Ampleforth Abbey Trust v Turner & Townsend
Project Management Ltd [2012] EWHC 2137 (TCC)
Substantial construction works had been carried out entirely under
letters of intent which made no provision for liquidated damages
for delay. No formal building contract was ever signed. The works
were delayed and the Trust claimed against its project managers,
claiming that had a fully executed building contract been in place
then the Trust would have reached a more favourable outcome in its
dispute with the contractor over the delay. The court found
that the project manager had failed to take the reasonable steps
required to procure the completed building contract and was
therefore in breach of contract. The judge noted that the project
manager had failed to exercise sufficient focus on the matters
holding up execution of the contract or to exert sufficient
pressure on the contractor to finalise the contract. This
highlights the importance of ensuring that building contracts are
signed, rather than simply relying on letters of intent.
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