How does a fitness-for-purpose obligation differ from a duty to exercise reasonable skill and care?
A design can fail without anyone being careless. Whether the designer or contractor is liable turns on which duty it owes: reasonable skill and care, or the stricter obligation to produce a result fit for its purpose.
A reasonable-skill-and-care obligation requires competent professional performance, while an express fitness or performance obligation may require the promised result. The contract must be construed before deciding which obligation applies
A professional designer, such as an architect or consulting engineer, ordinarily owes only reasonable skill and care: the design is not negligent merely because it fails, and the designer is judged by the competent professional of the day, with a state-of-the-art defence. A design-and-build contractor may assume an express or implied obligation to achieve a result fit for a disclosed purpose. Whether that obligation exists, and its extent, depend on the contractual words and the circumstances in which any term is implied. In MT Hojgaard, the Supreme Court construed the twenty-year design-life requirement and the J101 obligation together. Compliance with J101 did not answer the separate design-life requirement on those contractual documents. The standard forms often reduce a contractor's fitness duty to reasonable skill and care, in part because fitness for purpose is hard to insure.
| Professional designer | Reasonable skill and care; not liable merely because the design fails |
| Design-and-build contractor | Absolute fitness for purpose, if the purpose was made known |
| The boundary | No fitness duty for an abnormal purpose not made known |
| Standard plus fitness | Read the obligations together; MT Hojgaard turned on its contractual documents |
| Standard forms | Often reduce the fitness duty to reasonable skill and care |
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