15 de enero de 2025 • 16 minute read
Significant developments in UK construction law in 2024
It has been a busy year for construction in the UK. Set out below are some of the key developments, including several judgments clarifying the impact of the Building Safety Act 2022, and a new suite of JCT contracts.
Here is a quick summary guide of the key cases/developments with links to the cases:
Date |
Development |
Notes |
|---|---|---|
|
November 2023 – handed down in January 2024 |
Bellway Homes Ltd v Surgo Construction Ltd [2024] EWHC 10 (TCC) (27 November 2023) | A referring party may refer both a smash and grab claim and a true value claim in the same referral to adjudication. These will be a single dispute rather than multiple disputes, as they are alternative arguments relating to the sum due to the referring party. The parties should not apply a restrictive meaning to the word "dispute". |
|
March 2024 |
Vainker & Anor v Marbank Construction Ltd & Ors [2024] EWHC 667 (TCC) (25 March 2024) | The courts will not enforce a net contribution clause in relation to liability under a Defective Premises Act claim, as under s6(3) of the DPA any attempt to limit or exclude liability under the Act will be void. |
|
March 2024 |
Willmott Dixon Construction Ltd v Prater & Ors [2024] EWHC 1190 (TCC) (21 March 2024) | First judgment relating to a Building Liability Order pursuant to s130 of the BSA 2022. The fourth defendant sought a BLO against the third to sixth parties, as associated companies. The fourth to sixth parties applied for a stay to the application for a BLO, arguing that it did not need to be heard until after the main claim had been decided. Jefford J refused to grant a stay, holding that it was just and equitable to hear the BLO application at the same time as the main claim. |
|
April 2024 |
JCT D&B issued | The contract does not contain the expected detail regarding the Building Safety Act – for example there is no detail as to Higher Risk Buildings. |
|
June 2024 |
Finch (Weald Action Group), R. (on the application of) v Surrey County Council & Ors [2024] UKSC 20 (20 June 2024) | In this environmental judicial review case, an individual, on behalf of a local environmental group, overturned a decision of Surrey County Council to grant planning permission for oil extraction because of its failure to take into account scope 3 greenhouse gas emissions - these are indirect emissions from the supply chain which are difficult to measure. |
|
July 2024 |
Abbey Healthcare (Mill Hill) Ltd v Augusta 2008 LLP (formerly Simply Construct (UK) LLP) [2024] UKSC 23 (09 July 2024) | The Supreme Court decided (as expected) that a collateral warranty is not usually a construction contract for the purposes of the HGCRA – parties can amend their warranties if they wish to expressly incorporate adjudication. |
|
August 2024 |
Providence Building Services Ltd v Hexagon Housing Association Ltd [2024] EWCA Civ 962 (15 August 2024) | The Court of Appeal has interpreted clause 8.9 of the JCT DB 2016 to mean that it is not necessary for a right to terminate under clause 8.9.3 to have accrued before a contractor can rely on clause 8.9.4. The contractor may terminate for a second specified default even though the first specified default had been cured during the 28-day period. This has significant implications for employers who pay contractors late. Leave has been given to appeal to the Supreme Court. |
|
August 2024 |
My Contracts Ltd v 74 Hamilton Terrace Freehold Ltd [2024] EWHC 2896 (TCC) (28 August 2024) | This judgement relates to calculation of a notice period of four months. Notice that was served on a Monday but which was due on a Sunday was out of time. |
|
September 2024 |
A & V Building Solution Ltd v J & B Hopkins Ltd [2024] EWHC 2295 (TCC) (06 September 2024) | The Interest (late Payment of Commercial Debts) applies only to qualifying debts. It implies a rate of 8% plus base to undisputed invoices. The Act can be ousted by a contractual rate of 3 or 4% above base, or higher. The Act does not apply to damages for breach of contract, in respect of which 2% above base is an appropriate rate. |
|
October 2024 |
FES LTD against HFD Construction Group Ltd (Court of Session) [2024] CSIH 37 (25 October 2024) | In a Scottish JCT (but on the same wording as the English JCT) notice is a condition precedent for claims for loss and expense. |
|
November 2024 |
Topalsson GmbH v Rolls-Royce Motor Cars Ltd [2024] EWCA Civ 1330 (05 November 2024) | The Court of Appeal ruled on the proper construction of a liability cap. When considering how a liability cap applied to one party's claim and another party's counterclaim, the court held that the cap should first be applied separately to each party’s liability to the other, following which they should be set off against the other. This resulted in a reduction of the amount owing to Rolls Royce. Statutory interest under the Late Payments Act did not fall within the cap on damages. There were many reasons for this, including to allow for certainty as to when the cap has been reached. |
|
December 2024 |
URS Corporation Ltd (Appellant) v BDW Trading Ltd (Respondent) [2023] UKSC 0110 | A hearing took place in the Supreme Court – judgment is expected in spring 2025. Grounds of appeal were:
|
|
December 2024 |
BDW Trading Ltd v Ardmore Construction Ltd [2024] EWHC 3235 (TCC) (16 December 2024) | Adjudicators have jurisdiction to decide claims under the Building Safety Act 2022, by analogy with the principles in Fiona Trust v Privalov (which related to arbitration). The judge considered that Parliament and the parties as rational businesspeople were likely to have intended all disputes to be decided by one tribunal. The distinction between disputes arising "under the contract" and "under or in connection with the contract" had no material significance. |
|
December 2024 |
381 Southwark Park Road RTM Company Ltd & Ors v Click St Andrews Ltd & Anor [2024] EWHC 3179 (TCC) (11 December 2024) | The claimant leaseholders sought a Building Liability Order pursuant to section 130 of the Building Safety Act 2022 in respect of the former owner's liability under s2A of the DPA. The judge held that in carrying out the works, Click St Andrews was in breach of the Freehold Purchase Agreement in relation to water ingress, fire safety and structural defects and that these breaches gave rise to a relevant liability for the purposes of section 130(3)(b) of the Building Safety Act 2022. |
To discuss any of these developments, and their implications for your business, as well as what 2025 might hold in store, reach out to Paul Giles or your contact in the DLA Piper construction, engineering and infrastructure team.
