13.3.1 There are other means by which the Authority can help reduce the Contractor's due diligence costs. Where the Authority is providing the land it should commission relevant surveys and reports, and ensure that they can be relied on by the bidders. In such circumstances the Authority must ensure that when it appoints the relevant consultant it agrees to take on the work on the basis of such extended duty of care being provided.2 In addition, if this approach is to be of value to the Contractor, the relevant report or survey must be up-to-date and address the issues likely to be of concern to the Contractor and its financiers.
13.3.2 The recommended approach is that for any land that is being provided with existing buildings the Authority should (i) obtain external consultant surveys and reports regarding ground contamination and (where relevant) asbestos risk in relation to such buildings and the land beneath them and (ii) ensure that the report's authors extend a duty of care to the bidder which becomes the Contractor. The Contract should then state that the Authority does not warrant the information contained in the reports, or which should have been revealed in the report if done properly, as the Contractor's redress lies against the consultant.
As regards latent defects see Section 13.5 (Latent Defects Risk) below.
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2 See for instance, the Priority Schools Building Programme.