Professional Documents
Culture Documents
By Shantha Fernando
MRICS,AAIQS,ACIOB,AIQSSL
Chartered Quantity Surveyor
as
you give or sell the item to somebody else during the guarantee
period.
For some electrical items, you may have to pay particular
Extended Warranties
For some plant or equipment like air conditioners, chillers,
is jointly and severally liable for stated defects for ten years from
the date of completion.
A ten year guarantee of this nature is worthless if the Contractor
and the Designer both go out of business during this period
In the UK and all European, American and North American
Collateral Warranty
The owner protected from the contractors guarantee by the provision of
Collateral Warranty
A Collateral Warranty is a contract which gives a third party
Collateral Warranty
The difficulty in a construction contract arises when the facility is taken
How can the owner protect himself from a litigious situation arising out
of this?
Prior to 1980 owners were able to obtain damages against negligent
This situation changed after the decision in the case of D & F Estates
take action against the third parties who provide these warranties
Insurances
Three types of insurances are required to be provided under the
Contract. In addition the Contractor will have other insurances for
vehicles, health etc.
a)
b)
c)
Third Party Risks Policy ( Parties who are not party to the Contract
such as Consultants, the Employers personal, trade representatives,
passers by and the adjacent buildings and its occupiers)
Court Cases,
John F Hunt Demolition v ASME Engineering (2007)
Tyco Fire & Integrated Solutions (UK) v Rolls- Royce
Motor Cars (2007)
THANK YOU