In the recent case of Mears v Costplan  EWCA Civ 502, the Court of Appeal provided significant clarity as to how courts should interpret the widely used but seldom defined term, “practical completion” in the context of construction contracts. In essence, it was held that practical completion should only be prevented by patent defects (i.e. those that can be discovered by reasonable inspection) where such defects are considered “more than trifling.”Read More
On 1 March 2019 the NEC published a revision to the NEC4 suite of contracts, first published in June 2017. Whilst generally focused on addressing typographical errors and/or terminology corrections, a more significant amendment has been made to clause 63.5 – a new clause introduced in NEC4 but subsequently critiqued for a lack of clarity.Read More
The December 2018 decision in University of Warwick v Balfour Beatty Group Ltd  EWHC 3230 (TCC) provides valuable insight into how courts could interpret “Practical Completion” – a central concept in most construction contracts, but one that often lacks clarity and/or definitional precision.Read More
K&L Gates was delighted to participate in the FPSO Europe Congress 2019 in London 19-20 February, 2019. K&L Gates partner Jeremy Farr chaired roundtable discussions on developing strategies for successful construction or conversion projects and spoke in plenary on the lessons the industry can learn to protect budgets based on his many years’ of experience of FPSO construction/conversion disputes.
Click here to access Jeremy’s presentation, “Experiences of FPSO/Construction Disputes: Learning the Lessons to Protect Budgets”
Click here to see a sneak peek into into Day 1 of the conference!
Standard form building contracts play an important role in many construction and engineering projects. There are various advantages to using standard form contracts (as further detailed below), with a wide array of standard forms available to suit the particular types of parties, works and procurement routes involved in virtually all construction and engineering projects.Read More
By Kevin Greene and Saya Lee
In an eagerly awaited judgment, the Court of Appeal upheld the TCC’s judgment in Grove Developments Limited v S&T (UK) Limited, confirming that the employer may adjudicate to establish the “true value of the sum due” in a second adjudication.
In March 2015, Grove Developments Limited (“Grove”) engaged S&T (UK) Limited (“S&T”) to design and build a new hotel at Heathrow Airport under the JCT Design and Build Contract 2011 with amendments, for a contract value of £26.4m. Following a delay of over 5 months, practical completion was achieved in March 2017. The parties subsequently conducted an adjudication to decide if Grove’s pay less notice dated 18 April 2017 was invalid on the basis that it was served late.The adjudicator decided, in S&T’s favour, that the pay less notice was invalid.Read More
The judgment of O’Farrell J in Swansea Stadium Management Co. Ltd v Swansea City and County Council ( EWHC 2192 (TCC)) provides guidance on collateral warranties and acts as a warning for any potential claimants to be mindful of any limitations of time in which to commence proceedings under them.Read More
It is difficult to imagine a complex infrastructure project without the participation of subcontractors. In Poland, where large projects are often contracted to foreign companies, local subcontractors play an important role. This was also the case prior to the EURO 2012 football championships, when subcontractors were heavily engaged in the construction of roads and railways necessary to secure access to the newly built football stadiums. However, the EURO 2012 also resulted in a wave of bankruptcies and liquidations of Polish subcontractors, who suffered due to payment withholding, warranty deposits, contractors’ bankruptcies and lack of financial liquidity along the supply chain.
The European Commission (“Commission”) presented this initiative in the context of a proposed revision of the EU framework on consumer protection. The “Package” (as the name goes when several independent legal texts are intended to be negotiated together) called “New Deal for Consumers,” builds on the Commission review of consumer law rules that was conducted as part of the so called Regulatory Fitness and Performance Program (REFIT). This is a policy program intended to keep EU law simple, removing unnecessary burdens and adapting existing legislation without compromising on policy objectives.