The AGS LPA No.65 reports on the case of MT Højgaard A/S v E.ON Climate and Renewables UK and sets out some practical advice for consultants on how to avoid unforeseen fitness for purpose obligations. This is particularly important as liabilities arising out of such obligations may not be covered by your professional indemnity insurance policy.

The Supreme Court decision in the case was published in August 2017 but is still being heavily discussed in the construction industry due to the profound impact it has on the standard of care that can be imposed on professionals by the contract documents. In this case, it was held that the designer of a wind turbine was under a strict fitness for purpose obligation as to design life (despite the usual “reasonable skill and care” clause in their appointment) as a result of the particular wording of the technical specifications contained in the contract documents.

LPA 65 – MT Hojgaard AS v E.ON Climate and Renewables UK Robin Rigg East Ltd & Anor [2017] UKSC 59 can be downloaded from the AGS website here.