Construction Risk June 2017

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Construction Risk June 2017

Published 1 junio 2017

Rectification of Contracts

Modern construction contracts are complex and frequently comprise large number of different documents. The decision in Milton Keynes BC v Viridor (Community Recycling MK) Limited [2017] EWHC 239 (TCC) serves to remind parties of the importance of taking great care so as to ensure that the correct documentation is incorporated in the contract for execution and of the difficulties that can arise if the parties get it wrong.

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If the damage is inevitable, then it's not accidental

In the case of Leeds Beckett University v Travelers Insurance Company Ltd the High Court has provided useful guidance to property and construction insurers on three key policy provisions.

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Irish Bank Resolution Corporation Limited (in Special Liquidation) v Camden Market Group ([2017] EWCA Civ 7)

Parties to construction contracts frequently seek to contend that the terms of the written instrument do not record the complete agreement between the parties and seek to imply terms governing their relationship. The recent banking decision of Irish Bank Resolution Corporation Ltd (in Special liquidation) v Camden Market Group [2017] EWCA Civ 7 serves to remind us of the circumstances in which this will not be permissible.

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What constitutes Interim Payment and Pay Less Notices?

The recent TCC decision of Surrey and Sussex NHS Trust v Logan Construction (South East) Limited [2017] EWHC 17 has shed significant light on the judicial interpretation of what constitutes a valid Interim Payment Notice and Pay Less Notice. 

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Extensions of time awards should be made contiguously starting on the previous due date for completion

In the recent case of Carillion v Emcor the Court of Appeal has confirmed that an extension of time award should be contiguous, starting on what was previously the due date for completion. This is notwithstanding that the delaying event giving rise to the entitlement for an extension of time may have occurred after a period of delay by the party awarded the extension of time following the previous date for completion.

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Incorporation and reasonableness of exclusion clauses

Property insurers often train their sights on the suppliers of defective plant and equipment in order to recoup losses suffered by reason of a defect in the plant and equipment supplied.  A common refrain from such suppliers is "we are not an insurer" followed by a defence relying on its standard terms and conditions that seek to exclude or significantly limit liability. In a recent decision the TCC has upheld a widely drafted exclusion clause.

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Denso Manufacturing UK Ltd v Great Lakes Reinsurance (UK) Plc [2017] EWHC 391 – Whether claims co-operation clauses were conditions precedent to liability under an ATE insurance policy

This recent Commercial Court decision revisits the interpretation of conditions precedent in insurance policies. It also explores the nature of a third party's right under the Third Parties (Rights Against Insurers) Act 1930.

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To mediate or not: A costly question

In Thakkar v Patel (2017), the Claimants failed to beat the Defendants' settlement offer, yet recovered 75% of their costs. Is this fair? The Defendants thought not and appealed. The Court of Appeal confirmed this ruling.

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