HC 5 September 2000. The claimants (C) contracted with the first defendant (O) to renovated a property including the plumbing the work for which was subcontracted to Kingswood Building Services Ltd (K), who in turn subcontracted that work to the second defendant (R). After a fire, for which C was under-insured, they commenced proceedings against the defendants, and Part 20 proceedings were brought against K and others. O denied liability for C's loss as a clause of its standard terms and conditions excluded any such liability, including where damage was a result of its, or its subcontractors negligence, and claimed that it was entitled to value of the work executed and material delivered before the fire. C contended that this was not the case on proper construction of the case, whilst its legitimacy under the Unfair Contract Terms Act 1977 was also questioned. "Held": the proper construction of the clause was that the whole risk of fire was to be borne by C and that, consequently, they had an obligation to insure; the insurance was for the benefit of both parties; the clause was reasonable in regard to the provisions of the Act.