BULLETIN : Construction law update - July 2013

Posted by Richard Wade on

Construction strategy set out by BIS

The Department for Business Innovation and Skills (BIS) has published its proposal for a long-term partnership between government and the construction industry to "get Britain building and winning contracts overseas".

On 2 July, Business Minister Michael Fallon launched the government’s "industrial strategy for construction: Construction 2025".

The strategy includes an action plan of 10 joint commitments to ensure the industry is best placed to achieve its objectives including:

  • Developing plans to secure jobs and growth by exploiting developments in green construction;
  • Using the GREAT campaign to promote British construction abroad and attract new business; and
  • Leading the transformation of the industry through the new Construction Leadership Council.

The document is available at Construction 2025: industrial strategy for construction - government and industry in partnership.

Government prioritises long-term investment in infrastructure projects

In a speech to the House of Commons, Chief Secretary to the Treasury Danny Alexander outlined a pipeline of over £100 billion worth of public investment in infrastructure projects, to 2020. The government has announced an increase in capital spending plans by £3 billion a year, from 2015, which means an additional £18 billion of investment over the next parliament.

First Green Deal figures revealed

It has been revealed that just four Green Deal finance plans have been signed after more than 38,000 assessments have been conducted. The figures, published by the Department of Energy and Climate Change (DECC), showed that there are 241 finance plans pending some four and half months of the scheme launched at the end of January.

CPRC consultation on cost management exemptions

A sub-committee of the Civil Procedure Rule Committee (CPRC) is consulting on the current exemptions to automatic costs management, as set out in CPR 3.12(1) and its associated costs budgeting direction, with a view to replacing CPR 3.12(1) with a new, definitive rule. The sub committee is chaired by Technology and Construction Court judge, Mr Justice Coulson.

Telford Homes (Creekside) Ltd v Ampurius Nu Homes Holdings Ltd [2013] EWCA Civ 577

The Court of Appeal has overturned a first instance decision and ruled that a landlord was not in repudiatory breach of an agreement for lease when it delayed construction of a development due to difficulties in obtaining finance. The Court of Appeal held that in some situations a party could cure an actual breach differing from previous authority that indicated only an anticipatory breach could be cured.

Aspect Contracts (Asbestos) Ltd v Higgins Construction Plc [2013] EWHC 1322 (TCC)

The Technology & Construction Court (Mr Justice Akenhead) has held that the court will not imply a term into an agreement to mean that a dispute (which a party had previously referred to adjudication) was now finally to be resolved by way of court proceedings.

More specifically the court held that it will not imply a term that an unsuccessful party in an adjudication (under the Scheme for Construction Contracts (England and Wales) Regulations 1998 (SI 1998/649) (Scheme for Construction Contracts 1998)) is entitled to have the dispute determined by litigation and (if those court proceedings were successful) to a repayment of monies paid.

About the Author

Richard heads Blake Morgan's Construction group. Specialising in construction law, Richard’s practice combines both non-contentious work and dispute resolution.

Richard Wade
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