The latest CMS Cameron McKenna Construction and Development legal update is now available to download.

Content includes:

  • A look at the government's latest proposals in its review of the Construction Act.
  • A consideration of limitation and exclusion clauses.
  • The operation of "pay when certified" clauses in PFI projects.
  • Some recent judicial comments on global claims.
  • Our usual adjudication update

In This Issue

In June 2007 a third consultation paper on proposed changes to the Construction Act was issued by the (then) DTI. If enacted, these proposals will affect us all. Consequently, and despite the possibility that the proposals may never be allowed sufficient parliamentary time to become legislation, we devote three articles to the proposed changes. Our leading article looks at the changes overall; another looks at the effect of insolvency on the payment notice provisions; and a third tackles the proposed outlawing of "pay when certified" clauses in the context of PFI subcontracts.

We like to cover old chestnuts in these columns and this bulletin is no exception. We have an article on limitation and exclusion clauses and note the proposed changes to the law (again: will these ever reach the statute books?). We also have an article reminding you of agency law – when is a person someone he isn’t, and why does it matter? Enjoy.

A subject worth noting along the way: we summarise the changes brought about by the first amendment to the JCT 05 contract – CDM and rights of third parties. We also focus in on anti smoking laws – how do these affect life on building sites? You need to think about this if you are a potential duty holder – a contractor, an architect, the landlord or tenant…unless you want to face a hefty fine.

We give special attention to two particularly interesting and recent cases from the Technology and Construction Court. The first saw HHJ Peter Coulson indicating that the court may be inclined to order the stay of a court action in favour of adjudication even where the underlying contract did not make the resolution of disputes by adjudication mandatory (for example where the parties relied simply on their statutory right to adjudicate). A stay would always be subject to the court’s discretion, but nevertheless the case has caused quite a stir…Not so surprising was the decision in the case of London Underground v Citylink where the court indicated that a failed global claim need not result in a failure of the claim overall.

These days, arbitration clauses are found most commonly in international project agreements. We look at those situations where the right to arbitrate may be inadvertently lost. We also look again at the familiar issue of allocation of risk under the insurance provisions of JCT contracts.

We finish this bulletin with our usual adjudication roundup and cases update.

Please click here to download your copy.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 11/09/2007.