Risk in design and build
Series: Contract Journal ; 418(6424) 30 April 2003, 25(1)Publication details: 2003Subject(s):- RISK ALLOCATION
- MANAGEMENT-DISPUTE AVOIDANCE, MANAGEMENT AND RESOLUTION-DISPUTE MANAGEMENT AND RESOLUTION-ALTERNATIVE DISPUTE RESOLUTION-ADJUDICATION
- BUILT ENVIRONMENT-BUILDING CONTRACT FORMS
- MANAGEMENT-DISPUTE AVOIDANCE, MANAGEMENT AND RESOLUTION-DISPUTE MANAGEMENT AND RESOLUTION-ARBITRATION
- MOWLEM PLC V NEWTON STREET LTD
- DESIGN AND BUILD
- JCT STANDARD FORM OF BUILDING CONTRACT WITH CONTRACTORS DESIGN (1998 EDITION)
- BUILT ENVIRONMENT-BUILDING CONTRACT FORMS
| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | ABS66763 (Browse shelf(Opens below)) | 1 | Available | 122586-1001 |
Looks at whether the allocation of risk in design and build contracts is adopting guaranteed maximum price provisions. In "Mowlem plc v Newton Street Ltd" ([2003] EWHC 737 (TCC), [2003] CILL 2002), the parties entered into a contract for the conversion of a former office into flats using JCT WCD 1998, with an extensive amendment to Art 10. Delay and additional costs arose when concrete works failed, which Newton (N) claimed lay within the contractual scheme for risk allocation and that the losses lay entirely with Mowlem (M). The dispute went to arbitration and a subsequent appeal. M's appeal failed as the judge found the provisions of Art 10 very clearly allocated the burden of unforeseen or unknown risks on M. Concludes courts will usually not interfere with risk allocation clauses, unambiguously written into construction contracts, by which the risk of unforeseen events lie with the contractor.