International Construction Law Review
BOOK REVIEW - Construction Insolvency
HUMPHREY LLOYD
Construction Insolvency: Security, Risk and Renewal in Construction Contracts. By Richard Davis. London: Sweet & Maxwell. 4th edition. 2011. Hardback. ISBN 978–0–414–04609–2. 707 pp. plus Appendices, Bibliography, Indices, Tables. £180.
This is the fourth edition of a very well established and valued work. Richard Davis is an English solicitor and now a consultant to Pinsent Masons LLP (which has also sponsored the production of this work). In a preface to an earlier edition Mr Davis said: “What struck me in particular was the extent to which insolvency was acting as a driver in the development of construction law.” Over the years the work has changed from being an “ordinary” textbook to one which bridges the gap between a practitioner’s invaluable handbook (which it remains) and an academic monograph on the principles of insolvency law relevant to the construction industry. Quite apart from instructive and enjoyable opening and closing historical chapters (and their fascinating illustrations), there are other sections of wider interest such as coverage in Chapter 8 of the causes of insolvency in the construction industry, including the effects of very recent events. The bibliography and many of the references are intriguing. For example, the author has been able to use unpublished dissertations.
The book is of course written primarily for UK practitioners. However, the legislation and principles of law relating to insolvency in the UK are followed elsewhere, although, obviously, not in every detail. As a result case law from other jurisdictions, particularly in countries such as Australia, New Zealand and in South East Asia, as well as Ireland, is taken into account. What are the principal reasons why this book would be of value to a wider international readership?
The answer lies, in part, in the sub-title: “Security, Risk and Renewal in Construction Contracts”. This is not a book about the niceties of insolvency procedures, whether bankruptcy, liquidation, administration or the like. It also examines the steps that are frequently taken in international construction contracting to avert or mitigate the effect of insolvency. Throughout the work one’s feet are kept firmly on the ground since the author’s treatment of the subject is not confined to existing law but extends to proposals to change the law with discussion of the pros and cons. These sections make the work interesting to practitioners in other countries who are thinking of making improvements or changes to their laws.
There are also numerous specific answers to my general question which commends the work to practitioners outside and as within the UK. Here are some examples. First, contracts frequently make provision for termination in the event of a contractor’s financial instability. Thus the MDB version of the FIDIC Red Book (June 2010) contains in clause 15.2 (in each of its
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