EWS | DIGEST IN BRIEF CLC guidance to avoid contract disputes The government has welcomed the publication of standard procedures to help contractors avoid expensive and disruptive contractual disputes in the aftermath of the coronavirus pandemic. It supported practical guidance produced by the Construction Leadership Council (CLC) Covid-19 Task Force, which includes standard letters for without prejudice dialogue, and notice of delays needed in JCT design-and-build and NEC contracts. The document also highlights likely causes of disputes and ways to resolve them without recourse to legal action. The Cabinet Office endorsed the document and called on everyone to act responsibly and fairly, and support national efforts to protect jobs and the economy. Minister condemns David v Goliath payment abuse Government is looking at how some of the 4.5bn held in retention payments might be released Too many large rms have changed their payment terms during the Covid-19 crisis to protect themselves at the expense of smaller businesses, according to the minister for small business. Paul Scully MP told a webinar hosted by the Building Engineering Services Association (BESA) that the government would be calling out companies that indulged in poor payment Cash crunch coming for construction Construction firms could run out of cash in the third quarter of the year, according to research by Mace, which highlighted a potential 29bn hole in contractors cash flows between March and July. Delayed payments as sites re-open and the easing down of government support could put many firms in serious difficulties, the contractor said. Its forecast is based on the Office for Budget Responsibilitys estimate that construction output could drop by 70% in the second quarter of 2020 because of disruption caused by the coronavirus. Firms typically have to wait 60 days for payment, which could create a time bomb for finances in the third quarter, according to Mace. practices during the pandemic. Everyone must be responsible and play nice, he said. The government should be taking the lead at central and local level by setting a good example on payment practices we want to keep working with our supply chains. However, far too many big businesses are changing their payment terms, which is creating a huge David versus Goliath impact. Scully asked BESA to point out examples of payment abuse to his department, but also to highlight best practice that could encourage others to follow suit. He repeated the Prime Ministers warning that, when this is all over, people would be asking: What did you do to help other businesses and your community? The minister said the government was looking at how some of the 4.5bn held in retention payments might be released to help cash ow in supply chains. He also acknowledged the important role construction would play in the economic recovery and said the government was keen for projects to continue as long as it was safe for workers. Energy efficiency inquiry launched An inquiry into energy efciency, with a focus on a post-Covid stimulus, has been announced by the Environmental Audit Committee. The committee will follow up on the ndings of the former BEIS Committees inquiry into energy efciency which concluded that major policy gaps still exist and consider whether its recommendations have been implemented. In the UK, homes account for just less than 30% of energy use and around 20% of greenhouse gas emissions, and housing is one of the few sectors in which emissions reductions have stalled. Space heating is the dominant driver of energy consumption in existing homes (making up 63% of annual energy consumption), followed by hot-water demand and appliance demand. The government has pledged 9.2bn to improve the energy efciency of homes, schools and hospitals, and investments could be particularly relevant to kick-starting the economy in the aftermath of Covid-19 by making it a national infrastructure priority. The inquiry is accepting evidence until Monday 22 June. For details, visit bit.ly/CJJun20EAC PARASOL Zenith Ready for change SITE D ON E SOLV High performance 4-way distribution comfort module with cooling, heating and ventilation. PARASOL Zenith offers all the benefits of active chilled beam technology with added flexibly throughout your project. With the options of constant, variable or demand control air flow, PARASOL Zenith provides the perfect indoor climate. Parasol Zenith Ad Folder CIBSE.indd 1 8 June 2020 www.cibsejournal.com CIBSE June 2020 p08 News.indd 8 13/02/2020 15:45:45 22/05/2020 17:25