Where a contractor takes over part-completed work from a contractor it replaces, does it become responsible for correcting that contractor's defective work?
A contractor brought in to finish off work started by another firm is not, without more, answerable for that earlier work. The scope must be made explicit; loose words are read narrowly.
Not without express wording: there is no default rule that a contractor which finishes off another work becomes responsible for the earlier work, and CJ Pearce Developments v Oakbridge read the words taken on narrowly, confining them to the replacement contractor's own work, so express wording is needed to transfer responsibility for the predecessor defects
Not without express wording. There is no default rule that a contractor which takes over and finishes off another's work becomes responsible for the earlier work. CJ Pearce Developments v Oakbridge held that, where the contract documents did not make the position clear, the words taken on were given a narrow meaning, confined to the work the replacement contractor itself carried out, and did not extend to responsibility for the original contractor's defective work. A replacement contractor is therefore unlikely to be liable for correcting the predecessor's defects unless the contract clearly says so. The contract documents for the completion work should state whether the replacement contractor is also to be responsible for putting right defects in the original contractor's work.
| No default rule | Finishing off does not import liability for the earlier work |
| CJ Pearce v Oakbridge | Taken on read narrowly, confined to the new work |
| Express wording | Needed to transfer responsibility for a predecessor defects |
| Replacement contractor | Price and record only the completion work |
| Employer | State expressly if the earlier work is to be at the new risk |
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