In short….
This quarter, we look at contractual disputes and highlight a couple of cautionary tales for parties wanting to develop land that is subject to restrictive covenants. For landlords and tenants, the AGA/GAGA saga seems to have come to an end (for now) and service charge provisions are still a cause of disagreement. There is a round-up of the latest planning developments and we also include links to information on green issues.
This quarter, we look at yet more contractual disputes and highlight a couple of cautionary tales for developers wanting to develop land that is subject to restrictive covenants. For landlords and tenants, the AGA/GAGA saga seems to have come to an end (for now) and service charge provisions are still a cause of disagreement. We also include links to information on green issues.
What are the feed-in tariffs?
In short….
October is shaping up to be a busy month, with the transfer of private drains and sewers into statutory ownership, potential changes to the EPC regime and the coming into effect of the RICS service charge code. This quarter, we look at yet more with contractual disputes involving parties wishing to get out of their obligations and highlight some key planning cases for those who are fortunate enough to still be demolishing and building things..
In short….
In the Winter Bulletin, we highlighted forthcoming legislation in the form of the Bribery Act and new rules bringing land agreements within the competition law regime. Both were due to come into force in April, but implementation of the Bribery Act has been delayed until 1 July. The revocation of the land agreements exclusion order did take effect on 6 April, but the OFT has only just published its final guidance on the application of the rules.
The government renewed its commitment to the Community Infrastructure Levy at the end of last year and has published draft regulations amending the detail of the scheme…and the Localism Bill is making its way through the parliamentary process. Developers and landowners need to be aware of the implications of both.
The Chancellor’s ‘budget for growth’ contained various items of interest for the property sector. See below for the headlines.
Housebuilders have been keeping the courts busy with disputes about village greens, conditional contracts and joint venture agreements. A court-room door settlement in the Heaney case mentioned in the last Bulletin means potentially bad news for developers with rights of light issues… and the Quarterly Bulletin just wouldn’t be the same without a landlord and a tenant falling out about a break notice.
In short….
Spring might seem a long way off, but when it eventually does arrive, it will be accompanied by changes in legislation that will have implications for the property sector. Check out ‘On the horizon’ for information on the Bribery Act and changes to how the Competition Act impacts on land agreements as well as details of how the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) appears to have been turned into a tax on energy use.
This quarter the courts have looked at issues arising out of development - from a long-running dispute relating to a back garden building project to a multi-million pound city centre redevelopment. Key messages are: parties should be mindful of the problems that can be caused when agreements are not set out in writing…and developers should be wary of starting, progressing and even completing developments in flagrant breach of third party rights.
In the leasehold arena, new IPF data shows an increase in the prevalence and exercise of break clauses which means litigation is inevitable, particularly in the current economic climate. More unhappy tenants have been told their attempts to break their leases have been unsuccessful, leaving them on the hook for premises they no longer want, need or can afford and in the latest episode of the AGA-saga there has been cautious support for the Good Harvest decision, although key issues still remain to be addressed with any authority.
The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) is a mandatory carbon emissions trading scheme. Due to come into effect on 1 April 2010, it focuses on non-energy intensive organisations and aims to encourage improvements in energy efficiency and help reduce the country’s carbon footprint in line with the Government’s emissions reduction targets set out in the Climate Change Act.
RIGGED CONTRACTS IN THE CONSTRUCTION INDUSTRY: LATEST NEWS
Background
The Office of Fair Trading (“OFT”) has fined 103 construction firms a total of £129.5 million for rigging activities in relation to construction contracts.
The firms were found to have colluded by disclosing to each other their intended quotes for tender. Firms then submitted cover bids designed to obscure the project cost, rather than to win the contract. Procurers were therefore misled in relation to costs, leading to their paying an inflated price.
These ‘cover bids’ have affected numerous public projects, such as schools and hospitals.
