Construction project negligence

Professional negligence in the construction and design process can lead to disastrous consequences and substantial financial losses.

Our team of specialist lawyers provide practical and commercial advice to clients who encounter scenarios such as failure to administer a contract correctly, defective design, failure to warn of the risks associated with a particular design solution or failing to properly supervise the works.

We are experienced in advising on matters concerning negligence and/or contractual claims against :-

• Contractors and sub-contractors – failing to ensure that works are completed safely and in accordance with applicable standards.

• Architects - negligent design or supervision of construction projects.

• Engineers – whether faulty engineering calculations, designs, or supervision.

• Quantity Surveyors – claims often centre on errors in cost estimation, contract administration, or valuations.

• Project Managers - failure to manage the project effectively, leading to delays, cost overruns, or defects.

• Other Consultants - providing incorrect advice, negligence in approving or inspecting construction work, or failing to fulfil their contractual obligations.

It's important to note that some professions have regulators or professional bodies who require them to maintain professional indemnity insurance to protect themselves against claims for loss or damage.

Where a professional is not insured, the financial position of a defendant to meet any settlement sum or judgment should be considered from the outset.

Examples of professional negligence claims in construction projects

• Inadequate contract – failing to properly compile the contract, including inaccurate or ‘out of date’ specifications or drawings, incorrectly populating the contract particulars with the wrong information, failing to procure an adequate value for liquidated damages, and failing to correctly annex and incorporate a schedule of amendments.

• Poor contract administration - failure to manage the contract effectively, including issuing incorrect notices or failing to issue notices at all, serving inappropriate instructions, overvaluing payments for works, failing to serve valid payment or pay less notices, incorrectly granting extensions of time where there is culpable contractor delay, failing to impose liquidated damages, or otherwise set-off or counterclaim against a contractor’s claim for payment and failing to address and rectify defective works via contractual mechanisms.

• Breach of contractual terms - failing to fulfil contractual obligations, such as providing timely services or meeting deadlines, manage or obtain planning permission or building control approval.

• Negligent design and design failures - faulty designs, incomplete or inadequate design, failure to manage and coordinate the design of the works, or specifying use of inappropriate materials that do not meet building regulations or are structurally unsound.

• Incorrect cost estimates - overestimation or underestimation of project costs, leading to financial losses.

• Failure to obtain necessary permits or approvals - omitting or delaying the acquisition of essential permits or approvals, resulting in delays or legal issues.

• Poor supervision - inadequate oversight of construction work, leading to poor quality, errors, or defects.

• Failure to identify and address risks - not adequately assessing or mitigating potential risks associated with the project.

• Health and safety breaches – failing to comply with the CDM Regulations, failing to provide notifications to relevant interested parties, and not complying with applicable health and safety regulations.

These are just some examples of the types of issues that could lead to professional negligence claims in the construction sector. The specific circumstances of each case will determine the kinds of claims that could be pursued. Thereafter, there will need to be an analysis of the extent to which the alleged failures caused additional costs and losses (put another way, the costs and losses would not have been incurred ‘but for’ the failure). As part of that analysis, a potential claimant should consider what a competent member of the profession would have done.

Multiple parties and professional negligence claims in construction or property development

When multiple parties are involved in a construction or property development project, and potential professional negligence is suspected, it's important to carefully consider from the outset which parties should be targeted as defendants in a future action.

The courts can apportion liability among the defendants based on their respective contributions to the negligence and in some cases the defendants will agree to settle based on apportioning liability between them. This often involves their professional indemnity insurers.

Including more defendants to a claim increases risk for the claimant. Legal costs are likely to be higher, meaning inclusion of multiple defendants can sometimes be a bad idea. The strength of evidence against each party is crucial.