Category: Uncategorized

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COVID-19: UK Public Sector Construction – Cabinet Office publishes FAQs regarding PPN02/20
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COVID-19: UK Coronavirus Act 2020 – Implications for the Construction Industry
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COVID-19: UK Public Sector Construction – Cash Flow Relief for Suppliers
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‘Fitness for Purpose’ and Conflicting Obligations in Offshore Wind Projects
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COVID-19: Coronavirus Concerns Prompt Two-Week Halt to All Construction in Boston
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NEC4 Update – May 2019
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FPSO Europe Congress 2019
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“If it isn’t broken…”: A practical guide to the effective use of standard forms of contract
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Congratulations to our Doha Construction Team – “Property & Construction Team of the Year”

COVID-19: UK Public Sector Construction – Cabinet Office publishes FAQs regarding PPN02/20

Authors: Matthew E. Smith, Inga K. Hall, Kiran Giblin

Further to our recent blog post “COVID-19: UK Public Sector Construction – cash flow relief for suppliers” on 31 March 2020, in which we set out guidance on the Government’s Procurement Policy Note – Supplier relief due to COVID-19 PPN 02/20 (“PPN02/20”), the Cabinet Office has published a FAQs note providing further clarity and guidance regarding implementation of PPN02/20 in practice.

The 17 initial questions addressed in this FAQ note range across providing definitional clarity on terms used, further detail on how to make use of the Model Interim Payment Terms also published, the extent to which suppliers can also make use of other relief, such as via the Coronavirus Job Retention Scheme, and employers’ rights in terms of repayment, continued discharge of obligations, protection from double payments and the preservation of other contractual rights and remedies.

To read the full alert, please click here.

COVID-19: UK Coronavirus Act 2020 – Implications for the Construction Industry

 Authors: Inga K. Hall, Saya Lee

The 359-page emergency Coronavirus Bill received royal assent on 25 March 2020. This newly passed Coronavirus Act 2020 (the “Act”) contains extensive powers and additional measures to equip the UK government and other authorities to better respond to the COVID-19 outbreak in the UK. The new Act is time-limited to two years by a sunset clause (Section 89) and will be subject to six-month parliamentary reviews (Section 98)

The Act is primarily aimed at easing the burden on the frontline staff working for ‘essential services’ including the NHS, schools, police and courts, as well as providing measures for containing and slowing the spread of the virus and supporting businesses and workers. Although there are no sections in the Act specifically addressing the construction industry, the wide-ranging powers that are granted to the authorities to enable such actions and outcomes also have the potential to have an impact on the construction industry as summarised below.

For the full alert, please click here.

COVID-19: UK Public Sector Construction – Cash Flow Relief for Suppliers

 Authors: Daniel T. Lopez de ArroyabeInga K. HallKevin Greene

The impact of COVID-19 on the construction industry has been the subject of much debate this week, as discussed in our blog article “COVID-19 Construction Industry – Operating in a Pandemic”, with businesses split over whether or not to shut down operations in order to protect the health and safety of those working on construction sites. The division has been exacerbated by the lack of a clear Government directive either way, meaning that it has – for the time being at least – been left in the hands of individual companies to decide whether or not to stop work.

While that issue continues to divide opinion, what is clear is that the pandemic and the fall-out from it will place an unprecedented strain on supply chains, and one of the main challenges currently faced by the industry is how to maintain cash flow so that businesses are able to survive and continue working once we emerge through the other side. In this regard the Government has taken steps to provide further clarity and guidance, with the publication on 20 March of Procurement Policy Note – Supplier relief due to COVID-19 PPN 02/20 (“PPN02/20”).

Taking immediate effect until 30 June 2020, PPN02/20 applies to all contracting authorities (including central government departments, executive agencies, non-departmental public bodies, local authorities and NHS bodies) and covers goods, services and works contracts being delivered in the UK.

To read the full alert, please click here.

‘Fitness for Purpose’ and Conflicting Obligations in Offshore Wind Projects

By Charles Lockwood and Owen Chio

Two recent cases in the UK illustrate the tricky issues Employers and Contractors have to grapple with in defining the responsibilities of contractors involved in the construction of offshore wind projects.

There are no established standard form contracts for offshore wind farm projects. The standard forms that are often adapted for this purpose include traditional offshore forms used in the oil and gas industry such as the LOGIC forms and standard engineering contracts more commonly used for onshore projects such as FIDIC, particularly the FIDIC Yellow Book.

Neither form is ideally suited for use in the offshore wind industry and they are often heavily amended, particularly in relation to design obligations. The cases summarized below illustrate some of the tensions that can arise, particularly in relation to design and fabrication of monopiles and transition pieces and requirements that they should be fit for their intended purpose.

To read the full alert, please click here.



COVID-19: Coronavirus Concerns Prompt Two-Week Halt to All Construction in Boston

 Authors: Steven P. WrightJohn L. Gavin

Another industry felt the impact of coronavirus (COVID-19) on Monday, March 16, when, amid growing concerns over the spread of COVID-19, Boston Mayor Martin J. Walsh announced a two-week halt to all construction projects in the City of Boston. Boston’s construction ban went into effect on Tuesday, March 17, and will last at least two weeks. Although the implementation of COVID-19 prevention measures has increased across the nation in recent days, Boston’s construction ban is the first of its kind in the United States. This alert discusses the impacts of the construction ban, as well as the broader implications of the ban in Boston and for the rest of the nation.

To read the full alert, please click here.

For more information and resources on COVID-19, please click here.

NEC4 Update – May 2019

By: Nicola J. Ellis and Charles D. Oliver

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.

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FPSO Europe Congress 2019

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!

“If it isn’t broken…”: A practical guide to the effective use of standard forms of contract

By Kiran Giblin and Inga Hall

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.

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Congratulations to our Doha Construction Team – “Property & Construction Team of the Year”

K&L Gates is proud to annouce that our Doha-based Construction & Infrastructure team was recently named the “Property & Construction Team of the Year” by the Qatar Business Law Forum. Members of our Doha office are pictured below accepting the award, which was presented on 13 November 2018.

 

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