BPF warning note to members

The Association of Consulting Engineers' new conditions of engagement have so alarmed the British Property Federation that it has sent a warning note to all its members, highlighting the dangers - principally concerning changes to limitations on liability, fees, specialist design and termination.

The prospect of a row between the two parties brings the risk of a fall in workload in the private commercial sector if BPF clients feel the need for more caution before proceeding with new projects.

The BPF had been in consultations over a two-year period. It complains that only 5% of its suggestions were taken account of, while the other 95% were ignored.

Geoff Wright, director of UK Property at Hammerson and chairman of the BPF's construction committee, said: 'The existing conditions, which we have used since 1981 had a fair balance of risk between client and engineer. The new conditions are unduly biased.

'There will be major amendments, with clients writing bespoke contracts. The move goes against the Latham ethos of understanding the other party.'

Hugh Woodrow, chief executive, ACE, said: 'The last set of conditions were issued in 1981, since then procurement methods have changed. 'We are surprised the BPF has issued a warning. I asked them for comment but we had to publish after five years waiting.

'We have always sought non-adversarial terms. People have misinterpreted the document.'

The BPF's warning states that consulting engineer's liability for any claim relating to pollution or contamination is wholly excluded.

Other liabilities are limited to the amount stated in the memorandum of agreement. If any claim is made against the consulting engineer beyond these limits, the client must indemnify the consulting engineer.