ACE – An overview of activitiesNora Fung7 September 2005

ACE campaign - proportionate liability• Linked to high cost of PI insurance

• No recognition of proportionate liability under English Common Law

• Civil Liability (Contributions) Act 1978

• Survey of ACE members in May 2005

Impact on the client• 60% of firms have been

forced to raise fee levels as a result of increases in premiums and excess levels

• Nearly 50% of firms have turned work down due to the level of PII cover demanded by the client

• Less choice and higher costs for clients

• Clients should undertake project insurance

Joint and several liability• Issues of joint and several liability arise in

nearly a quarter of all claimsWho were you liable w ith?

0%

10%

20%

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Analysis of 29 claims

Joint and several liability• On average, final liability is apportioned equally between contractors

and consultants, however consultants are subject to liability being apportioned against them more frequently than any other party

• In a third of cases, consultants believe that their PII has been adversely affected by the claim against them, through increased premiums and excesses

Apportionment of liability

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Conclusion• Lobbying of MPs after summer recess in

pursuance of change to liability laws

• Change of liability laws however, insufficient in itself

• Comprehensive risk management system vital

• Project insurance

The EndThank you!