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Who is responsible if an incorrect material is used in construction?

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hiriskpaul
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Who is responsible if an incorrect material is used in construction?

#270319

Postby hiriskpaul » December 10th, 2019, 10:51 am

We have a situation where stainless steel balconies were installed in some sea front properties. Because of the location, marine (A4) grade stainless steel was specified. However, lower quality (A2) steel was supplied and installed and is now suffering from corrosion. There is no way the installers could reasonably have known the wrong material was supplied as when new the steel looks identical and is not marked with A4/A2 quality indicators.

I would assume that the only legal action we could take would be against the installers and it is up to the installers to take action against the suppliers. Is this correct?

There is a risk that the building company puts itself out of business. In that case, would we have any recourse against the suppliers?

Any suggestions for the best way to resolve this mess?

dealtn
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Re: Who is responsible if an incorrect material is used in construction?

#270325

Postby dealtn » December 10th, 2019, 11:15 am

Who ordered it, was it the installer, quoting the spec of the customer? Or did the customer order directly, and the installer simply install? Or perhaps more simply who had a contract with whom and to do what? Who didn't fulfil the contract?

hiriskpaul
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Re: Who is responsible if an incorrect material is used in construction?

#270338

Postby hiriskpaul » December 10th, 2019, 12:00 pm

dealtn wrote:Who ordered it, was it the installer, quoting the spec of the customer? Or did the customer order directly, and the installer simply install? Or perhaps more simply who had a contract with whom and to do what? Who didn't fulfil the contract?

We had a contract with the building company, which specified marine grade SS to be used. The building company had a contract with the supplier, specifying marine grade SS. The supplier supplied the wrong material and we have a letter from them admitting they did this.

supremetwo
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Re: Who is responsible if an incorrect material is used in construction?

#270347

Postby supremetwo » December 10th, 2019, 12:27 pm

hiriskpaul wrote:
dealtn wrote:Who ordered it, was it the installer, quoting the spec of the customer? Or did the customer order directly, and the installer simply install? Or perhaps more simply who had a contract with whom and to do what? Who didn't fulfil the contract?

We had a contract with the building company, which specified marine grade SS to be used. The building company had a contract with the supplier, specifying marine grade SS. The supplier supplied the wrong material and we have a letter from them admitting they did this.

You action the building company and they or their insurers will recover the rectification costs from the supplier.

hiriskpaul
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Re: Who is responsible if an incorrect material is used in construction?

#270413

Postby hiriskpaul » December 10th, 2019, 2:53 pm

supremetwo wrote:
hiriskpaul wrote:
dealtn wrote:Who ordered it, was it the installer, quoting the spec of the customer? Or did the customer order directly, and the installer simply install? Or perhaps more simply who had a contract with whom and to do what? Who didn't fulfil the contract?

We had a contract with the building company, which specified marine grade SS to be used. The building company had a contract with the supplier, specifying marine grade SS. The supplier supplied the wrong material and we have a letter from them admitting they did this.

You action the building company and they or their insurers will recover the rectification costs from the supplier.

I thought that was the case thanks, but what happens if the building company winds itself up? Is there any legal action we could take against the supplier?

supremetwo
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Re: Who is responsible if an incorrect material is used in construction?

#270433

Postby supremetwo » December 10th, 2019, 4:05 pm

hiriskpaul wrote:
supremetwo wrote:
hiriskpaul wrote:We had a contract with the building company, which specified marine grade SS to be used. The building company had a contract with the supplier, specifying marine grade SS. The supplier supplied the wrong material and we have a letter from them admitting they did this.

You action the building company and they or their insurers will recover the rectification costs from the supplier.

I thought that was the case thanks, but what happens if the building company winds itself up? Is there any legal action we could take against the supplier?

Insurers are still liable if a company that has taken out insurance for the period in question subsequently liquidates.

https://www.pinsentmasons.com/out-law/g ... t-insurers

hiriskpaul
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Re: Who is responsible if an incorrect material is used in construction?

#270472

Postby hiriskpaul » December 11th, 2019, 11:12 am

supremetwo wrote:
hiriskpaul wrote:
supremetwo wrote:You action the building company and they or their insurers will recover the rectification costs from the supplier.

I thought that was the case thanks, but what happens if the building company winds itself up? Is there any legal action we could take against the supplier?

Insurers are still liable if a company that has taken out insurance for the period in question subsequently liquidates.

https://www.pinsentmasons.com/out-law/g ... t-insurers

Interesting. Is this likely to be something an insurer would pay out on?

didds
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Re: Who is responsible if an incorrect material is used in construction?

#270530

Postby didds » December 12th, 2019, 10:13 am

supremetwo wrote:Insurers are still liable if a company that has taken out insurance for the period in question subsequently liquidates.

https://www.pinsentmasons.com/out-law/g ... t-insurers




the problem of course being identifyoing who the insurers were at the time. especially if the builder etc has themselves disapopeared or died etc and the knowledge is lost from the most obvious source. that doesnt make S2's advice incorrect of course.

didds

supremetwo
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Re: Who is responsible if an incorrect material is used in construction?

#270581

Postby supremetwo » December 12th, 2019, 1:05 pm

didds wrote:
supremetwo wrote:Insurers are still liable if a company that has taken out insurance for the period in question subsequently liquidates.

https://www.pinsentmasons.com/out-law/g ... t-insurers


the problem of course being identifyoing who the insurers were at the time. especially if the builder etc has themselves disapopeared or died etc and the knowledge is lost from the most obvious source. that doesnt make S2's advice incorrect of course.
didds

The obvious advice is to require a copy of a contractors insurance and check that it is in place before placing the contract.

newlyretired
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Re: Who is responsible if an incorrect material is used in construction?

#270620

Postby newlyretired » December 12th, 2019, 3:35 pm

supremetwo wrote:The obvious advice is to require a copy of a contractors insurance and check that it is in place before placing the contract...


...that sounds like shutting the stable door after the horse has bolted (in this particular case!)

newlyretired

AsleepInYorkshire
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Re: Who is responsible if an incorrect material is used in construction?

#270669

Postby AsleepInYorkshire » December 12th, 2019, 8:47 pm

hiriskpaul wrote:We have a situation where stainless steel balconies were installed in some sea front properties. Because of the location, marine (A4) grade stainless steel was specified. However, lower quality (A2) steel was supplied and installed and is now suffering from corrosion. There is no way the installers could reasonably have known the wrong material was supplied as when new the steel looks identical and is not marked with A4/A2 quality indicators.

I would assume that the only legal action we could take would be against the installers and it is up to the installers to take action against the suppliers. Is this correct?

There is a risk that the building company puts itself out of business. In that case, would we have any recourse against the suppliers?

Any suggestions for the best way to resolve this mess?

I think this would be classed as a "latent defect". Do you have any written warranties relating to the materials used? If not do some reading on "latent defects"

AiYn'U


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