These are tough times for contractors. A recent Construction News survey of price prediction data revealed that tender prices are dropping, with an expected average reduction of 3.7% during 2010. In a market where contractors are battling to survive, here are my top three tips for addressing the risk of contractor insolvency.
I’m sure most adjudicator’s would agree that reasons are part and parcel of their decisions. We may not be required to provide reasons, unless requested to do so (for example, see paragraph 22, Scheme for Construction Contracts 1998) but, in practice, when we are making findings on issues of law or fact, it is unusual for adjudicators not to set out the reasoning behind those findings. It ensures your thinking is clear and logical, and providing reasons also assists the parties in understanding why you have reached the conclusions that you have in your decision. Continue reading
There’s no getting away from the fact that the changes to Part II of the Housing Grants, Construction and Regeneration Act 1996 (Construction Act 1996), to be made by Part 8 of the Local Democracy, Economic Development and Construction Act 2009 (LDEDC Act 2009), are important. However, while some things will change, many things will stay the same.
Don’t ignore the amendments and hope they will go away. The ostrich approach, sticking your head in the sand, will quickly backfire. So, what should you do? Continue reading
I sometimes wonder if anyone ever gives thought to when the clock starts ticking and an adjudicator’s fees start accruing. It came up in conversation recently, particularly the question of what happens immediately after an adjudicator receives the papers in an adjudication. Continue reading
We learnt from Fun Boy 3 and Bananarama that “it ain’t what you do it’s the way that you do it… and that’s what gets results”. But how, you might wonder, does that help us enter the arcane world of delay analysis?
I went to a seminar last week on City Inn v Shepherd and learnt much the same thing as Bananarama taught us from one of the speakers – Alan Whitaker – who was Shepherd’s expert witness. Alan’s view was that he had to “get into what the project was all about” and, according to the judge at first instance, he did precisely that: Continue reading
The planned nuclear new build programme in the UK has been the subject of much discussion over the last few years: will the new coalition government support, oppose or be indifferent to it? On a more personal level, how safe is nuclear power and do people want it on their doorstep? Commercially, there have been numerous debates about the economics of nuclear power, not least balance sheet capacity and financing structures that can be utilised for the programme.
Whatever your views, one thing is clear: the UK needs a secure energy supply and this, combined with a commitment to embracing a low carbon economy, has shifted focus away from discussing the hurdles to actually delivering the new nuclear build programme.
I was recently asked whether I think there are any construction disputes that are unsuitable for adjudication.
My answer was simple: no, but…
Imagine you’re stuck on the hard shoulder with a puncture. Do you use the get-you-home tyre you have in the boot, even though it means you can’t go over 50 mph, or do you wait around for a brand new high performance racing slick tyre that can cope with the speed limit (and more)?
The answer, of course, depends on the circumstances and it’s exactly the same when choosing which construction contract to use. In these times of austerity, contracts need to be exactly the right fit for projects as, indeed, do the professional services advising on those contracts. Continue reading
Where one party has carried out work for another, the party who performed the work has (broadly speaking) two options for seeking payment for that work. The choice depends on whether there is a concluded contract and, as always, the facts of the case. If there is a concluded contract, that’s great, bring a claim under that. However, if there is no contract, all is not lost. You may be able to bring a claim under the law of restitution.
Nothing ever seems to go smoothly when a claim under the Third Parties (Rights Against Insurers) Act 1930 is in prospect. Upon insolvency of an insured this provides for the insured’s rights under any insurance policy it holds to be transferred to a third party for the purpose of enabling the third party to claim against the insurer.