Liquidated Damages and Extensions of Time

Liquidated Damages and Extensions of Time

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English
408 Pages

Description

Liquidated damages and extensions of time are complex subjects, frequently forming the basis of contract claims made under the standard building and civil engineering contracts. Previous editions of Liquidated Damages and Extensions of Time are highly regarded as a guide for both construction industry professionals and lawyers to this complex area.



The law on time and damages continues to develop with an increasing flow of judgments from the courts. Alongside this, the standard forms of contract have also developed over time to reflect prevailing approaches to contractual relationships. Against this background a third edition will be welcomed by construction professionals and lawyers alike. Retaining the overall approach of the previous editions, the author clarifies, in a highly readable but legally rigorous way, the many misunderstandings on time and damages which abound in the construction industry. The third edition takes account of a large volume of new case law since the previous edition was published over ten years ago, includes a new chapter on delay analysis and features significantly expanded chapters on penalty clauses, the effects of conditions precedent and time-bars, and the complexities of causation.

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Published by
Published 26 January 2009
Reads 9
EAN13 9781444301632
License: All rights reserved
Language English

Legal information: rental price per page €. This information is given for information only in accordance with current legislation.

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Contents
PrefaceReferencesAcknowledgements
1Introduction1.1 General overview 1.2 Legal developments 1.3 Contractual developments 2Timeincontracts2.1 Problems with terminology 2.2 Conditions and warranties 2.3 Termination 2.4 Time for performance 2.5 Time of the essence 2.6 Notice making time of the essence 2.7 Time at large 2.8 Reasonable time 2.9 Fixing time by reference to correspondence 2.10 The effect of time at large on the contract price 3Damagesforlatecompletion3.1 Liquidated and general damages distinguished 3.2 Principles of general damages 3.3 Alternative remedies 3.4 Can general damages exceed liquidated damages? 3.5 Underliquidation of damages 3.6 Double damages 3.7 Liability for damages in tort 3.8 ThePanatownproblem 4Liquidateddamagesandpenalties4.1 Penalties – general introduction 4.2 Liquidated damages 4.3 Liquidated damages and penalties distinguished 4.4 Preestimates of damage 4.5 Particular aspects of penalty clauses 4.6 Evidential matters 4.7 Bonus clauses 4.8 Site occupation charges 5Prevention5.1 Principle of prevention 5.2 Need for extension of time provisions
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1 1 10 14 16 16 17 20 22 25 30 33 34 39 39 41 41 43 49 57 58 61 64 66 71 71 76 78 104 117 123 125 128 131 131 133
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5.3 Defining an act of prevention 5.4 Prevention after the completion date 5.5 Effect of late variations on unliquidated damages 5.6 Prevention and time at large 5.7 Conditions precedent and timebars 5.8SteriaLtdv.SigmaWirelessCommunicationsLtd(2007) Legalconstructionofliquidateddamagesclauses6.1 Rules of construction 6.2Contraproferentemrule 6.3 Restrictions on implied terms 6.4 ‘Catch all’ phrases 6.5 Inconsistencies in drafting Effectsofdetermination7.1 The question of continuing responsibility 7.2BritishGlanzstoff7.3 Contractual provisions 7.4 Novations 7.5 Summary on liquidated damages 7.6 Determination and limitation on liability Problemswithsectionalcompletion8.1 Discovering the parties’ intentions 8.2 Proportioning down clauses 8.3 Provisions for sectional completion 8.4 Requirements not fully specified Applicationtosubcontractors9.1 Effect of ‘steppingdown’ provisions 9.2 Can there be a genuine preestimate of loss? 9.3 Commercial considerations 9.4 Nominated subcontracts Recoveryofliquidateddamages10.1 When do liquidated damages become payable? 10.2 Meaning of completion 10.3 Certificates and conditions precedent 10.4 Methods of recovery 10.5 Time limits on recovery 10.6 Interest on repayment 10.7 Withholding notices 10.8 Decisions of adjudicators Defences/challengestoliquidateddamages11.1 Benefits of precedents 11.2 Extension of time due 11.3 Completion achieved earlier than certified 11.4 Certificates not valid 11.5 Conditions precedent not observed
136 138 142 143 144 150
156 156 160 163 163 166
170 170 170 171 172 173 173
175 175 175 177 177
179 179 180 181 182
188 188 190 196 200 202 203 204 206
209 209 209 218 219 226
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11.6 No date for commencement 11.7 Prevention 11.8 Penalties 11.9 Provisions void for uncertainty 11.10 Waiver / estoppel 11.11 Unfair Contract Terms Act 1977 Extensionsoftime12.1 Purposes of extension provisions 12.2 Notices, applications and assessments 12.3 Time for granting extensions 12.4 Application to claims 12.5 Proof of entitlement 12.6 Global claims 12.7 The liability of certifiers Relevantevents13.1 Force majeure 13.2 Adverse weather 13.3 Civil commotion, strikes, etc. 13.4 Damage to the works 13.5 Subcontractors 13.6 Nonavailability of resources 13.7 Statutory undertakers’ works 13.8 Other special circumstances 13.9 Statutory powers 13.10 Possession and access 13.11 Late issue of drawings and instructions 13.12 Variations and extra works 13.13 Compliance with instructions 13.14 Unforeseen physical conditions
Causationandconcurrency14.1 Introduction 14.2 Causation generally 14.3 Concurrency generally 14.4 Dominant cause approach 14.5 Apportionment 14.6 Rules for extension of time 14.7 Discussion on various approaches 14.8 Extensions when in culpable delay Programmes,methodstatementsandbestendeavours15.1 Status of contractor’s programmes and method statements 15.2 Programmes 15.3 Shortened programmes 15.4 Method statements 15.5 Best endeavours and the like
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227 228 228 230 230 232
236 236 237 242 246 248 250 263
265 265 267 270 271 272 274 275 276 276 277 278 281 281 282 285 285 286 289 291 292 297 297 300 302
302 302 306 308 309
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Delayanalysis16.1 Introduction 16.2 Critical paths 16.3 Float 16.4 Methods of delay analysis 16.5 Judicial comments on delay analysis Buildingforms17.1 Introduction 17.2 JCT 2005 contracts 17.3 Commencement and completion 17.4 Notification of delay 17.5 Extension of time 17.6 Relevant events 17.7 Noncompletion certificates 17.8 Payment of liquidated damages 17.9 Proportioning down of liquidated damages Civilengineeringforms18.1 NEC 3 – Engineering and Construction Contract, 2005 18.2 ICE Conditions of Contract – 7th edition, 1999 18.3 ICE Conditions of Contract for Minor Works – 3rd edition, 2001 18.4 CECA Form of subcontract, 2008 Processandplantforms19.1 The IChemE Red Book – 4th edition, 2001 19.2 MF/1 (Rev. 4) 2000 edition FIDICconditionsofcontract199920.1 FIDIC contracts 20.2 Commencement and completion 20.3 Extension of time 20.4 Delay damages TableofCases
Index
313 313 316 318 320 322 325 325 325 326 327 328 332 333 334 336 337 337 343
350 353 356 356 360 372 372 373 374 377 379
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