ACE – An overview of activities Nora Fung 7 September 2005

ACE campaign - proportionate liability Linked to high cost of PI insurance No recognition of proportionate liability under English Common Law Civil Liability (Contributions) Act 1978 Survey of ACE members in May 2005

Impact on the client Less choice and higher costs for clients 60% of firms have been forced to raise fee levels as a result of increases in premiums and excess levels Nearly 50% of firms have turned work down due to the level of PII cover demanded by the client Less choice and higher costs for clients Clients should undertake project insurance

Joint and several liability Issues of joint and several liability arise in nearly a quarter of all claims Analysis of 29 claims

Joint and several liability On average, final liability is apportioned equally between contractors and consultants, however consultants are subject to liability being apportioned against them more frequently than any other party In a third of cases, consultants believe that their PII has been adversely affected by the claim against them, through increased premiums and excesses

Conclusion Lobbying of MPs after summer recess in pursuance of change to liability laws Change of liability laws however, insufficient in itself Comprehensive risk management system vital Project insurance

The End Thank you!