UNIVERSITY OF THE WEST INDIES

FACULTY OF ENGINEERING
DEPARTMENT OF CIVIL & ENVIRONMENTAL ENGINEERING
COURSE CODE: CVNG 1012 - CVNG 1012 CIVIL ENGINEERING LAW
Unit 1

Lecturer: Derek I Outridge

Introduction
Law is a set of rules which make it easy for those of us in civilized society to live together as a community. The Law is essentially
made up of criminal and civil law.
Criminal law regulates the communitys behavior as far as it affects the state, (a state is an organized political community),
punishment for those who do not obey the rules of the state is administered by the state.
Civil law regulates the communitys behavior within the state based upon how it affects between individuals, there is no
punishment to those who infringe the rights of an individual, there is however compensation to those whose rights were
infringed.
The State comprises all the citizens of the community which includes the government.
The government is that body of citizens who are authorized to direct, regulate and control public affairs. A state can be unitary
or federal.
A unitary state is one where all government power is concentrated in the hands of one authority, i.e. there is one legislature,
one executive and one judiciary.
A federal state is one where a number of independent states join together and set up a central government which controls all
of them.
A constitution is the supreme law, it is the body of rules comprising laws and conventions by which the state is governed. The
purpose of the constitution is to define how political power and authority is structured, the relationship between the organs of
government and their relationship to the individuals and their rights. A constitution can be written or unwritten.
A written constitution comprised one or more documents which set out the workings of the three arms of the state. This form
of constitution is said to be rigid as the law relating to the constitution cannot be changed by the ordinary legislative
procedure.
An unwritten constitution is based upon the observance of a body of rules called conventions so as to provide a harmonious
working between the executive, the judiciary and the legislature. This form of constitution is said to be flexible as the basic
rights of the citizens are not defined and the legislative powers are not restricted to limits set down in written codes.
The domestic affairs of the state are administered through the three functions of government, executive, legislative and
judicial.
Legal Systems
There are two different legal systems:
(i) The Common Law System.
(ii) The Civil Law System.
The Common Law system evolved from the British Legal system, is based upon the principle of binding precedent. It is a legal
system based on Case Law. Judges are bound by this principle in arriving at a judgment based on previous judgments by judges
sitting in the same jurisdiction on matters with the same fact situation. Today it is found in most of the countries which formed
the British Empire and later the Commonwealth. For example, Canada, India, Australia, English Speaking Caribbean and African
countries and the United States of America.

The Civil Law system is based on codified law. In this system the judqe or judicial panel or committee is guided in an explicit
manner by a code. Previous judgements are not binding as in the case of the Common Law system where binding precedent is
the basis. Each case must be judged by itself based on the codified law. The countries of Europe each have a codified system of
law or practice one form or the other of the Civil Law system e.g. Spain, France, Germany, Holland, etc. The Islamic Legal
System is based on codified law. So too is the legal systems practiced in the socialist countries e.g. China, Russia (and the other
ex-Soviet Socialist Republics) as well as Cuba.
Laws may be amended again by the Parliament involving any of the following processes:
addition to the existing law.
modification of the existing law.
subtraction from the existing law.
Judges interpret the law and as a consequence are required to administer the law as the law makers or parliamentarians
originally intended. Therein lies a difficulty in that different judges may be inclined to interpret the law differently.
The Common Law system which is employed in the Anglophone Caribbean is based upon the principle of binding precedent. It
is therefore a legal system based on Case Law. Judges are bound by this principle in arriving at a judgment based on previous
judgments by judges sitting in the same jurisdiction on matters with the same fact situation. Attorneys therefore must research
and marshal the case law in support of their position. Judges are bound by precedents. Cases of similar fact situations must
lead to similar judgment.

Impact of Law on the delivery of construction goods and services

In the course of the production of engineering works it is generally understood that some parties provide goods (building
materials, machinery, equipment, tools and finished structures) while others provide consultancy services (feasibility studies,
designs, reports, investigations, supervision, maintenance, etc.).
Some parties provide financing services in the form of bonds (tender bonds and performance bonds, loans, etc.), others
provide insurance services (coverage of workmen, equipment, materials, buildings, etc.).
Clients or owners of engineering works constantly enter into the contracts with individuals and firms for the provision of
construction goods and or services and would require the construction manager to be able to appreciate the legal significance
of the contracts, in that the contract is a legally binding agreement between two or more parties.
Who are these parties and how do they interact during the course of the engineering project?
What are the various components of law which the engineer will encounter during the construction process?
Impact of law on the Construction Sector
Law of Contract
The construction contract is a legal instrument used for the delivery of goods, materials, components or finished product or
structures.
These are contracts between specialist subcontractors and suppliers and clients.
There are also contracts between consultants and clients (Architects and Clients; Design Engineering and Client, Quantity
Surveyors and the client, Project and Construction Managers and the client, etc.), and between Builders/Contractor and clients,
as well as between contractors and subcontractors and suppliers.
There are also contracts for services as between maintenance companies and clients, painters and clients as well as contracts
of service as between workers (employees) and client/owners (employers) or contractors.
The contract, and by extension the elements of the law of contract, are possibly the most critical area of the law which the
construction manager must master in order to ensure that the project is delivered within the parameters of cost, time and
quality.

The Law of Tort

The other area in which the law impacts on the construction process deals with the question of liability in excess of the
contractual obligations of parties. This relates to a duty of care which one party owes to another in the course of pursuing its
legitimate business.
This duty of care which arises when parties are not linked by contract but in which the legitimate act of the one party can
adversely affect the other party. This duty of care is treated under the area of the law referred to as the Law of Tort.
This duty of care in Tort exists even when the parties are linked by contract and for which there is a duty of care owed in
contract.
In the first case, where no contract exists between the parties we can identify situations where the Law of Tort may be
involved:
Between Consultant and Consultant (Architect) (Engineer) (Quantity Surveyor) (Project or Construction Manager),
Between Consultant and Contractor (Architect or Engineer or Project Manager or Construction Manager),
Between Contractor and Subcontractor or Supplier
Between Client/Owner and Adjacent Property Owner.
The next situation is where contracts do exist and where the law of tort may arise, one may list the
following:
Between Consultant and Client
Between Contractor and Client
Between Contractor and Subcontractor
A duty of care in all these situations arise in both Contract and Tort.
This law is based on the idea that a duty of care is owed to any party who one could reasonably have foreseen would have
been adversely affected by one's action. This concept is referred to as the neighbours principle. It answers the question "to
whom do l owe a duty of care"?
This question of liability relates to a legal responsibility to pay damages for injury or losses sustained by another party and for
which one is liable. Liability in both contract and tort creates the obligation to effect reparation.
OTHER AREAS OF LAW WHICH IMPACT ON THE CONSTRUCTION PROCESS
Business laws
The engineer will have to familiarise himself/herself with the Companies Act 1997. He/she will need to understand the
different forms of business organisations (Sole Trader, Partnership, Co-operative, Private Company with Limited Liability, Public
Company with Limited Liability as well as the Members club and the Corporation incorporated by Act of Parliament).
Tax Laws
This area of the law will be important to the engineer either as employee or as company shareholder or employer. There will
be the question of company after-profit tax and individual income tax. There are double taxation treaties between countries to
cover earnings derived in other countries.
Finance Laws
This area of the law is very close to business and tax law and will also be of importance in respect of borrowing/lending of
money and in making an investment of a construction project.

Insurance Laws
In construction, insurance policies must be taken out on equipment and machinery, materials on site and the public and
workmen must be covered against injury. Usually the principals in any company are heavily covered with life insurance.
Buildings are usually covered by insurance against natural hazards and fire. There is a vast body of law that covers the whole
complex question of insurances. Although the engineer will not be required to master these, some may prove more relevant to
a particular area of practice in which the engineer may become active.
Labour and Industrial Relations Laws
The construction professional will have to be familiar with the various pieces of legislation which treat with employment,
apprenticeship/recruitment and training of workers. He or she must be particularly familiar with the laws which deal with the
resolution of labour disputes. Some Caribbean states have special labour laws which require the setting up an industrial
(relations) court, a procedure for dealing with disputes, the registration of trade unions and bargaining units, negotiation for
wages and salaries and working condition.
Health and Safety Laws
The construction sector generates its fair share in accidents, injuries and deaths. As a result, it is necessary that the engineer
knows who are the persons responsible for health and safety matters of the construction site. The circle of liability must be
clearly understood. Some Caribbean territories require the notification of a central (state) authority on the impending
commencement of any construction works. In some cases the authority or agency is required to visit the site to inspect the
safety provisions that are present at the commencement and at any subsequent time. In some cases special laws define
procedure and practice to ensure a safe working environment and usually address safety gear, regular inspection,
documentation of accidents and reporting of serious accidents.
An attempt has been made to present the important laws which relate to the construction sector, the content that is provided
is by no means exhaustive, it seeks only to identify the laws more familiar and those that the practitioner is most likely to need
or encounter. More Laws do impact on the construction sector that must be taken into account:
Patents, Trademarks, Copyright and Industrial Design Licences
Machine and Equipment Licences
Materials Specifications and Standards
State Agencies and Approvals
Professional Bodies, Regulations/Services
Administrative and Constitutional Law
Land Law
Traffic Law
Environmental Law
Litigation, arbitration, mediation, conciliation and adjudication.

Conclusion
The engineer is the first arbiter in all disputes, he/she must be aware as to which disputes require skills outside of his
competence and when he must seek legal advice.
He/she must be able, at all times, to anticipate the possible outcome of arbitration or litigation or other dispute resolution
mechanisms and be able to propose to brief counsel.
He/she must, above all, know what this route involves and therefore do everything in his power to resolve disputes at the
earliest stage.
One may even say that the construction manager must be forewarned about the costs of any delay that may follow his actions.
Hence a little knowledge of the law and construction management will go a long way to protecting him and his client from
what might have been certain liability.