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No relief on PFI contracts

By: Language: English Series: Construction News ; (6954) 16 February 2006, 44(1)Publication details: 2006Subject(s): Summary: Gives the facts of, and comments upon, "Midland Expressway v Carillion Construction Ltd" ([2005] EWHC 2963 TCC, L132321), where it was decided that an attempt in a PFI contract to restrict the right to adjudication was unenforceable. This has serious implications for both the financing of future PFI projects, and the way subcontracts are drafted. Argues that the Housing Grants, Construction and Regeneration Act 1996 needs to be amended so that it applies to project agreements as well as sub-contracts.

Gives the facts of, and comments upon, "Midland Expressway v Carillion Construction Ltd" ([2005] EWHC 2963 TCC, L132321), where it was decided that an attempt in a PFI contract to restrict the right to adjudication was unenforceable. This has serious implications for both the financing of future PFI projects, and the way subcontracts are drafted. Argues that the Housing Grants, Construction and Regeneration Act 1996 needs to be amended so that it applies to project agreements as well as sub-contracts.