Here are our top five for this month
1. In the Technology and Construction Court, Mr. Andrew Mitchell KC had to decide when a cause of action arose for a claim under NHBC Buildmark warranty in relation to contractor insolvency cover. NHBC said that the 6 year period for making the claim ended 6 years after administrators were appointed by the contractor. Proceedings were issued against NHBC by the warranty beneficiary (a charitable Community Benefit Society) more than 6 years after the appointment of administrators. If NHBC was right, the claim would be barred by section 5 of the Limitation Act 1980.
It was held that the 6 year limitation period did not run from the date of appointment of administrators but from when the warranty beneficiary was required to pay above the contract price to complete the works, as this was the event insured against. Link to case: Peabody Trust v National House-Building Council [2024] EWHC 2063 (TCC) (06 August 2024) (bailii.org)
2. The JCT 2024 edition of the Standard Building Contract was released in August. To see the changes in context, there is a document showing the 2024 changes tracked within the 2016 edition. This can be purchased from JCT: JCT Tracked Change (jctltd.co.uk)
3. Government statistics released on 20 August show construction insolvencies in the 12 months to June 2024 at 4,303 and at 17% the highest level of insolvency of all sectors, followed by wholesale and retail trade and repair of motor vehicles and motorcycles. The impact of insolvency on the company officers, employees and the supply chains is often very significant; financial due diligence should always be done by contractors on clients and vice versa and appropriate security built into the project contracts, such as parent company guarantees and/or bonds.
4. Notwithstanding the rate of construction insolvencies, the CSN industry Outlook 2024 to 2028 forecasts a need for a further 250,000 construction workers by 2028: CSN Industry Outlook – 2024-2028 – CITB.
5. Finally, good luck to all involved in our local building, the Bristol Beacon, as National Award shortlisted finalists in the category Building Project of the Year for the Constructing Excellence 2024 awards. For a taste of the intricacies of this project: Bristol Beacon – Constructing Excellence. Other buildings that caught our attention are: Springfield Mill: Springfield Mill – Constructing Excellence and the Steamhouse for Birmingham City University: STEAMhouse for Birmingham City University – Constructing Excellence.
If you have any questions about these or other construction matters, please contact Jan Grimshaw on 07702 846850 or jan.grimshaw@daviesandpartners.com
