Cases - Independent Broadcasting Authority v EMI Electronics Ltd and BICC Construction Ltd

Record details

Name
Independent Broadcasting Authority v EMI Electronics Ltd and BICC Construction Ltd
Date
[1980]
Citation
14 BLR 1
Legislation
Keywords
Construction Contract - design and build - meaning of - implied term - reasonably fit for purpose - whether there was an implied term that the contractor had undertaken a duty to construct the subject matter of the contract so that it was reasonably fit for its intended purpose
Summary

One feature of design and build contracts is that not only does the contractor undertake the design, but he or she also turns that design into the end-product. As such, the contractor is directly involved in delivering to the employer a complete product that the contractor has also designed.

In these circumstances, the law will usually imply into the contract a term that the end-product will be 'reasonably fit' for its purpose (Independent Broadcasting Authority v EMI Electronics Ltd and BICC Construction Ltd [1980]).

John Murdoch and Will Hughes' book Construction Contracts: Law and Management, 4th Edition, provides a fuller description of the position (p182). The contractor will often offer the same design obligation as a suitably qualified and experienced professional design consultant.

The position of the contractor who undertakes both the design and construction is similar to a seller of goods under the Sale and Supply of Goods Act 1994. This assumes an obligation in contract to provide goods that are reasonably fit for the purpose for which such goods are being bought.