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ARTICLE · 15 OCTOBER 2002

Contractor´s All Risks Insurance

Hong KongReal Estate and Construction

On 25 April, 2002 the House of Lords considered whether an architect or engineer who was sued by his employer for negligently damaging a building could require the main contractor to contribute towards any damages he was ordered to pay. The decision highlights potential risks for the design team if they are not covered under the CAR policy.

The facts

The case in question is Cooperative Retail Services Limited v Taylor Young Partnership and others. Cooperative Retail Services ("CRS") employed Wimpey as the main contractor to build a large new office block. Taylor Young partnership ("TYP") were employed as architects and Hoare Lee & Partners ("HLP") as mechanical and engineering consultants. On 16 March, 1995 a fire occurred at the site while a generator was being commissioned. As a result, completion of the works was substantially delayed and Wimpey had to carry out extensive repairs.

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