Case Summaries – Construction Law

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.

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.

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).

Wrongful Termination and Failed Wasted Costs Claim

Mar 17 2021

By: Nita Mistry

CIS General Insurance Ltd v. IBM United Kingdom Ltd

The Technology and Construction Court has recently handed down authoritative guidance on wasted costs and the characterization of damages arising out of termination of a contract. The court was asked to determine whether the claimant was entitled to recover £128 million in damages for wasted costs arising from the alleged wrongful termination of a contract.

What’s in a Name? Recent Case Determines Using a Trading Name Does Not Invalidate a Notice of Adjudication

Jul 29 2019

By Nita Mistry and Victoire Courtenay

Recently, in the case of MG Scaffolding (Oxford) Ltd v Palmloch Ltd [2019] EWHC 1787 (TCC), the Technology and Construction Court (TCC) held that the adjudicator did not lack jurisdiction and the notice of adjudication was valid, in circumstances where the adjudication was commenced and pursued against the responding party’s trading name.

The adjudication was commenced by MG Scaffolding (Oxford) Limited (MGS) against “MCR Property Group” (MCRPG). This was in fact a trading name for the correct contractual counterparty called Palmloch Ltd (Palmloch).

Practice Completion: Clarifying a “Trifling” Topic

Jun 03 2019

By: Kevin Greene and Kiran Giblin

In the recent case of Mears v Costplan [2019] EWCA Civ 502, the Court of Appeal provided significant clarity as to how courts should interpret the widely used but seldom defined term, “practical completion” in the context of construction contracts. In essence, it was held that practical completion should only be prevented by patent defects (i.e. those that can be discovered by reasonable inspection) where such defects are considered “more than trifling.”

Collateral Warranties: A Reminder of Their Importance

Nov 08 2018

By Kevin Greene and Daniel Cartmell

The judgment of O’Farrell J in Swansea Stadium Management Co. Ltd v Swansea City and County Council ([2018] EWHC 2192 (TCC)) provides guidance on collateral warranties and acts as a warning for any potential claimants to be mindful of any limitations of time in which to commence proceedings under them.

Court Places Assets in the Freezer

Aug 29 2018

Western Sydney Aerotropolis: The Call for Private Investment

By: Clive Cachia

As the fastest growing region in Australia, the development of Western Sydney has been a national focus. Publicly, the Australian Government has committed up to AUD5.3 billion in public equity funding towards the construction of Sydney’s second international airport, the Western Sydney Airport. Touted as the Western Sydney Aerotropolis, the surrounding region of Western Sydney Airport will need significant private investment of at least AUD20 billion to develop an integrated transport, logistics, defence, advanced health, food agtech and education precinct surrounding the runway and terminal facilities.

California Supreme Court Provides Clarity to California’s Prompt Payment Exception

May 23 2018

By: Timothy L. Pierce and Heather L. Frisch

The California Supreme Court issued an opinion on 14 May 2018 in United Riggers & Erectors, Inc. v. Coast Iron & Steel Co. that resolves a split in authority regarding whether Civil Code Section 8814 excuses prompt payment of retention by an owner or prime contractor if a good faith dispute of any kind exists between the parties or only when there is a dispute over the work for which the retention is due. The Court held that a contractor is only entitled to withhold retention when there is a dispute arising out of the work on which the retention is based.

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