Legal News

Southern Electricity Power Distribution PLC v OCU Modus Ltd [2025] EWHC 723 ( TCC) What are the practical implications of this case? This judgment underlines that a range of elements, including non-pecuniary considerations, can influence how the court assesses damages for breach of contract where works are defective and there is a choice between remedial schemes. The usual position is that, if two alternative remedial options are equally effective and one costs less, then, prima facie, the claimant should implement the cheaper solution ( Mc Glinn v Waltham Contractors). Equally, if the claimant elects for a costlier route in that situation, that does not, of itself, render the decision unreasonable; however, the extra expenditure is generally treated as stemming from the claimant’s selection rather than the defendant’s wrongdoing ( Hirtenstein v Hill Dickinson). Here, the judge concluded there were only two viable methods to...

The Framework Agreement 2016 The earlier JCT Framework Agreement, issued in 2016 ( FA 2016), stated it was aligned with the Public Contracts Regulations 2015 ( PCR 2015), SI 2015/102. Nevertheless, where a framework involved multiple contractors, it offered no objective method for sharing work between them. Any process for allocating work therefore had to be drafted on a bespoke basis and appended to the Framework Agreement. The Framework Agreement 2024 FA 2024 broadly reflects FA 2016 and, like the wider JCT 2024 suite, makes only minimal changes from its 2016 forerunner. FA 24 functions as an overarching umbrella arrangement between a single employer and a single contractor, labelled a ‘ Provider’, which can be confusing when used alongside other JCT contracts that use ‘ Contractor’. A call-off mechanism is provided to instruct individual ‘ Tasks’ under the terms of an agreed ‘...

Grove Construction ( London) Ltd v Bagshot Manor Ltd [2025] EWHC 591 ( TCC) What are the practical implications of this case? This judgment confirms the established principle that only rights and benefits under a contract are capable of assignment, not burdens or obligations. The issue arose in a distinctive setting: the employer under a construction contract had become insolvent and assigned its interests in that contract to a third party. Seeking to recover retention monies due under the contract, the contractor then commenced an adjudication against the assignee. The court’s decision highlights the following point, which parties to construction contracts may wish to consider: adjudication and assignment: a party to a construction contract is unlikely to have the right to adjudicate against an assignee; a dispute with the assignee is not a dispute arising under the construction contract. This is because the...

My five specific observations: Benefits of AI : the Guideline adopts a firm view that AI is a boon to arbitration ( Part I). That matters because conversations about AI are too often anxiety-driven and focus solely on downsides and negatives alike. The Guideline gets it right, quite unequivocally, in fact. By way of illustration, it states that AI can materially improve the arbitral workflow in both efficiency and quality. Both points hold. From our own data after creating a dispute resolution AI system at www.aavalynx.ai, we see efficiency uplifts of up to 70%, alongside better quality, as AI avoids overlooking key evidence and proactively flags any gaps in the record Risks of AI : Part I of the Guideline likewise addresses the hazards of deploying AI. Here, the vital question is: which risks are novel to, or notably magnified by, AI, and which long...

How can owners and developers protect themselves from tariff-related cost overruns and project delays? Owners might start getting contractor demands for extra payment or more project time because of tariff impacts. The obvious first move is a robust construction contract. Wording on price escalation is crucial to reduce the chances of schedule slippage and greater financial exposure. Although the parties could tackle major cost rises later through a change order if the situation arises on the project, such orders are often mired in dispute and ambiguity. In contrast, escalation clauses offer a mechanism for principal project stakeholders to settle, in advance, how to handle higher costs before any rise and/or delay occurs. Ideally, owners can insist on anti‑escalation terms that bind contractors to material prices fixed at contract execution and agreed at signing. Failing that, an owner ought to limit its maximum liability for any...

In this issue: Building safety Litigation Standard form construction contracts Building regulations Infrastructure projects Procurement in construction Construction industry news Lex Talk®Construction: a Lexis®Nexis community Daily and weekly news alerts New and updated content Construction trackers Building safety First ever building liability order and information orders awarded under Building Safety Act 2022 (381 Southwark Park Road v Click) In 381 Southwark Park Road RTM Company Ltd v Click St Andrews Ltd ( In Liquidation) [2024] EWHC 3569 ( TCC), the TCC issued the first—and, to date, only—decision granting a BLO under section 130 of the Building Safety Act 2022 ( BSA 2022), alongside the first Information Orders under BSA 2022, s 132. Jefford J delivered the decision ex tempore at a consequential hearing, following the earlier trial in 381 Southwark Park Road RTM Company Ltd v Click St Andrews Ltd [2024] EWHC 3179 ( TCC). The Information Orders were directed at multiple parties, including the trial...

381 Southwark Park Road RTM Company Ltd and others v Click St Andrews Ltd ( In Liquidation) and another [2024] EWHC 3569 ( TCC) What are the practical implications of this case? BLOs and Information Orders are among the most potent remedies introduced by the BSA 2022 to hold culpable contractors and developers to account and to spare claimants Pyrrhic wins against judgment‑proof defendants. Because they can pierce the corporate veil of wealthier parent entities, these orders herald a retreat from elaborate corporate architectures that silo substantial assets from creditors, and from the tactical use of insolvency to thwart claims (eg, where any realistic recovery would be negligible). Although leaseholders are likely to welcome this outcome, it represents a significant development in company law and the long‑standing doctrine that companies are generally treated as distinct legal persons. If that no longer holds,...

When will a report be covered by without prejudice privilege? ( BNP Paribas v Briggs & Forrester) BNP Paribas Depositary Services Ltd and another v Briggs & Forrester Engineering Services Ltd [2024] EWHC 2575 ( TCC) What are the practical implications of this case? This ruling clarifies when without prejudice privilege ( WPP) can protect a document that is not an exchange between the parties, but is created to aid the resolution of a dispute. Where a report—such as a survey, condition assessment or defects report—is procured to underpin settlement discussions, WPP may attach if clear steps are taken to align the report with the settlement process. To maximise protection, ensure the report is obtained for the purpose of facilitating negotiations and is treated in a manner consistent with confidentiality throughout its lifecycle. In particular, any party seeking to rely on WPP for such material should ensure the...

In this issue: Spring Statement 2025— Key Construction and Planning announcements Building safety JCT contracts Litigation Planning Environmental issues Construction industry news Daily and weekly news alerts Updated content Construction trackers Spring Statement 2025— Key Construction and Planning announcements In the 26 March 2025 Spring Statement, the Chancellor of Exchequer, the RT Hon Rachel Reeves MP, outlined a range of actions affecting Planning and Construction. Plans cover overhauls to the planning regime, investment in transport networks, measures to develop construction workforce skills, and a spending review. See: LNB News 26/03/2025 50. Building safety MHCLG publishes response to Building Safety Levy consultation MHCLG has released its response to the technical consultation on the Building Safety Levy, confirming the start date will slip to Autumn 2026. The charge will apply to new dwellings and purpose‑built student accommodation in England that need building control approval, with local authorities responsible for collection. Tariffs will be derived from Gross Internal Area, with rates set by each...

Sovereign Network Homes—formerly Network Homes Ltd, and Network Build Ltd According to a High Court order dated 26 March 2025, Sovereign Network Homes—formerly Network Homes Ltd—and Network Build Ltd reached confidential settlement terms with a consortium of nine insurers. Network Homes, the owner of the building, and Network New Build, the arm that entered building contracts for the association, issued proceedings in 2023, asserting a right to indemnity for losses arising from defects at a Watford development. The claimants said WPHV Ltd, also known as Willmott Dixon Housing Ltd, acted as main contractor on the scheme and was responsible for defective, combustible insulation and cladding. The contractor entered administration in December 2020 and held professional indemnity insurance with Chubb European between 2019 and 2020. WPHV also had excess insurance cover with......

The Fire Safety Reinsurance Facility Set up in 2024 in the wake of the 2017 Grenfell Tower fire in west London, the Fire Safety Reinsurance Facility has enabled cover for high‑risk buildings with fire safety issues that might otherwise have gone uninsured, the Association of British Insurers ( ABI) reported on 20 March 2025... The ABI noted that the facility, introduced by Mc Gill and Partners Ltd on 1 April 2024, is designed to expand insurers’ capacity to insure these properties by letting them distribute and share the related risks... The Grenfell Tower blaze, a high‑rise block of flats, resulted in 72 fatalities... Steve Mc Gill, founder and chief executive of Mc Gill and Partners, said it is ‘incredibly rewarding’ to see advantages emerging for leaseholders who have struggled to obtain insurance because of fire risks. ‘ I’m immensely......

The duty of the expert witness The litigation process is usually regulated by strict procedural rules in each jurisdiction, which often outline an expert’s role and obligations. In England, for example, experts are addressed in the Civil Procedure Rules, Part 35 ( CPR 35). These provisions set out, among other things, how experts are appointed, the expert’s duty, and the required structure and substance of an expert report. CPR 35 further requires the expert to include in his or her report a statement confirming independence. It makes clear that an expert’s role is to assist the court on matters within their expertise, and that this paramount duty takes precedence over any duty owed to the instructor or the party funding the engagement. By contrast, in arbitration there is generally no specific regulatory framework for experts within most institutional procedure rules. The rulebooks of the...

In this issue: JCT contracts Building safety Adjudication Procurement in construction Planning Litigation Construction industry news Daily and weekly news alerts New and updated content New Q& As Construction trackers JCT contracts JCT contracts Risk allocation for existing structures: contract amendments and clarifications lead to confusion ( Sisk v Capital & Centric) In John Sisk and Son Ltd v Capital & Centric ( Rose) Ltd [2025] EWHC 594 ( TCC), the TCC examined the reading of a JCT Design and Build Contract 2016 that featured intricate bespoke amendments and clarifications concerning the allocation of risk for pre-existing structures on a construction site. The TCC held that, under the contract, any extra cost or delay arising from the condition of those existing...

Risk allocation for existing structures—contract amendments and clarifications lead to confusion ( Sisk v Capital & Centric) John Sisk and Son Ltd v Capital & Centric ( Rose) Ltd [2025] EWHC 594 ( TCC) What are the practical implications of this case? This decision underlines that, especially when the employer has design and feasibility involvement, negotiating and settling bespoke provisions on risk apportionment can culminate in a complex final contractual posture, in which it is not straightforward to determine whether a particular risk sits inside or outside the ambit of a contractual carve‑out of responsibility. Employers and contractors alike should ensure the agreed division of risk is clearly and precisely articulated in the written contract and fully aligned across every operative provision, including any clarifications, schedules or similar documents incorporated into the agreement by reference. Parties must also check that the final copy of the...

In this issue: JCT contracts 2024 Building safety Procurement in construction Arbitration Litigation Planning Infrastructure projects Construction industry news Daily and weekly news alerts New and updated content New Q& As Construction trackers JCT contracts 2024 The JCT Management Building Contract and Construction Management Contract 2024—what’s changed? On 5 March 2024, JCT released the 2024 editions of the Construction Management Contract and Management Building Contract, together with updated Framework Agreement, Dispute Adjudication Board Documentation, Adjudication Agreement, and Project Bank Account Documentation. Our reviews centre on the Management Building Contract and the Construction Management Contract, highlighting how they diverge from the 2016 versions. See News Analysis: The JCT Management Building Contract 2024—what’s changed? and The JCT Construction Management Contract 2024—what’s changed? Building safety MHCLG publishes updated Approved Document B ( Fire...

Our verdict The Planning and Infrastructure Bill reached Parliament on 11 March 2025. It sits at the heart of the Labour government’s programme and aligns with its stated missions, which include kickstarting economic growth and making Britain a clean energy superpower, as well as its broader commitments to reform the planning regime to support development—including the delivery of 1.5 million new homes over the course of the current parliament. It is, by any standard, an ambitious package of legislation. However, even though many of the measures proposed are encouraging for developers, especially the reintroduction of spatial planning and the updating of National Policy Statements, significant challenges and uncertainties remain in practice, particularly concerning the sufficient and sustained resourcing of LPAs. LPAs will gain new powers to set their own planning fees, rather than rates being set nationally by the Secretary of State as is...

The latest contracts in the JCT 2024 suite were published on 5 March 2025. Fresh publications cover the 2024 versions of key JCT documents: Construction Management Contract and Management Building Contract families, with their guides Framework Agreement and Framework Agreement Guide Dispute Adjudication Board Documentation Adjudication Agreement Project Bank Account Documentation This article sets out the principal changes to the Construction Management Contract 2024 ( CM 2024) family, contrasted with its 2016 counterparts and other forms in the JCT 2024 suite. Particular attention is given to the Construction Manager Appointment 2024 and the Construction Management Trade Contract 2024. Reference copies of every document issued by the JCT on 5 March 2025 are available on Lexis+® Construction—see the ‘ Forms’ tab on the sub-topic ‘ JCT contracts 2024’ within ‘ Standard form construction contracts’, and Practice Note: JCT contracts 2024—reference copies. For details of other contracts in the suite, see Practice Note: JCT...

Latest JCT 2024 contracts published on 5 March 2025 The latest instalments in the JCT 2024 suite were published on 5 March 2025. They include the 2024 editions of the JCT Construction Management Contract and the Management Building Contract families, together with their guides, alongside 2024 editions of the Framework Agreement and Framework Agreement Guide, Dispute Adjudication Board Documentation, the Adjudication Agreement, and Project Bank Account Documentation. This article sets out the principal changes to the Management Building Contract 2024 ( MC 2024) family, compared with its 2016 predecessors and with other forms in the JCT 2024 suite. We focus specifically on the Management Building Contract 2024, and the Management Works Contract Agreement and Conditions 2024. Reference copies of all documents issued by the JCT on 5 March 2025 are available on Lexis+® Construction: see the ‘ Forms’ tab under our sub-topic ‘ JCT...

Overview Hydrogen is the universe’s most plentiful chemical element and, in some uses and certain applications, yields only water at the point of use. Although the fuel itself is colourless, it is often labelled by ‘colours’ according to the production route, depending on how it is produced. Black, brown and grey hydrogen arise from coal or natural gas, with grey presently the most widespread form produced and currently the most commonly produced type. Blue hydrogen likewise originates from natural gas, but its manufacture is paired with carbon capture and storage to deliver a more carbon neutral variant. Green hydrogen, by contrast, relies on renewable electricity (for example, from solar or wind) to split water through electrolysis. Because electricity is the key input, green hydrogen sits within the so‑called ‘power‑to‑x’ world of technologies and applications which are attracting significant investment. Together, green and blue...

In this issue: Building safety JCT contracts Arbitration Adjudication Contract law Environmental issues Lex Talk®Construction: a Lexis®Nexis community Daily and weekly news alerts New and updated content New Q& As Construction trackers Building safety TCC makes first reported building liability order (381 Southwark Park v Click St Andrews) In 381 Southwark Park Road RTM Company Limited and others v Click St Andrews Limited and another [2024] EWHC 3569 ( TCC), the TCC appears to have issued the first reported building liability order under section 130 of the Building Safety Act 2022 ( BSA 2022). The successful parties were leaseholders of flats in a residential block. By an earlier judgment, the leaseholders had established that a developer was liable for defective works carried out to the block, which constituted ‘building safety risks’ for the...