Managing and securing the cash flow of any business enterprise is of paramount importance, and contracting parties in the construction industry are no exception to this. If regular cashflow from the main contractor to its subcontractors and the supply chain is disrupted, parties to the project may soon find themselves in difficulty. The purpose of … Continue reading Conditional payment clauses in the UK and Middle East
Dickie v McLeish has come before the Scottish courts again on the issue of severing an adjudicator’s decision. The Inner House’s judgment is a helpful one stop shop for those considering the question of severance in respect of enforcing an adjudicator’s decision in both Scotland and England and Wales.
With construction and infrastructure sites increasingly operative around the world, and most governments keen to lift lockdown restrictions more broadly across their economies, it seems like an opportune time to ask ourselves what we have learnt about supply chains during the unprecedented times (in peacetime at least) we have been journeying through, and what that … Continue reading Global supply chains in the COVID-19 era: 10 things we have learned so far…
Parties to construction contracts often include clauses in their contracts seeking to exclude claims for indirect and consequential losses, believing that such clauses are likely to prevent claims for financial losses such as lost profits and business interruption. Contracting parties may consider such financial losses to be beyond the ordinarily recoverable losses flowing from a … Continue reading Indirect and consequential loss exclusions – is it time for change?
The use of unmanned aerial vehicles (UAVs) or drones, as they are more commonly known, as data collection platforms to service a diverse range of civilian and commercial uses is an area that has grown rapidly in recent years. This has been aided by a decrease in the cost and an increase in the reliability … Continue reading Drones in construction – designing for urban air mobility
In a case that might cause alarm to firms providing expert witness services, the Technology and Construction Court (TCC) issued a judgment this month finding that experts may owe a fiduciary duty to their clients preventing their firms acting for other parties in related proceedings. In A Company v (1) X, (2) Y, (3) Z, … Continue reading Expert witnesses – what is the scope of their duty?
Unsurprisingly 2019 novel coronavirus disease (COVID-19) and its impact on construction contracts has been a key concern for our clients recently. Many of those clients use a JCT form of contract, usually with amendments.
The TCC has just handed down judgment in Yuanda (UK) Company Ltd v Multiplex Construction Europe Ltd and another, which will be of interest to the construction industry as it deals with how ABI-type performance bonds operate. Background In July 2014, Yuanda entered into a sub-contract with Multiplex for façade works on a major project at … Continue reading Yuanda v Multiplex – “ascertaining” damages pre-adjudication under ABI bond
At the start of a new decade where automated, self-executing smart contracts are likely to become more commonplace, perhaps also in the construction sector, it is interesting to consider how such a development might impact construction dispute resolution processes. A smart contract is simply a computer protocol intended to facilitate, verify and enforce performance of … Continue reading Thoughts for the new decade: smart contracts, blockchain and construction dispute resolution
2020 is looking to be a year in which the tax burden of companies operating in the UK construction sector is likely to increase. This is due, first, to the delayed implementation of the VAT reverse charge (now 1 October 2020) and secondly, to major changes in the UK tax treatment of off-payroll workers. In … Continue reading Taxation of personal service companies and the construction sector: what is changing and who will be affected?
Recent decisions considering time bars and notification provisions have generated considerable commentary and discussion over the last few months. One of these is Boskalis Offshore Marine Contractive BV v Atlantic Marine and Aviation LLP (the “Atlantic Tonjer”) which concerned notification provisions in a payment clause and the timely challenge of disputed invoices before they were … Continue reading Contract administration and notice provisions: mere procedure or condition precedent
Both contractors and developers often enter into joint ventures to carry out a specific project. It enables parties to bid on larger projects, pool their resources, including specialised knowledge, and spread risk across the participants. The recent decision in Doosan Enpure Ltd v Interserve Construction Ltd serves as a reminder to participants in construction joint … Continue reading Sharing the pain: considerations for joint venture participants
It’s a scenario we see all too often. Employer meets contractor. Employer and contractor enter into a contract and, for a while, everything seems rosy. Then, as the project progresses, unresolved claims start escalating and the relationship deteriorates. Inevitably, the parties’ minds turn to adjudication, and the potential recourse that they may find there.
Our client, an employer, recently approached us for advice on a building contract and associated collateral warranties entered into a few months before. One of the collateral warranties, entered into between our client and a sub-contractor, seemed to impose unlimited liability on the sub-contractor. The collateral warranty included none of the express exclusions of liability … Continue reading Collateral warranties – how far can they go?