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Episode 8 of The Construction Briefing is now available.

This episode covers the latest building safety developments, looking at the Building Safety Bill and the government’s wide-ranging amendments to limit leaseholder liability, allow the government to block developers and construction product manufacturers from operating in the market, imposing financial liability on construction product manufacturers and widening the scope of the building safety levy.

Michelle and Yassir also look at the judgments in Power and another v Shah [2022] EWHC 209 (QB), which considers party wall issues, and Prime London Holdings 11 Ltd v Thurloe Lodge Ltd [2022] EWHC 303 (Ch), where the High Court made an access order under the Access to Neighbouring Land Act 1992 (ANLA 1992).

REUTERS | Ajay Verma

Last year I wrote about the judgment in Davies & Davies Associates Ltd v Steve Ward Services (UK) Ltd, where Roger ter Haar QC (sitting as a deputy High Court judge) granted summary judgment on a claim for payment of an adjudicator’s fees and expenses arising from an adjudication in which the adjudicator resigned prior to issuing a decision.

The matter has now come before the Court of Appeal in Steve Ward Services (UK) Ltd v Davies & Davies Associates Ltd, with Coulson LJ giving the leading judgment. The court upheld the first instance decision and also allowed the adjudicator’s cross-appeal, finding that the judge was wrong to suggest the adjudicator’s decision to resign was erroneous or that he went outside the ambit of paragraph 13 of the Scheme for Construction Contracts 1998.

I think Coulson LJ’s judgment makes some interesting points. Continue reading

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Post Grenfell, many building owners have discovered fire safety defects that need to be remedied. The question is: who should pay?

As has been widely reported, the answer to this is rarely straightforward. There are variety of reasons for this, one of the main ones being that many of the claims against those who carried out the works subsequently found to be defective are now time-barred.

The government is trying to address this issue by extending the limitation period for claims made under the Defective Premises Act 1972 (DPA) although as my colleagues discussed, claims under the DPA are far from straightforward. A simple extension of the DPA limitation period may not be the panacea to the defects crisis that some commentators suggest. Continue reading

REUTERS | Ilya Naymushin

The TCC is no stranger to resourceful arguments. Recently, a particularly ingenious submission proposed that, in construction claims, time begins to run for limitation purposes when a payment notice is, or should have been, issued. In Hirst and another v Dunbar and othersEyre J confirmed that the usual position prevails and that the limitation period commences on completion of the work.

This was an absorbing and wide-ranging judgment, which is particularly pertinent to practitioners who deal with claims for construction work that are filed some time after the works were completed. Continue reading

REUTERS | Athit Perawongmetha

Compared to the restrictions we faced a couple of months ago with the emergence of the Omicron variant of COVID-19, it really does feel as if we are starting to return to some normality, and it was wonderful to see so many construction law professionals at the Society of Construction Law lunch in London last Friday. I had intended to read Morris J’s interesting judgment in John Graham Construction Ltd v Tecnicas Reunidas UK Ltd on the train home, but I sensibly put that off until the weekend, otherwise I fear my ramblings might have been somewhat difficult to discern.

John Graham v Tecnicas Reunidas is an interesting case because of the issues that have arisen from multiple adjudications and two arbitrations (one of which we’re told in the judgment is ongoing), and the impact of an adjudicator’s decision being overturned. Continue reading

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December 2021 saw the publication of the independent review of public sector construction frameworks, commissioned by the Cabinet Office, and led by Professor David Mosey PhD. Mosey was given the brief of creating a new “Gold Standard” for public sector frameworks and framework controls. His report, Constructing the Gold Standard, follows his consultation with over 100 clients, suppliers and advisers highlighting practices which drive successful outcomes and others that impede progress. Continue reading

REUTERS | Violeta Santos Moura

It might have taken a while before we started to see enforcement decisions in Ireland’s High Court arising from adjudications under the Construction Contracts Act 2013 but they now seem to be on a roll, with the latest (John Paul Construction Ltd v Tipperary Co-Operative Creamery Ltd) handed down just a few weeks ago.

This one was all about whether the adjudicator was guilty of some form of procedural unfairness, which the judge decided he wasn’t, and so enforced his decision.  Continue reading

REUTERS | Heinz-Peter Bader

The court may order a stay of a claim pursuant to CPR 3.1(2)(f) where the claimant has previously been ordered to pay the defendant sums in satisfaction of an adjudicator’s decision and the claimant has not done so. That power is exercised, in part, with the “pay now argue later” ethos of the Construction Act 1996 in mind. The key decisions to date (which I discuss below) balance a party’s rights of access to the court against those broader policy objectives.

This post looks at a case in which the TCC applied and expanded the case law in this area, RHP Merchants and Construction Ltd v Treforest Property Co Ltd. Continue reading

REUTERS | REUTERS/ Ilya Naymushin

The issue of whether a parent company guarantee (PCG) creates a secondary liability (as opposed to a primary obligation) has been taxing the courts again.

Reminder: a true “guarantee” is only ever a secondary obligation, governed by the legal doctrine of surety. It is very different from a primary obligation that arises where an indemnity is provided by one party to hold another party harmless in respect of a loss it might suffer as a consequence of a particular event. Whether a primary and/or secondary obligation arises is always a question of drafting and fact. Many employers require a primary obligation as well as a secondary guarantee (for reasons set out below) and it is here that disputes often arise. Continue reading

REUTERS | Arnd Wiegmann

I appreciate that not everyone will agree but, as well as striving to get to the right answer, correctly applying the law, and so on, most adjudicators also want to provide the parties with a decision that is ultimately enforceable by the TCC. I think I also speak for most adjudicators when I say that it comes as somewhat of a relief when we read a judgment on BAILII or the like and we’ve been enforced.

But what about cases where only part of the decision is enforced, and the other part is severed? It is arguable that for the adjudicator it is, to use the language of the Black Knight in Monty Python and the Holy Grail, “just a flesh wound”. However, I can attest to the fact that it is frustrating, having been one of the first adjudicators to be severed back in 2012 in Beck Interiors v UK Flooring Contractors. I was thoroughly annoyed with myself for getting it wrong and only part of my decision was enforced (but I was assured by my peers that “tis but a scratch”).

The above background is a (very) roundabout way of introducing the topic of today’s post – severance – and, in particular, the severance in CC Construction Ltd v Mincione. I blogged about this case in October 2021, and wrote about some of the interesting aspects of the judgment that are relevant to final statement disputes under JCT D&B contracts. At the time, the judge (HHJ Eyre QC) found that the adjudicator had breached the rules of natural justice by failing to consider the set-off defence. He invited further submissions from the parties on whether he could sever the decision so that the remaining element of the sum due could be awarded. The judgment in round two was handed-down on 9 November 2021 by the same judge (who had become Mr Justice Eyre by then, and to whom I offer my hearty congratulations on his elevation). Continue reading