Background

This case centres around the question of whether or not the court should grant leave for an appeal against an arbitrator’s award based on “legal error”.

Introduction

The Scottish Courts have recently delivered some essential clarity on when the five-year prescription period for construction defect claims in Scotland begins, and on the narrow conditions under which it can be paused by section 6(4) of the Prescription and Limitation (Scotland) Act 1973. In summary, the Court confirmed that prescription begins at practical completion of the works, and strictly limits when the “saving provisions” under section 6(4) of the Prescription and Limitation (Scotland) Act 1973 can cure a time-barred claim.

Background 

In 2022 1st Formations Limited (Formations) engaged Lapp Industries Ltd (Lapp) to carry out refurbishment works at an office in London. The contract did not detail any payment terms as required by the Housing Grants, Construction and Regeneration Act 1996 (the Act), so Paragraph 2 of the Scheme for Construction Contracts 1998 as amended (the Scheme) provided the implied terms that would govern payment under the contract. 

Background

In 2018 Midas Construction Limited (In Liquidation) (“Midas”) entered into a contract based on the JCT Design and Build Sub-Contract 2011(“the Contract”) with Harmsworth Pension Funds Trustees Limited (“Harmsworth”). Midas was engaged as Harmsworth’s contractor to carry out "The design and construction of the Shell and Core, Fit Out and External Works of a new build student residential, private residential, and affordable housing development" ("the Works").

On 21 May 2025 The UK Supreme Court delivered a significant ruling in URS Corporation Ltd v BDW Trading Ltd [2025] UKSC 21, providing clarification on developers’ rights to recover remedial costs and the extended application of the Building Safety Act 2022.

In the current financial climate, development projects are commencing under increasingly tight budgets, with contractors typically accepting less risk under much more restrictive scopes. On hotel development projects, this adds further pressure to projects already experiencing issues such as material and labour shortages, rising operational costs, difficulties obtaining funding, and evolving guest expectations. 

A court has recently confirmed an Adjudicator’s Decision that WhatsApp messages constituted a construction contract, and invoices submitted with reference to them were therefore valid payment notices. 

In Placefirst Construction Ltd v CAR Construction (North East) Ltd, the Technology and Construction Court (“TCC”) declined to enforce an adjudicator’s decision that a contractor had failed to issue a valid payment notice or pay less notice under the Housing Grants, Construction and Regeneration Act 1996.

In Grain Communications Limited v Shepherd Groundworks Ltd the Technology and Construction Court (TCC) decided that an employer’s decision to postpone works without providing a new commencement date was a valid exercise of its contractual right to instruct a variation and was not a breach of contract that entitled the contractor to damages.