Fitness for purpose: A rising tide of liability

摘要

The fitness for purpose requirement in construction contracts can have a substantial effect on risk allocation and scope of work. Once the requirement exists, it can potentially dilute a designer's or contractor's sense of certainty with respect to scope and defects liability. This article examines when fitness for purpose requirements are implied into construction contracts, the practical effects of an implied or express requirement and the key difficulties in enforcing a fitness for purpose requirement. It will be seen that a fitness for purpose requirement can be a rising tide of liability for the unwary.