ABSTRACT
The design life of a building is normally 25 years, which begins from the date of the Final Acceptance Certificate (FAC). Contractor obtains FAC after he has secured a Provisional Acceptance Certificate (PAC) and completed a 2-year warranty period from PAC.
Let us assume that a building designed and constructed by Contractor collapsed after obtaining FAC. The cause of this collapse is traced to a design defect, which is construed as a professional negligence of the Contractor under tort liability. Material loss and human life loss are reported. Tort liability is different from contractual liability. As the arbitration clause in the Contract fortunately stipulates that arbitration shall also cover any claims falling under tort liability, the Owner has the contractual right to seek remedies through arbitration.
