Plymouth & South West Co-Operative Society Ltd v Architecture, Structure & Management Ltd [2006] EWHC 5 (TCC) (10 January 2006)

Plymouth & South West Co-Operative Society Ltd v Architecture, Structure & Management Ltd [2006] EWHC 5 (TCC) (10 January 2006)

ASM breached its duty of care and contractual obligations by failing to provide adequate advice on the cost risks associated with the procurement method and by not recommending a two-phase contract approach, which would have limited Plymco's exposure to cost overruns. ASM's failure to provide clear written advice and to manage the project in accordance with the client's cost constraints constituted professional negligence.

Citation
[2006] EWHC 5 (TCC)
Parties
Claimant: Plymouth & South West Co-operative Society Limited; Defendant: Architecture, Structure & Management Limited
Jurisdiction
England and Wales
Judgment Date
10 January 2006
Procedural Posture
Civil (professional Negligence) / Judgment After Trial
Outcome
Judgment for the Claimant
Legal Topics
Architects' Duty of Care, Breach of Contract, Cost Overruns, Two Stage Tendering, Scope of Engagement, Project Management
Professional Negligence Construction Law Contract Law Architects' Duty of Care Breach of Contract Cost Overruns Two Stage Tendering Scope of Engagement +1 more

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Parties

Plymouth & South West Co-operative Society Limited

Claimant

Architecture, Structure & Management Limited

Defendant

Procedural Posture

Civil (professional Negligence) / Judgment After Trial

Legal Issues

  1. 1 Did ASM breach its duty of care and contractual obligations to Plymco in the procurement, tendering, and cost control of the Co-operative House redevelopment project?
  2. 2 Was ASM negligent in failing to advise Plymco of the cost risks and in not recommending a two-phase contract approach?

Ratio Decidendi

ASM breached its duty of care and contractual obligations by failing to provide adequate advice on the cost risks associated with the procurement method and by not recommending a two-phase contract approach, which would have limited Plymco's exposure to cost overruns. ASM's failure to provide clear written advice and to manage the project in accordance with the client's cost constraints constituted professional negligence.

Court Disposition

Judgment for the Claimant

Orders

  • ASM to pay damages to Plymco for breach of contract and professional negligence.