Blue Light Legal

Welcome to the sixth issue of Blue Light Legal, a quarterly bulletin looking at the latest legal developments and know-how across the areas of commercial contracts, procurement, outsourcing, technology, data protection, employment and construction relevant to the fire and rescue sector.

We hope you enjoy this issue. If you have any comments or feedback, please get in touch with Saman Anwar.

 

Commercial Contracts

• Termination: in Zaha Hadid Ltd v The Zaha Hadid Foundation (2024), the High Court considered whether a contract that was indefinite for one party - the licensee was effectively "locked in" whilst the licensor had the right to terminate for convenience - could be terminated by that party on reasonable notice. On the facts, the Court found that the contract did not support giving the licensee the right to exit the contract and so the licensee continued to be bound by its terms.
• Limitation of liability: in Topalsson GmbH v Rolls Royce Motor Cares Ltd (2024), the Court of Appeal considered (i) whether a liability cap should be applied before or after set-off where there are claims both ways under a contract and (ii) whether the liability cap should apply to interest on late payments (where interest was the sole remedy under the contract for late payment). The Court held that the liability cap should be applied before set-off and that the liability cap did not apply to interest on late payments.

 

Procurement

• Cabinet office update: the Cabinet Office has confirmed that the Procurement Act 2023 will go live on 24 February 2025 and that the new National Procurement Policy Statement (NPPS) is being finalised. The Cabinet Office will issue a dedicated update when the new NPPS is published. From 24 February 2025, suppliers will be able to register on the central digital platform – the new enhanced Find a Tender service.
• Short guides: the Government Commercial Function maintains a page entitled "Information and guidance for suppliers". This is a repository of information (and links to further information) relating to the Procurement Act 2023 and was recently updated. One of the links on the page is to the Government Commercial Function's "Procurement Act 2023: short guides" page which includes links to the following resources (which are periodically updated):

  a) The Procurement Act 2023 – a short guide for senior leaders;
  b) The Procurement Act 2023 – a short guide for suppliers;
  c) Central Digital Platform – Factsheet;
  d) Supplementary information: Small and Medium-sized Enterprises definition;
  e) Procurement Act 2023 – a video guide for suppliers: How to register your organisation and first administrator on Find a Tender in 3 easy steps;
  f) Procurement Act 2023 – a guide for suppliers: Detailed walkthrough: How an administrator completes and updates supplier information;
  g) Procurement Act 2023 – a short guide for everyone: How to use the Central Digital Platform, the enhanced Find a Tender service; and
  h) Procurement Act 2023 – a short guide for contracting authorities: An overview of the Central Digital Platform, the enhanced Find a Tender service.

• PPN on payments by suppliers: the UK Government has published a new PPN that will impact payment terms when awarding public contracts. The main update in PPN 018 is the reduction in the average payment days threshold that suppliers must demonstrate. This will reduce from an average of 55 days to an average of 45 days. Our blog summarises the changes that in-scope organisations should be aware of.

 

Technology

• AI in procurement: on 5 January 2025, the Competition and Markets Authority (CMA) announced the trial of an artificial intelligence (AI) tool designed to detect collusion in public procurement by scanning and analysing bidding data at scale. The CMA’s announcement is particularly topical given the Government’s statement on 13 January 2025 regarding the intended integration of AI into the public sector, to improve the delivery of services and turbocharge growth and living standards in the UK. Further details on the tool are available here.
• AI in sourcing: governments and regulators are currently grappling with the desire to regulate and set restrictions on the implementation and use of AI, while at the same time ensuring that they do not stifle innovation. It is crucial to understand the technology stack and contracting model to assess risks appropriately, as contracting for AI systems differs from other technologies and requires input from operational and business teams, not just legal teams. This article discussed the opportunities and challenges posed by navigating AI from a sourcing perspective.

 

Data Protection

• New Data (Use and Access) Bill: déjà vu in the world of UK data law - the Labour government has proposed reforms to data protection and e-privacy laws through the new Data (Use and Access) Bill (DUAB). The DUAB follows the previous government’s unsuccessful attempts to reform these laws post-Brexit, which led to the abandonment of the Data Protection and Digital Information (No.2) Bill in the run-up to the general election. This blog sets out the specific areas of reform proposed to the UK data protection regime.
• NCSC cyber security guidance: the UK’s National Cyber Security Centre (NCSC) has published guidance on communicating with stakeholders before, during and after a cyber security incident. The guidance is published with organisations of all sizes in mind and sets out three core principles to follow which are summarised here.

 

Construction

• Global Growth in Data Centres: there is a growing need for infrastructure that can support AI driven applications and an increasingly critical role that data centres play in enabling advanced digital services. This report explains AI's impact on data centre demand and identifies the drivers of data centre expansion.