What is the potential liability and who pays?

[Keys]

Scenario. Owner has an older style property with five bedrooms rented to four mid 20s lads. Kept in reasonable, but not good, condition. Next door is a home due for demolition. Next door has a well. Next door gets a contracor to cap the well. Contrator plugs the well with cement filled grout under high pressure.

The grout finds its way to the council owned mains on the street and, as people in the street use their water supply, it finds its way into the homes.

Our owner has cement filled grout throughout the home, pipes, HWC, dishwasher etc.

What is the potential liability and who pays?

[spaceman]

The contractor surely....he's the cause of the problem.....it's not like the magic pixies plugged the well with grout....it's all his fault and he needs to sort it.

Cheers
Spaceman

[Wayne]

^^ agree - that's what they have public liability insurance for.

[Maccachic]

Maybe it would depend on the contract with the sub contractor?

[spaceman]

^ What sub-contractor????....doesn't appear to be one....if you mean the contractor who plugged the well, it'd have to be a pretty special contract to get him out of that one....perhaps written by the aforementioned magic pixies

[Maccachic]

Dunno just know that legal is never black and white

[PTILoveYou]

Call the council to complain as well, I'm sure the council is pursuing the contractor as well.

The main contractor is liable, doesn't matter if a subcontractor was involved.

[jimO]

the person who hired the contractor is the main contractor and should have insurance to cover it, no different to a joe homeowner running his own house build and getting labour only builders, as i see it

[Wayne]

If I employ a professional to do a job I'd expect them to take responsibility (and liability) for the job.
So still the Contractor as defined in the 1st post.

[artemis]

Would the damage be covered by the owner's insurance policy? If so, the insurance company may pay out and then proceed against whoever they deem to be liable.

As for who is liable, it depends on whether the contract between the owner and his/her contractor covers liability, express or implied. Could be either party.

[Perry]

A corollary observation.

Dishwashers usually have in-line filters. Mine
has two per hose. Some tapware warranties
are void if there's no filter where the water
comes in to the house.

Depending on the outcome, if the opportunity
presents itself, put in a filter.

Plus one for Gary. I suspect the Council will be
a good ally, in this case. Not something that
happens often, so use it while you can.

[PTILoveYou]

Also contact your insurance company asap.

[Meehole]

the person who hired the contractor is the main contractor and should have insurance to cover it, no different to a joe homeowner running his own house build and getting labour only builders, as i see it

I agree JimO. We contract to owners and for jobs like that and we remind the owners (they are the ones engaging us) to ensure they have the appropriate insurance in place. Jobs under $30k that is.

[BigDreamer]

Hmm I'm curious what kind of insurance would actually cover this!?!

[PTILoveYou]

Hmm I'm curious what kind of insurance would actually cover this!?!

House insurance, for the affected home owner.