Adjudication can be a very flexible process, despite the prescriptive nature of the Construction Act 1996 and the Scheme for Construction Contracts 1998. Provided 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
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.
With the country in the midst of the worse economic decline for decades, insolvency is often in the headlines. The construction industry has seen more than its fair share of insolvencies, with a number of high profile companies falling victim to the recession. We have seen some big names disappear (David McLean, Mann Construction, Pettifer Construction to name but a few). Most recently, Ashford Construction and William Verry both went into administration. Experts predict that, as with the recession in the 1990s, things will get worse before they get better, as the country comes out of recession. Continue reading
The third party insolvency exception to pay-when-paid clauses is a contraversial one. Many will say that is a shame that the Government did not take more notice of the industry and removed this exception when it published its proposed amendments to the Construction Act 1996 at the end of last year. Continue reading
You would be amazed by the number of cases I come across where otherwise sane and rational people agree to employ a builder to carry out major and expensive works to their home on the basis of little or no formal record of:
In July 2008, the Olympic Delivery Authority (ODA) committed itself to achieving ten key milestones by 27 July 2009. (The Olympics will start on 27 July 2012.) According to its recent publication, the ODA has achieved all ten milestones ahead of schedule. Continue reading
My heart sank when I read the judgment in Primus v Pompey. It’s a case that all adjudicators should read and take note of. Continue reading
We recently attended a seminar at Pinsent Masons’ offices, presented by Sam Boyling and James Clarke. The topic was defective work; something that is all too familiar to those involved in the construction industry. Defects can range from de minimis items often included in a snagging list at practical completion (PC), to undetected problems, such as issues with the design of foundations, which may compromise the structural integrity of a building.
What is the practical value of step-in rights in collateral warranties? I ask because a number of people have recently questioned me about such rights in the context of a development project: who requires them and in which warranties?
June saw the JCT publish its official “guides” to the changes included in the 2009 revisions to its standard form contracts. Unlike previous JCT guides, these do not give a detailed description of the changes made by the 2009 Revisions. We’ve been looking at the JCT Standard Building Contract, 2005 edition (SBC05). To assist construction practitioners who would otherwise have to carry out their own comparison of the changes, we are working through the amendments and publishing as we go. Continue reading