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.

Limitations on the Use of Red Diesel for the Construction and Engineering Sectors in the UK

Glasgow and COP26 resulted in various commitments from global economies to work towards targets in the reduction of greenhouse gas emissions. The UK is to target the reduction of greenhouse emissions to net zero by 2050.

However, even prior to COP26 there were already legislative changes afoot to have cleaner air. The Finance Bill 2021, and the associated secondary legislation, as part of the government’s plans to reduce carbon emissions, has the effect of restricting the usage of red diesel after April 2022.

To read the full text of this post by Duane Morris partner Vijay Bange, please visit the Duane Morris London Blog.

UK Construction: Legal Riddles and Unsolvable Problems in Multiplex v Bathgate

The decision in Multiplex Construction Europe Ltd v Bathgate Realisation Civil Engineering Ltd and Others is one of the more curious decisions you will ever read.

However, the density and depth of the judgment does not mean it is without interest; far from it. In fact I suspect this case will prove to be one of the more fascinating legal tangles the Courts will be asked to unravel this year.

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

We Still Need Infrastructure in the Digital Age

In 2021, we don’t have hovercars but what we do have is quite incredible digital and information technology that allows many of us to work, shop, order pizza and watch the latest blockbuster from the comfort of our living rooms. And of course, over the last year, most of us having been doing that an awful lot. Because of this, people have started to question whether we now no longer need roads, or indeed all of that other pesky infrastructure that blights our countryside, creates pollution and tends to cost quite a lot of money. 

To read the full text of this post by Duane Morris partner Steve Nichol, 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.

UK Construction and Brexit

The final nail in the coffin of Christmas 2020 for me was getting a directive from NHS Test and Trace to self-isolate on the 23rd. So, instead of celebrating Christmas, I packed the missus off to her mother’s and settled down to read the snappily-titled “Trade And Cooperation Agreement Between The European Union And The European Atomic Energy Community, Of The One Part, And The United Kingdom Of Great Britain And Northern Ireland, Of The Other Part”. Otherwise known to you and me as the Brexit Deal.

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

Another Lockdown in the UK

The New Year has been ushered in by an alarming surge in hospitalisations and sadly a dramatic increase in deaths from the ongoing pandemic. The Government was under increasing pressures to take action. Consequently, the Prime Minister has on 3 January announced another national lockdown, with measures which became law on Wednesday 6th January 2021.

To read the full text of this blog post by Duane Morris attorney Vijay Bange, 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.

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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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