Construction projects can be expensive, time-consuming, and risky. Regardless of whether you are laying foundations for a new driveway, erecting a skyscraper, or constructing a new home, you won’t be free of liability. In the event of an accident or other incident, you will want to be covered by insurance and/or have a solicitor to handle the legal aspects. Additionally, there may be issues with cost overruns, delays to the project or other contractual issues. In this article, construction liabilities, we take a look at the process involved and the options available to you.
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For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of construction liability, and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
Contractual Liabilities
If you breach a contract with a subcontractor or the company you’re building for, you may incur financial liability. Pay special attention to the specifics of your contracts, including deadlines, conditions, and requests. When engaging private contractors to work for you, it is advisable to have something in writing in the event of a dispute. Thus, all expectations and agreements are defined and signed by all parties.
Try to eliminate delays as much as possible, but if one occurs, inform the client immediately. A well-informed client is less likely to be displeased when a delay occurs, as they will already be aware of it and will not need to rely on a third party or conduct their own inquiry.
Additional sorts of losses that may be restricted are those caused by delays. The Joint Contracts Tribunal (JCT) provision should specify that any liquidated and determined assets delay damages payable by the contractor are not subject to the limit. Such an obligation is governed by reference to the date for completion with possible late completion extending time permitting the client to demand such damages at the predetermined amount rate. The existence of an agreed contractual
level of damages for late completion, at a fixed rate, can also act as a limitation of the contractor’s liability. Large facility and PFI Typical construction contracts will include a separate overall cap on delay damages.
Consequential losses
Other sorts of limitation pertain to types of loss and often have a single objective: to exclude “consequential losses.” On some projects, the most unpredictable and substantial costs may be those resulting from consequential losses. What constitutes consequential loss depends on the specifics of the situation. Those who refer to consequential loss are frequently eager to exclude loss of profit, but the courts have determined that, at least in some situations, loss of profit can be a direct loss. In the absence of a contractual definition, courts typically allow claims for direct damages to include all losses “arising naturally” from the breach of contract.
Entire agreement provisions
Entire agreement clauses are added to ensure that the contents of the contract are clear. After lengthy negotiations, it may be in the best interests of both parties to agree that specific terms and criteria define their relationship exclusively. Parties do not wish to be accountable for early statements or forecasts that are not included in the contract. Contracts with such a clause must ensure that all essential terms and documents are included or expressly referenced.
Court intervention
In addition to the statutory restrictions that may affect such conditions, the courts have developed a body of law to guarantee that limitations and exclusions are reviewed thoroughly. If the courts perceive ambiguity, they will allow claimants to benefit from it rather than defendants, who will depend on such a clause to limit their liability. In addition to construing exclusion clauses against those who attempt to rely on them, the courts are especially suspicious of attempts to eliminate liability for negligence.
Injury or death
Employees and members of the public may still be exposed to potentially high-risk roles and harmful or defective equipment, which can result in accidents and injuries notwithstanding safety standards. An accident can result in anything from a small cut or bruise to severe catastrophic injuries or even death.
Anyone who experiences a construction accident at work owing to employer carelessness or as a member of the public legitimately on a building site has the right to seek compensation for their injuries.
Health and Safety rules require companies to take reasonable precautions to protect their employees, such as providing the necessary training and protective equipment to prevent accidents on the job site. However, these systems can fail when an employer fails to follow the rules and regulations or when a colleague’s actions (or omissions) cause an accident. Due to the nature of a construction site, numerous individuals may be present or accountable for the site’s works or equipment. This may involve the construction company, architect, site manager, contractors, and even co-workers.
Establishing liability in a construction dispute can be a challenging obstacle to overcome. However, the Health and Safety Executive sets stringent rules and restrictions on those responsible for supervising construction sites.
How we can help
We have a proven track-record of drafting construction contracts and advising upon construction liabilities, from small residential developments to vast commercial projects. Not only does our construction department have extensive legal experience and knowledge of construction law but we also have the benefit of chartered surveying experts. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
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How to Contact Our Construction Solicitors
It is important for you to be well informed about the issues and possible implications of a construction contract and liabilities. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Construction solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
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