Construction News’ Post

📢 Want a quick recap on UK construction disputes developments over the last few months and our predictions for the rest of 2024 🏗 ⚖ ? Delve into our recent and topical article covering a range of issues and insights in this space! Beale & Co Ian Masser Sophie-Rose Bowen #Construction #ConstructionLaw #ADR #Disputes #AI #BuildingSafety

Caroline Watkins and Olivia Nichol recently wrote an article for Thinking Business on deciding whether you have a “construction contract” and why do you need to know? #ConstructionLaw

According to the latest Construction Adjudication Report by the Adjudication Society and King’s College, London, adjudication in construction is functioning well. Adjudication is intended to keep construction work going but what is adjudication and how is it used with construction contracts? TW's Andrew Harbourne discusses. https://lnkd.in/gNsSVb8k

Collateral warranties are NOT "construction contracts"* *mostly The Supreme Court has delivered judgment in Abbey Healthcare (Mill Hill) Ltd v Augusta 2008 LLP (formerly Simply Construct (UK) LLP). Per paragraph 84 of the Judgment, the Court held: (1) "a collateral warranty will be an agreement "for ... carrying out construction operations" if it is an agreement by which the contractor undertakes a contractual obligation to the beneficiary to carry out construction operations which is separate and distinct from the contractor's obligation to do so under the building contract" (2) "a collateral warranty where the contractor is merely warranting its performance of obligations owed to the employer under the building contract, will not be an agreement "for" the carrying out of construction operations". As the vast majority of collateral warranties by definition fall in the second category this means statutory adjudication is not available for disputes arising under collateral warranties. This effectively resets the law as it was before Parkwood v Laing O'Rourke in 2013. With the implication being that disputes under collateral warranties will need to be subject to litigation or possibly arbitration, both of which are more expensive and time consuming, will beneficiaries insist on including contractual adjudication clauses and will parties giving warranties accept that? #construction #engineering #collateralwarranties

NOW SOLD OUT 📅 39 ESSEX CHAMBERS ALL DAY CONSTRUCTION CONFERENCE 2024 📅 Following on from the success of last year, the 39 Essex Chambers annual construction conference will be held on Thursday 3 October, from 11.00 – 16.30. More info: https://lnkd.in/ehDxGMzR Sessions will include: • Building Safety – how do you deal with the impact of the Grenfell Inquiry. (This session will take place following the forthcoming release of the Grenfell Report in September 2024.) • Adjudication – how do you steer your clients successfully through the adjudication process, guidance from recent cases. • Delay and Disruption – what is the impact of contractual liability caps on claims for delay and disruption. • Insolvency – construction is experiencing the highest number of insolvencies in years; how can the risks and challenges be navigated. • Flash updates – case law (including Abbey Healthcare v Augusta; Braceurself v NHS England; Boris Mints v PJSC; the consequences of Churchill v Merthyr Tydfil and ADR. #39Events #ConstructionLaw

On Wednesday, we published our Report '2024 Construction Adjudication in the United Kingdom: Tracing trends and guiding reform', in collaboration with The Adjudication Society. This is the third report in a project examining construction adjudication from the perspective of its users and stakeholders. I discussed the report with Neil Kelly at The Adjudication Society conference in Manchester on 20 November, focusing on its key findings: 🌇 The number of adjudication referrals received by ANBs has reached the highest level on record in the past year at 2,264 📌 Almost 20% of adjudication referrals were adjudicated using a low value or fast-track adjudication procedure (or equivalent) 💷 The most common value of an adjudication claim in the past year was between £125,000 and £500,000  ✅ The leading causes of disputes were inadequate contract administration and lack of competence of project participants  🔷 'Smash-and-grab’ adjudications were the most common category of claim in the past year, according to 63% of individual respondents. They were followed by ‘true value’ (final account) adjudications (38%), ‘true value’ (interim payments) (35%), and loss and expense and/or damages for delay and/or disruption (35%) ⌚ 48% of questionnaire respondents stated that adjudications in the past year were typically completed within 29 and 42 days from the date of the referral notice, whereas 16% of questionnaire respondents stated that the default 28-day period under the Construction Act was the typical length of proceedings. Thank you to the Steering Committee Susan Francombe Lynne McCafferty KC James Pickavance Hamish Lal Partners Jonathan Cope Claire King Kathy Gal and to my research team at King's, particularly Research Associate Aleksander Godhe (Kalisz) who co-authored the report with me. #adjudication #arbitration #construction

We are proud to share that our Firm’s Partner, Hamish Lal, collaborated as a part of the Project Steering Committee for the recently published Report:  “2024 Construction Adjudication in the United Kingdom: Tracing trends and guiding reform”.     This Report provides a comprehensive analysis of UK adjudication practices in the construction sector and highlights key trends observed across the industry in the past three years.     Download the Report here: https://lnkd.in/ejVkJpUz    #adjudication #arbitration #construction #HamishLalPartners

Ontario Construction Act Review Announced: Downey Appoints Glaholt as Lead Attorney General Doug Downey initiates a thorough review of the Ontario Construction Act in collaboration with construction lawyer Duncan Glaholt. The two-phase approach aims to... Read Full Article: https://ow.ly/xmba50QJSv7 #Construction #OntarioConstruction #LegalReform #ConstructionIndustry

💡Navigating Construction Contract Disputes: Key Lessons on Interest Provisions and Adjudication Fees💡 In a recent ruling, A & V Building Solution Ltd v J & B Hopkins Ltd, the UK courts reinforced a key principle—adjudicators’ fees remain final, even when substantive decisions are overturned. ⚖️ This case also highlights the importance of understanding interest provisions, fee finality, and the potential cost implications in adjudication proceedings. . . . #jytlegal #constructionlaw #adjudication #legalinsights #article

Amendments to Ontario’s Construction Act, R.S.O. c. C.30 are poised to continue to shape the construction industry landscape. The amendments received Royal Assent on November 6, 2024, but have not yet been proclaimed in force, and the regulations providing more detail and specificity are currently being drafted by the Ontario government. Before the amendments take effect, it's a good time to look back at how Adjudication has evolved since the 2019 changes to the Act, which introduced Prompt Payment and Adjudication. I have shared my thoughts on this in a recent article in the Ontario Construction News. You can read it here: