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Construction, Engineering, and Infrastructure

Court holds contractor’s payment notice and pay less notice were both valid despite being sent at same time

Submitted by jamie.macdonald on Wed, 04/02/2025 - 14:25
building site at sunset

In Placefirst Construction Ltd v CAR Construction (North East) Ltd, the Technology and Construction Court (“TCC”) declined to enforce an adjudicator’s decision that a contractor had failed to issue a valid payment notice or pay less notice under the Housing Grants, Construction and Regeneration Act 1996.

  • Read more about Court holds contractor’s payment notice and pay less notice were both valid despite being sent at same time

Postponement of works: Valid variation or breach of contract?

Submitted by snewton on Thu, 03/06/2025 - 14:44
Crane with buildings and sunset in background

In Grain Communications Limited v Shepherd Groundworks Ltd the Technology and Construction Court (TCC) decided that an employer’s decision to postpone works without providing a new commencement date was a valid exercise of its contractual right to instruct a variation and was not a breach of contract that entitled the contractor to damages. 

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Court holds consultant’s negligent ground condition report did not cause property developer’s loss

Submitted by snewton on Mon, 02/03/2025 - 11:02
Safety officer man in hi-vis writing on clipboard

In Darcliffe Homes Ltd v Glanville Consultants and another, the Technology and Construction Court (TCC) held that there was an insufficient link between negligent advice in a consultant’s ground condition report and a property developer’s loss.

  • Read more about Court holds consultant’s negligent ground condition report did not cause property developer’s loss

Construction contract notice provisions held to be conditions precedent to contractor’s claims for loss and expense

Submitted by hmcdermott on Mon, 11/18/2024 - 14:51
Modern, minimalist office fit out

The Inner House (appeal division) of the Scottish Court of Session determined in FES Limited v HFD Construction Group Ltd that notice provisions under a construction contract were conditions precedent to a contractor’s entitlement to reimbursement for loss and expense.

Background

In 2020, FES Limited (FES) and HFD Construction Group Ltd (HFD) contracted to fit out an office building on Bothwell Street in Glasgow. 

  • Read more about Construction contract notice provisions held to be conditions precedent to contractor’s claims for loss and expense

The fine margin for natural justice challenges: Lord Sandison finds no frolicking and enforces the adjudicator’s decision

Submitted by hmcdermott on Thu, 11/07/2024 - 12:28
Construction workers looking at plans.

In ATG Services (Scotland) Ltd v Ogilvie Construction Ltd [2024] CSOH 94, the Court of Session enforced the adjudicator’s decision, finding there had been no breach of natural justice as the adjudicator had not gone off on a frolic of his own.

  • Read more about The fine margin for natural justice challenges: Lord Sandison finds no frolicking and enforces the adjudicator’s decision

Interest rates in construction contracts: What is considered a “substantial remedy”?

Submitted by snewton on Mon, 10/28/2024 - 10:07
Construction industry worker at laptop

In two recent cases, the Technology and Construction Court (TCC) has clarified how parties can disapply the statutory right to interest on late payments under the Late Payment of Commercial Debts (Interest) Act 1998 (“1998 Act”). 

In the first case, the court held that applying interest to “undisputed” debts – but not to “disputed” debts – was sufficient to oust the 1998 Act. In the second case, the court held that an interest rate of 2% above the Bank of England base rate was insufficient to oust the 1998 Act. 

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Court holds exceptional circumstances required for an injunction to restrain adjudications

Submitted by snewton on Wed, 10/23/2024 - 13:24
Construction workers

In Beck Interiors Ltd v Eros Ltd, the Technology and Construction Court (TCC) clarified that exceptional circumstances are required for an injunction to prevent an adjudication from proceeding.

Background

In 2020, Eros Ltd (Eros) contracted Beck Interiors Ltd (Beck) as design and build fit-out contractor in the development of The Residence, Mandarin Oriental, in Hanover Square, London.

  • Read more about Court holds exceptional circumstances required for an injunction to restrain adjudications

Court of Appeal holds contractor permitted to terminate JCT Contract due to employer’s repeated late payment

Submitted by hmcdermott on Fri, 10/11/2024 - 07:40
Construction site, with crane and sunset

In Providence Building Services Ltd v Hexagon Housing Association Ltd, it was held that a contractor could terminate its employment under an amended Joint Contracts Tribunal (JCT) Design and Build Contract due to the employer making a second late payment, thereby repeating a “specified default”, even though the first late payment did not give rise to a right to terminate.

  • Read more about Court of Appeal holds contractor permitted to terminate JCT Contract due to employer’s repeated late payment

Lynsey White

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The impact of the Building Safety Act 2022

Submitted by snewton on Tue, 06/04/2024 - 11:48
Multi storey residential building

The Building Safety Act 2022 (BSA 2022) introduces various amendments to the previous guidance of the Building Act 1984. The new legislation was sparked by the 2017 Grenfell Tower tragedy and aims to extend the government’s power to regulate and enforce works in order to remedy and improve safety aspects of high-risk buildings. 

What is a high-risk building?

Part 1, Section 31, of the Act defines buildings as “high-risk”, when under construction, if they:

  • Read more about The impact of the Building Safety Act 2022

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