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
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
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
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
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
Can a breach of one contract give rise to liability for lost profit on a related contract? Or is the loss too "remote"? A Privy Council decision from Monday of this week addressed this issue in the context of a design, build,...more
7/17/2020
/ Appeals ,
Arbitration Awards ,
Breach of Contract ,
British Virgin Islands ,
Construction Project ,
Damages ,
Design-Build-Operate (DBO) ,
Lost Profits ,
Procurement Guidelines ,
Reversal ,
UK ,
UK Privy Council
A main contractor is often in a difficult position during project disputes, caught in the middle between its liabilities to the employer and its ability to recover those losses from its subcontractors. But, what happens when...more
Restrictions on a contractor's rights to subcontract works are common across industry forms of contract, and breach of these provisions can have significant consequences for a contractor. In a recent Australian case, the...more
11/11/2019
/ Breach of Contract ,
Construction Contracts ,
Construction Industry ,
FIDIC Contracts ,
General Contractors ,
Non-Assignment Clauses ,
Restrictive Covenants ,
Risk Mitigation ,
Specific Performance ,
Standard Form Contracts ,
Subcontractors ,
UK
The case of Doosan Enpure Limited v Interserve Construction Limited represents a rare consideration by the English High Court of a dispute between members of a construction joint venture. The court found that Interserve was...more
10/14/2019
/ Breach of Contract ,
Construction Contracts ,
Construction Industry ,
Contract Disputes ,
Contract Terms ,
Interim Payments ,
Joint Venture ,
Land Developers ,
Profit Sharing ,
Real Estate Development ,
Risk-Sharing ,
UK
In Thio Keng Thay v Sandy Island Pte Ltd [2019] SGHC 175 the High Court of Singapore confirmed that an employer may recover damages for rectifying defects even when it has done so in breach of a contractual defects...more
In a recent case, the Federal Court of Australia confirmed that it will enforce a "no damage for delay" clause, including when delay occurs as a result of a variation under a contract....more
Practical completion represents the physical completion of works on construction projects. Despite its importance, it is not a legal term of art, and whether or not practical completion has been achieved requires...more
4/6/2019
/ Appeals ,
Breach of Contract ,
Certification Requirements ,
Construction Contracts ,
Construction Project ,
Contract Terms ,
Contractors ,
Dismissals ,
Landlords ,
Material Defects ,
Practical Completion ,
Property Owners ,
Student Housing ,
Tenants ,
UK