Wednesday, November 12, 2008

Somerset developer sues advisors over allegedly faulty advice

A developer that paid ВЈ1.2m for six rundown cottages in Somerset is suing its advisers for telling them the problematic properties were in fair condition.

Qube Homes ran 34 weeks over schedule renovating the cottages because of serious damp issues and the need to replace roofs deemed in “fair condition” by its advisers.

It is suing chartered surveyors Weeks Dae Associates for damages up to ВЈ300,000 for negligent advice, alleging the firm did not adequately inspect the cottages.

Qube appointed Weeks Dae to investigate the viability of the proposed development at Chilcompton before contracts were exchanged in 2006.

Weeks Dae told the developer that roofs, ceilings and staircases were in “fair condition” and that no major works were needed to facilitate the development.


Somerset developer sues advisors over allegedly faulty advice


But when successful bidder Fergal Contracting started on the job, it was found all six roofs needed replacing as well as large sections of walls suffering widespread damp.

In a writ filed at the Technology and Construction Court, Qube claims the project ran 34 weeks late, of which 14 weeks were due to the extra work needed on the cottages.

It claims it incurred additional fees, extra site visits, higher borrowing costs and delays because of Weeks Dae’s advice.

It wants the difference between the price paid for the site and the true value of the site, given the cottages’ actual state.

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