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ARTICLE · 04 OCTOBER 2021

A "Parasitic" Problem: Are Collateral Warranties Construction Contracts?

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We examine how Toppan Holdings and Abbey Healthcare v Simply Construct has helped clarify when collateral warranties will be considered construction contracts for the purpose of adjudication.

United KingdomReal Estate and Construction
Sally Wollaston
Sally Wollaston

We examine how Toppan Holdings and Abbey Healthcare v Simply Construct has helped clarify when collateral warranties will be considered construction contracts for the purpose of adjudication.

Toppan Holdings Ltd and Abbey Healthcare (Mill Hill) Ltd v Simply Construct (UK) LLP [2021] EWHC 2110 (TCC)

The Technology and Construction Court's recent decision in Toppan Holdings Ltd and Abbey Healthcare (Mill Hill) Ltd v Simply Construct (UK) LLP provides guidance on whether collateral warranties will be considered "construction contracts" for the purpose of Section 104 of the Housing Grants, Construction and Regeneration Act 1996 (the "Construction Act 1996").

The case has supplied judicial direction on an area of construction law which has not had the benefit of a High Court judgement since Parkwood Leisure v Laing O'Rourke Wales and West Ltd [2013] EWHC 2665 (TCC). The judgement of Martin Bowdery QC (sitting as a deputy High Court Judge) demonstrates that the

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