Forbes Solicitors
Construction e-News

July 2020

Safe Return to Work for the Construction Sector - what does this look like?

 

Business as Usual or Unusual? 

 

Not a Minute too Soon for Late Payment Reforms



Safe Return to Work for the Construction Sector - what does this look like?

Following the announcement made by Boris Johnson on Sunday, employers across the construction sector are being faced with the difficult task of determining what in practical terms a safe return to work looks like. The message is clear that construction should continue if it cannot be reasonably done from home and if employers can comply with guidance on social distancing issued by Public Health England.

 

Considerations for reopening the workplace following the easing of lockdown

How do you keep your workforce safe from a virus which has spread the globe on pandemic scales, leaving death and destruction in its wake?

It is fair to say that last night's announcement has left those Britons desperately seeking respite from lockdown considerably underwhelmed.

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Business as Usual or Unusual? 

With the lockdown starting to ease and plans in place for how we can get back to normal, we need to be mindful that things will not be the same or 'business as usual' for quite some time.

There is a lot to be considered in the near future and as for the construction sector in particular, what needs to be considered?

Planning

Although not many local planning authorities have reported reductions in planning applications as yet, it is important to remember that the majority of planning applications submitted since lockdown was announced on 23rd March, would have been in the pipelines well before.

 

How exposed are you...

Do you know what losses you are able to recover from the other side if they are in breach of contract?

Do you know what losses you will be liable for if you are in breach of contract?

Now more than ever you need to evaluate your existing contracts to see how exposed you are in terms of the likely risk of having to pay damages to any other party to the agreement if a breach of contract arises and conversely what losses you are likely to have to pay out for.

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What steps have you taken to ensure that your business is safe for employees to return and have you gone far enough in regards to your obligations under the Equality Act 2010?

There is no doubt that over the last quarter of the year you have lost sleep wondering if your business will survive the worldwide pandemic brought on by the spread of covid-19. The Government recently announced relaxation of the nationwide lockdown, partly to enable businesses to begin re-opening, in an attempt to save the UK's economy.

 

 

Not a Minute too Soon for Late Payment Reforms

In January, the first reading of The Small Business Commissioner and Late Payments etc Bill 2019-21 (the "Bill") took place in the House of Lords. In what would be a welcomed development for contractors in the construction sector, the Bill proposes wide-ranging reforms to current statutory controls on late payment of invoices, when interest can be charged and non-compliance by the paying party.

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Signing deeds during COVID-19 - Virtual execution and e-signatures

Since working from home has become "the new norm", we've been asked to consider whether the use of digital transaction platforms and e-signatures is appropriate for executing deeds. In addition, whilst social distancing continues, can witnessing of signatures be done remotely?

 

Effective Risk Assessing Post-COVID

Coronablindness (Noun)

"To become blind to previously obvious matters as a result of a temporary impairment of the mind caused by a global pandemic, mass lockdown and/or over-indulgence in alcoholic beverages during said periods".

Usage

"Sorry I forgot to put apply the handbrake; I had coronablindness."

If you have been keeping tabs on the Government's guidance on working in the construction industry during the pandemic, then you will most likely be aware of its fairly detailed advice for employers.

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What's next for Planning and the Community Infrastructure Levy

There have been a number of seismic changes in the planning and housing market over the past few months. Local authorities, developers and property professionals look set to experience more changes in the near future too.

COVID-19, CIL and the housing market

The Community Infrastructure Levy (CIL) is a charge that local authorities (if they have published a schedule) may impose on new developments to help fund local infrastructure. The payments under this are usually due once planning is granted.

Cashflow in the early stages of the pandemic was a real issue for developers. The CIL Regulations have no contingency for late payment and there is little allowance for extensions, leaving developers potentially exposed.

 

Employers or main-contractors experiencing trading difficulties - what does that mean for you?

There is undeniably a risk that COVID-19 will have a detrimental impact on the Construction Sector. It has recently been forecasted that the Construction industry will see over 10% of businesses failing in the next year. This will leave a trail of insolvent construction sector debt totalling £1.5bn this year and could see levels of bad corporate debt in 2021 rising beyond £3bn.

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What Have We Learnt About Construction Contracts and Procurement From The Covid-19 Outbreak

"Is this my problem? Is this my fault? If that's the way it's going to be I'm going to call the whole thing to a halt."

Paul Simon wasn't writing about managing construction contracts during the Covid-19 outbreak, but he might as well have been. The standard wording of construction contracts tends to look for a party to blame and impose a penalty by way of liquidated damages or cost increase with the final option being extending or terminating the contract for force majeure if something out of the parties' control makes it unworkable. The impact of Covid-19 has shone a harsh light on whether that approach is what parties would have chosen if they had thought about it in advance.

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