Jurisdiction(s):
United Kingdom

Construction settlement indemnities: Court of Session construes clause 7.8 - no contractor recovery of Arup design costs absent employer instructions (Dragados UK Ltd v Port of Aberdeen)

Published on: 22 April 2025

Published by a LexisNexis Construction expert

Legal News

Article summary

Dragados UK LTD against Port of Aberdeen [2025] CSOH 37

What are the practical implications of this case?

This decision underscores the need for absolute clarity when drafting settlement agreements. Where an agreement concerns duties and liabilities connected to third‑party services while work continues, each party must, from the wording, be certain about the exact responsibilities they will carry in respect of those third parties and the circumstances in which they arise, as a consequence of the settlement drafting. Precision avoids costly misunderstandings and disputes over allocation of risk.

What was the background?

Port of Aberdeen (the defender and employer) appointed Dragados (the pursuer and contractor) to design, manage, and construct a harbour extension under the NEC3 Engineering and Construction Contract. Dragados then engaged Ove Arup & Partners Ltd (Arup) as a design sub‑consultant pursuant to the ‘Arup Existing Appointment’. Disputes emerged between the Port and Dragados, leading to a settlement agreement. Under that agreement, Dragados was released from any further management or construction activities but remained responsible for design, management, and construction already completed. Dragados was also required to complete the Contractor Design to Complete (CDTC) yet bore no responsibility for undertaking any other design after the settlement date...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...