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| NEWSLETTER SUMMER 2007 |  |
| This e-newsletter is designed to be viewed on HTML supported email setting. | Issue number 2 |
| RICS IN SCOTLAND | |||||||||||||||||
 Janey Milligan became Chairman of RICS Scotland on 9 May 2007.
Janey is honoured to take office and aims to further develop and promote the knowledge and skills of chartered surveyors, with particular emphasis on Scotland As part of her tenure as Chairman, Janey will actively promote “The Raising the Ratio” issue to stimulate debate on the role of Women in Construction together with the Institutions ongoing Climate Challenge initiative. The Royal Institution of Chartered Surveyors in Scotland is a national association of the Royal Institution of Chartered Surveyors, the global professional body of surveyors. The Scottish membership consists of over 9000 members, students and probationers with its headquarters in Manor Place, in Edinburgh. For further information contact CDR on 0141 773 3377 or via the link below. RICS Scotland |
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| THE NEW CIS SCHEME | |||||||||||||||||
 The Revised Construction Industry Scheme came into effect on 6 April 2007, the question is were you prepared?
The Construction Industry Scheme is nothing new to the industry having been in operation since the early 1970’s. However in what has been only the second revision to the Scheme since its introduction, HMRC have aimed to reduce the regulatory burden of the Scheme on construction businesses, to improve the level of compliance with tax obligations and to help construction businesses get the employment status of their workers right. HMRC themselves have denied that the problems recently reported in the Trade Press, with the system are due to overloading and have put issues down to minor glitches. No CIS cards, certificates or vouchers are now required and these have been replaced by a regime of registration, verification and compliance. Most firms within the industry will operate as both contractors and subcontractors within the Scheme and it is vital therefore that you are fully aware of the Scheme provisions and comply with them. It is difficult to agree with HMRC statement that the Revised Scheme will reduce the administrative burden on construction businesses, however it is still too early to comment fully. For further information and assistance contact CDR on 0141 773 3377 or visit our website. |
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| CDR 10TH YEAR ANNIVERSARY | |||||||||||||||||
 CDR is delighted to celebrate our 10th Year of business this year and is grateful for the support and commitment from our clients and staff, who have made a decade of success possible.
Janey Milligan Managing Director of CDR commented "I'm very proud of the progress we've made and tremendously excited about what the future will bring. We will continue to build our business around our core philosophy of achieving practical solutions to Construction Contract Disputes and to enable our clients to avoid conflict where possible but deal with it where necessary." |
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| MANAGEMENT COSTS - CAN THEY BE RECOVERED? | |||||||||||||||||
 The answer to this question may have been clarified by the recent case of Bridge UK.com Limited (Trading as Bridge Communications) vs Abbey Pynford PLC (2207), TCC.
The issue at question is whether or not internal management costs may be recovered by a company as damages in an absence of a detailed record of the time spent. This case suggests that if the requirements to found a claim for management time are established, then the Courts will seek to award associated damages provided that some basis for the quantum of the damages sought is put forward. This basis for the quantum need not be a precise contemporaneous record of the management time actually spent, indeed evidence in the form of reconstruction from memory may be acceptable. For further information contact CDR on 0141 773 3377 or via the links below. Bridge v Abbey Judgment |
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| HOUSE OF LORDS FIRST EVER RULING ON THE HGCR ACT - MELVILLE DUNDAS V WIMPEY | |||||||||||||||||
 In its first ever ruling on the HGCR Act 1996 the House of Lords has decided in the case of Melville Dundas Ltd v George Wimpey UK Ltd that in the event a contract has been determined on the grounds of insolvency then payment can be withheld despite the absence of a valid and timeous notice of withholding. This result came from a 3/2 split decision in Wimpey’s favour and the decision may well be seen by many as a criticism of the current drafting of the HGCR Act particularly in light of the confusion created by sections 110(2) (payment notices) and 111(1) (withholding notices). For further information contact CDR on 0141 773 3377 or via the links below. Melville Dundas v Wimpey Judgement |
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