For decades, contractors and consultants have been giving collateral warranties to relevant third parties on UK construction projects. However, in a recent unexpected development, in the case of Parkwood Leisure Limited v Laing O'Rourke Wales and West Limited, Mr. Justice Akenhead has ruled that a collateral warranty may constitute a "construction contract" under the Housing Grants Construction and Regeneration Act 1996 and, as a result, the beneficiary may be entitled to bring adjudication claims under the collateral warranty.
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