16 October 2013
Warranty woes - when can you adjudicate under a collateral warranty?
A recent decision of the Technology and Construction Court, Parkwood Leisure Limited v Laing O'Rourke Wales & West Limited, concluded that a collateral warranty could be a "construction contract" for the purposes of the Housing Grants, Construction and Regeneration Act 1996.
Section 108 of that Act allows for parties to construction contracts to refer disputes to adjudication. Mr Justice Akenhead's decision may now open the floodgates for adjudication proceedings to be brought against contractors and consultants by subsequent purchasers, tenants and funders.
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