Due diligence - Revision history

Editor: Reverted edits by Pwootton (talk) to last revision by Designing Buildings

2024-04-22T10:08:39Z

Reverted edits by Pwootton (talk) to last revision by Designing Buildings

← Older revision		Revision as of 10:08, 22 April 2024
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	= Introduction =		= Introduction =

−	In its broadest sense, the term '~~[https://dlssolicitors.com/define/~~due-diligence~~/ due diligence]~~' simply refers to taking reasonable steps or exercising reasonable care in relation to a particular course of action.	+	In its broadest sense, the term 'due diligence' simply refers to taking reasonable steps or exercising reasonable care in relation to a particular course of action.

	In relation to the construction industry, it can have a number of more specific meanings.		In relation to the construction industry, it can have a number of more specific meanings.
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	In the case of Sabic UK Petrochemicals Limited v Punj Lloyd Limited, the Technology and Construction Court (TCC) had to examine whether a contractor was in breach of this obligation with regard to the delivery of a petrochemical plant.		In the case of Sabic UK Petrochemicals Limited v Punj Lloyd Limited, the Technology and Construction Court (TCC) had to examine whether a contractor was in breach of this obligation with regard to the delivery of a petrochemical plant.

−	The contractor maintained that due diligence required them to maintain an appropriate rate of progress with regard to the contract requirements and the completion date that was realistic at the time their rate of progress was being assessed. They claimed that due diligence did not extend to them being obliged to achieve the impossible, and they were not required to accelerate the works to claw back delays.	+	The contractor maintained that due diligence required them to maintain an appropriate rate of progress, with regard to the contract requirements, and the completion date that was realistic at the time their rate of progress was being assessed. They claimed that due diligence did not extend to them being obliged to achieve the impossible, and they were not required to accelerate the works to claw back delays.

	The TCC disagreed with the contractor and ruled that just because compliance with one or more of the absolute contractual obligations has become unachievable does not mean or imply that these obligations are objectively incapable of achievement. It would be necessary for the contractor to prove the impossibility of complying with the absolute contractual obligation.		The TCC disagreed with the contractor and ruled that just because compliance with one or more of the absolute contractual obligations has become unachievable does not mean or imply that these obligations are objectively incapable of achievement. It would be necessary for the contractor to prove the impossibility of complying with the absolute contractual obligation.
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	They also held that the contractual terms did not suggest that the due diligence obligation should be ‘emptied of content’ as a result of the completion date becoming unachievable. Circumstances may arise, the court found, where the exercising of due diligence may require taking measures not originally contemplated, such as acceleration measures in the case of a delay, if that is what is required.		They also held that the contractual terms did not suggest that the due diligence obligation should be ‘emptied of content’ as a result of the completion date becoming unachievable. Circumstances may arise, the court found, where the exercising of due diligence may require taking measures not originally contemplated, such as acceleration measures in the case of a delay, if that is what is required.

−	As a result, it was held that ~~the~~ contractual requirement to proceed with ‘due diligence’ imposed strict obligations on the contractor that must be adhered to.	+	As a result, it was held that contractual requirement to proceed with ‘due diligence’ imposed strict obligations on the contractor that must be adhered to.

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Pwootton at 10:05, 22 April 2024

2024-04-22T10:05:10Z

← Older revision		Revision as of 10:05, 22 April 2024
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	= Introduction =		= Introduction =

−	In its broadest sense, the term 'due diligence' simply refers to taking reasonable steps or exercising reasonable care in relation to a particular course of action.	+	In its broadest sense, the term '[https://dlssolicitors.com/define/due-diligence/ due diligence]' simply refers to taking reasonable steps or exercising reasonable care in relation to a particular course of action.

	In relation to the construction industry, it can have a number of more specific meanings.		In relation to the construction industry, it can have a number of more specific meanings.
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	In the case of Sabic UK Petrochemicals Limited v Punj Lloyd Limited, the Technology and Construction Court (TCC) had to examine whether a contractor was in breach of this obligation with regard to the delivery of a petrochemical plant.		In the case of Sabic UK Petrochemicals Limited v Punj Lloyd Limited, the Technology and Construction Court (TCC) had to examine whether a contractor was in breach of this obligation with regard to the delivery of a petrochemical plant.

−	The contractor maintained that due diligence required them to maintain an appropriate rate of progress, with regard to the contract requirements, and the completion date that was realistic at the time their rate of progress was being assessed. They claimed that due diligence did not extend to them being obliged to achieve the impossible, and they were not required to accelerate the works to claw back delays.	+	The contractor maintained that due diligence required them to maintain an appropriate rate of progress with regard to the contract requirements and the completion date that was realistic at the time their rate of progress was being assessed. They claimed that due diligence did not extend to them being obliged to achieve the impossible, and they were not required to accelerate the works to claw back delays.

	The TCC disagreed with the contractor and ruled that just because compliance with one or more of the absolute contractual obligations has become unachievable does not mean or imply that these obligations are objectively incapable of achievement. It would be necessary for the contractor to prove the impossibility of complying with the absolute contractual obligation.		The TCC disagreed with the contractor and ruled that just because compliance with one or more of the absolute contractual obligations has become unachievable does not mean or imply that these obligations are objectively incapable of achievement. It would be necessary for the contractor to prove the impossibility of complying with the absolute contractual obligation.
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	They also held that the contractual terms did not suggest that the due diligence obligation should be ‘emptied of content’ as a result of the completion date becoming unachievable. Circumstances may arise, the court found, where the exercising of due diligence may require taking measures not originally contemplated, such as acceleration measures in the case of a delay, if that is what is required.		They also held that the contractual terms did not suggest that the due diligence obligation should be ‘emptied of content’ as a result of the completion date becoming unachievable. Circumstances may arise, the court found, where the exercising of due diligence may require taking measures not originally contemplated, such as acceleration measures in the case of a delay, if that is what is required.

−	As a result, it was held that contractual requirement to proceed with ‘due diligence’ imposed strict obligations on the contractor that must be adhered to.	+	As a result, it was held that the contractual requirement to proceed with ‘due diligence’ imposed strict obligations on the contractor that must be adhered to.

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Designing Buildings at 05:53, 7 October 2020

2020-10-07T05:53:56Z

← Older revision		Revision as of 05:53, 7 October 2020
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	As a result, it was held that contractual requirement to proceed with ‘due diligence’ imposed strict obligations on the contractor that must be adhered to.		As a result, it was held that contractual requirement to proceed with ‘due diligence’ imposed strict obligations on the contractor that must be adhered to.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Caveat emptor.		* Caveat emptor.
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	* Tender report.		* Tender report.

−	[[Category:~~Case_law~~]] [[Category:~~DCN_Case_Law~~]] [[Category:Property_law]]	+	[[Category:DCN_Case_Law]] [[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Case_law]] [[Category:Property_law]]

Designing Buildings at 09:29, 4 November 2016

2016-11-04T09:29:20Z

← Older revision		Revision as of 09:29, 4 November 2016
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−	Due diligence is the obligation placed on a contractor to complete work with care and the ‘requisite effort’. This obligation is a common one in construction and engineering contracts. A similar, often interchangeable, legal term is ‘ordinary care’, as in the care that a reasonable person takes to avoid harm to other persons or property. It can also refer to the steps taken to investigate a business or person prior to signing a contract.	+	= Introduction =

−	~~The obligation of~~ due diligence ~~is not just determined by the contractor’s level of achievements, but is considered~~ to be a ~~contractual requirement which must be complied with~~.	+	In its broadest sense, the term 'due diligence' simply refers to taking reasonable steps or exercising reasonable care in relation to a particular course of action.

−	~~Technical due diligence refers~~ to the ~~process~~ of ~~investigating a site to assess its suitability for a particular project and the risks involved before proceeding with that project. For~~ more ~~information, see Technical due diligence~~.	+	In relation to the construction industry, it can have a number of more specific meanings.

−	In the case of Sabic UK Petrochemicals Limited v Punj Lloyd Limited, the Technology and Construction Court (TCC) had to examine whether a contractor was in breach of the obligation with regard to the delivery of a petrochemical plant.	+	= Business assessment =

−	~~The contractor maintained that due~~ diligence ~~required them~~ to ~~maintain an appropriate rate of progress, with regard~~ to ~~the~~ contract ~~requirements, and the completion date that was realistic at the time their rate of progress was being assessed. They claimed that due diligence did not extend to~~ them ~~being obliged to achieve the impossible, and was not required to take accelerative measures to balance delayed works~~.	+	Due diligence can refer to the steps taken to thoroughly investigate a business or person prior to signing a contract with them.

−	The TCC disagreed with the contractor and ruled that because compliance with one or more of the absolute contractual obligations has become unachievable does not mean or imply that these obligations are objectively incapable of achievement. It would be necessary for the contractor to prove the impossibility of complying with the absolute contractual obligation.	+	= Technical investigations =
		+
		+	Technical due diligence refers to the process of investigating a site to assess its suitability for a particular project and the risks involved before proceeding with that project.
		+
		+	For more information, see Technical due diligence.
		+
		+	= Contractor's obligation =
		+
		+	Due diligence may be referred to in a construction contract, placing an obligation on the contractor to complete the works with care and the ‘requisite effort’. A similar term may refer to ‘ordinary care’, that is, the care that a reasonable person would take to avoid harm to other persons or property.
		+
		+	In the case of Sabic UK Petrochemicals Limited v Punj Lloyd Limited, the Technology and Construction Court (TCC) had to examine whether a contractor was in breach of this obligation with regard to the delivery of a petrochemical plant.
		+
		+	The contractor maintained that due diligence required them to maintain an appropriate rate of progress, with regard to the contract requirements, and the completion date that was realistic at the time their rate of progress was being assessed. They claimed that due diligence did not extend to them being obliged to achieve the impossible, and they were not required to accelerate the works to claw back delays.
		+
		+	The TCC disagreed with the contractor and ruled that just because compliance with one or more of the absolute contractual obligations has become unachievable does not mean or imply that these obligations are objectively incapable of achievement. It would be necessary for the contractor to prove the impossibility of complying with the absolute contractual obligation.

	They also held that the contractual terms did not suggest that the due diligence obligation should be ‘emptied of content’ as a result of the completion date becoming unachievable. Circumstances may arise, the court found, where the exercising of due diligence may require taking measures not originally contemplated, such as acceleration measures in the case of a delay, if that is what is required.		They also held that the contractual terms did not suggest that the due diligence obligation should be ‘emptied of content’ as a result of the completion date becoming unachievable. Circumstances may arise, the court found, where the exercising of due diligence may require taking measures not originally contemplated, such as acceleration measures in the case of a delay, if that is what is required.

−	As a result, it was held that contractual ~~requirements~~ to proceed with ‘due diligence’ ~~impose~~ strict obligations on ~~contractors and developers~~ that must be adhered to.	+	As a result, it was held that contractual requirement to proceed with ‘due diligence’ imposed strict obligations on the contractor that must be adhered to.

	= Find out more =		= Find out more =
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	* Tender report.		* Tender report.

−	[[Category:Case_law]] [[Category:Property_law]]	+	[[Category:Case_law]] [[Category:DCN_Case_Law]] [[Category:Property_law]]

Editor at 02:41, 4 November 2016

2016-11-04T02:41:28Z

← Older revision		Revision as of 02:41, 4 November 2016
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	* Caveat emptor.		* Caveat emptor.
		+	* Completion date.
	* Construction contracts.		* Construction contracts.
	* Due diligence when selecting contractors or subcontractors.		* Due diligence when selecting contractors or subcontractors.

Editor: Created page with "Due diligence is the obligation placed on a contractor to complete work with care and the ‘requisite effort’. This obligation is a common one in construction and engineering ..."

2016-11-04T02:40:40Z

Created page with "Due diligence is the obligation placed on a contractor to complete work with care and the ‘requisite effort’. This obligation is a common one in construction and engineering ..."

New page

Due diligence is the obligation placed on a contractor to complete work with care and the ‘requisite effort’. This obligation is a common one in construction and engineering contracts. A similar, often interchangeable, legal term is ‘ordinary care’, as in the care that a reasonable person takes to avoid harm to other persons or property. It can also refer to the steps taken to investigate a business or person prior to signing a contract.

The obligation of due diligence is not just determined by the contractor’s level of achievements, but is considered to be a contractual requirement which must be complied with.

Technical due diligence refers to the process of investigating a site to assess its suitability for a particular project and the risks involved before proceeding with that project. For more information, see Technical due diligence.

In the case of Sabic UK Petrochemicals Limited v Punj Lloyd Limited, the Technology and Construction Court (TCC) had to examine whether a contractor was in breach of the obligation with regard to the delivery of a petrochemical plant.

The contractor maintained that due diligence required them to maintain an appropriate rate of progress, with regard to the contract requirements, and the completion date that was realistic at the time their rate of progress was being assessed. They claimed that due diligence did not extend to them being obliged to achieve the impossible, and was not required to take accelerative measures to balance delayed works.

The TCC disagreed with the contractor and ruled that because compliance with one or more of the absolute contractual obligations has become unachievable does not mean or imply that these obligations are objectively incapable of achievement. It would be necessary for the contractor to prove the impossibility of complying with the absolute contractual obligation.

They also held that the contractual terms did not suggest that the due diligence obligation should be ‘emptied of content’ as a result of the completion date becoming unachievable. Circumstances may arise, the court found, where the exercising of due diligence may require taking measures not originally contemplated, such as acceleration measures in the case of a delay, if that is what is required.

As a result, it was held that contractual requirements to proceed with ‘due diligence’ impose strict obligations on contractors and developers that must be adhered to.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Caveat emptor.
* Construction contracts.
* Due diligence when selecting contractors or subcontractors.
* Easements.
* Encumbrances.
* Pre-construction information.
* Single-stage tender.
* Technical due diligence.
* Tender report.

[[Category:Case_law]] [[Category:Property_law]]