CIOB contracts

CIOB contracts

The CIOB contracts are particularly suited to projects where a more scientific approach is required to the management of time and cost risk. The first edition of this contract, published in 2013, was

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

High Court finds a ‘building safety risk’ which could lead to the making of a ‘building liability order’ under the Building Safety Act 2022 and permits RTM company to claim damages on behalf of leaseholders (381 Southwark Park Road RTM & Various Leaseholders v Click St Andrews)

Property Disputes analysis: This is the first High Court case to hold that defective works by a developer gave rise to a ‘relevant liability’ as a result of a ‘building safety risk’ under section 130(3)(b) of the Building Safety Act 2022 (BSA 2022), paving the way for the claimant right to manage company (RTM Co) to apply at a subsequent hearing for a building liability order (BLO) against the parent company of the insolvent developer. The Technology and Construction Court (TCC) gave guidance on the procedure for seeking a BLO. Further, the RTM Co was, under an agreement to purchase the property, able to recover against the developer and by extension against the parent company as guarantor, all of the individual leaseholders’ losses for breach of covenant in their leases. Written by Tiffany Scott, barrister, Wilberforce Chambers.

Valuable guidance on payment notices, pay less notices, and default payment notices (Placefirst v Car Construction)

Construction analysis: The Technology and Construction Court (TCC) held that a contractor had served a valid payment and pay less notice in relation to an interim payment dispute. The judgment gives important guidance on the timing and form of payment and pay less notices, and payee’s notices in default, addressing several matters that have not been considered in prior decisions. It also brings into question whether certain provisions of the Joint Contracts Tribunal (JCT) forms of sub-contract comply with the payment requirements of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996).

Assessing deductions to damages—increased benefits resulting from mitigation and loss of chance (Barrowfen v Patel)

Construction analysis: The Court of Appeal (CoA) dismissed both an appeal and cross-appeal in relation to the High Court’s calculation of damages in a case where the claimant’s mitigation actions resulted in an increased benefit to the company. The CoA applied the authorities in relation to mitigation losses and gains in a case concerning breach of fiduciary duty and professional negligence, and held that only benefits and losses flowing from a continuous course of conduct to deal with the breaches or negligence should be considered—once mitigation actions are complete, any further decisions by the injured party which incur costs or losses can not be taken into account in any damages claim. The CoA also held that the increased benefit amount must be deducted from the damages payable before applying a loss of a chance percentage. The CoA allowed a cross-appeal on a small point relating to interest.

HM Treasury publishes working paper on 10 Year Infrastructure Strategy

HM Treasury (HMT) has published a working paper, detailing the government's plans for its 10 Year Infrastructure Strategy. The Strategy aims to address uncertainty in infrastructure planning and policy, which has hindered investment and increased costs for consumers, by providing a long-term plan for social, economic, and housing infrastructure. It will outline an institutional framework to support its implementation, detailing the role of public financing institutions such as the National Wealth Fund and aligning with other strategic initiatives, such as the Industrial Strategy. Key aspects include the creation of the National Infrastructure and Service Transformation Authority to oversee implementation and alignment with a new long-term spending framework, setting capital budgets for at least five years. The Strategy will focus on three main objectives: enabling resilient growth, delivering clean energy, and supporting public services. It will be developed alongside the Spending Review, with both set for publication in June 2025.