We regularly act for architects, engineers, surveyors, sub-contractors¸ design and build contractors, employers and specialist manufacturers with regard to a broad range of issues affecting their practices, including coverage disputes with insurers; uninsured defence work; claims for recovery; and, reviews of appointment and warranty documentation.
Insurance coverage disputes
We recognise that insurance is a critical component in the allocation and management of risk between parties to a construction project, which can give rise to a wide variety of coverage issues including: alleged non-disclosure or misrepresentation at the Fair Presentation stage, first notification of loss, scope of notification, year of attachment, scope of cover (including “design v workmanship” issues), product specific conditions and exclusions, aggregation and Third Party Rights Against Insurer Act claims to name a few.
Cladding and fire safety coverage issues
Our team is well placed to advise on all cladding and fire safety related issues and claims which continue to dominate the construction industry. We have advised many architects, engineers, design and build contractors, and developers over the last 6 years or so on: the scope and timing of notifications arising from cladding and Fire Safety claims following Grenfell; on the meaning and effect of differing cladding/fire safety exclusions and endorsements; on defence costs; on concurrent causation; on design v workmanship; on reasonable skill and care v strict liability; and more recently on coverage issues arising from Building Safety Act.
Recent examples of advice
- Advised a global engineering business on the extent of coverage available under a professional indemnity policy and the number of applicable excesses (and on the meaning of “buildings”) arising from a significant cladding claim on the Stratford Halo development.
- Advised an international building contractor on the extent of cover (and interaction) of various project related insurances on claims connected with defects at the Allianz Stadium in Twickenham, London.
- Advised a major UK developer on the extent of cover available under a professional indemnity policy having signed up to the Developer Remediation Contract; on Remediation Orders; and/or Building Liability Orders being made against the developer pursuant to the Building Safety Act 2022.
- Advised an international architectural practice on aggregation following settlement terms in a claim by a major technology company following the design of its headquarters in California.
- Advising a major plant and civil engineering business on the potential application of a DE3 exclusion in a CAR policy and on aggregation issues following damage to specialist pipework installed in a major brownfield site development in Wales.
- Advised a residential contractor on various coverage issues under a Public Liability policy following the collapse of a residential property in North London.
Reviews of appointment and warranty documentation
The contract is obviously of vital importance to the scope of the rights and obligations of the construction professional in relation to the project. We recognise that different contractual regimes deal differently with key issues of (I) risk allocation (in particular as between design and construction), (ii) costs certainty, (iii) speed (in particular the need to overlap design and construction), and (iv) level of Employer involvement.
Ensuring that the contract is right for the construction professional has always been important, but never more so than in recent times given in particular the delay and disruption that has been suffered by construction projects of all types and sizes around the world. Getting the contract right, and ensuring the allocation of risk as between parties reflects the parties' intentions and understanding, has never been more critical.
Related documents
For further information, please see the following documents:
Key contacts
If you would like to find out how Wynterhill can help you with regard to Construction risks, please contact:
Related insights
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