Design

Design liability in construction contracts

If a party is said to have ‘design liability’, it means that it bears legal responsibility for all or part of the design of construction/engineering works. Typically on a construction project, several consultants, and often the contractor and some of its sub-contractors, will be involved in producing and developing the design and will have ‘design liability’. Which parties bear responsibility for the design on any construction project will vary depending on the procurement route selected. See Practice Note: Design liability in construction contracts.

Design liability is an important, and sometimes contentious, issue in construction projects (see Practice Note: Common claims under construction contracts). For an examination of the design related issues that typically arise when negotiating a building contract, see Practice Note: Negotiating a building contract—design issues.

The standard of care to be exercised by a particular party in relation to the design will depend on whether that party is a consultant or contractor, and what the express and implied terms of the contract are. Ordinarily a consultant is required to carry out its services with reasonable skill