Traditional procurement has come under scrutiny recently and has acquired a poor reputation in some quarters. It is accused of being adversarial, inefficient and fragmented. It is even suggested that lawyers recommending a traditional procurement route may be negligent! Some would have us believe that the grass is greener elsewhere, but I am sceptical.


Another year dawns
Alfred, Lord Tennyson:
“Ring out the old, ring in the new, Ring, happy bells, across the snow:
The year is going, let him go; Ring out the false, ring in the true.”
At the start of the new year, PLC Construction has been reflecting on events in 2010 and looking forward to 2011. Continue reading

What does 2011 hold for the construction industry?
Two years ago I asked the question, “Will the dawn of the new year bring any changes to the construction industry, or will it be more of the same?”.
Over the last two years we have seen significant changes, with the on-going recession resulting in a number of high-profile insolvencies, the first coalition government since the war and the biggest cuts to public spending in decades. I thought that we would see a continued squeeze on cash flow, and an ever-increasing number of disputes. I wasn’t wrong. With the public spending cuts only just starting to bite, now is just the beginning of even more belt-tightening and, as ever, more fall-out in the construction industry. On the plus side, Crossrail and the 2012 Olympic building programme are proceeding and the Olympics at least, is on time. Continue reading

December 2010 digest: Let it snow!
In the words of “Let It Snow”:
“Oh the weather outside is frightful, But the fire is so delightful,
And since we’ve no place to go, Let It Snow! Let It Snow! Let It Snow!”
It has been a cold and snow-filled December. “Let it snow” may have been the last thing people were thinking as large parts of the country ground to a halt and people struggled to get to and from home. Meanwhile, those lucky few in Cancun who were discussing climate change not only enjoyed temperatures of nearer 20 Celsius than zero (or below), but they were also able to seal a deal. Continue reading

Ask the team: what is a dispute in adjudication?
Do I have a dispute under my construction contract?
A dispute is the bedrock of adjudication. Without a dispute, a party has no right to start an adjudication. As section 108 of the Construction Act 1996 tells us:
“A party to a construction contract has the right to refer a dispute [or difference] arising under the contract for adjudication.” Continue reading

Christmas quiz 2010
Once again, it’s time for the Berwin Leighton Paisner Christmas quiz. Why not test your knowledge of construction law? This year’s quiz is as challenging as ever. Continue reading

July to December 2010, a half-year case review
Plato (427 BC – 347 BC), Dialogues, Phaedo:
“The partisan, when he is engaged in a dispute, cares nothing about the rights of the question, but is anxious only to convince his hearers of his own assertions.”
In July, we reported on the notable decisions from the first half of 2010. The second half of the year has also seen a number of important decisions affecting construction and engineering practitioners: Continue reading

Costs of adjudication after Tolent and Yuanda
Under section 108 of the Construction Act 1996, parties to a construction contract have the right to refer a dispute to adjudication “at any time”. Over the years, much has been written about the meaning of “at any time”, but I think its meaning is relatively clear.
Liability for the costs of an adjudication is another issue that has exercised considerable column inches, particularly in recent times, with the amendments to the Construction Act 1996 on the horizon. Generally, for the adjudicator, this issue is very straightforward.
Just occasionally, these two issues collide. Continue reading

A tale of leaks and complex structure theory
A full trial on liability and quantum in a construction dispute is a rare event these days, largely thanks to adjudication, but there has just been such a trial in the TCC. Following some preliminary skirmishes, judgment in Linklaters v McAlpine and others was given on 23 November 2010. Referring to the case as a tale of leaks in Linklaters’ premises makes it sound rather more exciting than it was, but the consequences of water escaping from pipework were no doubt a major problem at the time.

E-mail arrangements over Christmas and new year
‘Twas the night before Christmas by Clement Clarke Moore:
“Twas the night before Christmas, when all through the house. Not a creature was stirring, not even a mouse.
The stockings were hung by the chimney with care, In hopes that St Nicholas soon would be there.”
PLC Construction will send its last e-mail of 2010 next week, to arrive in your inbox on Thursday 23 December 2010. We are then taking a break until the new year.
The first e-mail of 2011 will be sent to arrive in your inbox on Thursday 6 January 2011. This e-mail will include reports of all developments since 23 December 2010.
Merry Christmas and a happy new year.