Essay on nature of construction contracts - Words | Bartleby
This two-part series explores the top construction court cases of , providing an understanding of the key developments in construction law and adjudication practice and how these might affect your construction projects and disputes in A concurrent delay is a delay period that occurs because of more than one separate but concurrent event: one that is the fault of the contractor, and one that is the fault of the employer. Cyden maintained that, reading the clause exactly as written, the concurrent delay meant the contractor was not entitled to an EOT. NMB sought to strike down the clause by reference to the English common law principle known as the prevention principle: one party cannot enforce a contractual obligation against the other where it has prevented the other party from complying with that obligation. They argued that Cyden prevented NMB from completing the works by the completion date, through the concurrent delay event, and could therefore not rely on the clause that denied an extension due to concurrent delay. The Court of Appeal upheld the previous decision of the TCC and decided that the express contractual term allowing Cyden to levy liquidated damages for periods of concurrent delay took precedence over the prevention principle. This decision reiterates that exclusions on concurrent delay will be upheld in England, meaning that provisions allocating concurrency risk are enforceable and parties are free to agree whatever terms they wish.
These are the cases that we think make interesting, if not vital reading. We welcome discussion on the list: both its contents and its omissions. What follows is a brief summary of each key case, together with our take on what it means in practical terms for our readers.
In this article, we take an in depth look at the concept of concurrent delay in construction contracts and consider the key cases in the development of English law on concurrent delay. Under a typical construction contract, the contractor would claim for an extension of time and possibly damages for delay caused by an employer risk event. The employer would claim liquidated damages for delay caused by a contractor risk event. It is generally accepted that the effects of an employer risk event and a contractor risk event must be simultaneous for a delay to be classified as a concurrent delay.