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
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
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...
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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
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
Amending standard forms of construction and engineering contracts to change the risk level between the parties is a perennial issue. This, however, can lead to disputes due to amendments not clearly reflecting the intention...more
2/28/2020
/ Amended Forms ,
Construction Contracts ,
Construction Industry ,
Contract Terms ,
Engineering ,
FIDIC Contracts ,
General Contractors ,
London Technology and Construction Court (TCC) ,
Public Procurement Policies ,
Risk Allocation ,
Standard Form Contracts ,
UK
When does title to goods transfer from a contractor to an employer? This can be a critical issue, especially when a party to a project has become insolvent. A recent English case considered this issue, and the application of...more
1/16/2020
/ Certification Requirements ,
Conditions of Payment ,
Construction Contracts ,
Contract Terms ,
Contractors ,
Employer Liability Issues ,
FIDIC Contracts ,
Goods or Services ,
Insolvency ,
Legal Title ,
Ownership Interest ,
Subcontractors ,
Transfer of Title ,
UK ,
Vesting
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
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