Construction Law – Legal issues, news, and regulations concerning the construction industry

Tennessee Supreme Court Holds Economic Loss Doctrine Does Not Apply to Construction Services Contracts

Oct 12 2023

On 28 September 2023, the Tennessee Supreme Court held that the economic loss doctrine (ELD) “only applies in products liability cases and should not be extended to other claims.” After years of confusion and guessing by the lower courts and federal district courts in the state, the Court in Commercial Painting Company, Inc. v. The Weitz Company, LLC, et al. (Weitz) declined to extend the ELD and clarified that it does not apply to contracts for services, including construction contracts.

Strategies for Success in Navigating Delay and Quantum Issues in International Construction Arbitration in a Changing World

May 25 2023

We were delighted to host an event in our London office on 18 May 2023, as part of London International Disputes Week, in partnership with 4 Pump Court and Kroll, focusing on “Strategies for success in navigating delay and quantum issues in international construction arbitration in a changing world”. For those unable to join us, a recording of the event is available here.

Breakshore Ltd v. Red Key Concepts

Apr 06 2023

By: Camilla de Moraes, James Jago, and Samuel Gordon

In Breakshore Ltd v Red Key Concepts [2022] 5 WLUK 677 (Breakshore), K&L Gates successfully acted for the Claimant in resisting a Part 8 claim challenging the decision of an adjudicator and thereby enforcing the decision by way of summary judgment. The decision of the TCC reaffirms that the use of Part 8 to resist enforcement of an Adjudicator’s decision will only be appropriate in a very limited set of circumstances and that it must not be used to obtain a tactical advantage.

Recent Changes to Tender Law Regulations in Qatar

Nov 14 2022

By: Pawel Piotrowski, Elias Matni, and Wafaa Dauleh

A series of provisions under the Executive Bylaws of the Law on the Organization of Tenders and Auctions No.16 (2019) have been amended by the Council of Ministers Resolution No.11 of 2022 (the 2022 Resolution). According to the Ministry of Finance officials, the changes made aim to strengthen and support the economic activities that fall outside the scope of the oil industry as there is a growing trend towards enhancing the role of the private sector in implementing a variety of development projects. The key points under these amendments pertain to the enhancement of procurement processes; the incorporation of in-country value (ICV); and support dedicated to micro and small-medium enterprises (SMEs). This short article shall address these main changes in turn, with specific reference to the relevant articles under the 2022 Resolution.

Justin Leonelli Named Regional Director for Delaware Valley Region

Oct 04 2022

Justin Leonelli, an associate in K&L Gates’ Construction & Infrastructure practice group, has been named Regional Director for the Delaware Valley Region for the Society for Construction Law North America.

Click here to read full announcement.

AAA Amendments to the Commercial Arbitration Rules and Mediation Procedures

Sep 19 2022

By: Justin Leonelli and Rich Paciaroni

Effective 1 September 2022, the American Arbitration Association (AAA) has updated its Commercial Arbitration Rules and Mediation Procedures, representing their first revisions since 1 July 2013.

Clarity is Key – How Do You Serve a Valid Pay Less Notice?

Sep 13 2022

By: Kevin Greene and Ruth Chang

Advance JV (A Joint Venture between (1) Balfour Beatty Group Limited; and (2) MWH Treatment Limited); and Enisca Limited [2022] EWHC 1152 (TCC)

The parties in this case carried out works pursuant to an amended form of NEC3 Engineering and Construction Contract (Option A). The works consisted of the supply and installation of LV electrical equipment for design and construction of a new water treatment works and hydro-electric power generation facility in Cumbria.

Regulating Heat Networks: Energy Security Bill to the Rescue?

Sep 12 2022

By: Ben Holland and Ruth Chang

Issues With the Current Heat Networks Regime?

Heat network customers have reported price increases of up to 700% since late 2021.

Heat networks are not currently regulated, and most customers are not covered by the energy price cap (i.e. the Ofgem price-cap does not apply).

When is a Collateral Warranty a “Construction Contract”?

Sep 09 2022

By Kevin Greene and Ruth Chang

Abbey Healthcare (Mill Hill) Limited v Simply Construct (UK) LLP [2022] EWCA Civ 823

The Court of Appeal in this case considered when a collateral warranty will be regarded as a “construction contract” under the Housing Grants, Construction and Regeneration Act 1996 (the Construction Act).

Building Safety Act 2022 – What’s Changed?

May 16 2022

By Kevin Greene and Ruth Chang

The Building Safety Bill received Royal Assent on 28 April 2022, and has now completed all the parliamentary stages in both Houses to become an Act of Parliament – i.e. the Building Safety Act 2022 (the Act).