REUTERS | REUTERS/ Ilya Naymushin

The title of my review of the last online FIDIC conference a year ago, FIDIC contracts – a preview of what is to come, now has a somewhat ominous ring to it as for the second year running the International Users’ Conference had to convene online in December 2021 due to the current COVID-19 situation.

It felt a bit more “down to business” than last year with no online networking platform between Zoom sessions, but instead included some excellent, hosted, breakout discussion rooms, which I thought was a great addition. I particularly enjoyed the very open (collaborative) discussion around the new FIDIC Collaborative Contract that is a work in progress. More of that below. Continue reading

REUTERS | Henry Nicholls

Welcome to 2022

I can’t believe it’s that time of year again. It doesn’t seem like five minutes since I was writing a post looking forward to 2021.

Where did 2021 go or, for that matter, 2020 and countless other years before then? As I noted back in 2020, this is the third decade in which I’ve blogged for Practical Law Construction. It is also my 11th looking forward piece (Jonathan helped out in 2019 and 2017).

As regular readers may note, there has been a consistency in what I’ve wished for over the years. However, some may feel reading this is a bit like watching a scene from Groundhog Day… but I have let go of some things (adjudication enforcement in Ireland for example) and I’ve also got a few new items.  Continue reading

REUTERS | Arnd Wiegmann

Ah, witness statements. How often in trial have we rolled our eyes as a witness explains that, while the sentiment of a particular paragraph was about right, they wouldn’t have quite put it like that but “the lawyers wrote it” and it was good enough. Even worse are those occasions when a witness has clearly not recently read any of the documents referred to in their statement and is, instead, intent on telling a different story.

The drafters of the Civil Procedure Rules sought to do away with those little nuggets by Practice Direction (PD) 57AC. This introduced new provisions concerning witness statements for trials in the Business and Property Courts (B&PCs) and has applied to all witness statements signed since 6 April 2021.

The provisions of PD 57AC have recently been considered in two TCC decisions, Mansion Place Ltd v Fox Industrial Services Ltd and Blue Manchester Ltd v Bug-Alu Technic Gmbh and another, and that is what I am going to look at today. Continue reading

REUTERS | Arnd Wiegmann

I’m acutely aware that this blog is being published when many of you will have already broken-up for the Christmas holidays, and quite possibly the last thing you want to be doing is reading work-related content when you could be sipping Bailey’s and watching your favourite Christmas movie (I’ll throw Die Hard, Home Alone and Love Actually into the mix, but not necessarily in that order). I will therefore endeavour to keep this short.

If you cast you mind back to October you might recall that I wrote about CC Construction Ltd v Mincione, which concerned (among other things), the conclusiveness of a Final Statement under a JCT Design and Build Contract, 2011 Edition. Just like buses, a similar case has come along, namely D McLaughlin & Sons Ltd v East Ayrshire Council, which considers the conclusiveness of a Final Certificate under a JCT Standard Building Contract with Quantities, 2011 Edition (it’s the Scottish version but the key clauses are the same).

My thanks to Len Bunton for bringing this judgment to my attention. Continue reading

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Imagine… you own a site. You give an option to a developer to buy that site subject to obtaining planning permission. It gets the planning permission, using planning drawings prepared by a firm of architects that it engages, but the option to buy the site lapses. You sell the site (which now comes with planning permission) to another developer. So far so straightforward, but then the new developer instructs its architects to prepare further plans and construction drawings that rely heavily on the drawings devised for the purposes of the planning application. The original developer (who owns the copyright in the plans) objects.

Surely, they don’t have a case? After all, you own the land and it has the benefit of planning permission based on drawings prepared specifically for the site, so you must own the copyright in any drawings to do with the land.

Oh no you don’t, said the court in the recent case of Lennox Estates Ltd v S&W Ventures Ltd, which provides a reminder of the care that should be taken when purchasing land with planning permission and when re-using plans and drawings obtained by a previous owner or developer when seeking planning permission.

This blog takes a closer look at this case. Continue reading

REUTERS | Daniel Munoz

Many years ago I wrote a blog on how an adjudicator should avoid using idiosyncratic language in their decision. I had in mind a particular judgment (Vision Homes Ltd v Lancsville Construction Ltd), where one party was arguing the decision was void and of no effect because it was vague and ambiguous. It was the judge (Christopher Clarke J) who described the adjudicator’s language as “idiosyncratic”, but also said that it would not have prevented him from upholding the adjudicator’s decision, but for a technical issue to do with his appointment (he was incorrectly appointed and lacked jurisdiction in any event). The adjudicator’s choice of language was also before the TCC later that year, this time in ROK Building Ltd v Celtic Composting Systems Ltd. There the issue centred on whether the adjudicator had directed a payment or simply declared one was due.

However, after that, I don’t recall the matter really troubling the courts. Fast forward 12 years, and once again an adjudicator’s decision-writing is in the spotlight. When you see what follows, you’ll see why I could not resist blogging about it. After all, how often do you see references to baseball, Squiddly Diddly and SpongeBob Square Pants in the same decision? I’m pretty sure I have never referred to any of those in one of my decisions!

We are heading down under to the Supreme Court of the Australian Capital Territory (ACT) and I must thank Julian Bailey for the heads up on this one 😉

Continue reading

REUTERS | Regis Duvignau

An estimated 70% of global carbon emissions come from the building and operation of infrastructure with a staggering seven percent of global carbon emissions coming from concrete alone. If we are to come anywhere close to achieving net zero by 2050, the construction and engineering community must play a crucial and immediate role.

FIDIC, the International Federation of Consulting Engineers, representing over 40,000 companies and more than one million professional engineers, is taking a welcome lead in galvanising the industry to take action to reduce carbon emissions and tackle the climate crisis.

On 11 November 2021, FIDIC published its first Climate Change Charter: a call to action for the construction and engineering community to take immediate steps to meet the United Nation’s Sustainable Development Goals and to support the transition to net zero. Continue reading

REUTERS | Reuters

We often hear cases referred to as having turned on their facts and, if there was ever an example of this it would be the judgment handed down in October 2021 in G&D Brickwork Contractors Ltd v Marbank Construction Ltd. The parties’ names will ring a bell with some of you because, earlier in the year, O’Farrell J refused to grant an injunction restraining G&D from bringing adjudication proceedings, and last month’s judgment from Joanna Smith J deals with the enforcement of the adjudicator’s decision.

I’m partial to the occasional flutter, and I would bet my hat that the facts of this case are so unique that it’s unlikely to be referred to a great deal in the future, let alone be one of the great adjudication reference cases such as Carillion v Davenport. However, don’t let that put you off reading what remains of this blog, as the case nevertheless sets out some of the relevant law where parties litigate prior to adjudicating (I did say the facts were unique…). Continue reading

REUTERS | Alkis Konstantinidis

Here we go again. Good faith is a concept that some lawyers do not like but industry people don’t seem to have a problem with, which is highlighted by the widespread use of the NEC form of contract. I first blogged on good faith and NEC3 in 2014, looking at what clause 10.1 is for and again in 2015, looking at some other NEC3 cases and clause 10.1 and what was then the newly emerging concept of relational contracts.

I said watch this space and, if you did, you may have noticed the great excitement that followed a few years later in 2019 with the decision in Bates v Post Office Ltd (No.3). Commenting on this case, Richard Benn and Rachel Dale told parties choosing to use express good faith obligations that they would be expected to conduct themselves in a manner likely to be regarded as “commercially acceptable”.

This was good advice then and remains good advice now, as highlighted by the Inner House decision in Van Oord Ltd v Dragados Ltd where, as in other earlier cases, the court tried to explain the practical effect of NEC3 clause 10.1 (10.2 in NEC4). Continue reading

REUTERS | Guglielmo Mangiapane

Back in February 2021, I wrote a blog entitled, You must adjudicate before you can arbitrate, where I discussed Lady Wolffe’s judgment in Fraserburgh Harbour Commissioners v McLaughlin & Harvey Ltd. At the time, I said that if parties have a tiered dispute resolution clause in their contract, one thing they shouldn’t do is jump in at the deep end, missing out a step or two on the way, because we know the judges don’t like this (as was proved by Lady Wolffe’s dismissal of the court proceedings in that case).

It seems events have moved on a bit, as not only has there been an appeal in the Fraserburgh dispute (which I’ll come to), but we have another example of parties not complying with the NEC3 dispute resolution clause before the Scottish courts. I have Len Bunton to thank for flagging this week’s case to me, Greater Glasgow Health Board v Multiplex Construction Europe Ltd and others. I had been wondering what to write about … Continue reading