Can misleading site information supplied with tender documents support a claim for additional cost?
Recovery depends on the contract, the legal character of the information, the contractor's reliance and any effective exclusion. The mere provision of a site report does not settle responsibility for its accuracy.
Misleading site information may support recovery, but the contractor must establish the applicable contractual or legal route and answer any risk-transfer wording
Start with the contract. It may allocate unforeseen physical-condition risk, incorporate the report as a contractual basis, or require the contractor to satisfy itself. Separately, a false material statement that induced the contract may support a misrepresentation claim, and a negligent statement may support a tort claim where the required duty and reliance are established. Any exclusion or non-reliance clause must be construed carefully and, where section 3 of the Misrepresentation Act 1967 applies, satisfy the statutory reasonableness test.
| Issue | Position |
|---|---|
| Express physical-conditions clause | Apply its defined risk test and notice procedure |
| Report incorporated as a contractual basis | Inaccuracy may constitute breach of contract |
| Material false statement relied upon | Potential misrepresentation claim |
| Negligent provision of information | Potential tort claim if duty, breach, reliance and loss are proved |
| Disclaimer or non-reliance clause | Check construction, statutory control and reasonableness |
The rest of this solution is for members
Fifty of the two hundred contractual solutions are free to read. This is one of the remaining hundred and fifty, which Premium and Pro carry.
See what Premium includesAlready a member? Sign in