Construction Newsletter - September 2024

By Mark Roach & Harriet Hawkins

Published 26 September 2024

Overview

Welcome to the September 2024 issue of the DAC Beachcroft Construction Newsletter.

First, we look at the latest developments in Building Safety news, including the publication of the Grenfell Inquiry's Phase 2 report and the latest amendments to Approved Document B.

We consider the leaseholder protections discussed in Lehner v Lant Street Management as well as the development of AI in the construction industry.

We also review the latest TCC case law. In Peabody the Court considered when an insurance policy for extra project costs following a contractor's insolvency is engaged. In CNO the Court considered whether set-off could be ordered in adjudication enforcement proceedings. And in Abbey Healthcare the Supreme Court confirmed that the beneficiary of a collateral warranty does not have a statutory right to refer a claim to adjudication.

Latest developments under the Building Safety Act 2022 – Q3 2024 update

In this quarterly update, we aim to summarise the latest publications and round up developments in Building Safety news since our June 2024 update.

Emergent risk areas for professionals in light of Grenfell Inquiry Phase 2 Report

The publication of the Grenfell Inquiry Phase 2 Report on 4 September 2024 brings a conclusion to the Public Inquiry chaired by Sir Martin Moore-Bick into the tragedy which unfolded at Grenfell Tower on the night of 14 June 2017.

"Please, sir, I want some more… – A Brief Discussion of the Schedule 8 Protections under the Building Safety Act 2022, following Lehner v Lant Street Management Co Ltd [2024] UKUT 135 (LC)"

Schedule 8 to the Building Safety Act 2022 ("BSA") sets out provisions that are designed to protect leaseholders, where certain criteria is met, against some or all of the costs associated with remedying building safety defects (known as 'relevant measures').

Rise of the Machines: Reliability and Authenticity in the AI Era

The topic of Artificial Intelligence (AI) has dominated headlines in 2024. The construction industry has weighed in and there is much optimism on the benefits of AI for contract management, particularly for smaller businesses with less manpower.

Peabody Trust v NHBC: is contractor insolvency alone enough to trigger cover under an insurance policy?

Peabody Trust ("Peabody") issued proceedings against National House Building Council ("NHBC") to recover insured extra project costs incurred following contractor insolvency. NHBC sought to short circuit the litigation via an application for summary judgment and strike-out.

Can set-off be used to defend or disrupt enforcement of an adjudicator's decision?

In the matter of C.N.O Plant Hire Ltd v Caldwell Construction Ltd [2024] EWHC 2188 (TCC) the Technology and Construction Court ("the Court") considered whether set-off could be ordered in adjudication enforcement proceedings.

DACB Success in Supreme Court concerning Collateral Warranties in Abbey Healthcare (Mill Hill) Limited vs Augusta 2008 LLP (formerly Simply Construct (UK) LLP) [2024] UKSC 23

The Supreme Court decision of Abbey Healthcare (Mill Hill) Limited vs Augusta 2008 LLP (formerly Simply Construct (UK) LLP) [2024] UKSC 23 provides much needed clarity that the beneficiary of a collateral warranty does not have a statutory right to refer a claim to adjudication.