Ground Conditions: An Entitlement To Additional Costs Despite Accepting Risk

Ground conditions An entitlement to additional costs despite accepting risk

Construction lawyers regularly deal with contractual clauses which place the risk of adverse ground conditions on contractors/sub-contractors.  Such clauses provide fertile ground for dispute.  In a 2018 decision from England, where the relevant contract contained such a provision, the Court determined that the sub-contract did not include matters that were specifically excluded from the scope of works as set out in the tender documents and hence the clause which purported to place the risk of adverse ground conditions on the the sub-contractor did not bite.

RPC provide a review of the case, highlighting that such clauses are of little use to those that seek to rely on them if the scope of the work is not within what the sub-contractor has agreed to carry out.

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About Phillip Rompotis

Phillip practices as a barrister and arbitrator in Hong Kong. He has over 25 years’ litigation and arbitration experience in commercial disputes relating to construction & engineering, financial services, joint venture & shareholders agreements, technology, trusts, property and landlord & tenant. He is a Fellow of the Chartered Institute of Arbitrators, the Singapore Institute of Arbitrators, the Malaysian Institute of Arbitrators, and a member of various lists/panels of arbitrators.

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