Fitness for purpose meaning

Original news MT Højgaard a/s v EON Climate and Renewables UK Robin Rigg East Ltd and another [2015] EWCA Civ 407 The parties entered into a contract for the design and installation of offshore wind turbines. Defects arose in the foundations, prompting a dispute over who should bear the cost of remedial works. At first instance, the judge decided the claimant contractor had breached a warranty that the foundations would provide a 20‑year service life, but had not breached other clauses alleged by the defendant employers. The Court of Appeal, Civil Division, allowed the claimant’s appeal, finding there was no such warranty. The defendants’ cross‑appeal also succeeded, as the claimant had failed to comply with a provision concerning testing of the designs. What was this case about? The dispute centres on a specific design issue of fundamental concern to the various stakeholders involved in the design and construction of offshore wind farms. For context, it is helpful to grasp the technical set‑up—an offshore wind farm is, in...

Mergers The CMA confirms it has, as required, sent its report to the Secretary of State on jurisdiction and competition issues linked to RedBird IMI’s anticipated acquisition of Telegraph Media Group—see further, case page. NOTE—For a summary of mergers in which the UK government has intervened on public interest grounds under the Enterprise Act 2022, see Government interventions on public interest grounds—merger cases tracker. Antitrust OFGEM has launched a Chapter II Competition Act 1998 investigation into suspected breaches of competition law, concerning a possible abuse of a dominant position—see further, press release. NOTE—For all live behavioural probes before the CMA and sectoral regulators, see UK behavioural investigations—ongoing cases tracker. Competition policy The CMA seeks inputs for its review of the Rail, Road, Inland Waterway Transport Block Exemption (RRIWTBER), assessing fitness for purpose, UK economic specifics, and impacts on UK businesses and consumers. Responses by 10 April 2024; consultation on proposed recommendations in June...

Share your insights here What are the key changes introduced into the SBCC 2024 Contracts? The SBCC 2024 Contracts have been updated in line with the parallel Joint Contracts Tribunal (JCT) standard forms used in England and Wales, amounting to ‘kilted versions’ of those JCT documents, with departures introduced to accommodate the distinct legal framework north and south of the border. Overall, the revisions are arranged around three central aims that mirror the approach taken for the corresponding JCT suite and clarify how Scottish practice aligns with, yet differs from, the position in England and Wales: capturing legislative developments since the 2016 editions; future proofing the forms; modernising and streamlining the drafting. Legislative changes For England and Wales, notable amendments to the JCT contracts respond to the Building Safety Act 2022, in particular Part 2A dealing with the regulation of higher-risk buildings. Where that statute has only a limited bearing in Scotland—such as the prescriptive time limits applicable to certain...

This practice note addresses the 2nd Edition of the Burgundy Book, released in 2013, with particular emphasis on its role as a target cost form. In line with all IChemE agreements, the Burgundy Book contains thorough requirements for testing at completion and for commissioning, making it especially well suited to process engineering sectors such as nuclear, water, petrochemicals, and food. The suite adopts an almost entirely uniform structure across clauses, presentation and schedules. Departure from the standard drafting occurs only where needed to set out the mechanism delivering the risk/reward regime—in this instance, remuneration on a target cost footing. See also Practice Notes: IChemE Conditions 5th Edition—‘Red Book’ and IChemE Conditions ‘Green Book’ 4th Edition. Nature of Target Cost Contracts Target cost denotes that the contractor receives payment of the ‘actual cost’ it incurs (as defined), akin to a reimbursable arrangement but constrained by an agreed target cost. Where the actual cost surpasses the target, any additional sum payable to the contractor is reduced—often to nil. If the...

Disputes frequently arise on construction projects over the level of care a contractor or consultant must exercise in relation to design. Typically, the contractor or consultant will seek to avoid taking on a 'fitness for purpose' duty for the design, whether stated expressly or arising by implication. This Practice Note considers what the so‑called 'fitness for purpose' obligation involves, who is bound by it and who is not, where it originates, and why contractors and consultants prefer not to accept it. It also sets out example clauses and evaluates whether a contractor should agree to them. The precise volume of design carried out under a contract or appointment can fluctuate, yet the standard applied to that design remains consistent across the board. Where does the fitness for purpose obligation come from? The fitness for purpose obligation stems from legislation on product liability and the standards to be achieved when goods, materials and/or services are supplied...

Introduction This Practice Note explores design under the 1999 Red, Yellow and Silver Books, the 2008 Gold Book, and the 2010 Pink Book. For coverage of design in the 2017 Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—design. In the Yellow, Silver and Gold Books, the contractor undertakes the design to satisfy the employer’s requirements prepared by or for the employer, while in the Red and Pink Books the design is produced by or on behalf of the employer. The design is set out in the following: specifications and drawings (Red and Pink Books) employer’s requirements together with the contractor’s proposals (Yellow Book) employer’s requirements and the Tender (Silver Book) employer’s requirements, the contractor’s proposals and operation management requirements (Gold Book) Contractor design obligations under the Red and Pink Books FIDIC treats the Red and Pink Books as traditional construction contracts, since the contractor constructs and completes the works in accordance with a design prepared by...

3 Licence The Licensor permits the Licensee, during the Designated Hours, to use the Pitch for the stated purpose and the Car Park and Changing Rooms for related use, with shared access over the Accessways provided no obstruction occurs. 4 Licensee's obligations Pay the Licence Fee in advance and a fair share of Utilities and other recurring outgoings, provide the Deposit, and return any keys or meet replacement costs. Make good damage, keep areas clean, bring only permitted equipment, maintain suitable insurance, comply with Legislation and the Licensor’s regulations, avoid nuisance and unauthorised signage, and do not impede the Licensor. 5 Condition of the Pitch The Licensor maintains the Pitch and determines fitness for play; no refund applies if play cannot proceed. 11 Termination For material breach the Licensor may terminate with immediate effect, and all sums remain payable to the end of the Licence Period. 13 Liability excluded So far as permitted, the Licensor is...