Development and Construction

Most construction and development work requires a grant of planning permission under English law. The English planning process has some similarities to the Irish Planning system. However, much of the detail is quite different to that found in Ireland. The planning authorities and bodies involved are different to those found in Ireland. Where planning permission for a multi-unit development is obtained there are likely to be planning and development obligations to the planning authority and public utility providers.

 

As in Ireland, there is a separate building control system which provides building and construction standards and procedures to procure that the standards are achieved and enforced. There is a system of liability for contaminated land which has no direct equivalent in Ireland.

 

There are health and safety requirements in construction which place responsibility on developers, contractors, designers and construction workers. There are also various other obligations in relation to cultural objects, skips and other matters.

 

It is common for developers to enter joint venture type arrangements or so called overage arrangements with third parties, sellers of development land or others. These are effectively mechanisms for profit and risk sharing in the development process.

 

There are a number of means of procuring the execution of works in a development project. The Joint Contracts Tribunal have produced standard contracts (JCT contracts) for general construction contracts and a number of other significant types of construction contracts.

 

JCT construction contracts typically place certain obligations and responsibilities on the employer and contractor. Particular issues can arise in relation contractor's claims and financial issues. Non litigation dispute resolution is mandatory under constructions contracts in England and Wales.

 

The development and construction in England and Wales is a trade or business subject to usual taxation issues under general Taxation law. A construction site will usually constitute a permanent establishment thereby creating a liability for tax on the profits earned. As in Ireland, there is an obligation on a principal contractor to deduct tax on payments to sub-contractors.

 

In residential development, registration with one of the new home warranties provider is essential. In commercial developments collateral warranties are often required.

 

Registration of title in England is mandatory and it is essential to follow the Land Registry mapping and other requirements when undertaking a multi-unit development.