Latent defects paper attacked

Top construction legal expert Roger Knowles has expressed serious reservations about government proposals for legislation on latent defects liability and insurance and fair construction contracts.

The chairman and managing director of James R Knowles said the suggestions for legislation set out in two recently-published government consultation papers threaten to provide 'a new gravy train for lawyers'.

Knowles claims the message of the first paper on latent defects is that 'legislation is a non-starter'.

He argues that the second document takes a fundamentally flawed approach to fair contracts by supporting legislation backing for approved standard forms while showing 'great reluctance to control bespoke conditions in any way'.

It is suggested this will make standard forms unpopular and encourage the use of bespoke forms.

Knowles said: 'It would have been easier to produce a list of essential terms which are required by legislation to be included in all construction contracts and leave it at that.'

Legislation would probably be another growth industry for lawyers, Knowles claims. 'A lot of money was made from drafting bespoke collateral warranties,' he said. 'If this legislation goes through, the gravy train will be full steam ahead in drafting bespoke conditions. The standard forms, due to the straightjacket in which prospective legislation places them, will become unpopular.'

Latham's 'Constructing The Team' provided for 30 matters of principle which should be included in the most effective form of contract, the first being a duty for all parties to deal fairly with each other.