TFW Printers Ltd v Interserve Project Services Ltd

TFW Printers Ltd v Interserve Project Services Ltd

The obligation to insure under clause 6.3B ceases upon practical completion because the contract language, structure, and commercial context indicate that the insurance is intended to cover the Works only until practical completion, after which the Employer as building owner assumes the risk and responsibility for insurance. The contract does not provide machinery for post-completion variations or insurance, and there is no rational basis for the insurance obligation to continue beyond practical completion.

Parties
Appellant: TFW Printers Ltd; Respondent: Interserve Project Services Ltd
Jurisdiction
England and Wales
Judgment Date
27 June 2006
Procedural Posture
Civil Appeal / Judgment on Appeal From Central London County Court
Outcome
Appeal allowed
Legal Topics
Interpretation of Standard Form Contracts, Insurance Obligations in Construction Contracts, Defects Liability Period
Contract Law Construction Law Interpretation of Standard Form Contracts Insurance Obligations in Construction Contracts Defects Liability Period

Case Brief

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Parties

TFW Printers Ltd

Appellant

Interserve Project Services Ltd

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From Central London County Court

Legal Issues

  1. 1 Whether the Employer’s obligation to insure under clause 6.3B continues after practical completion until the end of the defects liability period
  2. 2 If so, whether clause 6.3B bars the Employer’s claim for damages against the Contractor for breach of contract and/or negligence

Ratio Decidendi

The obligation to insure under clause 6.3B ceases upon practical completion because the contract language, structure, and commercial context indicate that the insurance is intended to cover the Works only until practical completion, after which the Employer as building owner assumes the risk and responsibility for insurance. The contract does not provide machinery for post-completion variations or insurance, and there is no rational basis for the insurance obligation to continue beyond practical completion.

Court Disposition

Appeal allowed

Orders

  • Employer’s obligation to insure under clause 6.3B ceases upon practical completion
  • Second issue does not arise