CONTRACTOR OBLIGATIONS

Contractor Obligations & Delays- A Case Study of Honeywell Control Systems Ltd. v Multiplex Constructions (UK) Ltd (2007)

Contents

Introduction4

Research Question5

Background5

Honeywell Control Systems Ltd. v Multiplex Constructions (UK) Ltd (2007)6

Gaymark Principle & Multiplex Constructions Vs. Honeywell Control Systems 20077

Breach of Contract9

Concurrent Delays9

Assessing Delays10

Relevant Case Law- Concurrent Delays10

Prevention Principle11

Case Precedent on Prevention Principle11

Implications of Delays & Legal Consequences11

Methodology14

Research Design14

Meta-Analysis14

Results16

Case16

Facts of the Dispute16

Principal Elements of Enforceable Liquidated Damages17

Standard Contracts on Issues of Prevention, Time Extension & Notices17

Case & JCT Standard Building Sub-Contract SBCSub/D/C 201117

Contractor18

Evidence of Information20

Evaluation of Issues from the Case21

The Delay Claim22

Disruption Claim23

Acceleration Claim24

The Claim Presentation24

Major Court Precedents25

Conclusion25

Exceptions in Liability of Contractor in case of Time Delays29

When the Contractor does not have to pay LADS on Completing Late30

Failure by Contractor to Complete On Time30

Liquidated Damages30

Recommendations31

References33

Contractor Obligations & Delays- A Case Study of Control Systems Ltd. v Multiplex Constructions (UK) Ltd

Introduction

In the present study, we would attempt to answer our research question “When is a contractor legally obliged according to the law in England and Wales to pay for any delay he or she has caused to the progress or completion of the construction?”. The contractor's obligations, construction delays would be highlighted and discussed with respect to our chosen case study Honeywell Control Systems Ltd. v Multiplex Constructions (UK) Ltd (2007).

The case would be examined in the light of existing legislation, rules and framework applicable in England and Wales. The elements involved in construction delays would be thoroughly addressed and their relevance to the case study would be discussed. In order to attain a better understanding of the construction laws in England & Wales and to adequately answer our research question; a detailed evidence of information, evaluation of core issues and argumentation would be presented to enhance our knowledge on the topic.

The acts of an employer or the contractor could be perfectly legitimate under the given construction contract. However, any delays in the construction might give rise to a number of legal consequences. Such issues could lead to financial losses for both parties involved. Often, in cases of delays in construction or project completion time; the suffering party is often subjected to damages under the relevant laws. Delays are often construed in favour of the client if the contractor is not granted an extension on the completion time (AER, 2007, pp. 1).

Research Question

In the given case study; our research question is:

“When is a contractor legally obliged according to the law in England and Wales to pay for any delay he or she has caused to the progress or completion of the construction?”

Background

The main duty of the contractors in a construction project is to adequately plan, coordinate and manage the construction work and ensure that all the major risks in its completion are taken care of. The contractor must also comply with all the duties delegated to the construction team under the applicable regulations (Sinclair, 2005, pp. 3). The Contractor is the driving force of the project. The written plans only serve as a legal requirement in projects and ...