Philip Harris, partner and lawyer of Wright Hassall, explains delays, liquidated and certain damage and extensions of time.
Note that this transcription was automatically generated so that it can contain inaccuracies.
Hello, ladies and gentlemen, this is the last of the conversations. The law of conclusion is this correct cough for theconstructionIndustry.and this replaces our normal lunch law sessions on Friday. This is mentioned as time. And we see liquid delays and acetone damages boys and the length of time.under the type of contract. So, why do we have an extension of the time clause?
The answer is because if the employer prevents the contract from being completed in time, for example, it is an extension of the time, which at the time became great contracts that would have a reasonable time to do the work instead of a fixed period.A reasonable time may take a long time as long as it meets a right contracted.
Therefore, if the employer prevents the final date from being reached and there is no extension of the time clause, it cannot be restored, the liquidated damage cannot do so unless an extension of time skidding.Sai Pico and McKinney, located in the first report of the Construction Law, reports a first case of Pico.
A very initial case, why do we have an expansion of the time clause?The extension of the time clause interrupts the time in general and maintains the disposition of liquidated damage in life because it can extend the time.
Therefore, there are circumstances when time is published. And I will list only a few of them. The relevance event that is an event that authorizes an extension of time in general if the provisions had not been properly managed in relation to time extensions andThen we say that a contract says that the contractual administrator should be replaced within 14 days if the contractual administrator dies. It will not be replaced in 14 days.
And then there is no one who extend the time in the contract. So the time is large. I will not keep it with the original final data, or there are employer disorders in the certification process, so that it incorrectly affect the impartial certification process ifThe contractual administrator or other reason is simply collapse at the time.
So we see the damage liquidated. So we have damage of £ 4,000.
You can be classified.I have another violation because we agree that agreed damages are agreed and calculated before or at the time of the contract. So the latest of the contract.
And the law has continued in recent years. W. and they are claimed without having to prove the loss. By that, we say that a small building is completed before February 1, and it is known that the Third Stage Tenants will move and moveEach tenant will pay 1000 pounds a week. But due to a recession, all these tenants move away. So you do not have a tenant who can move in the end. They were previously awake.
Although there was no losses, I would not need to prove any loss. How does this differ between settlement and sanctions?. Does it not matter if the clause is described as a punishment is a liquidated damage.
And the case that problems deal with these problems is the case of the Cavendish Square Holdings Supreme Court against Makdossi. And sometimes it also sounds like a parking space, as this case can also be heard at the same time. And the court has focusedin delays. And the court in the case of Cavendish Square said the actual test was whether the damage is no longer one of the legitimate interest of the person who suffered from delay.
And the question of the appropriate punishment or settlement is determined in all circumstances of the contract, which are evaluated at the time of the contract and not the violation data. Now the dishes are not interested in overthrowing the liquidated damage clauses as punishments as punishment. Sometimes they say about a punishment, but they recognize that the causes of liquidated damage has settled and the damage exhausted. If you have a liquidated damage disposition, you can get everything for late losses? And the answer to it is basically yes.And the main case where the arrow here, twice as much, says: Well, we have no damage to settlement. So all my general damage of delay. And the court said no, this liquidated damage business is a comprehensive means.
Because they put empty leaves on the ceiling, he also hit the ground. There is nothing in the middle. Therefore, there was no damage to zero liquidation, but this realizes that there were no legal rights to claim general damage. They are then an exhaustive means.
Therefore, if we are under a JCT contract -what we come across, if there is a notification of the intention to derive the damages. This must be this termination.You must comply with a payment ad that deduces this, comply with liquid damage and should be treated in JCT contracts over time and as needed.
What happens in case of termination or if the contract simply did not conclude the work? And the problem was that, therefore, liquid damage could be taken.
And the Appeal Court examined a case of the Chamber of Representation. So the case of the comprehensive court in the gland glands, which was a case of 1912, was a very old case. But in this case, the court said the liquidated damage wasapplied only if the contractor had completed the work. More of these sections were completed and he may receive damages settled in these individual sections. Keeping, bankruptcy, cannot have been liquidated, but only delaying general damage.
The following is to analyze it from the perspective of contracts or damage contracts that are late in which it is late. And the main case is Glen Lyon against Guinness. And everything was the program.,,,,,,,,,,, and the court said no, the employer's promise was that the contracts that could end at the end of the contract were not from the planned end of the contractor.
Let's see time extensions. According to JCT contracts, there is a request or a previous condition. Is it necessary to have an application? Well, basically not, because in one case we know it is Merton and Leach or Stanley under the direction of theLondon District of Merton. The Court analyzed the fact that these JCT contracts perform a 12 -week review by the contract administrator after the practical completion, so that it is practically completed. And then this is the 12 -week verification of the administrator ofcontract.and contracts tend to say that the contractual administrator revises the delay.
Regardless, notification that it was postponed regardless of whether they are variations or obstacles and employer prevention, events listed their delay.
Now, I would like to mention this case of Walter Lilly against MCI, as it is a classic and very reasonable decision of a judge who analyzes the delay, loss and costs.
Mr.Justice AIKENHAD regarding real evidence of real evidence. And all the evidence of experts and then analyzed the simultaneous delay, which happens if the delay is caused by the contractor and the employer at the same time.
And he said the contract in accordance with JCT contracts in which this is done by law as in Scotland.
In a case called City and Shepherd, in which the Scottish law was postponed between the parties, but not according to English law, and I will arrive in a minute.Which courts said that if the parties have a clause in the contract that the contractor does not receive an extension due to simultaneous delay, this is contested to Walter Lilly and the judge is contested to continue saying that capture is an inevitable capture, part of projectsComplexes. From the trailer coupling not exaggerated, it is not considered delays.
With regard to loss and expenses within the structure of standard JCT forms, the judge does not lose the right to loss and costs just because some of the losses are not provided. Solo should be provided properly necessary details that allow an architect to inspect contracts, contractor records may be sufficient. The necessary details do not necessarily contain all the information, losses and accounting costs, and the guarantee that it is not very strictly interpreted, since the relevant problems give the problems that give them the right toclaim losses and costs are the employer's failure.
And it may take into consideration that the administrator of the architectural contract and the administrator of the multitude contract must be convinced that all or part of the loss of global claims. He or in the old days, he can say that we cannot fight for different causesof this delay that the contract shows that it is impossible to prove the cause and effect of conventional nature.
And that the impossibility is not the contract. The contract only needs to prove that events have occurred that were justified to lose costs and that the events led to this delay or loss of expenses.
This can be tested by admission to the architect or administrator of real contracts or evidence, but the contractor must prove that the loss in no way occurs that, for example, a global claim of one million pounds fails only because it has been shown that 50,000 has been shownLibras are not real.
It does not work in this.50,000 pounds were not real, they would lead him to millions of pounds. The courts have the right to treat global claims in Cepte.
However, it will not necessarily fail, just because it is impossible to fight the events. And this was caused by the contractor who returns to this north, medium and construction and location in this case.
The point was that it was an extension of the valid time clause when he says that the contractor was postponed and that his contract with the employer is not taken into account when calculating an extension of time. In then, the employer may receive liquidated damage, although it caused or contributed to some extent? And the court said, Yes, the answer to this is valid. And for five reasons, this is true, which I will not respond to details. He concluded that the risk distribution in thisclause was one party to agree with the right. So the court said it depends on the parties how to deal with how they distribute the risk. The employer could receive that the employer could receive that he could receive.Some time to be delayed. This was good because it was an appropriate risk order.
Therefore, these are just a few short points, time extensions, delays, losses and expenses, and I hope it was useful. Thank you so much.