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2 March 202311 minute read

DLA Piper Global Construction Bulletin

The global construction and infrastructure industry is undergoing a period of accelerated change. Read our bulletin to keep up to date on recent legal and industry developments from around the globe, including news from our Hong Kong, Dubai, Singapore, Netherlands and Baltimore, USA offices. A recent highlight was our thought leadership piece, Constructing the Future: Surviving and Thriving in an Era of Disruption, which we launched at our Global Construction Conference.

 

Constructing the Future: Surviving and thriving in the era of disruption

DLA Piper has produced a thought leadership report jointly with Acuris, entitled Constructing the Future: Surviving and thriving in the era of disruption. The report considers investment risks and opportunities in the construction and infrastructure industry, the impact of supply chain problems, risk mitigation strategies, price increases, ESG and the role of technology. In this episode of the DLA Piper Infrastructure Podcast Richard Edwards (Perth), Caroline Pope (London), Alyson Eather (Perth), Tumisang Mongae (Johannesburg) and Suzannah Newboult (Dubai), discuss its findings. The report was launched at the 2022 DLA Piper Global Construction Conference.

 

Focus on the Middle East: A Practical Introduction to Liquidated Damages In Construction Contracts

Terrick McCallum of DLA Piper’s Dubai office discusses the use of liquidated damages in construction projects in the Middle East in the second of a series of vlogs. Terrick focusses on the practical steps employers can take to ensure liquidated damages are not disapplied as a penalty, and advises parties to take legal advice on the effect of termination on liquidated damages clauses before terminating a contract. Terrick and other members of the team spoke at the DLA Piper Middle East Disputes Client Conference at The Address, Dubai Mall.

 

Singapore: Court of Appeal confirms COVID-19 is a force majeure

The Court of Appeal in Singapore has issued a judgment which confirms that the force majeure clause in the SIA standard form of construction contract will usually be construed as including the COVID-19 pandemic and resulting effects. Yong Min Oh comment on the case and what it means for the industry in Singapore Court of Appeal: Force majeure provisions in SIA contract extend to COVID-19 pandemic and lockdown.

 

Hong Kong: Security of Payment Legislation imminent

Hong Kong is expected to enact its Security of Payment Legislation imminently. The draft legislation was first published in 2016. Hong Kong took a step towards implementing the new regime in October 2021 when the Hong Kong Development Bureau issued Development Bureau Technical Circular (Works) No. 6/2021 in which Security of Payment provisions were applied to all public works contracts. The circular requires timely payment of contractors and subcontractors, and adjudication, a speedy method of dispute resolution for payment disputes. May Ng appeared on an HKIAC panel discussing the topic of "Preparing for Security of Payment Scheme in Hong Kong" in December 2022.

 

Netherlands - DLA Piper writes the book on concurrent delay and damages for inefficiency

Janet Meesters and Arno Jacobs (Netherlands) have written the 50th preliminary advice report for the Dutch Construction Law Association: Legal aspects of concurrent delays and inefficiency in construction. They obtained input from DLA Piper colleagues Paul Giles, Harriet Farrant and Clare Rushton in the UK, and from Jouke van der Schors of Vijverberg and Zoi Polyzou of FTI Consulting on planning and delay. Copies of the report are available to purchase here.

 

Texas, USA – American Bar Association Forum on Construction Law Trial Academy

Anthony Meagher (DLA Piper, Baltimore) is once again serving on the faculty of the ABA Forum on Construction Law Trial Academy on 8-11 March 2023, in Dallas, Texas, USA. This intensive, multi-day programme allows 36 lawyers to develop and hone their trial skills, culminating in a full-day, mock trial on the final day. The programme features real expert witnesses, industry professionals who give their time to serve as both fact and expert witnesses during the programme, which also allows them to improve their testifying skills and gain experience preparing with counsel for their testimony. Click on the link to sign up to the programme, but please note that it is now full and is operating a waiting list.

 

Standard Forms - FIDIC 2017 reprints with amendments

FIDIC has issued reprints to its Red, Yellow and Silver Books 2017, with amendments, and it has published new guidance on these amendments. The amendments, which are effective from 1 January 2023, can be downloaded for free from the FIDIC website. According to this press release by FIDIC, the purpose of the amendments is “… to support the strongly growing market take-up of those contracts experienced in recent years, in particular from the development banks, by providing additional clarity and certainty in their use.” At the same time, FIDIC published the FIDIC Contracts Guide (Second Edition) 2022, available to buy from the FIDIC bookshop.

 

Tackling construction claims in the Middle East 

Suzannah Newboult, partner in the DLA Piper Dubai office, reflects on a career in construction law in the Middle East in this article for the Construction Journal. Her career has enabled her to work on major projects such as Qatar's World Cup bid. Suzannah also looks at the role of quantity surveyors, and at how they can work with lawyers to resolve construction disputes.

 

Project Autumn – DLA Piper’s PFI handback report influences UK Government behaviours review

Many of the UK’s PFI projects are due to be handed back within the next few years, creating a number of challenges. DLA Piper’s Project Autumn PFI handback consultation and report received acclaim in the infrastructure press – you can download the report here. Shortly after it was published, the UK’s Independent Projects Authority implemented a behaviours review to consider the issues raised in the report.

For further information, please visit Infrastructure, Construction and Transport or Construction and Engineering.

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