Construction & Engineering
ADJUDICATION
The High Court in Ireland granted an application for leave to enforce an adjudicator’s decision in McGill Construction Ltd v Blue Whisp Ltd [2024] IEHC 205. The judgment provides useful guidance on some of the issues that can arise in an adjudication, beginning with the respondent challenging the validity of the notice of intention to refer the payment dispute and whether or not an adjudicator has jurisdiction to decide such issues. Read more in our briefing here.
ENERGY PERFORMANCE OF BUILDINGS
Now that the Recast Energy Performance of Buildings Directive is formally adopted, we consider the consolidated text in a briefing here. We look in detail at key developments including requirements for new and existing buildings, solar energy and sustainable mobility, as well as energy performance certificates and renovation passports. The Recast Directive has now been published in the OJEU and will enter into force on 28 May 2024.
PERFORMANCE BONDS
The High Court in Ireland considers that a bond issuer has established a bona fide defence to a call on a bond, based on a finding that a certificate issued by the architect did not comply with the requirements of the underlying contract and did not, therefore, establish the debt owed by the contractor following termination in accordance with the construction contract. Our briefing on Gembira Ltd v Amtrust Europe Ltd [2024] IEHC 188 is available here.
PROFESSIONAL NEGLIGENCE CLAIMS STRUCK OUT
The High Court in Ireland in Newport & another v Connolly and others [2024] IEHC 246 struck out professional negligence claims against engineers and architects arising out of a construction project on the basis of inordinate and inexcusable delays in prosecuting the claims, resulting in prejudice against the defendants. The events leading to the claim took place in 2006-2010 and proceedings were issued and served in early 2012.
EU
Supply Chain Due Diligence
From 30 December 2024, the EU Deforestation Regulation will require operators and traders to comply with new due diligence obligations, to ensure that certain products traded on or exported from the EU market are “deforestation-free”. In scope commodities include wood and rubber. Read more in our insights blog here.
Net Zero Industry Act
The Parliament adopted the proposed Regulation on a framework for strengthening Europe’s net-zero technology products manufacturing ecosystem, and the Council is expected to adopt it without further amendments on 27 May 2024, following which it will be published in the OJEU and come into force days later.
The Regulation will impose requirements to streamline the permit-granting process for construction or expansion of net-zero technology manufacturing projects. Net-zero technologies span technologies across renewable energy, electricity heat and storage, grid, and alternative fuels. The draft Regulation also provides for priority status to be given to projects deemed to be strategic projects. Further information is available here.
Construction Products Regulation
The Parliament adopted the proposal for a new Regulation laying down harmonised conditions for the marketing of construction products. The Regulation will establish harmonised rules for the placing and making available on the market of construction products by establishing harmonised rules on how to express the environmental and safety performance of construction products in relation to their essential characteristics, including life cycle assessment; and environmental, functional and safety product requirements for construction products. The Regulation will also establish rights and obligations for economic operators dealing with construction products or their components.
The Regulation will include measures relating to public procurement, including a requirement that the Commission adopts delegated acts specifying mandatory minimum environmental sustainability requirements for construction products. For procurement procedures falling within the scope of public procurement Directives, where contracts require minimum environmental sustainability performance for construction products as regards their essential characteristics covered by harmonised technical specifications, contracting authorities and contracting entities shall apply the mandatory minimum environmental sustainability requirements laid down in the delegated acts.
Social Housing
The Commission launched a toolkit for policymakers to make the best use of EU funding to invest in social housing and accompanying services.
DOMESTIC LEGISLATION
Building Regulations
S.I. No. 108/2024 - Building Regulations (Part B Amendment) Regulations 2024 come into operation on 1 May 2025. They will bring about amendments to Part B (Fire Safety) of the Second Schedule to the Building Regulations 1997 to update fire safety requirements for non-dwelling houses. They apply to works or to a building in which a material change of use takes place, where the works commence / change of use takes place on or after 1 May 2025, and other than in a case where the structure of the external walls of the building has been erected not later than 30 April 2028— (a) a planning application for planning permission or approval under the Planning and Development Act 2000 has been made, (c) a fire safety certificate under the Building Control Regulations, in respect of the works or buildings, has been granted, or (d) a decision of An Bord Pleanála, under section 9(4) of the Act of 2016, in relation to grant of an application for permission for a strategic housing development, under section 4 of the Act of 2016, has been issued, on or before 30 April 2025.
Government Programme
The Government Legislation Programme (Summer 2024) includes in the legislation for priority publication the Residential Tenancies (Right to Purchase) Bill. Legislation for priority drafting includes the Housing (Miscellaneous Provisions) Bill and the Remediation of Defects in Apartments and Duplexes Bill.
STANDARD FORM CONTRACTS
Capital Works Management Framework
The OGP amended Reserved Specialist documents to align the NN subcontract price variation clause with the Public Works Contract PW-CF1 to PW-CF5. Further information is available here.
The OGP is making changes to its website to include sections dedicated to BIM; Sustainability and Green Procurement; and Central Statistics Office (CSO) indices.
JCT
The Design and Build 2024 edition family of contracts and guides is now available, as well as a release schedule for the Minor Works Building Contract family 2024.
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