ABSTRACT
In chemical engineering projects, the Contractor will very often be responsible for the design of the whole or part of the Plant and the Works-see, e.g., the definition of ‘‘Works’’. Nevertheless, the Red Book, like MF/1, contains no requirement for the Contractor to maintain professional indemnity insurance in respect of defects or insufficiency in design for which the Contractor is responsible. The Red Book also contains crucial limitations on the Contractor’s liability-see, e.g., sub-clauses 30.7, 37.12 and 38.4, and clause 44, discussion of which is outside the scope of this book. The Purchaser should seriously consider these matters.
