Construction management duties
Brewer, Geoff
Construction management duties - 2005 - Contract Journal 430(6544) 28 September 2005, 30(1) .
Discusses the implications of "Great Eastern Hotel Company Ltd v John Laing Construction Ltd and Laing Construction plc" ([2005], EWHC 181, L129378). GE engaged JL as construction manager for the redevelopment of a hotel. The project substantially overran both as to time and cost and GE commenced proceedings against JL for losses incurred. It was held that JL were in fundamental breach of the obligations in the management contract to manage, administer and coordinate the work of the trade contractors, and GE were entitled to damages similar to those awarded against a traditional main contractor under a lump sum contract. The author argues that as a result of this decision, parties to construction management contracts may well view the process with more caution, and tighten up procedures and performance requirements.
GREAT EASTERN HOTEL COMPANY LTD V JOHN LAING CONSTRUCTION LTD
Construction management duties - 2005 - Contract Journal 430(6544) 28 September 2005, 30(1) .
Discusses the implications of "Great Eastern Hotel Company Ltd v John Laing Construction Ltd and Laing Construction plc" ([2005], EWHC 181, L129378). GE engaged JL as construction manager for the redevelopment of a hotel. The project substantially overran both as to time and cost and GE commenced proceedings against JL for losses incurred. It was held that JL were in fundamental breach of the obligations in the management contract to manage, administer and coordinate the work of the trade contractors, and GE were entitled to damages similar to those awarded against a traditional main contractor under a lump sum contract. The author argues that as a result of this decision, parties to construction management contracts may well view the process with more caution, and tighten up procedures and performance requirements.
GREAT EASTERN HOTEL COMPANY LTD V JOHN LAING CONSTRUCTION LTD