Modern construction contracts increasingly blur the roles and
responsibilities of the parties. Consistent with this pattern,
‘Fitness for Purpose' (FFP) warranties
may be used to place the design risk on the contractor (as opposed
to the designer or professional engineer). Contractors should be
aware of express and implied FFP warranties to avoid accepting
excessive design liability.
What is Fitness for Purpose?
FFP warranties are an assurance given by the contactor to the
principal that that the works completed by the contractor will be
capable of use for a particular purpose(s). The purpose(s) may be a
purpose stated in the contract or a purpose intended by the
principal.
FFP warranties increase the design onus on contractors. For
example, at common law a professional must exercise a standard of
reasonable skill and care (the Bolam
Test).1 That is, the professional is required
to act in a certain way but not required to guarantee the end
result. In contrast,
