The Week That Was - 20 September 2024

Welcome to the week that was, a round-up of key events in the construction sector over the last seven days.

30 years on since the Latham report

Sir Michael Latham's report saw the introduction of statutory adjudication. 30 years on, adjudication is now firmly embedded and forms an integral part of construction dispute resolution.

The intention behind Latham's recommendation of an in-built adjudication system was to avoid the lengthy delays and high costs which often came with construction litigation. Latham had also recommended that access to the adjudication should be without restriction i.e., all issues could be referred to an adjudicator.  However, (a) by the time his report was implemented, the criteria had been heavily narrowed and (b) many of the disputes that are referred to adjudication appear to be too complex and document heavy for adjudication, which presents difficulties given the short timeframes involved.  

To read more, please click here.

House of Lords Committee instigates an inquiry into Grey Belt housing

It was announced in early September that the Built Environment Committee is looking into 'Grey Belt' housing.  The inquiry will consider what exactly constitutes 'Grey Belt' land in order to gain a better understanding.

The inquiry is a result of the Government target to build 1.5 million homes in just five years.  Developers have voiced their concern that this cannot be achieved by building on brownfield sites alone.  Therefore, the introduction of Grey Belt land is likely to be key to the Government hitting its ambitious target.

The Government has proposed a set of 'golden rules' as criteria for land release, which the inquiry will consider alongside the need for affordable housing.  

To read more, please click here.

Welsh Government publishes further Procurement Act 2023 guidance

The Welsh Government has issued new guidance on the Procurement Act 2023, covering competitive tendering, treaty state suppliers, contract reservations for supported employment providers, procurement splitting, and conflict of interest management.  Published on 5 and 9 September 2024, the guidance explains two tendering procedures: the open procedure, where any supplier can bid; and the competitive flexible procedure, allowing for other suitable tendering approaches.  It also outlines protections for treaty state suppliers under international agreements, ensuring non-discrimination in procurement.  The guidance further clarifies the reservation of contracts for supported employment providers, aimed at improving employment for disabled or disadvantaged individuals, and requires a competitive flexible procedure for these contracts.  Additionally, it advises on when to divide procurements into lots and how to handle conflicts of interest.  This guidance supports Welsh procurement professionals in applying the Procurement Act 2023, which takes effect on 28 October 2024.

To read more, please click here.

Contractor's insolvency not relevant event for limitation purposes - Peabody Trust v National House Building Council (NHBC) [2024]

The contractor of a development, Vantage Design & Build Limited (Vantage), entered administration on 29 June 2016.  Another contactor was subsequently appointed, and the development eventually achieved practical completion on 19 January 2021. On 24 July 2023, the housing association, Peabody Housing Association (the Claimant) issued a claim against NHBC for an indemnity under the NHBC Buildmark Choice insurance policy (the Policy).

NHBC made an application for summary judgment as the Policy was a simple contact and more than six years had passed between Vantage going into administration and the claim being issued.  Therefore, NHBC argued that the claim was statue barred under s5 of the Limitation Act 1980. 

Ultimately, the judge rejected NHBC's argument, stating that the insolvency itself does not automatically result in additional costs being incurred to complete the works.  As such, the Judge concluded that the relevant event for limitation purposes was the point at which the claimant "had to pay more to complete the units, as a result of that insolvency” as only then would the Claimant have a claim under the Policy. The summary judgment application was therefore dismissed.

You can read the full judgment here.

Conservative Government accused of ignoring National Infrastructure Commission

Darren Jones, Chief Secretary to the Treasury, has accused the previous Conversative Government of not listening to the National Infrastructure Commission (NIC), or taking it seriously, despite the NIC doing a "brilliant job on strategy".

The comments arose at the first Labour Infrastructure Forum in which Labour announced plans to create a new body called National Infrastructure and Service Transformation Authority (NISTA) by merging the NIC and the Infrastructure and Projects Authority (IPA).

NISTA is part of Labour's 10-year infrastructure strategy to create a stability which will encourage investors and ultimately assist with the delivery of major infrastructure projects.

You can read more here.

Authors:  Olivia Bradfield, Courtney Reylin, Ella Ennos-Dann

Disclaimer: The information in this publication is for guidance purposes only and does not constitute legal advice.  We attempt to ensure that the content is current as at the date of publication, but we do not guarantee that it remains up to date.  You should seek legal or other professional advice before acting or relying on any of the content.