Latham report meaning

Many may not know the 1994 Latham Report, which promoted good faith, while the government’s Construction Playbook and the private-sector Trust and Productivity report are more recent signals of a push for collaborative contracting to enhance delivery. In practical terms, that means embedding good-faith duties in construction agreements, which is one reason the JCT 2024 suite introduces new Article 3. Under Article 3, the parties must engage with each other and with other project team members in a co-operative, collaborative way, acting in good faith and with a spirit of trust and respect. It also obliges the parties to foster collaborative conduct and to challenge behaviour that is not collaborative. As JCT notes, the courts have shown greater openness to the idea of good faith in recent years. However, this is not uniformly applied, and the outcome in any dispute still depends very much on the specific facts. Each matter is assessed on its own circumstances, so results can and do vary from case to case...

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LADs Refer to Liquidated and ascertained damages (LADs or LDs). Late Payment of Commercial Debts (Interest) Act 1999 The Late Payment of Commercial Debts (Interest) Act 1999 grants a statutory right to recover interest on overdue sums. See Practice Notes: Remedies for non-payment under construction contracts and Late Payment of Commercial Debts (Interest) Act 1998. Latent defects Flaws inherent in a property’s design or construction that are not evident upon inspection. See Practice Note: Latent defects. Latent defects insurance Cover that insures against damage to a property arising from latent defects which emerge during the policy term. Such insurance typically runs for 10 or 12 years from practical completion and is arranged on payment of a single premium...

The need for legislation in the construction industry Across the 1980s and into the early 1990s, the construction sector was beset by inefficiency, disputes and widespread insolvency, notably among contractors and sub‑contractors. In 1994, Sir Michael Latham was asked to produce a report on the difficulties facing the industry. In that study, titled ‘Constructing the Team’, Latham pinpointed two themes at the heart of the sector’s problems: disputes payment Latham concluded the industry required a dedicated method of resolving disagreements that was easy to access, rapid and low‑cost, to curb the prevailing disputes culture. He also considered that safeguarding cash flow throughout every tier of the industry would cut contractor and sub‑contractor insolvency and support stable employment. The HGCRA 1996 The legislative answer to Latham’s findings appeared in Part II of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), passed in 1996 and commencing in May 1998. The HGCRA 1996 prescribes provisions on adjudication and payment that construction...