Kate, Tina and Naomi - leading Gold coast civil engineering, construction and finance consultants - set up their own firm, KTN Consulting Pty Ltd (“KTN”). The business expanded rapidly. A joint venture comprising a large construction company, bank and insurance company, has recently asked KTN to make an offer under contract to oversee construction of a large $200 million commercial building complex and advise as to its optimal financing. But KTN is concerned about its potential liability both under contract and tort law - but especially under tort law – to the joint venture party, investors in those joint venture companies and any later owners of the building complex.

Advise KTN Consulting as follows:

(a) The general relationship at common law between liability under contract and under tort and especially whether clauses limiting liability in a contract can limit liability in tort as well.

(b) The main principles now governing liability for professional negligence and whether adhering to standard procedures and practices in engineering, construction and finance would give them any protection.

Answer rating: 100% (QA)

a Construction contracts mainly sets out the type of relationships to maintain between the contracti... View the full answer