the development
Table of Contents
Acknowledgements vii
Preface ix
1 The Industry Context 1
1.1 What is design? 1
1.2 Procurement routes 3
1.3 The construction professions: who are the designers? 10
2 Liability under Contract 19
2.1 Formation of a contract 20
2.2 Terms of the contract 26
2.3 Exemption clauses 32
2.4 Privity of contract 34
2.5 Assignment 35
3 Liability under Tort: Part 1 37
3.1 Definition of a tort 38
3.2 Liability and parties in tort 38
3.3 Vicarious liability 38
3.4 Negligence 40
3.5 Historical perspective 43
3.6 Anns v Merton London Borough Council (1978) 45
3.7 Junior Books (1983) 47
3.8 1985–1988: the retreat 48
3.9 D & F Estates Ltd v Church Commissioners for England (1988) 50
3.10 Murphy v Brentwood District Council (1990) 52
3.11 Tests for establishing a duty of care in respect of economic loss 54
3.12 Contract and tort concurrently? 55
3.13 Summary of the position in 1994 58
4 Liability under Tort: Part 2 (Post-Murphy) 59
4.1 Liability for physical injury and damage to other property 59
4.2 The ‘complex structure’ theory after Murphy 60
4.3 What if a defect is patent? 64
4.4 Liability for economic loss 65
4.5 Application of the tests following Henderson v Merrett 67
4.6 Contractors’ liability for pure economic loss 69
4.7 Consultants’ liability for pure economic loss 77
4.8 Summary of the position in 2013 79
5 Liability under Statute 81
5.1 Defective Premises Act 1972 82
5.2 Building Act 1984 88
5.3 Health and safety 89
5.4 Copyright 91
6 Liability for Professional Negligence 97
6.1 Reasonable skill and care 97
6.2 Application of the test to designers 99
6.3 Examples of failure to take care 100
6.4 Special skills 104
6.5 ‘State of the art’ defence 105
7 ‘Fitness for Purpose’ Liability 107
7.1 Contractors’ obligations 107
7.2 Reliance and partial reliance 115
7.3 Consultants and strict liability 120
7.4 Contractor’s duty to warn 124
8 Duties in Detail 133
8.1 General duties of a designer 133
8.2 Appraisal and site investigation 135
8.3 Budget issues 144
8.4 Design development 147
8.5 Commenting on/approving others’ designs 153
8.6 Inspection and certifi cation 157
8.7 Duty to review the design 172
9 Delegation of Design Duties 183
9.1 General issues 183
9.2 Option 1: Declining the commission 184
9.3 Option 2: Employer engages a specialist consultant direct 184
9.4 Option 3: Designer engages specialist designer direct 187
9.5 Option 4: Designer arranges for a contractor or sub-contractor to undertake the work 188
9.6 Option 5: Designer relies on outside sources 194
9.7 Is there a difference between delegation and reliance? 195
9.8 Summary of options 196
10 Liability to Third Parties: Procurement Issues 199
10.1 Relationship between contract and tort 199
10.2 Liability in particular situations 204
10.3 Warranties 215
10.4 Collaborative working 225
10.5 BIM 227
10.6 Insurance solutions 233
11 Damages and Contribution 235
11.1 General principles 235
11.2 Damages and designers 242
11.3 Contributory negligence and contribution 249
11.4 Damages recoverable on assignment 254
12 Limitation 259
12.1 Statutory periods 260
12.2 Limitation and contract 264
12.3 Limitation and tort 267
13 Measures for Limiting Liability 277
13.1 Using fi nancial caps 279
13.2 Limiting liability for loss of profits and consequential losses 282
13.3 Net contribution clauses 282
13.4 Agreeing shorter periods for limitation of liability 285
14 Standard Forms of Contract for Design-Build 287
14.1 Joint Contracts Tribunal (JCT) forms 287
14.2 GC/Works/1 forms 302
14.3 NEC3 Engineering and Construction Contract (ECC) 307
14.4 Project Partnering Contract (PPC2000) 309
14.5 FIDIC forms 311
15 Standard Forms of Appointment 317
15.1 RIBA 317
15.2 ACA 320
15.3 ACE 321
15.4 ICE 322
15.5 RICS 323
15.6 CIC 325
15.7 Novation and Switch Agreements 327
16 Professional Indemnity Insurance 329
16.1 General 329
16.2 Principles of professional indemnity insurance 330
16.3 The professional indemnity policy (consultants) 341
16.4 Avoiding disputes with insurers 345
16.5 Professional indemnity insurance for design and build contracts 347
16.6 Professional indemnity – changing insurers 352
16.7 Other types of insurance 353
17 Design Liability in the EU 357
17.1 Belgium 358
17.2 France 361
17.3 Germany 364
17.4 Italy 368
17.5 The Netherlands 371
18 Design Liability in the Rest of the World 375
18.1 Australia 375
18.2 China 379
18.3 The Middle East 383
18.4 Russia 388
18.5 USA 391
Bibliography 397
Cases and Legislation 401
Index 423
