Laing case to set manager precedent


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.
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"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.


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