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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The Building Safety Act – what could it mean for you?

Background On 28 April 2022, after much deliberation and anticipation, the Building Safety Bill (the “Bill”) received Royal Assent as the next “key step in an extensive overhaul to building safety legislation”. Now known as the Building Safety Act 2022 […]

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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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Court of Appeal finds that Limitation of Liability Clause does not Exclude a Claim for Wasted Expenditure

In Soteria Insurance Ltd v IBM United Kingdom Ltd [2022], the Court of Appeal overturned a High Court decision by finding that the words “loss of profit, revenue, savings (including anticipated savings)” in a limitation of liability clause did not […]

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Government ditches the role of Building Safety Manager in latest shake-up of the Building Safety Bill

In a further change to the Building Safety Bill put forward following the Grenfell Tower tragedy in 2017, the Government has now scrapped the requirement to appoint a Building Safety Manager during the occupation phase of a construction project. Background […]

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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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