ABSTRACT

The buyer in his approach, in the specification he establishes and the guarantees he demands, sets the stage on which the contractor must perform. The contractor usually wants to know that his contractual liabilities are clearly limited in terms of time and that this time is relatively short. In so far as materials and workmanship are concerned this is perfectly reasonable. The position as regards the continuing liability of the contractor to pay damages as opposed to remedying the defect is considered. Although the express terms of a contract may seek to limit or exclude the liability of a contractor in respect of defects in the works, these terms may be subject to the provisions of the Unfair Contract Terms Act 1977. This Act provides that where a person is dealing 'on his own written standard terms of business' he cannot claim to render a contractual performance substantially different from that which was expected of him.