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ARTICLE · 22 NOVEMBER 2014

Don’t Fall Into The Net…Contribution Clause

Withers LLP
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you are appointing an architect or any other consultant to undertake services, and… (also happen to be a banker (or are just savvy),) you will need to watch out for a Net Contribution Clause (NCC) in the consultant's appointment. If you sign up to an unamended 'industry standard' consultant appointment as the consultant will call it, beware, it is very likely to have an NCC, and this will affect what you can recover from that consultant in the event of a breach.

United KingdomReal Estate and Construction
Paul Brecknell
Paul Brecknell
Julie Teal
Julie Teal
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If you are appointing an architect or any other consultant to undertake services, and... (also happen to be a banker (or are just savvy),) you will need to watch out for a Net Contribution Clause (NCC) in the consultant's appointment. If you sign up to an unamended 'industry standard' consultant appointment as the consultant will call it, beware, it is very likely to have an NCC, and this will affect what you can recover from that consultant in the event of a breach. A new case has just confirmed this.

A client enters into a contract with an architect for carrying out works in their property worth £1.7 million (new stairwell, woodwork, conservatory etc). The client makes various appointments and appoints the architect using a RIBA contract form with some amendments. The architect and the client have a friendly relationship, and the architect also assists the client in appointing a contractor. This situation is a familiar one for residential projects, and came under

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