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Projects & Construction Quarterly Bulletin (December 2021)

  • Market Insight 01 December 2021 01 December 2021
  • UK & Europe

  • Projects & Construction

Welcome to the Projects & Construction team’s Quarterly Bulletin

If you have any questions, please get in touch with your usual Clyde & Co contact or reach us at our Infrastructure@clydeco.com.

The hydrogen revolution

Last year marked a continued shift away from traditional fuel sources towards natural gas and renewable energy sources. In the UK, over the course of 2020, greenhouse gas emissions are estimated to have fallen by 8.9%, or 414.1 million tons. The decline has been attributed to the reduction in the demand for energy and fuels, in part due to the limited use of road transport during the COVID-19 nationwide lockdowns.

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Liquidated damages and limitation of liability provisions following termination – the supreme court provides some clarity

The recent judgment of the Supreme Court in Triple Point Technology Inc v PTT Public Company Ltd provides greater clarity concerning the rights of an employer to claim liquidated damages from its contractor, where the contractor has fallen into culpable delay in the completion of its works, but has not actually finished them, before the employer decides to terminate the contract. It also addresses the meaning provisions which limit a contractor’s liability.

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New (reduced) procurement thresholds for UK

On 29 October 2021, the Government released The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021 (“the Regulations”). Which lay out revised financial thresholds for public procurements under certain regulations. Contracts with estimated values over these revised thresholds must be published on the Government’s Find a Tender service and the tender must be run in compliance with the appropriate procurement regulations.

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Government call for evidence to shape the future of the architect profession

On 16 August 2021, the Ministry of Housing, Communities & Local Government published a Call for Evidence relating to the regulation of architects in the UK. The review will seek evidence in respect of accessibility to, and diversity within, the profession, issues relating to building safety and energy efficiency and sustainability in the context of the built environment.

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Industry urged to adopt contract clauses to manage market volatility

Due to Brexit, Covid-19, and various other factors the construction industry has found itself faced with significant challenges impacting the timeframes and delivery costs of projects. In particular, the scarcity and pricing volatility of materials and labour continues to be a major headache for the industry.

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A Climate Risk Guide for the Built Environment

As climate change continues to climb the corporate agenda, businesses operating across the built environment are issuing declarations and implementing policies to decarbonise their activities. To aid these vital conversations, the Real Estate and Projects & Construction team at Clyde & Co launched its Climate Risk Guide earlier this week. The guide will help market leaders identify specific legal risks arising out of climate change and propose mitigation measures to properly navigate the climate emergency..

If you’re interested in receiving it, please click here

FIDIC Commentary Series

Earlier this year, Clyde & Co launched a new FIDIC interactive guide, Clyde Commentary: Thoughts on FIDIC, which is focused on both the 1999 and 2017 editions of the Red, Yellow and Silver Books (the FIDIC Suite). The series explores each of the Clauses in the FIDIC Suite on a month-by-month basis and will contribute incrementally to a guide to the whole Suite. This guide aims to provide clients with a nuanced and in-depth understanding of the main FIDIC contracts.

The team recently released the latest instalment, which explored Clause 5’s treatment of design development and responsibility, which is at the centre of the construction process from its inception to completion.

If you’re interested in receiving our monthly FIDIC commentary releases and downloading our guide, please click here

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