Monthly Archives: July 2009

REUTERS | Ronen Zvulun

The adoption of Project Bank Accounts (PBAs) is one of the key elements in the Office of Government Commerce’s (OGC) drive to promote fair payment practices in the construction industry. So, with the draftsmen of the JCT, NEC and PPC2000 contracts vying for the prize of most OGC-compliant standard form, it comes as no surprise that they have all issued specimen PBA clauses for use with their respective contracts.

This post is the first of two examining the PBA documentation issued by the JCT. This week, I consider the format and purpose of the JCT PBA, together with the trust provisions that are intended to protect sub-contractors in the event of contractor insolvency. Continue reading

REUTERS | Adrees Latif

On 14 July 2009, PLC Construction attended a conference entitled “What does climate change mean for construction?”, organised by the Construction Industry Research and Information Association (CIRIA) and sponsored by Defra.

At the conference a representative from UK Climate Impacts Programme (UKCIP) introduced UK Climate Projections 2009 (UKCP09), its latest climate predictions for the UK during the 21st century. Continue reading

REUTERS | Jumana ElHeloueh

We have continuously been told that if you fail to issue a valid withholding notice, you have to pay the sum which is due and you have lost your right to set-off and generally argue anything to the contrary.

That is certainly true in cases concerning interim certificates and adjudication (where the adjudicator’s decision is only temporarily binding), but is it always the case?  Is the answer so black and white?  Certainly, having read Mr Justice Coulson’s recent judgment in Fitzroy Robinson Ltd v Mentmore Towers Ltd, I think there are some shades of grey. Continue reading

REUTERS | Navesh Chitrakar

Adjudication can be a very flexible process, despite the prescriptive nature of the Construction Act 1996 and the Scheme for Construction Contracts 1998Provided both parties agree, the timetable can be adapted to suit the parties and, in some instances, the adjudicator. This flexibility can apply to any aspect of the process, including the conduct of the adjudication. It can even extend to how the adjudicator delivers his decision. Continue reading

REUTERS | Lisi Niesner

Current market conditions mean there may be valid commercial reasons why a developer may not want to build out a development. Equally, there may be valid commercial reasons why a purchaser may not want to continue with its purchase of a completed development. This issue was the focus of a recent case, Menolly Investments 3 SARL v (1) Cerep SARL (2) Menolly Homes.

Continue reading