UKTC Archive

Re: Collateral warrenty for a contractor? postscript

Subject: Re: Collateral warrenty for a contractor? postscript
From: Julian Morris
Date: Jan 29 2019 14:17:19
[Text converted from HTML]
It occurs to me that occasionally a well-written AMS can be (I'd say
should be) incorporated into construction contract documents, in which
case it kind of makes sense that the contractor is bound by it. Although
this may seem an obvious case for a CW or reliance agreement, it's quite
the opposite, and would create an untenable conflict of interest, with
both employer and contractor being able to sue the arb for any
shortcomings in it, while also able to sue each other.

Personally, having thought about this I am going to amend my terms and
conditions to clarify that I would have no duty of care, nor would I
grant duty of care, to contractors using my AMS.

Julian A. Morris - Professional Tree Services
jamtrees.co.uk and highhedgesscotland.com
0778 XXX XXXX - 0141 XXX XXXX


Sent: Tuesday, January 29, 2019 at 1:50 PM
From: "Bettina Broadway-Mann" <broadwaytrees@xxxxxx.com>
To: "UK Tree Care" <uktc@xxxxxx.tree-care.info>
Subject: Re: Collateral warrenty for a contractor?

Thank you Ron,
that makes a bit more sense now,

regards
Bettina


On Tue, Jan 29, 2019 at 1:45 PM Howe, Ron <Ron.Howe@xxxxxxxxxxx.gov.uk>
wrote:

Because,

Typical of the building industry. If you're a subcontractor, the
primary
client, land/property owner has no direct control over or contract
with
you, or control over your work quality. The main contractor could for
example walk off the site, go bankrupt or pass liability to you, but
you
have no contract with the site owner.

The Council used to do this scenario. If you fell down a road
excavation
the Council would put you in touch with the contractor. The
contractor
would deny liability because he had used a subcontractor and you
would be
getting nowhere ...

So, it aids third parties, it means the owner takes some
responsibility
and so do you and, it means they will let you on the site to do your
work.

Ron Howe
Tree Officer (Planning)
Mole Valley District Council
Tel. 01306 XXX XXX


-----Original Message-----
From: uktc-request@xxxxxx.tree-care.info [mailto:
uktc-request@xxxxxx.tree-care.info] On Behalf Of Bettina Broadway-Mann
Sent: 29 January 2019 13:25
To: UK Tree Care
Subject: Re: Collateral warrenty for a contractor?

Thanks Ron,
I still don't get why a contractor that has nothing to do with me,
appointed directly by the client, would be asking me for such a
thing?

regards
Bettina


On Tue, Jan 29, 2019 at 1:22 PM Howe, Ron
<Ron.Howe@xxxxxxxxxxx.gov.uk>
wrote:

What is a Collateral Warranty?

"A collateral warranty is a contract under which a construction
professional, contractor or sub-contractor promises to a third
party (the
"beneficiary") that it has complied with the requirements of its
professional appointment, contract or sub-contract. For example, a
sub-contractor may provide a collateral warranty to the project's
ultimate
employer and / or its funder by which it promises it has completed
its
works in accordance with its sub-contract.

A collateral warranty has all the requirements and manifestations
of an
ordinary contract. It gives the beneficiary a direct contractual
relationship with the party providing it (the "warrantor"), which
would
otherwise not have existed. In the scenario above, the Employer is
the
beneficiary and the Sub-Contractor is the warrantor. "

Ron Howe
Tree Officer (Planning)
Mole Valley District Council
Tel. 01306 XXX XXX

-----Original Message-----
From: uktc-request@xxxxxx.tree-care.info [mailto:
uktc-request@xxxxxx.tree-care.info] On Behalf Of Bettina
Broadway-Mann
Sent: 29 January 2019 13:03
To: UK Tree Care
Subject: Collateral warrenty for a contractor?

Hello all,
I have had a rather strange request come in in relation to a BS5837
survey
I did last year - copied below -

Your report has been included in their contract and they are
concerned
that
they are relying on your PI insurance for the report. They asked if
you
could provide a collateral warranty. I have spoken to our
solicitors who
have said that a collateral warranty can be provided if you agreed
to
this,
otherwise a letter of reliance in favour of the contractor would be
acceptable to the contractor.


I'm not really sure what they are asking, but shouldn't they have
their
own
insurances to cover whatever it is that they are worried about?


And as far as I know, surely my insurance would only cover me
anyway?


Any thoughts appreciated.


regards

Bettina



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The UK Tree Care mailing list
To unsubscribe send mailto:uktc-unsubscribe@xxxxxx.tree-care.info

The UKTC is supported by Bosky Trees arboricultural consultancy
http://www.boskytrees.co.uk/
Important: If you currently use a gsi-family domain name (gsi.gov.uk,
gcsx.gov.uk or gsx.gov.uk) you must replace it with a government
domain
like gov.uk, gov.scot, llyw.cymru or gov.wales by March 2019.


This email is only intended for the individual or organisation to
whom or
which it is addressed and may contain, either in the body of the
email or
attachment/s, information that is personal, confidential and/or
subject to
copyright. If you are not the intended recipient, please note that
copying
or distributing this message, attachment/s or other files associated
within
this email, is strictly prohibited. If you have received this email
in
error, please notify the sender immediately and then delete it.



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To unsubscribe send mailto:uktc-unsubscribe@xxxxxx.tree-care.info

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To unsubscribe send mailto:uktc-unsubscribe@xxxxxx.tree-care.info

The UKTC is supported by Bosky Trees arboricultural consultancy
http://www.boskytrees.co.uk/