The High Court has ruled that retrospective changes to the LGPS exit credits regime were lawful – and gave some helpful guidance around the new discretion to pay an exit credit.
A recent case¹ has confirmed that a professional appointment for construction will usually be a “construction contract” under the Construction Act².
The appointment in question was to provide design and engineering works for a rail link between Manchester and Leeds. A dispute arose over payment, which went to adjudication. The employer argued that the adjudicator had no jurisdiction to decide the case because their appointment was not a “construction contract”.
The test of whether an appointment is a “construction contract” is whether it relates to “construction operations”. The Court found that preparing designs for potential construction works was a “construction operation”, and, therefore, the designer could refer the dispute to an adjudicator.
When appointing construction professionals, clients should ensure that their appointments:
- include Construction Act-compliant payment provisions; and
- specify adjudication rules, such as the Technology and Construction Solicitors Association (TeCSA) Adjudication Rules.
Standard form professional appointments already cover this.
If you have any further questions about this briefing or have any other procurement concerns, please contact Andrew Millross.
1. Ove Arup & Partners International Ltd v Coleman Bennett International Consultancy Plc (2019).
2. The Housing Grants, Construction and Regeneration Act 1996.
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Doug Mullen and Michelle Knight discuss the recent judicial review of regulations changing the regime governing exit credits in the local government pension scheme.
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