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
"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
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
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
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
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
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
The offshore wind sector continues to grow at an unprecedented rate, particularly in Europe, and increasingly in Asia and North America. The construction phase of any project is vulnerable to delay. That is particularly the...more
7/15/2020
/ Asia ,
Construction Contracts ,
Construction Project ,
Contract Terms ,
Delays ,
Design Defects ,
EU ,
Liquidated Damages ,
Offshore Wind ,
Risk Allocation ,
Risk Mitigation ,
Severe Weather ,
Time Extensions ,
United States ,
Wind Power
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
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
In a noteworthy decision to participants in the energy industry, the High Court of England & Wales examined what constitutes a valid liquidated damages clause in the event of delayed completion of a solar project. And last...more
1/12/2019
/ Construction Project ,
Contract Terms ,
Contractors ,
Delay Claims ,
Employer Liability Issues ,
Energy Projects ,
International Litigation ,
Late Payments ,
Liquidated Damages ,
Liquidation ,
Pay-For-Delay ,
Penalties ,
Power Plants ,
Remedies ,
Renewable Energy ,
Singapore ,
Solar Energy ,
UK