Taylor Woodrow Holdings Ltd v George Wimpey Southern Counties Ltd Rev 1 [2006] EWHC 1693 (TCC) (03 July 2006)

Taylor Woodrow Holdings Ltd v George Wimpey Southern Counties Ltd Rev 1 [2006] EWHC 1693 (TCC) (03 July 2006)

The court held that, based on the contract and incorporated correspondence, the Contractor assumed the risk for all necessary works to the structure, whether foreseen or unforeseen, except for works to the external façade covered by the provisional sum of £180,000.00. The Contractor's qualifications (TC1 and TC2) were removed, except as replaced by the provisional sum for external repairs. Therefore, the Employers did not retain the risk of unforeseen works to the existing structure, save for those works to the external façade subject to the provisional sum.

Citation
[2006] EWHC 1693 (TCC)
Parties
Claimant: Taylor Woodrow Holdings Limited; Claimant: George Wimpey Southern Counties Limited; Defendant: Barnes & Elliott Limited
Jurisdiction
England and Wales
Judgment Date
03 July 2006
Procedural Posture
Application Under Arbitration Act 1996, Section 45 / Judgment on Preliminary Question of Law Arising in Arbitral Proceedings
Outcome
Application granted; preliminary objection dismissed; question of law determined.
Legal Topics
Risk Allocation in Construction Contracts, Interpretation of Contract Terms, Arbitration Act 1996 Section 45, JCT Standard Form With Contractor's Design
Construction Law Arbitration Risk Allocation in Construction Contracts Interpretation of Contract Terms Arbitration Act 1996 Section 45 JCT Standard Form With Contractor's Design

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Parties

Taylor Woodrow Holdings Limited

Claimant

George Wimpey Southern Counties Limited

Claimant

Barnes & Elliott Limited

Defendant

Procedural Posture

Application Under Arbitration Act 1996, Section 45 / Judgment on Preliminary Question of Law Arising in Arbitral Proceedings

Legal Issues

  1. 1 Did the Employers retain the risk of unforeseen works to the existing structure of the building which might be necessary before or as a consequence of the specified works?
  2. 2 Did the allegedly unforeseen structural works constitute a change in the Employers' Requirements requiring evaluation under Clause 12 of the JCT WCD?

Ratio Decidendi

The court held that, based on the contract and incorporated correspondence, the Contractor assumed the risk for all necessary works to the structure, whether foreseen or unforeseen, except for works to the external façade covered by the provisional sum of £180,000.00. The Contractor's qualifications (TC1 and TC2) were removed, except as replaced by the provisional sum for external repairs. Therefore, the Employers did not retain the risk of unforeseen works to the existing structure, save for those works to the external façade subject to the provisional sum.

Court Disposition

Application granted; preliminary objection dismissed; question of law determined.

Orders

  • The court determines that the Employers did not retain the risk of unforeseen works to the existing structure, save for those works to the external façade which are the subject of the provisional sum of £180,000.00.
  • The Contractor's preliminary objection to these proceedings is dismissed.