- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 04 Nov 2016
In relation to the construction industry, it can have a number of more specific meanings.
 Technical investigations
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.
 Find out more
 Related articles on Designing Buildings Wiki
Featured articles and news
The initiative to enhance the environment continues.
Could underused community spaces offer an alternative to working from home?
Keeping workers and workplaces safe in the United States.
A history lesson in geographic information systems.
A low tech, easy to use method of extinguishing small fires.
How can these valued spaces be reused?
Partnership avoids the need for listed building consent.
Connecting building design from inception to completion to operations.
Gregor Harvie predicts interoperability will be construction’s Uber moment.
Expert commentary and insight.
Guidance offered for stained glass window maintenance.
Define need before determining viability.