Developments and funding for construction lawyers

Many of the large construction projects in the UK and abroad would probably not take place without the assistance of external funding. In the UK, it is mainly the large banks and other financial institutions, such as insurance companies, who lend money to developers and other construction clients, to enable them to carry out these projects. Large construction projects require cash up front to fund the construction work. A client will only get a return on its investment following completion and only if it chooses to sell the development. Most construction clients would be unable to fund this cash flow model from their own cash reserves and so external funding is required.

The process of funding a construction project involves the lender providing funds to the developer during the life of the project and the developer agreeing to repay the loan at an agreed rate of interest at an agreed future date. The terms and conditions of the arrangement are recorded in various documents, but from a construction lawyer's point of view, the most important is the funding or facility agreement.

For an introduction

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Construction News

UK Supreme Court unveils new digital platform to modernise court processes

The UK Supreme Court (UKSC) and Judicial Committee of the Privy Council (JCPC) are set to launch new websites and a Case Management Portal on 4 December 2024. This digital transformation, part of a three year change programme, aims to revolutionise user interaction with the courts. The new system will enable digital filing of court documents, real-time case tracking and improved accessibility for all users, including litigants in person. The initiative, developed in collaboration with Capgemini and Q5, has undergone extensive user testing and is designed to enhance both judicial functions and educational outreach. This modernisation effort seeks to establish the UKSC and JCPC as world-leading, transparent and user-centric judicial institutions.

DfE, MHCLG, DBT, and DWP launch new skills hub to boost construction workforce

The Department for Education (DfE), Ministry of Housing, Communities and Local Government (MHCLG), Department for Business and Trade (DBT), and Department for Work and Pensions (DWP) have launched a new skills hub to address the skills shortage in the construction sector and accelerate homebuilding. This initiative involves the establishment of 32 new Homebuilding Skills Hubs, supported by a £140m industry investment, with the aim of creating 5,000 additional construction apprenticeship places annually, providing fast-track training programmes that can be completed within 12-18 months. The government is collaborating with the Construction Industry Training Board and the National House-Building Council (NHBC) to implement this scheme, strategically placing hubs in areas with the greatest homebuilding needs, as identified by Skills England. All 32 hubs are expected to be operational by 2028. The NHBC is also investing £100m in 12 Multi-Skills Training Hubs, focusing on training in critical areas such as bricklaying, groundwork, and site carpentry.

The English Commercial Court dismisses jurisdictional challenges to US$750m investment treaty arbitration award (The Czech Republic v Diag Human Se and another)

Arbitration analysis: The Czech Republic sought to set aside a US$750m investment treaty arbitration award on multiple grounds under sections 67 and 68 of the Arbitration Act 1996 (AA 1996). The award was rendered on 18 May 2022 (the ‘Award’) by a London seated arbitral tribunal (the ‘Tribunal’) appointed under the Czech and Slovak Federal Republic-Switzerland bilateral investment treaty (the ‘BIT’). The arbitration was conducted under the UNCITRAL Arbitral Rules 2010. Mr Justice Foxton had in an earlier judgment, dated 8 March 2024 (the ‘March Judgment’), already dismissed the majority of the Czech Republic’s section 67 and section 68 challenges. In the present judgment, which is the second substantive judgment on Czech Republic’s challenge of the Award, Foxton J dismissed the three surviving section 67 challenges and one remaining section 68 challenge. Written by Heidi Yildiz, barrister and Arbitrator at 36 Stone, the 36 Group.

Construction weekly highlights—21 November 2024

This week's edition of Construction weekly highlights includes as a case in which the TCC refused to award a successful claimant costs of its enforcement claim (Complete Ceiling v DE1), an announcement from the Welsh Government on its proposals for building safety reforms in Wales, launch of a second consultation by the UK Green Building Council (UKGBC) on the Climate Resilience Roadmap, publication of the Civil Justice Council (CJC)’s phase two report on its review of the Pre-Action Protocols (including the Pre-Action Protocol for Construction & Engineering disputes), and publication of the Construction Leadership Council (CLC)’s latest quarterly report on output in the construction sector.