Addleshaw Goddard

UK 200 2014 position: 22

Parties may now adjudicate claims arising under collateral warranties

The High Court has decided that a collateral warranty provided by a building contractor to a tenant for a building was an ‘construction contract’ for the purpose of section 104 of the Housing Grants Construction and Regeneration Act 1996. The decision means that, as things stand, beneficiaries under collateral warranties may be able to bring claims against warrantors by way of adjudication. The decision has met with a lot of commentary within the legal community including a certain amount of criticism from those who consider that the decision is ‘wrong’.

The judgment was given by Akenhead J in Parkwood Leisure Ltd v Laing O’Rourke Wales and West Ltd [2013] EWHC 2665 (TCC). In brief, the relevant facts of the case are as follows. Parkwood was the tenant of a swimming and leisure facility under a 10-year lease granted by a company called Orion Land & Leisure (Cardiff), which was the employer under a JCT design and build contract. Under that contract, Orion engaged Laing O’Rourke to complete the design and carry out and complete the construction of a swimming pool.

Laing O’Rourke as contractor, and is often common in these situations, executed a collateral warranty in favour of Parkwood as tenant. This collateral warranty was executed after the works had commenced but before practical completion…

If you are registered and logged in to the site, click on the link below to read the rest of the Addleshaw Goddard briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Analysis from The Lawyer

View more analysis from The Lawyer


Milton Gate
60 Chiswell Street

Turnover (£m): 171.35
No. of lawyers: 598