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Published 5 September 2017
Leslie v Farrar Construction Ltd  EWCA Civ 1041
The court has provide employers with a reminder of the importance of carrying out a proper assessment of sums due and owing to a contractor as part of the final account process before making payment. The court will not protect an employer by ordering that sums paid at final account stage be repaid notwithstanding the fact that they were made by mistake without proper scrutiny of the sum due under the contract.
In the recent decision of Lejonvarn v Burgess  BLR 277, the Court of Appeal confirmed that a project manager/architect who had carried out professional services gratuitously will, in the absence of a contract, owe a common law duty of care to carry out such services as are actually provided with all reasonable skill and care and for economic loss.
Construction contracts are frequently complex documents that incorporate a number of individual documents and specifications which taken together set out the standards to which the contract works must be carried out. In the recent case of 125 OBS (Nominees1) v Lend Lease Construction (Europe) Ltd  EWHC 25 (TCC), the court was asked to interpret a number of contractual documents in order to determine which of (what was contended to be) two competing contractual standards of workmanship, governed the standard of work to be undertaken by the contractor.
In the recent decision of Gard Marine & Energy v China National Chartering, the Supreme Court decided that an insurer had no right to pursue a subrogated claim against a party (and co-insured) having regard to the terms of the underlying contract.
The recent Northern Irish High Court decision in Northern Ireland Housing Executive v Healthy Buildings (Ireland) Ltd  NIQB 43 has shed significant light on how to assess compensation events under an NEC 3 contract where the compensation event is being retrospectively assessed. In a telling judgment, Deeny J noted, "Why should I shut my eyes and grope in the dark when the material is available."
The Court of Appeal has found, unanimously dismissing the appeal, that an exclusion clause in an engineering services contract was effective such that it excluded liability for failing to identify and report on asbestos at a site. The reasoning of a Court of Appeal was that the clause was clear and made commercial common sense. On that basis, the canons of construction relating to exclusion clauses were rejected. Persimmon Homes Ltd and others v Ove Arup & Partners Ltd and another  EWCA Civ 373.
Globalia Business Travel S.A.U. (formerly TravelPlan S.A.U.) of Spain v Fulton Shipping Inc of Panama  UKSC 43.
This is a shipping case concerning the account to be given in a damages claim where the early determination of the charter of a vessel appeared to be the cause of a sale at what was ultimately a significant profit.
This article sets out what you need to know about the changes in the new suite of NEC4 contracts published on 22 June 2017, and how to negotiate and operate under NEC4.
MT Højgaard A/S v E.ON Climate and Renewables UK Robin Rigg East Limited
The Supreme Court has recently considered whether the employer or contractor under a design and build contract had assumed the risk for defects in the design of the foundations of 60 offshore wind turbines, and the consequent cost of remedial works amounting to €26.56m, where the defects were the result of errors in an internationally recognised engineering specification expressly incorporated into the terms of the contract, and not the result of any negligence on the part of the contractor.
IMI Kynoch Limited and others v. Delta Limited and others.
The Court of Appeal considers what happens when a contractor settles with an employer.
Mark Roach, Rebecca Austin
Mark Roach, Harriet Hawkins
Mark Roach, Maisie Hull
Adam Jason, Ashley Simpson