Like so many others, the construction industry finds itself in a difficult position entering 2024, as it suffers from the effects of a declining economic climate. The construction industry, an industry incredibly reliant on the positive cash flow of its...

It has been reported that Britain is expected to be the only major industrialised country to see its economy shrink this year, after the IMF warned that the UK economy is expected to contract by 0.6% in 2023. The cost of living crisis and increasing...

M anor Co-Living Ltd v RY Construction Ltd [2022] EWHC 2715 (TCC) Summary of the case This case concerns a construction dispute that went to adjudication and the subsequent claim for breach of natural justice arising from the adjudicator’s...

This was the question before the court in the case of Northumbrian Water Ltd v Doosan Enpure Ltd and another [2022] EWHC 2881 (TCC). This case involved an application by the claimant, Northumbrian Water Ltd (NWL), against the defendant joint venture (the...

Birkett Long is delighted to announce that Senior Associate, Suryen Nullatamby, has been named as Company and Commercial Lawyer of the Year at the Asian Legal Awards 2022. The Asian Legal Awards ceremony took place on Saturday 15 October at the Royal...

The Building Safety Act 2022 (BSA), which received Royal Assent on 28 April this year, introduced measures that place additional burdens on residential developers. The Act aims not to make life more difficult for developers, but to make dwellings safer,...

The Grenfell Tower fire has resulted in reviews and consultations that aim to increase safety in dwellings, particularly in high-rise flats. On 28 April 2022, the Building Safety Act 2022 (“BSA”) received Royal Assent; it makes significant...

I work with a number of property development clients who take different approaches to development finance. As a consequence, I’m frequently asked to review the terms of finance arrangements to ensure that my client understands the legal implications...

When it comes to challenging an adjudicator’s decision, the losing party’s options are limited; they will either need to show that the adjudicator had no jurisdiction to make the decision or that there was a material breach of the rules of...

Health and safety is an obvious concern across all industries. It’s of particular importance within the construction sector, given the scope of work and nature of activities undertaken, and, in particular, the associated risks that naturally...

In the event the HSE elects to proceed with enforcement action by way of prosecution against the company (and/or directors) for alleged breaches then the charge(s) are usually by virtue of:  failing to comply with the general overarching duties...

The judgment Cartwright Pond Ltd v Wild [2021] EWHC 1600 (TCC)   highlights key issues that a building contractor and a homeowner should consider at the procurement stage, including: 1.   Appoint independent professionals You should appoint...

As an Associate Solicitor specialising in dispute resolution and construction law, I am often instructed to advise on disputes between homeowners and building contractors.  The tension between the parties usually escalates, resulting in either the...

I was once asked to assist a client to draft the construction contracts for a number of projects they were undertaking. I asked them when they were intending to start the building works on the different projects, only to be informed that the building works...

Adjudication has been successful in overcoming problems previously associated with resolving construction disputes, which largely focused on the holding up of cash flow and the time taken to resolve matters.  Adjudication has proven to be a popular,...

IR35 is due to come into force on 6 April 2021.  The Joint Industry Board (JIB) has issued a report on direct employment in the construction sector .  It suggests that contractors should be employed because it believes direct employment will...

The case of Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (Electrical) Ltd has developed through the courts for nearly two years. The key issue to determine in this case is whether two statutory regimes, namely the adjudication of...

The Coronavirus Job Retention Scheme (CJRS) was modified on 1 July 2020, so employees who have previously been furloughed can now come back to work. While employers are able to claim a CJRS grant for their normal hours not worked. This is called...

As of 26 July 2017, it has been a legal requirement that limited companies and limited liability partnerships maintain a Person with Significant Control Register ( PSC Register ) so why is it, after all this time, when I look up a company at Companies House...

Many business deals are concluded by “Gentleman’s Agreements”. These can work for people and businesses - until there is an issue or uncertainty. Unfortunately, deals and relationships in business can, and do, go wrong for many reasons....

A recent Court of Appeal decision (Harpur Trust v Brazel) has shown how holiday pay must be calculated for term time, casual or seasonal workers on irregular hours, and zero hours workers. It could have implications for the construction industry where...

In a recent High Court case, this question was asked in respect of the enforcement of an Adjudicator’s decision. Only contracts that fall within the definition of “construction operations” fall within the Construction Act and therefore can...

Many in the construction industry were unaware of the significant change, which was due to take place on 1 October 2019, relating to how VAT is charged in the construction industry. The good news for them is that the implementation of the change has been...

A task force has recently been set up to look at whether a form of mandatory licensing for the construction industry should be brought into effect. This followed a report in July 2018 which suggested that licensing would improve quality and increase...

Development companies often set up a Special Purpose Vehicle (‘SPV’) when they wish to develop a property. These are usually limited liability companies. They are set up to protect a holding or investment company from claims if the project goes...

The Construction Industry Training Board (CITB) Levy is collected to provide training to people who work in the construction industry. Many companies that operate in the industry, especially new companies that have just been set up, are unaware of this...

In a construction project, a Building Inspector examines the works to certify that they comply with the Building Regulations. A Final Certificate is issued confirming that they have fulfilled their duties under the Regulations. The certificate is often...

The Technology and Construction Solicitors Association (TeCSA) has launched a fixed costs service for low value adjudication claims. By low value, TeCSA means claims up to £100,000, excluding VAT and interest. Often, parties are put off from referring...

Everyone in the construction industry should know that it is vitally important for parties to contracts to serve the correct notices relating to interim and final payments. A party wanting to be paid must serve its application. The party paying must serve a...

Concurrent delays could leave you out of pocket Sometimes delays are inevitable, especially in more complex construction projects.  But will the contractor always be entitled to further payment for the extra time spent on site?   In many...

Clarification from the courts The Construction Act gives contractors the right to be paid at certain points in the contract, such as interim or stage payments. It does, however, stipulate that certain procedures must be followed. A recent case has...

Mediation is an alternative method of resolving disputes and involves an independent third party helping to negotiate a settlement.  It’s a process that the courts are eager to encourage, as Peter Allen explains. In the past the courts have, on...

Hot on the heels of the updated JCT contracts comes publication of the new version of the NEC suite of contracts, NEC 4.  This replaces the NEC 3 contract, which was published 12 years ago.  The new suite includes new forms of contract, such as the...

The 2016 JCT building contracts have been released over the past few months and the updated Standard Building Contract suite was released on 22 September 2016. This suite has now replaced the 2011 Standard Building Contracts and all subsequent amendments....

When entering into a contract parties often get so involved in negotiating terms that they fail to consider who the other party is and what they are worth.  Let’s say you are offered a £1 million contract on which you believe you can make a...

When you're next visiting London, taking in the sights and admiring all that the city skyline has to offer, you might be surprised to learn that many of the buildings you see are in fact protected by a registered trademark.   Famous buildings such...

Our last construction newsletter featured a case that highlighted the fact that the courts will honour a variation to a contract, even if it was only a verbal agreement. The case in question was Globe Motors v TRW Lucas Verity Electric Steering, in which...

The Joint Contracts Tribunal (JCT) publishes standard forms of contract for use in the construction industry. At last count, there were over 100 construction- related contracts published by the JCT and it has now announced that new 2016 versions of...

Demand for new housing and increased development has lead to an increase in overage agreements. Owners of land with the benefit of valuable planning permission or land which has potential for future development need to be aware of “Claw Back” or...

Many forms of contract state that contractors or subcontractors who receive instructions orally rather than in writing will not be paid for the work they do as a result.  Formal contracts often contain a procedure that says any oral instructions...

The Construction (Design and Management) Regulations 2015 came into effect on 6 April 2015 making sweeping changes to previous CDM regulations.  The former exclusions for small projects no longer apply, which means that care homes and professional...

As everyone is now well aware, following the correct valuation process for payments due under a construction contract is critical.  If you fail to follow the correct procedure then the paying party can often end up having to pay monies that it does not...

The Construction (Design and Management) Regulations 2015 (CDM2015) came into effect on 6 April 2015.  These make significant changes to the CDM Regulations and apply to all construction projects in Great Britain.  Transitional arrangements apply...

When a building contract comes to an end, there are often snags or remedial works that are already known about or become known about shortly afterwards.  A number of questions can arise, such as: does the contractor have to return to site?  Can the...

There is a great deal of confusion about what is meant by the term “consequential loss”. Case law has established that there are two kinds of losses that flow from a breach of contract: loss that arises naturally from the breach (“direct...

We see more and more contracts where contractors give an assurance that complete works will meet a particular specification, believing that reasonable skill and care will achieve that specification.  But that is not always the case! A recent case...

Bonds are used in construction contracts to ensure that the contractor carries out and completes the works in accordance with the building contract.  If the contractor does not do so then the employer can simply call on the bond provider for the value...

We recently acted for specialist flooring contractor RHL in respect of an adjudication relating to monies owed for work they had carried out. The work was carried out at a leading department store on Oxford Street in London. This was a particularly complex...

Strange as it may seem, the fact that you have not been paid does not mean that you are automatically entitled to stop working.  If an unpaid party to a contract simply leaves site they could be facing serious consequences.  They will be in...

It has generally been thought that landowners will not be liable for damage caused to neighbouring properties by the roots of their trees unless they are aware of the possibility that such damage is being caused and fail to act.  However, in the recent...

A recent judgment from the Employment Appeals Tribunal (EAT), together with the Government’s proposal to review false self employment, reminds employers of the risks of engaging people on a self employed basis. False self employment takes place...

Knowing who you are contracting with should be simple.  However, on many occasions the identity of contracting parties is far from clear.  In recent months there have been a number of cases highlighting the importance of this issue.  Although...

Often, it can be difficult to identify contracting parties.  For example, when negotiating with a developer that is a holding company but uses special purpose vehicles for each individual development.  Alternatively, there may be different...

You may have experience as a plumber or fitter but the question is, are you allowed to connect water and gas pipes to a boiler? Common sense might suggest that a plumber or pipe fitter has the necessary skills to fit pipes whether they carry gas or...

Many construction contracts contain retention clauses but it is not always easy to recover the cash once the contract is complete.  Retention clauses offer a form of security that the works carried out have been completed properly.  The retention...

The recently decided case of Walter Lilly & Company Limited v Giles Patrick Cyril MacKay has clarified a number of issues relating to extensions of time, loss and expense, and global claims.  Some of these clarifications were just a restatement of...

A project manager has recently been found liable for their employer’s losses caused by not ensuring that a contract was completed for a construction project.  This was decided in the case    of Ampleforth Abbey Trust v Turner &...

A construction specialist from Essex law firm Birkett Long LLP has played a key legal role in the creation of a new sculpture in East London, at a key time in the area’s history. Head of the Commercial Department Peter Allen was instructed by...

Construction contract disputes can be resolved in many different ways, including negotiation, litigation, adjudication, mediation and various forms of other Alternative Dispute Resolution (ADR). But the major form of dispute resolution missing from this list...

David Rayner recently joined Birkett Long from Blake Lapthorn in Southampton. He joins us as a partner in the Commercial Property Department where he deals with both real estate and environmental law. David’s specialities include building contracts,...

When the construction sections of the Housing Grants Construction and Regeneration Act 1996 were introduced in 1998, subcontractors gained the right to refer disputes to adjudication with very little risk to themselves. They had the risk that they would lose...