SCSI Contracting for Surveyors – Current Trends 2021
Legal issues and trends to be considered when drafting and managing construction documents will reflect the risks associated with that project. Legal issues to be managed by Surveyors in 2021 include the implementation of Environmental, Social and Governance, the impact of Covid-19 and BREXIT on the costs and availability of labour and materials and increased pressures to supply chain deliveries, trends in performance security and insurance , the adequacy of RIAI and PWC standard forms of contract and the use PSC contracts and the enforcements of adjudication decisions by the Courts following Aakon Construction Services Ltd v Pure Fitout Associated Limited [2021] IEHC 562 in Ireland.

 

The legal issues to be considered by Surveyors when drafting and subsequently managing construction documents will reflect the risks associated with any particular project. Click here to read the key legal issues to be managed by Surveyors in 2021.  These contracting issues for surveyors were discussed in a presentation given by Jarleth Heneghan to the Society of Chartered Surveyor Ireland on the 29 September 2021.

1. Implementation of Environmental, Social and Governance in Construction Contracts 

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  • Drafting of procurement processes and construction documents
  • Integration of ESG benchmarking  into due diligence practices and portfolio analysis
  • Reducing risk to projects from climate change, carbon emissions, energy price volatility and environmental legislation 

2. Private Sector Contacts (PSC)

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  •  Adequacy of RIAI and PWC Forms of Contract in respect of post Covid-19 and BREXIT issues in relation to the costs and availability of labour and materials and increased pressures to supply chain deliveries
  • Assessment of PSC contract claimed merits of achieving a fairer allocation of risk and promoting long term sustainability and efficiency in the construction industry
  • Suitability for medium to large scale building or engineering works and issues in relation to wide scale adoption in Ireland 

3. Trends in Performance Securities in Construction 

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  • Bonds :Performance ( Impact of the Clarington decision), Advance Payment and Retention
  • Parent Company Guarantees & Collateral Warranties
  • Insurances. Current issues with Professional Indemnity Insurance and the suitability of Latent & Inherent Defect Insurance Policies 

4. Enforcements of Adjudication decisions by the Irish Courts following Aakon Construction Services Ltd v Pure Fitout Associated Limited [2021] IEHC 562

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  • Background to the High Court Proceedings : Application for leave to enforce the Adjudicator decision  and the Respondent's grounds to resist the enforcement of the decision
  • Judgement of Justice Garrett Simons : The rationale for finding in favour of the applicant and upholding the Adjudicator's decision
  • The significance of Grove Developments Ltd v S&T (UK) Ltd (2018) EWCA Civ 3448
  • Key Differences between the Construction Contracts Act 2013 and similar legislation in England and Wales

5. Health & Safety issues and the impact of Covid-19 on Standard Form of Contracts

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  • Employer and Contractor Responsibilities under Statute Law and under RIAI and PWC Standard Form Contracts
  • Cost and Time entitlements and recovery under amended/unamended RIAI Contracts and PWC Contracts
  • The significance of Force Majeure Clauses, Change in Law Clauses in Contracts and the need for a collaborative approach 
 

Key Contacts

Liam McCabe Partner

Cassandra Byrne Consultant