Fri 14 Jul 2023

The Supreme Court’s decision in Forthwell Limited v Pontegadea Limited confirms that there is no general right in Scots law to recover losses suffered by a third party. The ruling highlights the importance of careful contracting structures in construction projects, including the use of collateral warranties and third-party rights to prevent potential gaps in recovery.

Scotland is exploring new private finance models to support major public infrastructure projects, but rising construction costs, market uncertainty and limited long-term lending could present significant challenges.