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Jean ALBERT
Team Leader
COUNTRY REPORT
UNITED KINGDOM
Submitted by
Simon WAIN
Country Expert
December 2013
_____________
1.
CHAPTER 1: INTRODUCTION ................................................................................................3
1.1. Summary of the regulation implementing Directive 89/106/EEC ....................................3
1.2. Summary of the changes that are taking place following the adoption of the CPR.....4
1.2.1.
Current system..........................................................................................................................4
1.2.2.
Change proposed or implemented (including repealing of Directive
89/106/EEC transposing legislation..........................................................................................................9
Implementing the regulations in the UK................................................................................................11
2.
CHAPTER 2: LEGAL CONTEXT IN WHICH THE DOP MAY BE RELEVANT.......12
2.1. Presentation of the type of legal contexts in which the DoP may be relevant (i.e.
authorizations, liability, procedure and evidentiary rules) ..........................................................12
2.1.1.
Summary of construction products liability..............................................................12
2.1.2.
Statute of limitations in the area of construction products liability...............16
2.1.3.
Summary of the rules relating to authorizations pertaining to the use of
construction products....................................................................................................................................17
2.2. Administrative bodies that may require the DoP ...................................................................18
2.2.1.
Presentation, role, function and competence of these bodies...........................18
2.2.2.
Link with the field of construction products.............................................................18
2.2.3.
Context in which these bodies might need access to the DoPs (including
reference to rules and examples) .............................................................................................................18
2.3. Judicial bodies that may require the DoP...................................................................................18
2.3.1.
Presentation, role function and competence of these bodies............................18
2.3.2.
Link with the field of construction products.............................................................21
2.3.3.
Context in which these bodies might need access to the DoPs (including
reference to rules and examples) .............................................................................................................21
2.4. Insurance organisations.....................................................................................................................22
2.4.1.
Role of insurance organisations in the construction products industry ......22
2.4.2.
Context in which these organizations might need access to the DoPs ..........26
3.
CHAPTER 3: ELECTRONIC / DIGITAL PROVISION OF THE DOPS BEFORE
ADMINISTRATIVE AND JUDICIAL BODIES...........................................................................................26
3.1. Provision of electronic documents to administrative bodies............................................26
3.1.1.
Admissibility of electronic documents (including reference to rules and
summary of case examples) ........................................................................................................................26
3.1.2.
Weight of admissible electronic documents (including reference to rules
and summary of case examples) ...............................................................................................................26
3.1.3.
Authentication and integrity requirements (including those on
preservation) .....................................................................................................................................................26
3.2. Provision of electronic documents to judicial bodies ...........................................................27
3.2.1.
Admissibility of electronic/digital evidence (including reference to rules
and summary of case examples) ...............................................................................................................27
3.2.2.
Weight of admissible electronic/digital evidence (including reference to
rules and summary of case examples)....................................................................................................27
3.2.3.
Authentication and integrity requirements (including those on
preservation) .....................................................................................................................................................28
4.
CHAPTER 4: CASE STUDY.....................................................................................................29
5.
CHAPTER 5: CONCLUSION ...................................................................................................32
5.1. Use of electronic means to provide DoPs before administrative bodies ......................32
5.2. Use of electronic means to provide DoPs before judicial bodies .....................................32
2
1. CHAPTER 1: INTRODUCTION
1.1.
1.2.
Summary of the changes that are taking place following the adoption
of the CPR
1.2.1. Current system
Construction products regulation in UK before 1 July 2013
The Construction Products Directive 1989, and the UK's implementation of it in the
Construction Products Regulations 1991, aimed to reduce or eliminate technical barriers
to trade in construction products between members of the European Economic Area )
(EEA). To achieve this, the Directive (and the Regulations) included four main elements:
A system of harmonised technical specifications.
An agreed system for manufacturers and others to declare that their products
conform to each product family (such as concrete products).
A framework of notified bodies in the members states , who are notified to the
Commission, and may carry out testing and other activities.
The CE marking of products. In the UK, applying a CE mark is voluntary for a
product placed on the market before 1 July 2013.
The Construction Products Directive 1989 did not aim to harmonise the detail of
regulations in members states beyond these key elements. Member states and public
and private sector procurers remained free to set their own requirements on the
performance of works, and therefore the performance of products. However, the
Directive (and the Regulations) do harmonise:
The methods of testing products.
How manufacturers and others should declare a product's performance values.
How the UK and other member states can check that products conform to
European standards.
The choice of required values for the chosen intended uses of a product or product
family is left to the regulators in the UK and each member state. For example, the level
(or value) of insulation actually required in a building's "thermal insulation products"
could be very different in Edinburgh compared to Athens.
Regulation 3: a product must satisfy the essential requirements
Although we set out regulation 3(1) in full below, it is not easy to follow:
"A construction product, other than a minor part product, shall have such characteristics
that the works in which it is to be incorporated, assembled, applied or installed can, if
properly designed and built, satisfy the essential requirements when, where and to the
extent that such works are subject to regulations containing such requirements."
Breaking this regulation down, and assuming you are dealing with a "construction
product", the key elements of regulation 3(1) are:
There is a possible exception for a minor product, but this is unlikely to apply in
practice and is beyond the scope of this introduction.
The construction product must have characteristics to meet the "essential
requirements" .
It only takes effect where the works are subject to regulations that contain "such
requirements" .
One way of paraphrasing this is that the Construction Products Regulations 1991
do not apply to products:
Which will have no implications for the health, safety or energy efficiency of
construction works.
Where the construction works are not subject to regulation.
In addition, the Construction Products Regulations 1991 do not apply where the product
was legally supplied (placed on the market) in the UK before 27 December 1991.
Essential requirements
The essential requirements that a construction product must meet relate to:
Mechanical resistance and stability.
Safety in case of fire.
Hygiene, health and the environment.
Safety in use.
Protection against noise.
Energy economy and heat retention.
Other regulations bring the Construction Products Regulations 1991 into play
Any statute or statutory instrument (or any provision "with the force of law") can bring
the Construction Products Regulations 1991 into effect (regulation 3(2)). Perhaps the
most obvious example of this in England is the Building Regulations 2010 (SI 2010/2214)
(BR 2010).
Part A of Schedule 1 to BR 2010 refers to the structure of a building. If a person supplies
a construction product in connection with the structural fabric of a building (assuming
that BR 2010 apply and that the product was first placed on the market after 27
December 1991), that person supplies a product where the works are subject to a
regulation that contains an essential requirement. As such, the product must (if the
works are properly designed and built) satisfy the essential requirements.
Regulation 4: CE marking on products
From 1 July 2013, the Construction Products Regulation 2011 (Regulation (EU) No
305/2011 of the European Parliament and of the Council of 9 March laying down
harmonised conditions for the marketing of construction products and repealing Directive
89/106/EEC) applies.
The Construction Products Regulation 2011 took some time to negotiate in Europe, but
the Commission's original aims were:
"...to clarify the current drafting of obligations in the Directive, simplify the processes
(especially for smaller businesses) and improve the credibility of the CE marking by
introducing stricter requirements for the bodies involved in testing and certification."
In the UK, one key change will be to introduce compulsory CE marking, subject to
limited exceptions. At present, this is voluntary.
From a construction and engineering practitioner's perspective, key aspects of the
Construction Products Regulation 2011 include:
Although the Regulation formally took effect 20 days after publication in the
Official Journal, the Regulation is, in effect, "in force" from 1 July 2013. Before 1
July 2013, and for products placed onto the market before that date, the
Construction Products Regulations 1991 applies in the UK (Article 66).
The "basic requirements" (the same requirements referred to as the essential
requirements in the Construction Products Regulations 1991) that all
construction products have to meet additionally refer to:
o
bespoke products;
products created on site for incorporation into the works on that site; and
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12
(b)where the buyer examines the goods before the contract is made, which that
examination ought to reveal, or
(c)in the case of a contract for sale by sample, which would have been apparent
on a reasonable examination of the sample.
Section 14 (3) states
Where the seller sells goods in the course of a business and the buyer, expressly or by
implication, makes known
(a)to the seller, or
(b)where the purchase price or part of it is payable by instalments and the goods
were previously sold by a credit-broker to the seller, to that credit-broker,
any particular purpose for which the goods are being bought, there is an implied that the
goods supplied under the contract are reasonably fit for that purpose, whether or not
that is a purpose for which such goods are commonly supplied, except where the
circumstances show that the buyer does not rely, or that it is unreasonable for him to
rely, on the skill or judgment of the seller or credit-broker
This is the principle statutory provisions relating to supply of construction products,
and is implied into all contracts. These sections are categorised as 'conditions', breach
of which entitles the innocent party to reject the goods and claim the purchase price.
Reliance by the purchaser is an essential component of the fitness for purpose
obligation. In a case in which the buyer has made known his purpose, there is, on the
face of it, an implied condition of fitness. The supplier can only defeat this by proof that
the buyer did not rely, or that it was unreasonable for him to rely, on the skill or
judgment of the supplier
According to recent case law (Lowe & Anor v W Machell Joinery Ltd) fitness of the goods
for their purpose must include the compliance of the goods, when installed and used,
with the Building Regulations.
A summary of the case is as follows
Lowe & Anor v W Machell Joinery Ltd
Background
Mrs and Mrs Lowe wanted a bespoke oak staircase in their barn conversion. They
ordered the staircase from the defendant, Machell, and paid 16,000. The Lowes
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took delivery but rejected the staircase (by letter) on the basis that the staircase
was not what they had ordered.
They were supplied with a different staircase from another source. There was no
written contract between the Lowes and Machell. The Lowes commenced legal
proceedings in the Technology and Construction Court in Leeds for the recovery
of the price of the original staircase with damages to be assessed.
The facts
Machell was to deliver the components for the staircase. The design of the
staircase was undertaken by an employee of Machell. The spaces between the
spindles were sufficient to allow a 100mm sphere to pass through two adjacent
spindles. This was in breach of the Building Regulations.
The Lowes alleged that Machell was in breach of the implied terms of satisfactory
quality (which was accepted by Machell) and fitness for purpose under section
14 of the Sale of Goods Act. They also argued that Machell was in breach of a
further implied term that the staircase would comply with the Building
Regulations.
In relation to fitness for purpose, Machell denied this on the basis that no
particular purpose was alleged. As regards breach of the Building Regulations,
Machell argued that further spindles could have been added in order to comply.
The first instance decision
The first instance judge found that only the implied term regarding the Building
Regulations had been breached, which did not justify rejection of the staircase (in
contrast to any breach of section 14 implied terms (satisfactory quality and
fitness for purpose)) and the Lowes were bound to accept modifications to the
staircase.
The judge held that the Lowes' original reasons for rejecting the goods (the
staircase was delivered in parts and not assembled) were unjustified, but that
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Machell was in breach of contract because the Building Regulations would not
have been complied with if the staircase had been installed. However, this was
not sufficient to justify rejection of the goods because the design could easily
have been modified. Consequently, the Lowes were not entitled to any relief and
costs were awarded against them.
The appeal
The Lowes appealed. They argued that the judge was wrong - having found that
Machell was in breach of contract (due to non-compliance with the Building
Regulations) - to go on to find that the Lowes were not entitled to reject the
staircase and that they would have been bound to accept modifications to the
staircase.
Machell sought to uphold the judgment on other grounds, including by asserting
an implicit finding by the judge that the goods were of satisfactory quality and
the judge was wrong to find that there would have been a breach of the Building
Regulations. Equally the same conclusion could be supported on the basis, among
other things, that it was the Lowes' responsibility to ensure compliance with the
Building Regulations.
Lloyd LJ who gave the leading judgment, found that the first instance judge was
right to decide that installation of the staircase as supplied would result in a
failure to comply with the Building Regulations. The key issue was whether the
judge's finding of breach of contract was consistent with his conclusion that the
Lowes were not entitled to reject the staircase.
Lloyd LJ found that both the implied terms relating to satisfactory quality and
fitness for purpose (a staircase to be fit for the purpose of being installed in a
building to be used as a residence) applied to the contract. The first instance
judge had commented that the defendant should, at the very least, have warned
the Lowes of the need to ensure that the building control officer would accept the
particular design. Lloyd LJ ruled that this clearly supported the proposition that
the Lowes did rely, and were reasonable in relying, on Machell in this respect.
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16
The time period can be extended if the contract is executed as a deed. In this case the
buyer will be liable for 12 years from the date of breach.
It is important to note that this is not a warranty as to the design life of a product, and
that liability is only for defects inherent at the time of supply.
Claims for negligence
A seller may also be liable in tort (see above). A claim for tort must be brought six years
from the date of damage. The date of damage is a matter of fact in each case and it is not
possible to give all embracing guidelines. However, it will usually also be at the date of
supply, because at that stage the buyer will suffer a loss.
Note also that the Latent damage Act 1988 applies to claims in negligence (but not
claims in contract). This extends the time period for bringing claims to15 years from the
date of damage (as above), or 3 years from date of discovery, or date when the damage
should reasonably have been discovered.
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2.2.
2.3.
18
County Courts
Most claims are heard by County Courts. County Courts are statutory courts with a
purely civil jurisdiction. They are presided over by either a District or Circuit Judge and,
except in a small minority of cases such as civil actions against the Police, the judge sits
alone as trier of fact and law without assistance from a jury.
County Courts are local courts in the sense that each one has an area over which certain
kinds of jurisdictionsuch as actions concerning land or cases concerning children who
reside in the areaare exercised. For example, proceedings for possession of land must
be started in the county court in whose district the property lies. However, in general
any county court in England and Wales may hear any action and claims are frequently
transferred from court to court. It sits in 92 different cities of UK.
High Courts
The High Court of Justice functions both as a civil court of first instance and a criminal
and civil appellate court for cases from the subordinate courts. It consists of three
divisions: the Queen's Bench, the Chancery and the Family divisions. The divisions of the
High Court are not separate courts, but have somewhat separate procedures and
practices adapted to their purposes.
Cases relating to construction products will ordinarily be heard in the Queens Bench
Division of the High Court. However, they may be heard in the Chancery Division,
particularly where any dispute includes Intellectual Property Rights.
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The Practice Direction states that the TCC is suitable for all claims relating to the quality
of goods sold or hired, and work done, materials supplied or services rendered;
all county court TCC cases in London.
Regional Centres
The court centres outside London at which the TCC principally operates are:
Birmingham
Bristol
Cardiff
Chester
Exeter
Leeds
Liverpool
Newcastle
Nottingham
Manchester
At each of these court centres both High Court and county court TCC cases may be
issued and tried. There are full time TCC judges at Birmingham, Manchester and
Liverpool. At the other court centres TCC judges are available but they devote a
substantial amount of their judicial time to non-TCC work. Judges authorised to deal
with TCC business are also available at Leicester, Sheffield and Southampton. However,
county court claims cannot be issued at those court centres.
There is no equivalent to the TCC in Scotland. Construction Cases would be heard in the
Court of Session (for larger cases) and the Sherriffs Courts for smaller cases.
Appeal Courts
The Court of Appeal deals only with appeals from other courts or tribunals. The Court of
Appeal consists of two divisions: the Civil Division hears appeals from the High Court
and County Court and certain superior tribunals. The Court of Session is the Appeal
Court in Scotland.
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Arbitration
Parties can agree to exclude the Courts Jurisdiction and refer claims to Arbitration,
which is governed by the Arbitration Acts. An Arbitrator will be competent to hear all
disputes under the contract, and will act in a quasi judicial capacity. Parties can appeal
on points of law only to the High Court.
Adjudication
All construction contracts relating to installation and maintenance of construction
products are governed by the Housing, Grants, Construction and Regeneration Act,
which means that a party can refer a dispute to Adjudication at any time. Adjudication
produces a decision that is binding until finally decided by a Court or Arbitrator. The
Construction Act does not apply to supply only contracts.
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Typically a party to a case must set out its case in pleadings. These are served at the
start of an action. If a party wishes to refer to a DoP it must do so in the pleadings,
stating the relevance to the claim, and why it is relied upon.
The Court may order expert evidence to be adduced in respect of the allegations made
by the Court. Experts would be able to refer to DoPs in their reports which are usually
exchanged at the same time (rather than consecutively). The court also has the power to
order a single joint expert.
The DoPs may be referred to a hearing before a Judge if they have been adduced in
evidence (witness statements, or disclosed) or expert evidence
2.4.
Insurance organisations
2.
3.
4.
5.
6.
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Public Liability
PL insurance is the mandatory insurance that parties are required to have in order to
cover negligent damage to third party property, or to third persons. This provides an
indemnity against any civil action brought by a third party non-employee against the
insured. It is not concerned with the harm to the insured beyond indemnifying the
insured against claims covered by the policy.
The extent of the cover will depend on the policy wording. Usually, the insurer has to
indemnify the insured in respect of claims covered only when liability to the third party
has been established and quantified, either by a judgment or by an arbitration award or
settlement. A third party may also have rights against the insurer under the Third
Parties (Rights Against Insurers) Act 1930 in the event of the insured's insolvency.
The insured may be obliged under the terms and conditions of the policy to take
reasonable care to avoid causing harm to third parties. A breach of this term requires an
intentional act or recklessness on the part of the insured.
Professional Indemnity
This Insurance covers a parties liability caused by negligence in carrying out
professional duties (architect, engineer etc).
Professional indemnity insurance insures against liability arising from professional
negligence (which usually includes a contractual liability that is equivalent to
professional negligence, such as a breach of a contractual obligation to exercise
reasonable skill, care and diligence when carrying out design). In construction projects
professional negligence can arise from negligent design and from negligent performance
of other professional services, such as surveying, project management or contract
administration.
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NHBC Cover
NHBC is provided by the National House Builders Confederation.
It provides the
following cover
Damages and defects to a home bought with the benefit of this cover. For the first two
years the developer will rectify any defects, and then for the following eight years,
defects will be rectified under the NHBC. This will include rectifying defects caused by
defective products.
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envelope and structure of a building are covered by the policy, but not other defects.
(Some policies may offer additional, limited cover for key mechanical and electrical
equipment.)
2.4.2. Context in which these organizations might need access to the DoPs
Product Liability Insurance covers defective products and is most relevant in
determining whether to settle claims; DOP would be of primary assistance.
Similarly, the DOP may be of assistance in deciding whether a professional was negligent
in specifying materials.
and
integrity
requirements
(including
those
on
preservation)
We are not aware of any rules relating to the preservation of electronic documents for
administrative purposes.
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3.2.
includes Metadata and other embedded data which is not typically visible on screen or a
print out
No less or different evidential weight is placed on these documents than any others. The
rules state that
When considering disclosure of Electronic Documents, the parties and their legal
representatives should bear in mind the following general principles
(1) Electronic Documents should be managed efficiently in order to minimise the
cost incurred;
(2) technology should be used in order to ensure that document management
activities are undertaken efficiently and effectively;
(3) disclosure should be given in a manner which gives effect to the overriding
objective;
(4) Electronic Documents should generally be made available for inspection in a
form which allows the party receiving the documents the same ability to access,
search, review and display the documents as the party giving disclosure; and
(5) disclosure of Electronic Documents which are of no relevance to the
proceedings may place an excessive burden in time and cost on the party to
whom disclosure is given.
3.2.3. Authentication
and
integrity
requirements
(including
those
on
preservation)
The documents should be preserved throughout proceedings, from when a party is
aware of potential litigation. As soon as litigation is contemplated, the parties' legal
representatives must notify their clients of the need to preserve disclosable documents.
The documents to be preserved include Electronic Documents which would otherwise
be deleted in accordance with a document retention policy or otherwise deleted in the
ordinary course of business.
If Electronic Documents are best accessed using technology which is not readily
available to the party entitled to disclosure, and that party reasonably requires
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additional inspection facilities, the party making disclosure shall co-operate in making
available to the other party such reasonable additional inspection facilities as may be
appropriate in order to afford inspection
We have been asked for comments on the law relating to Scotland and Wales. The law of
Wales is the same as that in England. While Scottish law is separate, again subject to the
rules of evidence there is no restriction on use of electronic documents, memory sticks
or websites in Scottish Courts.
Hypothesis 1
A couple of years later a claim is brought up having a bearing with the factual
performance of a construction product.
29
The Builder seeks to produce a digital medium (memory stick, cd, smartphone) containing
the content of the relevant DoPs (bearing in mind that for a building there might by
hundreds of DoPs) before a court (administrative or civil).
What type of digital medium, if any, is accepted by the Courts to be used in Court?
Would the content of the digital medium produced be accepted as evidence of the DoPs
(please describe in detail in which circumstances and under which conditions (citing
relevant rules or case examples), if any, the digital medium would or would not be
accepted as evidence)?
Would the content of the digital medium produced be accepted as evidence of the
content of the DoPs (please describe in detail in which circumstances and under which
conditions (citing relevant rules or case examples), if any, the digital medium would or
would not be accepted as evidence of the content of the DoPs)?
Would this be given the same weight as other types of evidence?
The Builder provides the addresses of the Websites where the DoP information can be
found.
Would the Court accept the DoP information from the Websites as evidence of the
DoPs (please describe in detail in which circumstances and under which conditions
(citing relevant rules or case examples), if any, the Website addresses would or
would not be accepted as evidence of the DoPs)?
Would the Court accept the DoP information from the Websites as evidence of the
content of the DoPs (please describe in detail in which circumstances and under
which conditions (citing relevant rules or case examples), if any, the Website
addresses would or would not be accepted as evidence of the content of the DoPs)?
Would the Court give the same weight to this as other types of evidence?
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Hypothesis 2
The builder needs to obtain a final building permit from the authorities.
He/she, as part of the documentation used to obtain the final building approval produces a
digital medium (memory stick, cd, smartphone) containing the content of the relevant
DoPs.
Would the building inspectors/approval body accept the builders medium (please
describe in detail in which circumstances and under which conditions (citing
relevant rules or case examples), if any, the digital medium would or would not be
accepted)?
He/she, as part of the documentation used to obtain the final building approval produces
the Website addresses.
Would the building inspectors/approval body accept the builders provision of the
Website addresses (please describe in detail in which circumstances and under
which conditions (citing relevant rules or case examples), if any, the Website
addresses would or would not be accepted)?
In
Adjudication, it is possible for the parties to agree means of disclosure, as there are no
formal rules as to evidence, or in the absence of agreement, the Adjudicator will direct
how submissions are made. This could be by providing memory sticks, discs or by e
mail.
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In Court, the parties are governed by the Civil Procedure Rules. 31B requires disclosure
of relevant electronic information. The parties can agree the format of this. The parties
should cooperate at an early stage as to the format in which any electronic documents
are to be disclosed. Further if there is any disagreement the assistance of the court is to
be sought at the earliest practical date, if possible at the first CMC. In Court, the
documents may be referred to using the computers available in Court; there may be an
e disclosure trial bundle, which contains discs, memory sticks or similar which will
contain the information the parties need to refer to. There are computers in Court, and
screens showing the information
5. CHAPTER 5: CONCLUSION
5.1.
5.2.
In both cases there is flexibility as to how DoPs can be submitted. In Court proceedings,
electronic data will be viewed no differently than other forms of data or other
documents in assessing their validity and use. There should be co-operation between
parties and the Administrative and Judicial bodies as to how documents are handled and
assessed. In particular in Court proceedings the rules are quite clear on limiting the
costs of electronic disclosure, and emphasise the need for co-operation.
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