ADJUDICATION
UK Supreme Court decides Collateral Warranties are not Construction Contracts
In a pragmatic and concise judgment, the UK Supreme Court ruled unanimously that the collateral warranty in Abbey Healthcare (Mill Hill) Ltd (Respondent) v Augusta 2008 LLP (formerly Simply Construct (UK) LLP) is not a construction contract for the purposes of the Housing Grants (Construction & Regeneration) Act 1996 (such that a dispute arising from it could be referred for statutory adjudication). Further, it found that most collateral warranties, as commonly drafted, will not be considered to be construction contracts.
The decision is of interest to practitioners in Ireland, where it will be persuasive authority. In Ireland, the definition of “construction contract” in the Construction Contracts Act 2013 is substantially the same as the definition in the UK Act. Our full briefing is available here.
UNCITRAL Model Clauses
UNCITRAL adopted model clauses on specialised express dispute resolution. UNCITRAL indicates that the clauses are intended to provide for proceedings for parties with needs such as those that arise in the technology and construction sectors, as well as other sectors where a complex and long-term commercial relationship demands speed and expertise in resolving disputes to minimise project delays and financial losses. Further information is available here.
STANDARD FORM CONTRACTS
JCT
JCT announced that the 2024 Edition of the Intermediate Building Contract family will be released on 10 July 2024. It will also release the IC and ICD 2024 Admin – Contract Administration Model Forms. Further information is available here.
SUSTAINABILITY
Eco-Design of Products
Regulation (EU) 2024/1781 establishing a framework for setting ecodesign requirements for sustainable products has been published in the OJEU and comes into force and applies from 18 July 2024. While construction products, including cement, will be covered under the Construction Products Regulation, they remain under the scope of this Regulation. The EU states that, to avoid a lack of product requirements urgently needed to reach climate and environmental objectives, in the absence of adequate performance information requirements for such products under the Construction Products Regulation, the Commission should adopt delegated acts setting ecodesign requirements for cement not earlier than 31 December 2028 and not later than 1 January 2030.
Public Buildings
Commission Recommendation (EU) 2024/1716 sets out guidelines for the interpretation of Articles 5, 6 and 7 of the Energy Efficiency Directive as regards energy consumption in the public sector, renovation of public buildings and public procurement.
The Commission has also published Recommendation (EU) 2024/1722 setting out guidelines for the interpretation of Article 4 of the Energy Efficiency Directive as regards energy efficiency targets and national contributions.
Nature Restoration Regulation
The European Council adopted the consolidated text of the Regulation on Nature Restoration. It will be published in the OJEU and enter into force 20 days later. It includes measures aimed at increasing green spaces in urban areas. Our full briefing is available here.
Net Zero Industry Regulation
Regulation (EU) 2024/1735 on establishing a framework of measures for strengthening Europe's net-zero technology manufacturing ecosystem is now in force, with provisions applying from various dates beginning on 29 June 2024. As mentioned previously, 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 Regulation also provides for priority status to be given to projects deemed to be strategic projects.
Green Claims Directive
The Council adopted its approach on the proposed Green Claims Directive, which would impose obligations on companies in relation to marketing claims and penalties for breach of obligations. Further information is available here.
Carbon Calculator
The CIF has launched a carbon calculator, along with a training session available here.
Corporate Due Diligence
The Corporate Sustainability Due Diligence Directive has been published in the Official Journal and is required to be transposed in national law by 26 July 2026. Our Corporate team's briefing is available here, and an updated briefing on the final text will be available shortly.
Corporate Reporting
The European Union (Corporate Sustainability Reporting) Regulations 2024 (S.I. No. 336 of 2024) were signed into law on 5 July 2024 and came into operation on 6 July 2024. The Regulations transpose the Corporate Sustainable Reporting Directive and amend the Companies Act 2014 and the Transparency Regulations 2007. A departmental press release is available here.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.