Construction managers are liable to their clients and must ensure
they protect their clients by giving objective advice.
That is the precedent set by the outcome of the Great Eastern Hotel
-v- John Laing Construction case, according to the law firm that
won it, Fenwick Elliott.
Judge Wilcox decided that the former John Laing subsidiary was
responsible for delays and cost overruns on the project that opened
a year late in June 2000 (CJ 2 March).
Fenwick Elliott partner Jeremy Glover told CJ: "Although Laing was
not the guarantor of the job, Judge Wilcox decided that, in its
role as contract manager, Laing did owe clear, enforceable
obligations as a central member of the professional team.
"The case has clear implications for construction managers. They
must not only procure trade contracts that do not expose the client
to uncertainty and risk, but also proactively seek to resolve any
difficulties that may arise with trade contractors.
"Construction managers must ensure they reorganise contracts as
problems arise and properly co-ordinate packages to reflect actual
progress," Glover added.