By DAC Beachcroft

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Published 15 December 2023

Overview

Welcome to the December 2023 issue of the DAC Beachcroft Construction Risks Newsletter

This quarter's newsletter starts with an update on Building Safety. Legislatively speaking, it has been a relatively quiet period; we provide a reminder of the key changes that came into force on 1 October 2023 and what is to come in the New Year.

Adjudication enforcement is a key feature this quarter. As usual, the cases often turn on their facts. A stay of execution was granted in J&B Hopkins, whereas enforcement was permitted in Alun Griffiths in circumstances where an adequate parent company guarantee was provided. Bexhill provides a further example where the court could not be convinced the adjudicator had breached of the rules of natural justice, demonstrating once again that this is unlikely to prove a successful defence to resist enforcement of an adjudicator's decision. Finally, the decision in AZ v BY demonstrates the dangers of putting without prejudice material before the adjudicator.

We also look at the recent decisions providing guidance on what works will be deemed "construction operations" and payment mechanisms, in particular, the final date for payment.

Finally, a note on the Government's plans to introduce reporting on retention payments for businesses in the construction sector.

Some festive reading (!)

 

The latest developments under the Building Safety Act 2022 ("BSA")

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Things Fall Apart?

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When a stay of execution will be granted against the enforcement of summary judgment based on an adjudication award to prevent manifest injustice.

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Resisting enforcement: A review of Alun Griffiths (Contractors) Ltd v Carmarthenshire County Council [2023] EWHC 2269 (TCC)

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Failure to resist enforcement action on the basis of an alleged breach of natural justice by the Adjudicator

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The effect of using Without Prejudice materials on an Adjudicator's Decision

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A Lidl clarification - payments made under a construction cannot be conditional on the provision of invoices

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Lidl Great Britain Ltd v Closed Circuit Cooling Ltd (t/a 3cl) [2023] EWHC 3051 (TCC) – Navigating Jurisdiction: Court Emphasises Adjudication Flexibility in Recent Ruling

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Guidance on what works are "construction operations" following the decision in Crystal Electronics Limited v Digital Mobile Spectrum Limited [2023] EWHC 2656

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A valid payment application is key

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Government to take forward plans to introduce reporting on retention payments for businesses in the construction sector

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