Insurance Institute of London ASG 228 Professional Indemnity Insurance

Architects and Engineers by Derek Tadiello 12 September 2001

Status What is an architect? Registered title What is an engineer?

Legal aspects affecting the profession Esso Petroleum v Mardon 1976 Midland Bank v Hett Stubbs Kemp 1979 Wessex v HLM Design 1994 Henderson v Merrett 1995 Holt v Payne Skillington 1995 Baxall Securities v Sheard Walshaw 2000

Claims by non-clients St Martins v Sir Robert McAlpine 1993 Darlingtonv Wiltshier Panatown v Alfred McAlpine Collateral warranties –D&F Estates v Church Commissioners 1989 –Murphy v Brentwood DC 1990 Contracts (Rights of Third Parties Act) 1999

Duties of architects and engineers Hudson’s Building and Engineering Contracts

Standard of care Bolam v Friern Barnett 1957 Eckersley v Binnie 1988 Nye Saunders v Bristow 1987

Warboys v Acme 1969 Abbey Mortgagees v Key Surveyors 1996 Samson v Metcalfe Hambleton 1997 Victoria University, Manchester v Hugh Wilson 1984

Examples of claims Clarifying the brief: – Stormont Working Mens club v Roscoe Milne 1989 Recommendation of builders: –Valerie Pratt v George Hill 1987 –Partridge v Morris 1995 Representations inducing a tender: –Jarvis v Castle Wharf 2001

Estimates: –Nye Saunders v Bristow 1987 Review design: –Brickfield Properties v Newton 1971 –Herbert Leach v Norman Crossley 1984 –Tesco v Norman Hitchcox 1997 –New Islington HA v Pollard Thomas 2001

Delegation: –Moresk Cleaners v Hicks 1966 –Merton v Lowe 1982 –EDAC v Moss 1984 Knowledge of Standards & Codes: –LB Camden v Frederick MacManus 1989 –Gloucester HA v Torpy 1998 Specification of materials: –Richard Roberts v Douglas Smith Stimson 1989

Warn of further investigations: –Eames v North Herts DC 1981 –Blair v Alderney Consultants 1998 Extensions of time: –John Barker v Portman Hotel 1996 Estimating Areas and Profitability: –Gable House v Halpern 1995 Duty to warn: –Chesham Properties v Bucknall Austin 1996

Inspection: –East Ham v Bernard Sunley 1965 –Leicester v Trollope 1911 –Sutcliffe v Chippendale & Edmondson 1971 –Brown v Scott & Payne –Corfield v Grant –George Fischer v Multi Design Consultants 1996 –Mckenzie v Potts 1995

Cover & wordings PI mandatory -Architects Registration Board policies are claims made + notification of circumstances originally negligence based, but now most civil liability/legal liability wordings Wimpey v Poole 1984 (negligent act, error or omission)

Damages Philips v Ward 1956 Ruxley v Forsyth 1995 Richard Roberts v Douglas Smith Stimson 1989 LB Camden v McManus 1989 Harbutt’s Plasticine v Wayne Tank (1970) Prudential v McBains 2000 Hoadley v Edwards 2001

Adjudication S.108 HG,CAR Act a party to a construction contract has a right to refer a dispute arising under the contract to adjudication S A construction contract includes an agreement to do architectural, design or surveying work, or to provide advice on building, engineering, interior or exterior decorating or on the laying out of landscape

Quick, rough & ready decision decision within 28 days unless a longer period agreed although the dispute may be taken through courts, an adjudicator’s decision is binding until the court has reached a different conclusion substantial sums may be payable pursuant to an adjudicator’s decision which cannot recovered for some time, or, in some circumstances at all