Commercial Construction - Legal Query

[jonty101]

Hi Everyone. I'll try to keep this as to the point as possible.

We have recently undertaken some commercial air conditioning installation works. The job concluded at Christmas 2015 and since then we have returned to site a handful of times in early 2016 to complete snagging works.

Last week we received a letter stating that were being sued for a sum of £200k for incorrect installations. They have provided a detailed report and there are some areas where we appear to have installed incorrectly/against manufacturer's guidelines. The client has employed another company to carry out the rectifying works, their costs totalling a sum of £200k.

However, at no point from when we completed the snagging works in early 2016 were we ever contacted about these incorrect installations. If we were contacted, we would have returned to site to rectify, and could have even provided the client with extended warranties on the kit. We were never told that anything was wrong with our installation, or that another company would be brought in if we did not rectify.

My question is, is it legal for the client to do this, or are they supposed to give us an opportunity to put things right? Like I say, we had zero contact from them whatsoever until the letter arrived last week detailing all of the rectifying works that had been carried out without our knowledge. I suspect it is a total stitch-up, as surely if they wanted us to put things right they would have been threatening us with court action if we did not attend site to rectify.

Any information would be helpful. Many thanks.

[ULA]

Sorry cannot help on this one I am more of an employment person.

Tagging Peridot who may be able to help

[Peridot]

Hi Jonty101,

So all you have received is a letter at this time saying they will sue you for the £200k, you haven't received a claim form from the Court? Have they threatened to make a claim in the Court if you don't respond within a certain time limit? Have they set out all the facts from your being taken on to carry out the installation, the work done, the snagging tasks completed etc to now?

In the usual course of things the company you did the installation for should have contacted you regarding any problems before commissioning someone else to do the work. Not a legal obligation but a common courtesy which the Courts would also expect them to have done. This would then as you say have enabled you to 'put things right' or come to some sort of agreement how to go forward.

You mention an experts report having been prepared, indicating there were issues with the system. Were you not aware of this either? Is the experts report sensible in their recommendations? Is the expert connected to the new company they contracted to install the new system? Could you have been criticised for using the system you did or would it just have been a case of 'adapting' certain parts of the system?

Of course there are situations where a purchaser has no option but to get someone else in to deal with an issue but this would usually only be after trying to deal with the original contractor they had appointed and getting nowhere.

If you have had no contact from them for over 2 years and there was no indication of any issues after you'd dealt with the snagging list and relations had not be 'troubled' during the contract or since completing the works, then it is unlikely a Court (if they issue a claim) would award the full sum where you have not been given an opportunity to put things right at any stage. It will very much depend on the facts of the claim. Currently it looks like the amount they are threatening to sue you for is the cost of a whole new system installation, although I know nothing about the cost of air con systems. Could the system you installed have been adapted to bring it into line with what the expert recommended?

It would be worth calculating the cost of putting the system 'right' if that would have been a possibility and also obtaining any info you can about the system you installed to try and head of any assertions made in the experts report.

My instinct would say on the facts you have provided, they may be trying it on. Even if the system was not up to the job if it would have been possible to adapt it, then they should only be entitled to claim the cost of the adaptations, not a whole new system and that is if they were successful in any claim they brought to Court.

As you can see there are a lot of factors to consider.

You need to try and gather as much factual information as you can relating to the whole of the contract you were tasked to carry out, copies of documents, info about the system you used, confirmation of what their instructions were to you and what if any, issues that arose while carrying out the work including what the snagging list was and dates you carried out any works. Basically any factually info you can gather together about the system you installed, the dates of works you did and any comments you have on the 'expert' report they have provided if you don't think it is correct. If possible, calculating your own guesstimate of how much any rectifying works would have cost to carry out would be sensible too both on the basis of what the report recommends and if you disagree with the report then for the works you believe could be justifiably completed to bring the system in line (if you feel there were things that needed sorting out of course).

I would suggest you get some face to face legal advice on how to respond to the letter and what options may be available to you. Do take along any information or evidence you have so this can be discussed. It is always difficult to remember the facts in a meeting when you don't have it in front of you. If you get a reduced fee appointment or free half hour you don't want to waste any of the time you have getting the advice.

[jaguarsuk]

Hi Jonty101,

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I would suggest you get some face to face legal advice on how to respond to the letter and what options may be available to you. Do take along any information or evidence you have so this can be discussed. It is always difficult to remember the facts in a meeting when you don't have it in front of you. If you get a reduced fee appointment or free half hour you don't want to waste any of the time you have getting the advice.

Also have a look at your insurance policies or contact your insurers as they may provide legal assistance cover that will allow you a solicitor via the policy to deal with this matter.