Long running concerns over the future of Interserve – the largest public sector focused contractor and outsourcing firm – took a new twist on 15 March 2019.
A recent case¹ has confirmed that a professional appointment for construction will usually be a “construction contract” under the Construction Act².
The appointment in question was to provide design and engineering works for a rail link between Manchester and Leeds. A dispute arose over payment, which went to adjudication. The employer argued that the adjudicator had no jurisdiction to decide the case because their appointment was not a “construction contract”.
The test of whether an appointment is a “construction contract” is whether it relates to “construction operations”. The Court found that preparing designs for potential construction works was a “construction operation”, and, therefore, the designer could refer the dispute to an adjudicator.
When appointing construction professionals, clients should ensure that their appointments:
- include Construction Act-compliant payment provisions; and
- specify adjudication rules, such as the Technology and Construction Solicitors Association (TeCSA) Adjudication Rules.
Standard form professional appointments already cover this.
If you have any further questions about this briefing or have any other procurement concerns, please contact Alistair Smith.
1. Ove Arup & Partners International Ltd v Coleman Bennett International Consultancy Plc (2019).
2. The Housing Grants, Construction and Regeneration Act 1996.
In a decision of the High Court, Mr Justice Spencer ruled that the “Right to Rent” scheme was discriminatory and violated the European Convention on Human Rights.
ACS was also shortlisted in a number of other categories, with its housing sector and procurement, projects and construction teams honoured in the awards’ Excellence in Client Service category.
At least 320,000 people are homeless in Britain, according to research by the housing charity Shelter.
A recent case has confirmed that a professional appointment for construction will usually be a “construction contract” under the Construction Act.
The Competition and Markets Authority (CMA) has recommended changes to the law and its regulatory powers, which are intended to safeguard the interests of consumers.
Behind the Wellbeing of Future Generations Act, there is an implicit admission: we haven’t been taking sufficient account of the interests of future generations.
“Frustration” enables a party to get out of a contract where new circumstances make performance of that contract impossible or illegal.
Chris Whittington will be speaking on 'Leading from the Centre' at The Diocese of Worcester's annual Governors' Conference.
Last week the Fundraising Regulator published the outcome of its investigation into the charity, ILA. The decision has important lessons for trustees of all charities.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.