Plymouth & South West Co-Operative Society Ltd v Architecture, Structure & Management Ltd

Plymouth & South West Co-Operative Society Ltd v Architecture, Structure & Management Ltd

ASM breached its duty of care by failing to advise Plymco on the risks of proceeding with an inadequately designed and costed contract and by not recommending a two-stage (Argos First) approach when it became clear that cost certainty could not be achieved. This breach caused Plymco's loss, as Plymco would have adopted the alternative approach if properly advised. Damages are awarded based on the difference between actual and hypothetical costs, plus identified savings that should have been advised.

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 Contract/professional Negligence / Judgment After Full Trial
Outcome
Judgment for the Claimant (Plymco)
Legal Topics
Architect's Duty of Care, Cost Control in Construction Contracts, Two Stage Tendering, Damages for Breach of Contract, Causation and Quantification of Loss
Contract Law Professional Negligence Construction Law Architect's Duty of Care Cost Control in Construction Contracts Two Stage Tendering Damages for Breach of Contract Causation and Quantification of Loss

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Parties

Plymouth & South West Co-operative Society Limited

Claimant

Architecture, Structure & Management Limited

Defendant

Procedural Posture

Civil Contract/professional Negligence / Judgment After Full Trial

Legal Issues

  1. 1 Did ASM breach its duty of care to Plymco in the procurement, tendering, and contract formation stages of the redevelopment project?
  2. 2 Was ASM negligent in failing to advise on cost risks and alternative procurement strategies?
  3. 3 Did ASM's breach cause Plymco's loss, and how should damages be quantified?

Ratio Decidendi

ASM breached its duty of care by failing to advise Plymco on the risks of proceeding with an inadequately designed and costed contract and by not recommending a two-stage (Argos First) approach when it became clear that cost certainty could not be achieved. This breach caused Plymco's loss, as Plymco would have adopted the alternative approach if properly advised. Damages are awarded based on the difference between actual and hypothetical costs, plus identified savings that should have been advised.

Court Disposition

Judgment for the Claimant (Plymco)

Orders

  • ASM to pay Plymco damages of £1,392,088.00 for breach of contract and professional negligence.