Look back in anger: collateral warranties provided retrospectively may qualify as ‘construction contracts’

The Court of Appeal in Abbey Healthcare (Mill Hill) Ltd v Simply Construct (UK) LLP [2022] has clarified that subject to their wording, collateral warranties may constitute construction contracts within the meaning of s104(1) of the Housing Grants, Construction and […]

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Natural Justice: it must be done

Questions of procedural fairness remain important in adjudication. In the recent case of Liverpool City Council -v- Vital Infrastructure Asset Management (VIAM) Ltd (In Administration) [2022] the Technology and Construction Court provided declaratory relief rendering an adjudicator’s decision unenforceable because […]

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Validity and Interpretation of Pay Less Notices: Be Specific

In the case of Advance JV & Ors -v- Enisca Ltd [2022] EWHC 1152, the Technology and Construction Court considered the validity and interpretation of a pay less notice which failed to refer to a particular payment application, and which […]

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Immediate Payment Obligation under Section 111 is Paramount

The important recent decision of the TCC in Bexheat Limited -v- Essex Services Group Limited [2022] serves to clarify further the paramountcy of the immediate payment obligation under s.111 of the Housing Grants, Construction and Regeneration Act 1996 (the “Act”). […]

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A More Nuanced Approach: HMRC’s Revised Policy on VAT Treatment for Early Termination Fees and Compensation Payments

Effective from 1 April 2022, HMRC has issued revised guidance on the treatment of VAT for termination and compensation payments. Read on for details of this more nuanced approach to VAT treatment. Background Guidance issued by HMRC in late 2020 […]

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Conclusivity and Time Bar Clauses: Scottish Court of Session Guidance

In an important recent decision, D McLaughlin & Sons Limited -v- East Ayrshire Council, the Scottish Court of Session (the “CSOH”) has considered final certificate conclusivity and time bar provisions and their application to interim payment disputes. Background D McLaughlin […]

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Resolving Costly Domestic Building Disputes: A Proposal by the TCC

In the recent case of The Sky’s The Limit Transformations Ltd v Dr Mohamed Mirza [2022], the TCC considered a disproportionately costly domestic building dispute involving issues of contract formation, termination and sums due under a final account. The Court […]

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Government gives industry deadline of early March 2022 to agree to a plan of action to remediate unsafe cladding

Since the Grenfell Tower fire in 2017, the Government has taken a number of steps aimed at addressing the building safety and cladding crisis. Those steps have included provision for financial contributions to remedying unsafe cladding through the ACM cladding […]

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Entitlement to Liquidated Damages Lost After Alleged Verbal Agreement

In the case of Mansion Place Limited v Fox Industrial Services Limited [2021], the TCC considered an alleged verbal agreement between parties and its impact on future claims. Background In February 2020, Mansion Place Limited (“MPL”) engaged Fox Industrial Services […]

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Terms and Conditions: Formation, Incorporation and Invalidity

In Blu-Sky Solutions Limited -v- Be Caring Limited [2021], the Commercial Court considered contract formation, incorporation of terms and conditions, and invalidity of onerous provisions. Contractual Background: Blu-Sky Solutions Limited (the “Claimant”), a supplier of telecommunication services, claimed c£180,000 from […]

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