Collateral damage (again) – Parkwood and Toppan – Practical Law: Construction Blog

Posted September 3rd, 2021 in construction industry, contracts, interpretation, news, warranties by tracey

‘Doesn’t time fly. I can’t believe it is almost eight years since Practical Law published my blog on Parkwood Leisure Ltd v Laing O’Rourke Wales and West Ltd. As readers may recall, in that case Akenhead J decided that a collateral warranty (CW) given by Laing in favour of Parkwood was a construction contract for the purposes of the Construction Act 1996, and that accordingly Parkwood could pursue a defects claim under it by way of adjudication. I suggested that the decision was “simply wrong” and could have “highly undesirable ramifications” for the negotiation of CWs going forward. (After an initial flurry, it seems that I may have been wrong on the second count, but let’s draw a veil over that for now.).’

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Practical Law: Construction Blog, 2nd September 2021

Source: constructionblog.practicallaw.com