The Week That Was – 28 June 2024

Welcome to the week that was, a round-up of key events in the construction sector over the last seven days.

Fosters appointed as architect for £50m revamp of Manchester United training ground

Work on the architect’s plans for the men’s first team facility starts this week.  Manchester United co-owner Jim Ratcliffe has said that his aim is to create a “world class environment for our teams to win”.  Located near the village of Carrington in Trafford, Greater Manchester, the facility was originally built in 2000 and was expanded in 2013.  Norman Foster, the founder of Foster & Partners hopes that the project will “modernise and revitalise the building as a catalyst for future footballing success, creating spaces that inspire a culture of collaboration, unity and belonging”.  Fans are also currently awaiting a decision on the future of their home ground, Old Trafford, as the club is considering whether to refurbish the existing stadium or build a new one on neighbouring land.

You can read more here

Universal Studios' Economic Impact Analysis released for proposed Bedford theme park

We recently reported on Universal Destinations and Experiences' (UDE) plans to open a Universal Studios theme park in Bedford, UK.  It is anticipated that this will become Europe's largest theme park.

UDE have since released the figures from the Economic Impact Analysis it commissioned for the project.  With the construction phase expected to generate 20,000 jobs and a number of high-quality apprenticeships, it is hoped that at least 75% of the workforce will come from Bedford and the surrounding areas.   

It is also claimed that the project will boost the UK's economy by £35.1 billion.

You can read more about the project here and our previous report here

SCAPE appoints trio to consultancy framework for utilities

Consultants Perfect Circle, AtkinsRéalis and Arcadis have been appointed to a four-year framework which aims to help clients in the broader utilities sector with their investment programmes and projects, while also supporting the delivery of low-carbon infrastructure and sustainability targets.  Perfect Circle and AtkinsRéalis (with subsidiary support from Arcadis) have been appointed to the Framework for England, Wales and Northern Ireland, which is worth £750m, whilst Perfect Circle and Arcadis (with subsidiary support from AtkinsRéalis) will be working on the Framework for Scotland, which is worth £500m.  Clients will have access to a range of professional services including strategic advice, engineering services, design services, project management and quantity surveying.  Mark Robinson, the Group Chief Executive for SCAPE, hopes that the framework will result in improved services, economic growth, and a more sustainable future.

You can read more here.

Open letter to party leaders urges investment in infrastructure

Over 30 business leaders, including Arup, Mace, Hitachi and Arcadis, have signed an open letter to the main party leaders ahead of next week's General Election, urging them to commit to a long-term infrastructure plan as part of their proposals to address the challenges currently faced by the country.  In particular, the letter urges the leaders to "recognise the importance of infrastructure investment" and the benefits it can bring to the wider economy, including job creation and increased tax revenue.  It also calls on the party leaders to re-consider how they value their spending rather than just looking at it on a cash expenditure basis.

You can read more here

Exclusive jurisdiction clauses may still apply even if the country is in a state of war – AerCap Ireland Capital Designated Activity Company and Ors. v PJSC Insurance Company Universalna and Ors. [2024] EWHC 1365 (Comm)

The High Court has ruled that an exclusive jurisdiction clause requiring a claim to be heard under Ukrainian law was enforceable despite the country being in a state of war.  The High Court dismissed the Claimants' contention that these clauses were invalid or non-binding, or that the war was likely to cause substantial delays or difficulties in litigation.  This was in part due to the fact that the Ukrainian judicial system was operating efficiently in areas outside of active war zones and could effectively hear the claims. 

Therefore, the Court considered that no strong argument had been made as to why the clauses should not be enforced and stayed the claims brought outside of Ukraine.

This judgment forms part of the behemoth aviation insurance and reinsurance claims arising from the grounding of aircrafts leased to Ukrainian airlines since Russia's invasion in 2022.

You can read more here

Adjudicator's original decision enforced as revised decision goes beyond slip rule - McLaughlin & Harvey Ltd v LJJ Ltd [2024] EWHC 1032 (TCC)

Adrian Williamson KC, sitting as a deputy High Court Judge in the Technology and Construction Court (TCC), has held in a recent decision that an adjudicator had exceeded his jurisdiction when amending a decision under the slip rule.

On sending the decision that LJJ should pay damages of £808,800 for missing key dates in the subcontract, the adjudicator asked the parties to notify him of any "clerical or typographical errors", referencing paragraph 22A(1) of the Scheme for Construction Contracts 1998.  In response, LJJ made submissions, claiming factual inaccuracies and errors regarding delay damages.  Consequently, the adjudicator issued a revised decision under the slip rule.

MHL sought to enforce the original decision and LJJ challenged this on the basis that it had been superseded and that, even if issuing the revised decision was an error in law, the error was within the adjudicator's jurisdiction and so the court should not interfere. The TCC held that the correction went to a matter of substance, rather than a clerical or typographical error, and therefore, the adjudicator's revised decision went beyond the slip rule and so the original decision stood..

You can read more here

Authors for this week's edition: Jess Yates, Chris Wilkie and Emrys Moore

Disclaimer: The information in this publication is for guidance purposes only and does not constitute legal advice.  We attempt to ensure that the content is current as at the date of publication, but we do not guarantee that it remains up to date.  You should seek legal or other professional advice before acting or relying on any of the content.