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ARTICLE · 05 AUGUST 2021

When Is A Collateral Warranty A "Construction Contract"?

Gowling WLG
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Back in 2013, the Technology and Construction Court (TCC) decision in Parkwood Leisure Limited v Laing O'Rourke Wales and West Limited [2013] caused quite a lot of murmuring

United KingdomReal Estate and Construction
Ashley Pigott
Ashley Pigott
Cathy Moore
Cathy Moore
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Back in 2013, the Technology and Construction Court (TCC) decision in Parkwood Leisure Limited v Laing O'Rourke Wales and West Limited [2013] caused quite a lot of murmuring in the ranks when the TCC held that the parties' collateral warranty was a "construction contract" for the purposes of the Housing Grants, Construction and Regeneration Act 1996, as amended (the Construction Act).

Fast forward some eight years and we have the first reported case to cite the Parkwood decision. We review the judgment in Toppan Holdings Ltd and Abbey Healthcare (Mill Hill) Ltd v Simply Construct (UK) LLP [2021] and what it means for parties agreeing collateral warranties.

Background

  • In 2015, Simply were engaged by a third party to design and construct a care home in Mill Hill that was in due course occupied and operated by Abbey The contract was an amended form of JCT Design and Build Contract 2011 with June 2015 updates (the Building Contract).

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