Welcome to our blog where we share our expertise and opinions on a range of topical issues.
The key objectives of the Housing Grants, Construction and Regeneration Act 1996 [HGCRA] were to improve cash flow and introduce rapid low-cost dispute resolution via strict rights to timely payment and access to adjudication for all parties.
Mediation is a non-binding ADR process that allows the parties to retain control and resolve issues without recourse to expensive and lengthy formal processes. Eric and Duncan share their thoughts on the tactical use of mediation, the associated case law and how mediation can be used as part of a dispute avoidance strategy.
Construction projects are complex undertakings involving numerous stakeholders, intricate contracts, and a multitude of moving parts. With such complexity, it's no surprise that disputes can arise, leading to costly delays, financial losses, and damaged relationships.In this article, Rebecca Redhead and William Garcia explain how proactive measures and communication can help avoid disputes, leading to more successful project outcomes.
Scheduling is a crucial aspect of managing mega projects, which are defined as large-scale, complex ventures that typically cost over $1 billion, take many years to develop and build, involve multiple stakeholders, and have a transformative impact on millions of people.
As construction expert practice continues to evolve we examine the importance of data expertise in claim and expert evidence preparation, and how data professionals are creating tangible intellectual property, driving client value and enabling experts so they can navigate and analyse vast volumes of unstructured project records and data.
By leveraging technology, construction experts can streamline claim or expert evidence preparation, improve accuracy, enhance collaboration, and present claims more effectively. This can ultimately lead to faster resolution of disputes and better outcomes for all parties involved in the construction project.
This article discusses the use of the price escalation clause, often referred to in Australia as a ‘rise and fall’ clause, as a risk management method.
As the cost of materials, transportation and labour rise globally, construction projects are feeling the bite of evaporating margins, constrained cashflow, and extended lead times.
When managing a project which is better: a detailed schedule or a less detailed one. The simple answer that you would usually get is a detailed one of course! Well… it is not always the case.
Group Managing Director, Stephen Rayment, explains why Systech is a “disruptor” within the construction claims market, being the only consultancy to offer a single point claims, expert witness and legal solution for complex disputes, along with the benefits that this approach gives to our clients.
The Corporate Insolvency and Governance Act 2020 (“CIGA”) received royal assent on 25th June 2020 and its provisions came into force the very next day, with some having retrospective effect from March 2020 when the first national lockdown began.
Systech offers a commercially focused, expeditious and cost-effective expert witness service as part of its approach to dispute resolution in the industry.
When managing a project which is better: a detailed schedule or a less detailed one. The simple answer that you would usually get is a detailed one of course! Well… it is not always the case.
Adjudication produces a decision that is binding on the parties, can be achieved inexpensively, and in a short period of time. These benefits may be enough to see it consistently used as a true alternative to other dispute resolution methods.
The Kingdom of Saudi Arabia is embarking on what could become the most significant national programme of development in history.
The issue of concurrent delay is rarely dealt with in the Ontario courts or, indeed, anywhere. This is largely due to the prevalence of alternative dispute resolution (ADR) mechanisms in the construction industry.
The case of Mansion Place Ltd v Fox Industrial Services Ltd [2021] EWHC 2972 (TCC) is a timely reminder of the importance of keeping contemporary records.
Where there is more than one dispute, parties are prevented from referring the disputes to adjudication unless they come to an agreement.
Australia’s security of payment regimes are based on two legislative models known as the ‘East Coast’ and ‘West Coast’ models. These models represent two approaches to security of payment rules but even within the broad East and West categorisations, each state and territory has differences in detail.
The judge in Downs Road Development LLP v Laxmanbhai Construction (UK) Limited [2021] EWHC 2441 (TCC), held that the adjudicator’s decision would not be enforced due to a breach of the rules of natural justice and highlighted the importance of the subjective requirement for a payment notice and pay less notice.
Liquidated damages clauses are an important part of contractual risk management. For the party relying on them, these clauses provide reassurance of compensation for any project delay, without the burden and uncertainty of having to prove a claim.
Joint Ventures (JVs) have become a staple of international megaprojects as they facilitate the sharing of specialist skills and key connections, as well as collating financial strength and spreading commercial risk.
If you have worked on an international construction contract, the chances are high that you’ve encountered LIBOR. If you are currently working with a contract referencing LIBOR, you should start planning for life without it; LIBOR as we know it will cease no later than 31 December 2021.
Disruption is usually lost productivity, i.e. an increase in the resources required to carry out a unit of works from the “baseline” levels.
In recent years, mediation has been rising in popularity as a means to resolve commercial disputes. Despite this, until the Singapore Convention came into existence, the use of mediation was generally limited to the resolution of domestic disputes, due to the lack of an efficient and harmonised international framework for the enforcement of mediated settlement agreements.
‘Disruption’ and ‘delay’ are two terms that are regularly used in the same breath as they often flow from the same event. But you can have delay without disruption and vice versa as we will see later in this article.
The EPC industry has always been a risky business that requires increasingly critically-minded management, as unexpected new risks keep emerging. This article will focus on the unfortunate effects of a subcontract assignment by an EPC contractor to an owner upon termination of the main contract.
This article was originally published in the ICE Construction Law Quarterly Volume 171 Issue 5 and is kindly reproduced with their permission.
The case of Callow v. Zollinger saw the Supreme Court of Canada (“SCC”) pass judgment on the conduct of parties to a contract and how they must act with honesty even if they are complying with the provisions contained therein.
The recent case of Secretariat v A Company has shone light on the duty of the expert witness and the issue of conflicts of interest, but has it raised more questions than answers? Reliance on expert witnesses in construction disputes is as prevalent as ever. It is precisely because of this that the role of the expert and their duty to the court or tribunal is so important. The overriding objective of any expert is to assist the court in making its decision. This much is clear.
Taking shortcuts with your project records is likely to dramatically reduce the success of your claims, Paschal Walsh explains why.
It is recognised that construction projects have a tendency to overrun; the more complex the project, the more likely I will suffer from delays.
Contractors focus on the successful delivery of projects but do not always get paid fairly for doing so!
Since the onset of the Covid-19 pandemic, Courts and other dispute resolution bodies around the globe have had to adapt quickly to the situation, and they have generally done this by embracing ‘remote’ or ‘virtual’ hearings.
Independent Certifiers are increasingly being used in contracts in Canada and Australia. Differing in many respects from contract administrators such as the FIDIC Engineer, the Superintendent under the AS4000 or NEC Project Manager, working with an IC requires a subtly different approach. This article draws on Systech Law’s experience to provide an overview of the role of the Independent Certifier and how to successfully work with them.
Just as everyone is growing accustomed to hearing a French maxim associated with Coronavirus (force majeure), it seemed like time to bring you a Latin one (exceptio non adimpleti contractus, “the exceptio”[1])...
Mark Thomas, our Director of Disputes and Expert Witness Services, considers Covid-19 from a Middle East perspective, offering steps to preserve contractual rights and entitlements, privilege and confidentiality during settlement negotiations.
The application of sampling has not always been well received by courts and tribunals, primarily because, by its nature, it alters the burden of proof. However, in situations involving numerous low-value items, such as minor but widespread defects, the cost and time required to prove each individual item can be prohibitive or, at least, disproportionate. This is where sampling evidence has been posited as a solution.
The construction industry is credit-heavy and complex, a very dangerous combination that often leads to contractors not getting paid on time and/or not receiving what they are due. With the works being carried out on credit, coupled with long and convoluted payment chains, there are many opportunities for money to fall through the cracks. However, with good housekeeping, efficient cash management and new government legislation, it is possible for contractors to protect and enhance their cash position.
We help our clients improve their commercial and contractual standards through targeted and focused training given by senior members of our consultancy team with hands-on knowledge of the topic.
This is the first judgement to address the impact of the COVID-19 health crisis on the process of carrying out an adjudication. This judgement indicates the approach the Technology and Construction Courts will take when deciding on challenges to adjudication proceedings under the present circumstances.
Confirmed cases of COVID 19 have soared over 400 000 worldwide with fatalities crossing the threshold of 15,000, which has led the World Health Organisation (“WHO”) to upgrade the COVID 19 outbreak from a “public health emergency of international concern” to a “pandemic” (the “Pandemic”) on 11 March 2020. Europe is the new epicentre of the Pandemic. African and Middle East countries are now closing their borders and ramping up their responses in order to keep the spread of the virus at bay and mitigate its impact on their economic activities.
Imagine millions of pounds relying on an interpretation of a single word. A single word to determine the meaning of a contract’s clauses and the placement of liabilities. This is exactly what happened between Network Rail Infrastructure Limited (“Network Rail”) and ABC Electrification Ltd (“ABC”), an incorporated joint venture between Alstom Transport UK Holding Limited, Babcock Rail Limited and Costain Limited (“Costain”). Network Rail, as the Claimant, was seeking declarations in Part 8 proceedings as to the interpretation of the contract.
The novel coronavirus outbreak in Wuhan in the PRC, or (“COVID-19”) as it was named by the World Health Organization (“WHO”), is increasingly disrupting businesses on a worldwide scale. Since January 2020, the outbreak has spread throughout the PRC and new pockets of infection are now confirmed in numerous other countries across the globe.
In the 25 years since its introduction, the NEC has become the favoured contract on many of the largest infrastructure projects in the UK including the Channel Tunnel Rail Link, Heathrow Terminal 5, 2012 London Olympics, Crossrail, Hinkley Point and HS2. Group Managing Director, Mark Woodward-Smith, provides his top tips for NEC success including some specific tips for the recently published NEC4.
This article was originally published in the November 2019 edition of Construction law International; Grimes, MA (2019) 14(2) CLInt, 7-9, and is kindly reproduced with their permission.
This article considers recent incremental legal developments concerning the often murky world of delay analysis methodology and offers a salutary warning to expert delay analysts who ignore facts, unwittingly or otherwise, in preference for recognised but hypothetical analysis methodologies.
Time bar clauses are commonly seen as being of benefit to the employer, however they do provide benefits for contractors too.
Mediation is a form of ‘Alternative Dispute Resolution’ (ADR), which is a very ancient practice that has been developed for modern usage. ADR can offer a compelling alternative to litigation which is often costly and damaging to business relationships whilst offering limited creative problem-solving opportunities.
Standard form contracts usually stipulate a period within which the contracted works must be completed by the contractor. However, to prevent those contracts from being frustrated by an act(s) of prevention by the employer they also provide that, in those circumstances, the contractor is relieved of the obligation to perform the works within the stipulated period, and include a mechanism that allows the contractor to recover the time lost for delays that are beyond his control.