Professor David Mosey Director, Centre of Construction Law and Dispute Resolution at King’s College London has produced the third in a series of Videos on FAC1 and collaborative working.
This video explores how Futures Housing Group has used the FAC-1 framework alliance contract to combine agreed cost savings with new opportunities for small local contractors and more integrated support for their residents. We also hear the Housing Forum’s assessment of FAC-1 as a means to deliver improved safety and social value.
We are pleased to highlight that Alan was invited to chair the second of the Supply Chain Schools events on DLT in Construction on Thursday 21 March 2019.
Feedback from Wilmott Dixon on the session:
Great morning with Action Sustainability [supply chain school] and a few experts from the hashtagblockchain world exploring, discussing and hashtagdebating emerging applications in the built hashtagenvironment sector. I’ve been actively seeking practical applications for some time and believe today’s conversation has helped me turn a corner. hashtaginsightshashtaglearninghashtagapplicationhashtaginnovation
|At this session, we were fortunate to have the support of experts in DLT.
Dr Barry Childe, Damian Kozak and David Michael shared their experience of DLT in Banking and Finance, while Matt Colmer presented his findings from the research work of Digital Catapult and the Institute of Civil Engineers. Alan delivered a presentation on the risks and opportunities of DLT for the construction industry, as well as facilitating a workshop that brought together the various views of the audience and speakers. Alan’s review identified poor payment practices as an ongoing problem in the industry, which DLT could address. Furthermore, he focused on the relationships between multiple stakeholders, scope change across the project cycle and multiple platforms as exacerbating the problem. Therefore, the workshop looked at combining the work stages in the RIBA plan of work, with the contract matrix and DLT to streamline data flows:
Sir Michael Latham’s report* identified that It is absolutely fundamental to trust within the construction industry that participants should be paid for the work which they have undertaken… The report also recommended a ban on “pay when paid” and Mandatory trust funds for payments.
One of the biggest changes to the industry that arose from these enquiries was the introduction of the Construction Act, which underpins Statutory Adjudication.
However and as we know from the collapse of Carillion, late payment remains a problem in the industry. DLT has been used to streamline commercial transactions in other sectors, perhaps its time to bring this knowledge to Construction…
Supply chain school
Alan helped to coordinate, and delivered a speech at, a conference on Blockchain in the construction industry. The event was coordinated by ActionSustainability’s supply chain school which provided with the following outputs:
- Attendees received insight and understanding of Blockchain technology and its potential application in construction supply chains – especially linked to advancing sustainable construction outcomes.
- The speakers shared their experience of what is currently happening in relation to Blockchain technology in our industry.
- They also shared experiences and lessons learned of early adopters of Blockchain tech.
- Inspiring more conversations about the technology within the industry, and how it can be used to drive better construction and social outcomes.
Feedback from the event “…was very good and it was good to see that our partners and members are keen to explore the opportunities that DLT’s present in more depth…”
We are pleased to note that expert evidence provided by Alan for an adjudication in May 2018 was instrumental in the Adjudicators decision to award in favor of his client.
In particular he received the following commendations:
“Had a chance to look over the decision….I read a pleasing amount of “I agree with Mr Midgley.” I was also happy to note no sign whatsoever of any agreement with [the other expert] !” – Hardwicke Chambers, Barristers.
“I am delighted to inform you that the adjudicator (on adjudication 1) has reached his decision and agreed with pretty much every point we have made.” – Pennington Manches, Solicitors.
For those who are interested in the facts, the attached parliamentary report should make an interesting read.
…When dividends are paid on the basis of expected profits, the company is effectively borrowing money to pay its shareholders…
…In the five years from 2012 to 2016, Carillion paid out £217 million more in dividends than it generated in cash from its operations…
This July 2016 SCL paper by Michael Mendelblat, may make an interesting read for those facing a dispute over goods or materials on site, the ownership of which has come into question as a consequence of the recent and unfortunate demise of Carillion.
AG Midgley worked with, and received a commendation from the CIOB to coordinate a section of a short film series on disputes in the construction industry.
The movie features questions from David Woolven of The Bartlett School of Construction and Project Management, discussions by Professor David Mosey of King’s College London, as well as Matt Molloy of MCMC.
The movie addresses the following key questions:
- Are disputes an unavoidable consequence of the nature of the construction process and the contracts used or can they be avoided?
- Which situations create the most disputes on projects ?
- How effective are Alternative Dispute Resolution (ADR) mechanisms for resolving disputes?
- Have the principles of trust and ethics have been fully embraced by all parts of the construction industry?
- Have the collaborative ways of working (such as frameworks, partnership & alliances) been effective at reducing conflicts and disputes?
- Are the standard forms of contract (drafted to be fair to all parties) too often modified by clients’ legal advisers?
In addressing these questions, it touches on key topics including, Adjudication, ADR, Arbitration, Construction Law, Dispute avoidance and Mediation.