still the default, and most likely, scenario.

Less than 12 months ago, large areas of the country were affected by snow, and the consequences for many construction projects carried on long after the snow had melted.

When a football club is aiming to win a league title, it employs individual players to form a team. The club signs contracts with the players, and pays each player as per their own contract terms. The club takes responsibility for the outcome of the season, and for the individual player performances along the way. The club also employs a manager to direct and enthuse the team to work towards the same goal; winning games at each stage to ultimately lift the trophy at the end of the season, and for the club to win the league title.

Mears Limited v Costplan Services (South East) Limited & Others [2019] EWCA Civ 502

EDF announced this week that the estimated completion costs for the Hinkley Point C project have now spiralled again to between £21.5 billion and £22.5 billion.

With the outcome of yesterday’s general election now resoundingly clear, the incoming government needs to recognise the crucial role the construction and energy sectors will have to play in driving the UK’s economic growth, and in improving standards of living in the years ahead. Issues such as housing, infrastructure and climate change will need to feature highly on the list of the government’s priorities.

At this stage before a budget, we normally have a fair idea of what might be in store. Bearing in mind the unexpected recent resignation of the Chancellor just weeks beforehand, the impact of the Heathrow ruling on the government publishing the National Infrastructure Strategy, and the unpredictable economic outlook following fears of the spread of coronavirus, this is not an ordinary time for a budget.

Although the construction sector is amongst those for which the UK Government has this week released return to work guidelines, it is an industry where the concept of social distancing and lockdown was ambiguously applied. So what do the new guidelines actually mean, and will they change anything?

The UK construction industry has shown its metal in a time of crisis over the last few months by pulling together and working cohesively to achieve common goals.

In a recent decision (Bresco Services Limited v Michael J Lonsdale [2020] UKSC 25) the Supreme Court has held that an insolvent company retains the right to refer a dispute to adjudication, and only in ‘very exceptional circumstances’ should the court restrain the exercise of that right.

Is the Government’s announcement of support for infrastructure a boon for the construction sector, or does it have the potential to create a two-tier industry?