Home > Construction > Project Manager Had A Duty To Take Reasonable Skill And Care In Procuring A Signed Construction Contract

Project Manager Had A Duty To Take Reasonable Skill And Care In Procuring A Signed Construction Contract

The works were completed under a series of letters of intent; consequently the employer did not have the benefit of a liquidated damages clause. The works were delayed and the employer claimed for damages against the contractor. Because it had no formal contract with the contractor the employer settled for a low sum. However, the employer successfully claimed damages against the project manager for the shortfall in what it would have been able to settle for if it had had a formal contract in place.

Significantly the court dis-applied the project manager’s limit on liability using section 3 of the Unfair Contract Terms Act 1977. The project manager had breached its duty to exercise reasonable skill and care in procuring an executed building contract and could not rely on its limit of liability in the particular circumstances of the case.

Case: Ampleforth Abbey Trust v Turner & Townsend Project Management Ltd [2012] EWHC 2137 (TCC) (27 July 2012).

Posted by:

Jonathan Waters
Solicitor

Book A Call Back

People frequently tell us that we’re approachable and offer great advice.

They also tell us most solicitors are hard to get hold of whereas we’re happy to listen. The reason for this is that we value long term relationships and we’re happy to speak with business people, to invest our time in understanding your business and whatever your concerns are. Only at that point can we understand whether we’re the right people to help you.

Related Blogs: