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Prediction: LEG 3 is unlikely to be 'improved'

Regulation
Construction and Engineering
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Prediction

LEG 3, one of the key defects clauses introduced by the London Engineering Group nearly 30 years ago, has come under scrutiny in two recent US decisions for its alleged ambiguity, particularly in relation to improvement costs. As a result, the LEG committee is being urged by some to revisit its wordings. We anticipate the committee will be more concerned (rightly, in our view) about the approach the US courts took in relation to the meaning of 'damage'. We predict the committee is more likely to address that issue rather than seeking to clarify what amounts to an 'improvement' or undertaking any wholesale redrafting.

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