Construction Contractor (also known as the Construction Sub-contractor) meaning

Sovereign Network Homes—formerly Network Homes Ltd, and Network Build Ltd According to a High Court order dated 26 March 2025, Sovereign Network Homes—formerly Network Homes Ltd—and Network Build Ltd reached confidential settlement terms with a consortium of nine insurers. Network Homes, the owner of the building, and Network New Build, the arm that entered building contracts for the association, issued proceedings in 2023, asserting a right to indemnity for losses arising from defects at a Watford development. The claimants said WPHV Ltd, also known as Willmott Dixon Housing Ltd, acted as main contractor on the scheme and was responsible for defective, combustible insulation and cladding. The contractor entered administration in December 2020 and held professional indemnity insurance with Chubb European between 2019 and 2020. WPHV also had excess insurance cover with...

Willmott Dixon Holdings Ltd v Karakusevic Carson Architects Llp [2024] EWHC 3449 (TCC) What was the background? The claimant, Willmott Dixon Holdings Ltd, was the parent of a Willmott Dixon company that acted as the design and build contractor for Bridport House in Hackney The first defendant, Karakusevic Carson Architects LLP (KCA), was appointed as project architect for Bridport House, with Practical Completion certified on 31 August 2011 The claim form was filed on 30 August 2023, a day before the potential expiry of the limitation period The claim concerns alleged defects in the residential scheme, which the employer (the London Borough of Hackney) says stem from KCA’s negligence and/or contractual breaches Proceedings were also commenced against Peter Brett Associates LLP and Toureen Contractors Ltd KCA applied to strike out the claim form, arguing it was an abuse of process What did the court decide? Decision The application to strike out the claim form was dismissed....

This Practice Note carefully considers the role of pre-construction services agreements (PCSAs), most commonly applied in two-stage tendering. Many construction schemes are now procured through a two-stage route, which contrasts quite markedly with the familiar single stage tender model. Instead of inviting contractors to submit a price for the works in a competitive tender and then moving straight to a contract with the chosen contractor, many employers (even where a traditional or design and build lump sum contract is still intended) prefer to negotiate with contractors and draw on their input earlier in the procurement process. This alternative method is generally also known as two-stage tendering (see Practice Note: What is two-stage tendering?). The scope of services to be undertaken by a contractor up to the point the building contract is entered into, together with the parties’ contractual framework, is usually governed by a PCSA—sometimes referred to as a preliminary contract. What is a pre-construction services agreement? A PCSA is, in substance, an interim...

This Practice Note examines professional indemnity (PI) insurance in the setting of construction projects—the requirement to carry insurance, the level and basis of cover, and standard clause wording obliging parties to maintain PI cover. For a broader review of professional indemnity insurance, see Practice Note: Professional indemnity insurance—essentials. It also reviews the usual wording found in clauses mandating the maintenance of PI insurance. Although this Practice Note addresses a consultant’s duty to keep PI insurance in force, main contractors and sub-contractors who assume design duties must likewise maintain such insurance, and the same principles outlined below apply equally to them. A contractor with no design role might regard PI cover as unnecessary; however, if it departs from a consultant’s design, an employer might claim the contractor made an ‘on-the-spot design decision’, potentially engaging a PI policy. For further detail, see Practice Note: Design liability in construction contracts—Responsibility for design under different procurement routes (notably, the section headed ‘Traditional’). Requirement to hold professional indemnity insurance A consultant’s...

This Practice Note sets out the concept of liquidated and ascertained damages (LADs/LDs) and their role within building contracts. It explains how these provisions function and why they are used. Distinguishes liquidated from general (unliquidated) damages; Reviews enforceability and common challenges, including penalty arguments; Addresses setting the LADs figure, caps, and the dangers of stating “nil” or “N/A”; Refers to case summaries in a related case law Practice Note. What are liquidated damages? Where parties to a construction contract agree LADs, they pre-determine a fixed sum payable if a specified breach occurs. These provisions are also known as liquidated and ascertained damages, with the acronyms “LDs” and “LADs” used interchangeably. When liability for LADs arises, the amount is usually payable by the contractor to the employer, or the employer may deduct it from sums otherwise due to the contractor...