The Week That Was - 9 August 2024

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

Essex County Council names contractors on £400m framework 

Major contractors, including Kier and Morgan Sindall, have been named on Essex County Council's £400 million four-year framework, for design and construction services for public sector projects, including capital construction and major maintenance contracts.  The framework will also be available to other contracting authorities within Essex, including the police, education and NHS bodies.  The framework involves three lots split by value, with the first lot for work up to £750,000 and expected to amount to £102.5 million of works.  Lot two is for work worth between £500,000 and £4 million, with anticipated works of £107.5 million, while lot three covers work valued at more than £4 million and is expected to award around £190 million of work.  Morgan Sindall and RG Carter have been named on two of the framework's three lots, while Kier has been appointed on the third lot.  

You can read more here. 

Jurisdiction and natural justice arguments rejected in Bell Building Ltd v TClarke Contracting Ltd [2024] EWHC 1929 (TCC)

A recent TCC decision is a reminder of how difficult it can be to succeed in arguing that an adjudicator lacked jurisdiction or materially breached the rules of natural justice to resist enforcement of a 'smash and grab' adjudication. 

In a dispute over an interim application and whether a valid pay less notice had been served, the adjudicator had decided that the pay less notice was invalid and that the total figure due was more than the sum claimed.  In subsequent enforcement proceedings, the payment party argued a lack of jurisdiction and a breach of the rules of natural justice. 

Mr Jonathan Acton Davis KC, sitting as a Deputy High Court Judge, rejected those submissions and granted summary judgment on the basis that the adjudicator had not exceeded his jurisdiction in awarding a higher sum than claimed because the adjudicator had "licence to grant such other relief as is necessary, just and equitable to resolve the dispute."  It was also found that the adjudicator had not materially breached the rules of natural justice because both parties were aware of the material the Adjudicator relied on, the issues which were canvassed before him and he was able to reach a decision "on a point of importance on the material before him on a basis for which neither party had contended."

You can read the judgment here. 

High Court clarifies Babanaft Proviso and Marex Tort – Lakatamia Shipping Company Ltd v Su and others [2024] EWHC 1749 (Comm)

In its decision in Lakatamia Shipping Company Ltd v Su and others, the High Court has clarified the Babanaft proviso in freezing orders and the intention element in the Marex tort.  The Babanaft proviso, stating that a freezing order does "not affect or concern anyone outside of the jurisdiction of this Court", precludes tortious liability for merely assisting in breaching a freezing order, unless independently wrongful conduct is involved.  The High Court's decision emphasised that the proviso shields individuals outside the court's jurisdiction from tort claims.

Additionally, the Court addressed the intention element in the Marex tort, holding that a defendant lacks the requisite intention if they honestly believed that they were entitled to induce a breach of the judgment, similar to the tort of inducing a breach of contract. 

This decision highlights the nuanced application of international jurisdiction in tort cases involving freezing orders, and underscores the boundaries of liability under such legal instruments.

You can read the judgment here.

Earth Overshoot Day: A wake-up call for sustainable action in the Construction sector

Earth Overshoot Day, signifying the day when resource consumption surpasses the Earth's annual renewal capacity, occurred on 1 August 2024, this year.  In the UK, this day came even earlier on 3 June. 

Meeting the Intergovernmental Panel on Climate Change's target of reducing emissions by 43% by 2030 necessitates delaying Earth Overshoot Day by 19 days annually.  The construction sector is currently accountable for 37% of global emissions. However, changes such as utilising recycled aggregate in concrete could postpone the overshoot by 2.4 days, and retrofitting buildings and transitioning to carbon-neutral electricity could extend this delay further by 21 days.

In the UK, Building Research Establishment Environmental Assessment Methodology (BREEAM)  sustainability certification promotes eco-friendly building practices and advocates for efficient insulation and renewable energy adoption.  The UK has exceeded its ecological limits since 1960, underscoring the urgent need for further sustainable construction practices to ensure that Earth Overshoot Day trends positively. 

You can read more here.

University of East Anglia appoints Mace to deliver £88 million refurbishment

Mace will deliver an extension and refurbishment of a Grade II listed building at the University of East Anglia (UEA) after winning a competitive tender.  The firm has taken on the task of upgrading the teaching laboratory building with science research continuing throughout the extension.  The project will roll out in four phases and will include asbestos removal and façade treatment.  The tender for the project revealed the UEA's net zero ambitions for the campus, with the refurbishment required to "deliver essential sustainability improvements."  Construction is due to start in October and finish in January 2027.

You can read more here.

Deconstruct UK reappointed as the principal contractor for the Grenfell Tower site

Following an invitation for bids in November 2023, The Ministry of Housing, Communities and Local Government has announced that it has reappointed Deconstruct UK (DUK) as the Grenfell Tower site principal contractor.  The company has been principal contractor since 2021 and will continue to be responsible for the day-to-day maintenance and safety of the site.  The procurement bidding process involved evaluation on a range of criteria, such as technical ability, health and safety and community engagement.  A group of volunteers from the local community were also involved in the evaluation, attending bidders' presentations, offering feedback and asking questions.  DUK will be responsible for site monitoring, maintenance works and regular checks in the tower.  The company has committed to providing social value opportunities, building on its commitments in previous years.

You can read more here.

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.

Authors: Dominic Collier, Natalie Chan and Abi Pipkin