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Construction and materials industries

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Unwarranted warranties

Article Abstract:

UK construction consultants should avoid being persuaded to sign warranties indicating that completed works are fit for their intended purpose. Once such a warranty has been signed, the consultant will be liable if the completed works prove to be unfit for their intended purpose, even if reasonable skill and care have been exercised and there can therefore be no question of negligence. Many professional indemnity insurance policies clearly exclude warranties for fitness for purpose.

Author: Barnes, Rachel
Publisher: Builder Group plc
Publication Name: Building
Subject: Construction and materials industries
ISSN: 0007-3318
Year: 1998

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Just the limit

Article Abstract:

Some standard forms used in the construction industry contain clauses which limit consultants' liabilities to less than their insurance cover. Until now it has been difficult to predict whether such limitations would be effective. But a recent court decision provides guidance on what steps consultants should take when they agree liability limitation with a client. Details of the case are presented.

Author: Barnes, Rachel
Publisher: Builder Group plc
Publication Name: Building
Subject: Construction and materials industries
ISSN: 0007-3318
Year: 1999
Liability insurance

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What's the worry?

Article Abstract:

The UK's Contracts (Right of Third Parties) Act could extend the liabilities of consultants. It is advisable for the rights that consultants are willing to give to third parties outside the team to be dealt with in separate collateral warranties.

Author: Barnes, Rachel
Publisher: Builder Group plc
Publication Name: Building
Subject: Construction and materials industries
ISSN: 0007-3318
Year: 2000

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Subjects list: Construction industry, Laws, regulations and rules, Column
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