Challenging adjudicator’s decisions and imprecise drafting: Lessons learned from the Court of Session
Background
Atalian Servest AMK Limited ("AMK”) was engaged as subcontractor to carry out construction works at Lord’s Cricket Ground in London. AMK appointed B W (Electrical Contractors) Limited (“BW”) as subcontractor to AMK to assist with electrical works. The works did not go as planned and the parties advanced financial claims against each other.
No room for legal barriers as demand builds for homes
Figures from Homes for Scotland indicate that there is currently a shortage of almost 100,000 homes in Scotland. According to their most recent figures, 25,000 new homes are needed each year to keep pace with need and demand – and that figure was last met in 2007. Let those figures sink in. That could mean 100,000 families priced out of the housing market because demand is outstripping supply or 100,000 older couples unable to downsize (and free up larger family homes) because smaller, more suitable, homes are not available.
Liability limitation clauses – a sharp lesson
The facts
Benkert UK engaged Paint Dispensing to perform maintenance work on Benkert’s ink dispensers twice a year. On one occasion, a clip connecting a hose to the ink and solvent drums came loose, allowing solvent vapour to leak. This led to a major fire in Benkert’s factory, which caused £30m worth of damage. Benkert recovered their loss from their insurers, who then raised a subrogated action against Paint Dispensing.
Success, trends, and reforms of adjudication in the UK – a new report
Kings College London (KCL) and the Adjudication Society (AS) have recently prepared a report with the objective of publishing robust and comprehensive data in relation to construction adjudication, so that established trends can be reviewed, and the overall success of construction adjudication in the UK can be improved. 10 Adjudicator Nominating Bodies (ANB) and 257 individuals involved in adjudication took part in the survey. There are both expected and unexpected results.
Part 8 claims – When to use Part 8 to challenge an adjudicator’s decision
The facts
Breakshore Ltd (Breakshore) employed Red Key Concepts Ltd (Red Key) to construct a six-storey tower block in Kent under a JCT contract. The contractual completion was expected to take place May 2021, however, Red Key suspended works in August 2021 on the grounds that the tower block had been built 1.5m taller than the height approved in the planning permission. This pushed back the completion date to October 2021, prompting Breakshore to claim liquidated damages at adjudication.
Court considers complex issue of concurrent delay: Thomas Barnes & Sons Plc v Blackburn with Darwen Borough Council
The Council appointed Thomas Barnes (“TB”) (in administration) to build Blackburn bus station.
There were severe delays on the project, for which TB claimed extensions of time (“EOT”). The Council ultimately terminated the contract because of the delays and the administrators for TB brought proceedings contesting the termination, seeking to establish a right to EOT, and claiming loss and expense and damages for wrongful termination.