Civil Engineering Reference
In-Depth Information
Secondary Option X15, if selected, allows for limitation of the Contractor's liability
for his design to reasonable skill and care. In the absence of this clause the liability
wouldbefortheitnessforpurposeobligation.
Clause X15.1 provides that the Contractor is not liable for Defects in the works
duetohisdesignsofarasheprovesthatheusedreasonableskillandcaretoensure
that his design complies with the Works Information. Clause X15.2 provides that if
the Contractor corrects a Defect for which he is not liable under the contract, it is a
compensation event.
There is a further opportunity to limit the Contractor's liability in Secondary
Option X18. Clause X18.1 provides for the Contractor's liability to the Employer
for the Employer's indirect or consequential loss to be limited to the amount stated
in the Contract Data. Clause X18.2 provides similarly for loss of or damage to the
Employer's property; clause X18.3 for Defects due to the Contractor's design which
are not listed on the Defects Certificate; and clause X18.4 for all matters arising
under or in connection with the contract, other than excluded matters. The excluded
mattersareamountspayablebytheContractorasstatedinthecontractforloss
of or damage to the Employer's property, delay damages if Option X7 applies, low
performance damages if Option X17 applies, and the Contractor's share if Option C
or Option D applies.
Clause X18.5 provides that the Contractor is not liable to the Employer for a mat-
ter unless it is notified to the Contractor before the 'end of liability date'. The end of
liability date is defined in the Contract Data Part One as a specified number of years
after the Completion of the whole of the works.
5.4 Defective work
5.4.1 Common law
The contractor, in addition to the obligations already considered, also remains liable
for latent defects for the duration of the prescriptive period. This is on the basis that
the latent defect is due to an act, neglect or default of the contractor. The contractor
willhavenoliabilityifitisnotpossibletoshowalinkbetweenanybreachofdutyby
the contractor and the loss, injury or damage incurred, if the breach and the damage
caused are too remote from each other or if a term of the contract excludes the con-
tractor's liability. he subject of prescription (or time bar) is considered in more detail
in Section 9.9.
5.4.2 The SBC provisions
During the currency of the contract works, the Contractor can, under clause 3.18.1 of
theSBC,beinstructedtoremovefromthesiteanywork,materialsorgoodsthatare
not in accordance with the contract. As an alternative to this, and following consulta-
tion with the Contractor and with the agreement of the Employer, the Architect may
