The Week That Was - 6 December 2024

Welcome to The Week That Was, a round-up of key events in the construction sector over the last seven days.

Employer deemed out of time in issuing a notification on the Monday after a Sunday deadline (My Contracts v 74 Hamilton Terrace)

In My Contracts v 74 Hamilton Terrace [2024] EWHC 2896 (TCC) a contractor sought a declaration from the Technology and Construction Court (TCC) concerning the interpretation of a clause that set out a time limit for the employer to issue a notification relating to costs for which the contractor was liable.

The TCC held that the last date that the notification should have been issued was a Sunday.  As such, by issuing the notification the next day (Monday), the employer was out of time.  A major part of the reason for this was that the relevant provision calculated the applicable period in months, which did not fall to be interpreted with reference to the contract's definition of 'days'.

This case is a useful follow up to the judgment in Elements (Europe) Ltd v FK Building Ltd [2023] EWHC 726 (TCC) which also concerned a JCT form of contract, both serving as a reminder of how time periods should be interpreted in construction contracts.

You can read the judgment here.

Government departments launch new skills hub to 'get Britain building'

A new skills hub has been launched by the Department for Education, the Ministry of Housing, Communities and Local Government, the Department for Work and Pensions and the Department for Business and Trade to address the skills shortage in the construction sector and to accelerate homebuilding.  The goal is for thousands more apprentice construction workers to be hired each year to build new homes and kickstart growth, through new skills hubs funded by industry leaders.

This initiative involves the establishment of 32 new Homebuilding Skills Hubs, supported by a £140m industry investment, with the aim of creating 5,000 additional construction apprenticeship places annually, providing fast-track training programmes that can be completed within 12–18 months.

The Government is collaborating with the Construction Industry Training Board and the National House Building Council to implement this scheme, strategically placing hubs in areas with the greatest homebuilding needs, as identified by Skills England. All 32 hubs are expected to be operational by 2028.

For more information click here.

etag marks 20 years with a focus on the future

The construction supply company, etag (formerly Etag Fixings) is celebrating its 20th anniversary with a renewed focus on growth and innovation under CEO, Tony Taylor.  The company is expanding by enhancing services and investing in supply management.

Operating in the residential, commercial, and data centre sectors, Mr Taylor explained that etag is finding new opportunities in the rapidly growing data centre market.  It has streamlined supply chains, upgraded infrastructure, and partnered with key suppliers to meet market demands; and, despite a challenging market, it continues to invest in transport, CRM, ERP, and warehouse systems.

To mark its anniversary, etag has expressed its commitment to a bright and responsible future by launching two new charity partnerships; as well as initiating the ‘20 For 20 Project’, which is aimed at supporting local communities in the UK and Ireland.

You can read more here.

Robert Heath Heating Ltd v Orbit Group Ltd: High Court lifts suspension in procurement dispute

Orbit Group Limited (OGL), a charitable social housing provider, conducted a procurement for heating services.  The claimant, Robert Heath Heating (RHH), a heating services company, submitted a tender but lost to Aaron Services Limited (ASL).

RHH challenged OGL's decision, citing breaches of the Public Contracts Regulations 2015, including a conflict of interest with a former OGL employee who joined ASL's parent company, as well as errors in scoring RHH's tender.  RHH subsequently issued proceedings, triggering an automatic suspension under Regulation 95. OGL applied to lift the suspension while RHH sought early specific disclosure related to its claim.

The Court lifted the suspension, allowing OGL to contract with ASL, as damages were deemed an adequate remedy for RHH in the event it proves its case and there were no exceptional circumstances that justified maintaining the suspension.  After finding that RHH had established a prima facie case for its challenges, the Court also granted RHH's request for early specific disclosure of documents.

You can read more here and here.

RICS revises 'Red Book' global valuation standards

The Royal Institution of Chartered Surveyors (RICS) has published an updated set of global valuation standards, implementing the latest standards of the International Valuation Standards Council (IVSC). Practitioners should be mindful that, in line with the IVSC's revisions, existing valuation and technical performance standards have been reordered, and references to those standards should be updated accordingly.

The revisions follow a RICS consultation in July 2024. Key changes include the incorporation of ESG standards as a mandatory item in both the terms of engagement, and the valuation report itself; the clarification of existing rules relating to the use of automation and AI to the effect that only outputs which had been subjected to a valuer's professional scrutiny would meet the requirements of a 'written valuation'; and the removal of references to property risk advice and Basel 3.1 prudent value stipulations.

The updated standards take effect from 31 January 2025.

You can find the updated standards here.

With thanks to Jess Ventham, Keira-Anne Dowsell and Joe Towse.

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.