The Week That Was - 25 April 2025

Welcome to the week that was, a round-up of key events in the construction sector over the last seven days.

Mornington 2000 LLP v Secretary of State for Health and Social Care considers without prejudice privilege

In Mornington 2000 LLP v Secretary of State for Health and Social Care, the court clarified the scope of without prejudice privilege, which protects negotiations aimed at settlement from disclosure in litigation.  The rule encourages parties to negotiate freely without the fear that their statements may later be used against them in court. 

In this situation, the court ruled that without prejudice protection did not apply.  The court set out the applicable legal principles that apply to the without prejudice rule, including that without prejudice protection does not automatically extend to all documents created during such negotiations, including audit reports and related correspondence.  Key principles include that the privilege applies to genuine settlement discussions, whether oral or written, and is not limited to admissions against a party's interest.  It also noted that while the rule is grounded in public policy, it may be altered by agreement between the parties.  Importantly, the label "without prejudice" is not conclusive, courts must objectively assess whether the privilege applies based on the facts of the case.

To read more, click here.

Potential reform for the UK's planning system

The proposed Planning and Infrastructure Bill, announced last month, promises significant reform to the UK’s planning system, offering both opportunities and challenges for the construction sector.  

The current planning system often involves lengthy, costly procedures with high risks.  The new bill seeks to address these issues by accelerating planning applications and providing more security for developers.  This could boost economic growth, create jobs, and generate more national infrastructure projects.  The new bill includes measures to prioritise clean energy projects, helping to bolster green practices.  The changes are set to unlock £200bn in energy investment.  

However, concerns remain, particularly about the speed of environmental approvals. If local authorities do not receive the necessary resources to process applications more quickly, the bill’s intended benefits may fall short.  Nonetheless, the legislation offers a confidence boost to investors and suppliers and should unlock exciting new projects within the United Kingdom. 

To read more, click here.

Jaevee Homes Ltd. v. Fincham establishes that WhatsApp messages can constitute a contract

In the case of Jaevee Homes Ltd. v. Fincham, the High Court established that the exchange of WhatsApp messages can potentially evidence and constitute a concluded contract, and that invoices that list the completed works can be considered to set out "the basis on which the sum is calculated."

The Claimant developer had requested demolition work to be carried out by the Defendant contractor.  Upon the work's conclusion, four invoices were issued by the Defendant.  However, the Claimant asserted that it was not liable to pay the invoices as there was no valid contract between the two parties, and even if there had been, the agreed payment terms were not followed.

The Court held that an exchange of WhatsApp messages, despite being informal, can constitute a contract.  Additionally, agreement as to the duration of the works, start date and payment were not essential terms which would preclude a concluded contract.

You can read more here.

Software solution for cladding crisis

Property Inspect, a property inspection software developer, has raised the alarm that the UK's cladding remediation programme is being hindered unnecessarily by administrative and procedural bottlenecks.

The current process to sign-off on a remediation project can take up to forty-eight weeks, despite the physical work being completed well in advance.  The delay is caused by documentation errors, incomplete evidence submission and inconsistencies in file formats and prevents contractors from transitioning seamlessly from one project to another.

To remedy the situation, Project Inspect has recommend that standardised digitised evidence packs be introduced for all remediation projects along with a national remediation tracker and compliance standard-linked funding.  The hope is by addressing structural inefficiencies, the growing financial strain and disrupted schedules, preventing the successful resolution of the cladding crisis can be resolved.

You can read more here.

Gleeds secures project manager role for £1.5bn Airedale hospital rebuild

Built in the 1960s and opened in 1970 by the now King Charles III, 80% of Airedale General Hospital in Keighley, West Yorkshire was constructed using Reinforced Autoclaved Aerated Concrete (RAAC).  Consequently, despite recent remediation efforts by Scottish contractor Robertson - including the strengthening or replacement of 50,000 wall, floor, and ceiling panels and 5,000 load-bearing panels - significant structural issues caused by the predominant use of RAAC mean that it requires urgent rebuilding to avoid collapse.

As part of the government’s New Hospital Programme, the £1.5bn rebuild is scheduled to begin around 2028 with expected completion by 2030. Health Minister Karin Smyth recently approved funding for initial infrastructure work.

Serving a population of 220,000 in the Bradford and Craven districts, the hospital remains one of the worst RAAC-affected sites, highlighting the pressing need for reconstruction.

You can read more here.

Judgment in Placefirst v CAR Construction [2025] offers key insights on Payment and Pay Less Notices 

The TCC's decision in Placefirst Construction Ltd v CAR Construction (North East) Ltd [2025] EWHC 100 (TCC) clarified the payment and pay less notice requirements under the Housing Grants, Construction and Regeneration Act 1996 (the Act).

While the adjudicator ruled that Placefirst failed to serve valid notices, the TCC objectively examined whether the pay less notice was issued prematurely and whether the attached documents - including a spreadsheet - qualified as a payment notice.  The TCC upheld the pay less notice's validity, emphasising its compliance with the Act, despite early service.  Additionally, the spreadsheet was deemed a valid payment notice based on its content rather than its label, supporting the principle of "substance over label".

The TCC also confirmed that payment and pay less notices can be issued simultaneously via email, underscoring the importance of clear identification and compliance with statutory requirements when doing so.

You can read more here.

With thanks to Keira-Anne Dowsell, Emma Caro and Dan Goh

Disclaimer: The information in this publication is for guidance purposes only and does not constitute legal advice.  We attempt to ensure that the content is current as at the date of publication, but we do not guarantee that it remains up to date.  You should seek legal or other professional advice before acting or relying on any of the content.

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