The devil is in the detail: Supreme Court rules on fitness for purpose, overturning the Court of Appeal decision in MT Højgaard A/S

In a judgment issued on 3 August 2017, the Supreme Court has overruled the Court of Appeal decision in the case of MT Højgaard A/S v E.ON Climate and Renewables UK Robbin Rigg East Limited and Anor [2017] UKSC 59, restoring the TCC first instance finding that the contractor (MT Højgaard A/S) was liable to comply with a fitness for purpose obligation contained within a technical requirement schedule, despite potentially conflicting obligations to exercise “due care and professional skill” and compliance with international standards contained within the main contract terms.

This decision will have consequences for the interpretation of construction contracts which incorporate technical requirements or specification documents. With this in mind, contractors and consultants alike are advised to review their obligations carefully to ensure they are properly drafted to reflect what the parties understood the contract to require.