Coronavirus (COVID-19)

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Impact of COVID-19 on construction

The COVID-19 outbreak causes

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Latest Construction News

FIDIC publishes new practice note on dispute board appointments

The International Federation of Consulting Engineers (FIDIC) has published a new practice note, focusing on the appointment of dispute boards. Produced by FIDIC’s Dispute Avoidance and Adjudication Forum, this practice note provides comprehensive guidance on key aspects of selecting and appointing dispute boards within FIDIC contracts. It covers various topics, including considerations for choosing between standing or ad-hoc boards, determining board composition, adhering to contractual appointment procedures and timelines, and ensuring that potential board members fulfil contractual requirements, among other aspects.

DBT launches Fair Payment and Disability Finance Codes to support SMEs

The Department for Business and Trade (DBT) has launched the Fair Payment Code and Disability Finance Code for Entrepreneurship to support small and medium-sized enterprises (SMES) and foster economic growth. The Fair Payment Code, overseen by the Small Business Commissioner, features a gold, silver, and bronze tiered system to reward best payment practices and tackle late payments to SMEs, aiming to improve cash flow. The Disability Finance Code for Entrepreneurship, supported by UK banks such as Barclays, HSBC UK, Lloyds Banking Group, and NatWest, seeks to improve access to finance for disabled entrepreneurs and encourage stronger engagement between the financial services sector and the disabled entrepreneur community, potentially unlocking £230bn in economic growth.

Adjudication—claimant’s insolvency should not be used as a ‘shield’ to enforcement (Malin v Volkerfitzpatrick)

Construction analysis: The Technology and Construction Court (TCC) enforced an adjudicator’s decision in favour of a claimant in administration, subject to a stay of execution. Though the defendant maintained a counterclaim against the claimant, and the claimant had offered no security in respect of that counterclaim, the court was not satisfied that the counterclaim was strong enough to justify an outright refusal to enforce.

Contractual interpretation and termination: Misunderstanding of contract terms results in repudiatory breach (BNP Paribas Depository Services v Briggs & Forrester)

Construction analysis: The Technology and Construction Court (TCC) granted declarations sought by an employer in relation to unlawful suspension and termination of a design and build contract and the contractor’s consequent repudiatory breach. The TCC held that suspension and termination notices served by the contractor, in relation to an alleged prevention of work by the employer by its failure to provide instructions in relation to asbestos removal work and structural repairs, were not valid.