UK Construction – Cybercrime is the Invisible Enemy

Cyber fraud is a real and present danger across almost all industry sectors, and the construction sector is not immune as our recent article demonstrated. According to the FCA there has been a jump of 52% in incident reports and recent global conflict may possibly increase this threat.

One of the primary types of fraud affecting the construction industry is the prevalence of payment diversion fraud. It is estimated that contractors pay out around £100m per year in fake invoices. In some cases, a single instance of payment diversion fraud can amount to millions of pounds. In such cases it is easy to see how the fraud would place intolerable pressure on the cash flow of a business and in extreme instances even lead to insolvency. In an industry already under pressure through factors such as super-inflation and rising energy costs, fraud is yet another unwelcome factor which can be detrimental to cash flow on a project.

To read the full text of this post by Matthew FriedlanderChris Recker and Sam Laycock, please visit the Duane Morris London Blog.

UK: Construction Supply Chains Struggle Under Pressure

In the construction sector solid cash flow throughout the supply chain is the lifeblood of most projects, no matter what size, and is arguably the single most important factor in ensuring that a project reaches its conclusion. However, the cumulative effect of various other factors such as Brexit, escalating global energy prices, the outlawing from 1 April 2022 of the use of the red diesel usage for construction plant, super inflation, higher material and labour costs and the end of government COVID-19 support schemes has led to increased lending costs and smaller profit margins.  As such, the construction supply chain is likely to come under ever increasing pressure in 2022.

To read the full text of this post by Duane Morris attorneys Matthew Friedlander and Tanya Chadha, please visit the Duane Morris London Blog.

How Not to Settle a Dispute: Aqua v. Benchmark

In its latest offering, “CLC COVID-19 Claims and Disputes in Construction” the Construction Leadership Council (CLC) predicts that disputes related to COVID-19 are set to rise in 2021. While the optimist may hope that parties will continue to or aim to work collaboratively in order to find workable commercial solutions to claims arising from the global pandemic, the realist knows that such disputes are inevitable.

To read the full text of this blog post by Steve Nichol and Matthew Friedlander, please visit the Duane Morris London Blog.

The Curious Case of ABC v. Network Rail: Wasn’t It Obvious?

At first glance, the Court of Appeal’s recent decision in ABC Electrification Ltd v Network Rail Infrastructure Ltd [2020] EWCA Civ 1645 might look like the culmination of an exercise in legal hubris. This was, after all, a case focussed on the meaning of a single word in a contract; moreover, a word – “default” – that most of us in the legal profession might say has a well-established meaning.

And, after several hundred thousand pounds of legal fees no doubt well spent, the Court of Appeal told the world that the word “default” means exactly what we all thought it meant – a failure to fulfil an obligation.

To read the full text of this post by Duane Morris attorneys Steve Nichol and Matthew Friedlander, please visit the Duane Morris London Blog.

Considerations of UK Construction Remobilisation, Part 2

Last week we discussed, in light of the encouragement from Robert Jenrick MP (Secretary of State for Housing, Communities and Local Government) for the construction industry to remobilise, the government’s apparent reluctance to provide confidence and clarity for the construction industry in respect of the safe operation of sites.

In the Prime Minister’s address to the nation on 10 May 2020, he re-stated that encouragement for the construction industry, where possible, to return to work.

To read the full text of this post by Duane Morris attorneys Steve Nichol and Matthew Friedlander, please visit the Duane Morris London Blog.

Considerations of UK Construction Remobilisation

The construction industry in the UK has been afforded the freedom to continue work where it is safe to do so since the lockdown was implemented. It is a freedom that the sector has done its best to exploit where it can, with significant works continuing on a variety of essential and less essential projects. A number of leading construction companies and housebuilders have continued or recommenced work where they are able to do so, and a number of high profile projects are apparently progressing well. Build UK has reported that its members, who comprise some of the largest contractors operating in the UK, are now working on 73% of sites (up from 69% last week). However, the issues for the industry facing the prospect of full remobilisation to all sites have not changed.

To read the full text of this post by Steve Nichol and Matthew Friedlander, please visit the Duane Morris London Blog.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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