Oil giant is role model in bid to avoid domino effect of computer crashes - Shell shows how to beat 2000 bug

Construction firms should follow Shell's example of checking the security of supply chains to beat the Year 2000 computer bug, according to Construct IT.

Clive Seddon, IT litigation partner with solicitor Masons and advisor to Construct IT, warned: "Some of the main contractors are starting to look after their own systems. But an an area they have generally missed is external systems that are part of their own supply chain."

The Government agency Taskforce 2000 has estimated the extent of the computer problem could cost Government and industry up to œ31bn to fix.

At a recent Construct IT meeting, a spokeswoman for Taskforce 2000 said the construction sector should use Shell International as a role model to avoid the domino effect of computer crashes due to the Year 2000 bug.

In the North Sea, Shell will spend more than œ15 million testing safety critical microchips, and much more on general IT evaluation and solutions. A key part of Shell's efforts are to ensure its suppliers and partners in the supply chain are also tackling the Year 2000 problem.

Seddon said: "Contractors should be preparing to contact customers after evaluating systems to avoid negligence liability.

"If these systems fail within six years of completion, the customer may have a legal case if they can prove the contractor did nothing to warn them about a possible problem."

He said that contractors could face latent damage claims up to six years into the next century if nothing is done to warn infrastructure owners.