Project Managers:

Legal deputes concerning project managers can take many forms. The simplest dispute will surround the interpretation of rights and liabilities under the contract or agreement. Project managers who are sued by their clients have commonly been construction project managers and event project managers, however the manager can be retained for a vast array of different work responsibilities. Building matters however comprise the most well known and recognisable area of legal disputes involving project managers, both for commercial and residential projects. Sub-standard performance in office fit-outs, shop fit-outs, renovation, delays and the coordination of consultants and general project development can lead to a legal dispute. Claims in negligence against project managers will depend on two major factual and legal considerations:

(a)   The terms and conditions of the contract under which the project management services fall under. 

These terms and conditions will outline the parameters of what is required of the project manager and highlight the rights, liabilities, duties and responsibilities that will need to be adhered to and discharged by the person being retained as a manager for a particular project. A dispute over negligent or substandard conduct may confuse who is liable for the alleged act or acts of negligence. For example, a project may be a very large enterprise comprised of various aspects, and each component may be the preview of a particular manager; in situations like this, and especially where the management of each component relies on close communication or cooperation between different teams, the alleged negligence of one may be falsely ascribed to another.

(b)   The accepted industry standards for conduct which is undertaken pursuant to the contract for project management.

A claim in negligence will need to establish on sufficient evidence that an industry standard of professional conduct has been breached. This usually takes the form of proving the existence of a duty of care by the project manager over the person making the accusation of professional negligence, and then proving on evidence that the standard was breached. Where these matters have been proved, it can be said that the “duty of care” has been breached and negligence has been established. In practical terms, the standard of care (i.e. the “duty of care”) is industry specific and can change with community expectations.

Both the investigations of the contract and the industry standards of professional conduct is a fact intensive process and requires diligent investigations before a determination on the likelihood of a claim’s success can be made. This is where the help of a project management lawyer can be beneficial to a potential litigant. If you are seeking to sue a project manager, or if you are a project manager who may be sued by a client (or is in fact being sued) a solicitor who works in the project management field can provide the necessary legal advice for these purposes.

The preparation of a case will significantly determine its progress and outcome. It is therefore important that the appropriate legal advice is obtained and that all evidentiary material is properly organised before any formal steps are taken to bring an allegation of professional negligence against a project manager before a court. If you find yourself in this situation (either as a potential litigant or a defendant in a case) you may consider contacting one of our Sydney negligence lawyers so that they may provide you with the guidance that your case requires.

If you require assistance with a negligence claim against a project manager you may wish to contact our firm by telephone on (02) 9233 4048 or email us at info@navado.com.au and make an appointment to see one of our solicitors.

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.