The cost of construction materials has risen like never before. This, in turn, creates pressure for parties to use cost estimates and budgets rather than "fixed price" contracts. Providing cost estimates can therefore be...more
Outside of the United States, claims for constructive acceleration usually fail. However, in a recent Australian case such a claim succeeded. Does this now open the way for contractors to deploy constructive acceleration...more
"Extend or pay" provisions are sometimes used in construction performance bonds and bank guarantees as a way of ensuring that performance security is provided for the period it is needed. Can a beneficiary be stopped from...more
A key part of the interim payment process in construction projects is the issuing of payment notices by payee and payer alike. Two recent UK cases demonstrate a strict approach being taken by the courts to the validity of...more
If an extension of time (EOT) clause permits the apportionment of delay, what should be taken into account when apportioning delay? Comments in a recent decision of the Singapore Court of Appeal indicate that a party's...more
Contractors' extension of time (EOT) entitlements and associated financial rights are always to be assessed pursuant to the applicable contract mechanism. A recurring question is whether EOT entitlements are to be determined...more
Does a liquidated damages clause which has been found to be void and / or unenforceable nevertheless operate to limit a contractor's liability for general damages for delay? This issue was decided in two recent cases – one...more
FPSOs have revolutionized deep-water oil extraction but these technically complex vessels are a fertile ground for uncertainty, spiraling costs and long delays.
Following a challenging 2020, the FPSO market is off to a...more
In Triple Point Technology v PTT, the Supreme Court of the United Kingdom has restored the orthodox position on how termination prior to completion of work affects the operation of a liquidated damages...more
[co-authors: Rhulani Matsimbi, and Kit Goodfellow]
Three pillars are at the heart of global efforts to boost sustainability and make our built environment cleaner, greener and more socially responsible: construction,...more
Estoppel and waiver are common arguments used to rebut the enforcement of time bar and notice provisions in construction contracts. However, these arguments have often seen limited success. Nevertheless, estoppel was...more
Since the Rock Advertising decision of the UK Supreme Court in 2018, 'no oral modification' clauses have generally been strictly enforced. However, in Lim v Hong, the Singapore Court of Appeal has set a more flexible test for...more
A recent court case in the Qatar Financial Centre confirms the Qatar International Court's status as a court of choice for international parties, even if they are not established in the Qatar Financial Centre.
The Qatar...more
In the UK, disputes in the construction industry are rarely resolved through conciliation, with parties preferring recourse to adjudication, mediation, litigation or arbitration. However, a recent Australian case highlights...more
Variation powers under construction contracts typically contemplate work being authorised as a variation where it is instructed in writing. This can give rise to disputes over whether work is a "variation" if it is instructed...more
Construction contracts may be priced in a number of ways. For most contracts, even those which are "fixed price", there is usually scope for cost/price variability. Four cases from December 2020 highlight some of the...more
Liquidated damages clauses are often attacked in common law jurisdictions for being unenforceable "penalties". The test for what constitutes a "penalty" has been reviewed in common law jurisdictions over recent years. Last...more
Power projects usually contain a period of time, prior to completion and taking over, where power is being generated and can be sold into the grid or to an offtaker. Earlier this month, the Supreme Court of Victoria ordered...more
Can a valid claim notice issued, on time, referring to one contractual basis, be relied upon where a claim is ultimately pursued on a different ground? In the first authoritative case to consider this issue, the Hong Kong...more
Courts and arbitral tribunals in many jurisdictions have the power to order contractors to perform building works - to order "specific performance" of a construction contract. But these powers are rarely exercised. A recent...more
Recent insolvency law reforms in the UK, Singapore and Australia impact upon the ability of a party to a construction contract to terminate it due to the other party's insolvency...
...more
A recent Scottish case considers the contractual power to omit works and highlights key principles applicable to the question of whether omitted works can be transferred to another contractor -
The descoping or omission of...more
In a recent case the Singapore Court of Appeal upheld a decision that an employer may recover damages for rectifying defects even when it has not given the contractor the opportunity of doing so during the defects...more
Main contractors often make claims against subcontractors for liquidated damages for delay. A question that sometimes arises is whether liquidated damages may be claimed by a main contractor where there is no corresponding...more
8/22/2020
/ Construction Contracts ,
Construction Industry ,
Contract Terms ,
Delay Claims ,
General Contractors ,
Liquidated Damages ,
Loss Allocation ,
No Damage For Delay ,
Singapore ,
Subcontractors ,
UK
Advance payment guarantees are commonly used in the construction industry. However, successful challenges to a demand made under an advance payment guarantee appear to be less common. This article looks at three recent cases...more
7/25/2020
/ Advance Payment Guarantees ,
Amortization ,
Banks ,
Condition Precedent ,
Construction Industry ,
Construction Litigation ,
Construction Project ,
Contract Terms ,
Default ,
Encashment ,
Engineering ,
Korea ,
Notice and Demand For Payment ,
Qatar ,
Saudi Arabia ,
Subcontractors ,
UK