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Payment and Payless Notices – the Basis of Calculation – Judicial Guidance at last

Published on 13 November 2017. By Sarah Shafiq, Associate and Dan Preston, Partner

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Whilst the Scottish case of Muir Construction Limited v Kapital Residential Limited is not binding on the English courts, the judgment is not only perfectly sensible but also provides useful guidance on the requirements for a payless notice under the amended Housing Grants, Construction and Regeneration Act (the Act) - an area which has not had much judicial attention since the change from the withholding notice regime. In a bumper month for payment notice disputes, we also had guidance from the Court of Appeal on the need for payment notices following termination – both decisions coming just as the Government announced its consultation on the 2011 amendments to the Act.

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Sinking and Reserve Funds – how best to save for a rainy day

Published on 08 November 2017. By Johanna Hall, Senior Associate

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Most managing agents will know that it is best practice to keep funds aside for a rainy day but how many are aware of the formalities necessary to properly account for such funds?

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Construction Act and Retention consultations published by the Government

Published on 02 November 2017. By Sarah Newby, Trainee Solicitor and Jamie Key, Senior Associate

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The Government has recently published two consultations to review (i) the implementation of the 2011 changes to the Construction Act; and (ii) the practice of cash retention under construction contracts.

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From light industrial to residential – the new permitted development right

Published on 01 November 2017. By Caroline Bywater, Head of Planning

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At a time when headlines and inboxes are filled with new comment, consultation and discussion on how to tackle England's housing crisis, a new permitted development right allowing a change of use from light industrial to residential has come into effect with very little fanfare. So what's new, and why have we not heard more about it?

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Adjudication – mind the recovery gap

Published on 23 October 2017. By Rebecca May, Associate

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O'Farrell J recently severed an adjudicator's decision as she considered that the adjudicator did not have jurisdiction to award costs under the Late Payment of Commercial Debts (Interest) Act 1998 (Late Payment Act) in Enviroflow Management Ltd v Redhill Works (Nottingham) Ltd (2017) (unreported, 16 August 2017).

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North Midland Building Limited v Cyden Homes Limited [2017] EWHC 2414 (TCC): Choose your extension of time provisions carefully

Published on 11 October 2017. By Jonathan Hutt, Partner and Sarah Newby, Trainee Solicitor

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North Midland Building Limited v Cyden Homes confirms the primacy of the parties' contract in determining an extension of time. Specifically, in North Midland the High Court held that an amendment made to the construction contract meant that, in a situation of concurrent delay, North Midland Building Ltd (the Contractor) was not entitled to an extension of time from Cyden Homes Ltd (the Employer) and that the prevention principle, had it arisen, would not take precedence over the expressly agreed terms of the contract.

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Serial referrals and abandoned adjudications: will the court grant an injunction prohibiting adjudication proceedings?

Published on 09 October 2017. By Julia Edwards, Associate

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In Jacobs v Skanska, the TCC has recently held that starting a second adjudication on the same or similar issues is unreasonable but not oppressive and an injunction should not be granted. In the recent case of Jacobs UK Limited v Skanska Construction UK Ltd [2017] EWHC 2395 (TCC), Justice O'Farrell DBE clarified the courts will not restrain a party who opens and closes numerous adjudications for a tactical benefit but, the responding party may be granted a wasted costs order.

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The Mayor of London's Affordable Housing SPG: 10 things you need to know (part 2)

Published on 30 August 2017. By Caroline Bywater, Head of Planning

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This supplementary planning guidance, issued this month, builds on the Mayor's long-term aim for half of all new homes in London to be affordable (as defined in the London Plan). More will no doubt be heard in the revised London Plan when that emerges, but in the meantime here are some headlines which we hope help you cut through the SPG.

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The Mayor of London's Affordable Housing SPG: 10 things you need to know (part 1)

Published on 24 August 2017. By Caroline Bywater, Head of Planning

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This supplementary planning guidance, issued this month, builds on the Mayor's long-term aim for half of all new homes in London to be affordable (as defined in the London Plan). More will no doubt be heard in the revised London Plan when that emerges, but in the meantime here are some headlines which we hope help you cut through the SPG.

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Contractors and Insurers beware - Contractor found to bear the risk of an incorrect standard as fitness for purpose prevails in the Supreme Court

Published on 03 August 2017. By Rebecca Taylor, Trainee solicitor

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This morning the Supreme Court handed down its much anticipated judgment in MT Højgaard A/S v E.ON Climate & Renewables UK Robin Rigg East Limited and another [2017] UKSC 59. The Judgment should be of concern to both contractors and their insurers.

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