Quarterly Bulletin – May 2023

In this edition of the Projects & Construction team’s Quarterly Bulletin, the Clyde & Co team discusses some of the amendments introduced by the FIDIC 2022 Reprints, the UK onshore wind consultation and the decision in A&V Building Solutions Limited v J&B Hopkins Limited. If you have any questions, please get in touch with your usual Clyde & Co contact or reach us at Infrastructure@clydeco.com.

FIDIC 2022 Reprints: do they achieve FIDIC’s aim?

In November 2022, the International Federation of Consulting Engineers (FIDIC) published reprints of its 2017 editions of the Yellow, Red and Silver Books (the Books) incorporating all previous changes to the 2017 editions and including additional amendments required to add further clarity (the 2022 Reprints). 

One of FIDIC’s key aims in publishing the 2017 Books was ‘to increase clarity, transparency, and certainty’ (undoubtedly one of the most important qualities of a good contract) and it makes sense that FIDIC would be focused on continued improvement. But do the 2022 Reprints achieve FIDIC’s aim? We consider this question below by looking at three changes (picked at random).

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When may an adjudicator’s decision upholding the validity of a payment application be challenged by parallel court proceedings?

The Court of Appeal Decision in A&V Building Solutions Limited v J&B Hopkins Limited

Since the passage of the Housing Grants, Construction and Regeneration Act 1996 and its amendment in 2009, the parties to a construction contract for construction operations have had to comply with the deadlines in each payment cycle for the issue of a payment application, a payment notice and (where appropriate) a pay less notice. When a party fails to serve such an application or a notice on time, arguments often arise as to whether the delay is fatal to the validity of the application or notice in question. Adjudicators frequently have to grapple with these issues in their decisions.

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UK Onshore Wind: are the winds of change on horizon?

The installation and maintenance of turbines is, to no one’s surprise, much more straight forward on land than at sea. So why, then, is the UK seeing a disproportionate number of offshore turbines being installed compared to onshore?

The UK’s location is among the best in Europe and among the most conducive in the world for harvesting wind energy. But this did not stop the ever-changing political winds from interfering. It only took one footnote in the 2015 National Planning Policy Framework two curb the development plans for any onshore wind. The footnote – allowing construction of wind turbines only on land specifically designated by local councils in their development plans and with the full support of local communities – has effectively amounted to ban. 

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Clyde Commentary: Thoughts on FIDIC

We recently released Clause 18 of our FIDIC series, Clyde Commentary: Thoughts on FIDIC, which focuses 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 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.

Download our FIDIC guide here

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Navigating 2023: Challenges & opportunities facing the construction sector

Our global projects and construction group has looked at the vital trends we saw in the last year and have made key predictions for the coming year. 

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