High Court allows main contractor to claim for his loss, holding sub-contractor responsible for flooding.

High Court allows main contractor to claim for his loss, holding sub-contractor responsible for flooding.

  • GB Building Solution Ltd v SFS Fire Services Ltd on 25 May 2017 saw the High Court allow the main contractor to claim for his loss, holding the sub-contractor responsible for a flooding on a construction site of a sprinkler system.
  • As the sub-contractor was co-insured by the main contractor until the practical completion of the sub-contractors works, the main contractor was only able to hold the sub-contractor responsible for the flood that occurred if it happened after the practical completion of the sub-contractors work. The sub-contractor would not be co-insured by the main contractor here.
  • The High Court concluded that the flooding did in fact occur after the practical completion of the sprinkler system sub-contractor's works. Through citing the Supreme Court's judgement in previous cases, it highlighted that contract interpretation involves looking at contractual wording and the commercial consequences of each suggested interpretation.
  • The High Court therefore interpreted the sub-contract and established that the practical completion had occurred after the date of the flood that affected the construction.