UK – Duane Morris Construction Law

November 17, 2022 by Duane Morris

A Year in Review: UK Construction and Engineering Adjudication 2022

Coulson LJ could not have encapsulated Adjudication more succinctly:

“It is not an alternative to anything; it is the only game in town.”[1]

In the UK construction and engineering industry adjudication remains the main forum and means for resolution of disputes, many of which are complex and significant in value. In this blog the author looks at, and summarisers, the salient points arising from an illuminating report arising from a collaboration between The Adjudication Society and the team at Kings College[2], led by Professor Renato Nazzini and Aleksander Kalisz. The collation of data from the questionnaire(s) looks at emerging trends and identification of areas of further refinement in the process.

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

March 31, 2022 by Duane Morris

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 Friedlander, Chris Recker and Sam Laycock, please visit the Duane Morris London Blog.

February 18, 2022 by Duane Morris

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.

February 11, 2022 by Duane Morris

Construction, Engineering and Energy Cyber Threat

Construction, energy and engineering companies have lagged others in taking steps to protect themselves from the growing number of cyber-attacks, and failing to take preventive measures can lead to expensive litigation.

To read the full text of this article by Duane Morris attorneys Vijay K. Bange and Chris Recker, please visit the firm website.

January 27, 2022 by Duane Morris

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.

January 18, 2022 by Duane Morris

The Ongoing Fallout from the Achmea Decision

In the Achmea case the Court of Justice of the European Union (ECJ) held that Article 8 of the Netherlands – Slovakia bilateral investment treaty, which allowed for the resolution of disputes by way of arbitration, was incompatible with EU law. The rationale for the decision was that a tribunal may have to interpret or apply EU law and where a question of law arose, unlike a Member State court, that question of law could not be referred to the ECJ. In other words, intra-EU bilateral investment treaty arbitration provisions, as reasoned by the ECJ, deprived the EU courts of jurisdiction in respect of the interpretation of EU law.

We raised the prospect that the ramifications from the decision were potentially far reaching and were not, it seemed, confined to the BIT between Netherlands and Slovakia.

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

January 13, 2022 by Duane Morris

Is It Necessity or Choice to Use Technology in Arbitration?

The global pandemic continues to challenge us, with various measures ranging from further lockdowns to restrictions on in-person meetings. The judicial machinery, including that in the arbitration world, has continued to function throughout the pandemic notwithstanding the difficulties of embracing innovative processes and new technology.

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

December 20, 2021 by Duane Morris

Is This the End of Intra-EU BIT Arbitrations?

The impact and uncertainty caused by the Achmea case on investor state dispute settlement provisions contained in intra-EU Bilateral Investment Treaties continues. These issues are potentially far reaching and may extend further than originally envisaged, namely that this case was arguably specific to the BIT between Netherlands and Slovakia.

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

November 16, 2021 by Duane Morris

Are We Ready for the Net-zero Age in the Decarbonization of the UK Construction Sector?

It’s probably too early to deliberate whether COP 26 was a success, and if progress has been made since Paris. Glasgow will be remembered for the passionate speech from the Maldives representative, which reminded us (if ever we needed reminding) of the Armageddon-esque effects of climate change to the planet as a whole, and to small island nations in particular. The target remains to aim for net-zero carbon emissions by 2050, and to keep global warming close to 1.5 degrees.

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

September 15, 2021 by Duane Morris

UK: Public Consultation and Duty to Protect

Last week marked 20 years of the horrific terror attacks on the Twin Towers in New York. 2017 saw the atrocious attacks at the Manchester Arena, and subsequently Fishmongers’ Hall in London, and sadly there were others. Global events may create yet further security uncertainty and risks from potential terror attacks.

In February this year James Brokenshire, the Security Minister, reiterated the government’s commitment to improving public security, and to action the findings and lessons learned from the ensuing inquiries. The Home Office has commenced a public consultation on the use of a ‘Protect Duty’. In short this will require businesses, public bodies and security firms to consider risks of a terrorist attack and to ensure proportionate and reasonable measures are taken to protect the public.

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