Court of Appeal Clarifies Meaning of “Practical Completion”

Blog Author: Joe Bennet – Associate and Alistair McGrigor – Partner, CMS A Court of Appeal decision in March has provided authoritative guidance as to when “practical completion” of construction works will be achieved. The existence of patent defects which are more than trifling will be sufficient to prevent “practical completion” and the intended purpose of the works is of relevance only in determining whether such defects are trifling. This considerably narrows the approach adopted by the TCC at first instance which allowed greater scope…

Chair’s Letter: The Digital Twin: Why, What and How

Blog Author: Richard Saxon, CBE The built environment is officially regarded as an enabler of the economy and of our quality of life. By the ‘built environment’ I mean the complex of economic sectors which plan, regulate, develop, design and build, operate and maintain the physical fabric of our civilisation, its buildings and infrastructure. These sectors total between 15 and 20% of the total economy and the current government view is that the success of built environment investments should be measured by the outcomes they…

(Un)Signed, Sealed, Delivered: Anchor 2020 v Midas Construction

Blog Author: George Eyre – Hardwicke It is common practice for parties in the construction industry to undertake work under a letter of intent before the contract is formally executed. This practice ensures that design can be undertaken, materials can be procured, the site can be prepared and, ultimately, work can begin notwithstanding ongoing contractual negotiations. However, letters of intent often form the basis of disputes and their contractual status can be unclear. For example, letters of intent have been: held to have no contractual…

Chairman’s Letter: Australia Sweeps Test Series

Blog Author: Richard Saxon CBE No, this isn’t about cricket. It’s about learning from Australia how to deliver buildings that perform as specified. In October 2017 I wrote about the ‘Soft Landings’ concept as a way for designers and builders to incorporate facility management needs into their process and ensure that buildings perform properly. This tool is part of the Government’s version of BIM Level 2, but not widely understood or used beyond that. We remain a country with published aspirations to achieve high physical…

The Fluctuating Fortunes of Brexit

Blog Author: Peter Hibberd Just over two years ago I suggested that it was time to brush up on the use and operation of the fluctuation provisions in building contracts. A suggestion spurred by the advent of Brexit and its ambient uncertainty; an uncertainty plain to see. The risk of having entered into contracts that span the Brexit leaving date, without adequate protection from fluctuations, could leave parties in a precarious situation. One can still act to mitigate potential loss but the situation is far…

JCT Interviews… Sion Evans

In this series we shed some light on some of the key people who are involved with or give their time to support JCT, to ensure that all areas of the construction industry are represented and can contribute to the development of our contracts. We will look at how our interviewees contribute to JCT specifically, and gain their views on JCT’s wider role within the industry. BSc (Hons) MRICS Member, JCT Council, LGA representative Member, JCT BIM Working Group Design and construction manager, Denbighshire County…

Taff Vale Redevelopment, Pontypridd

Due to be completed in Spring 2020, the Taff Vale redevelopment scheme is the start of a major new regeneration project for Pontypridd. A JCT Design and Build Contract provides the solution for two new office blocks and a statement community building. In recent years the decline of development in Pontypridd, South Wales has in part been the result of a neighbouring city’s own success; the regeneration projects in nearby Cardiff have resulted in business and employment opportunities moving away from the local area. Rhondda…

Do the Different Tiers of Building Contract Really Need to be Back to Back?

Blog Author: Alexandra Reid The main JCT contracts specify that where this is ‘considered appropriate’ the contractor should engage its sub-contractors using the relevant version of the JCT sub-contract which sits beneath the main contract in question. JCT contracts are therefore drafted in such a way that ‘back to back’ obligations are ensured. So what can this mean for contractors? A short answer is that the JCT has satisfied itself that its own sub-contracts have been carefully drafted to ensure that their key contractual terms…

The Big Question: Can You Pay Now and Argue Later?

Blog Author: Hazel Boland-Shanahan A top judge came out of retirement to help decide a crucial question around interim payments and adjudications, as Hazel Boland-Shanahan explains. Confusing case law on interim payments led to the rise of smash-and-grab adjudications. The Court of Appeal judgement in S&T (UK) Limited v Grove Developments provides reasoned clarity as well as other helpful guidance. Just because the sum stated in a payment certificate or default payment notice has become due, does not mean that it represents the true value…

The Impact of Digitalisation on Claims, Disputes and Their Avoidance

Blog Author: Charlie Woodley Research from HKA unveils the true complexity of causation and provides thought-provoking insight that illustrates how digitalisation can achieve dispute avoidance by proxy or reduce their severity and prevalence. Information technology is critical to our ability to manage complexity, inform decision-making, improve productivity, and reduce uncertainty, thereby mitigating risk. But technology alone will not suffice and broader digitalisation and transformation of organisations, supply chains or industry require investment in people, process as well as technology. Each must be considered equally, and…