Cases - Bell & Son (Paddington) Ltd v CBF Residential Care and Housing Association

Record details

Name

Bell & Son (Paddington) Ltd v CBF Residential Care and Housing Association

Date

(1989)

Citation

46 BLR 102

Keywords

Construction contracts - liquidated damages - delayed completion - extension of time - requirement for architect to issue certificate and employer to issue notice on contractor failing to complete by completion date - whether requirement for certificate and notice conditions precedent to award of liquidated damages

Summary

The claimant contractor entered into a contract with the defendant for the construction of an extension to a building. The agreement was in the JCT Standard Form of Building Contract, 1980 Private edition with Quantities and liquidated damages for non-completion were stated to be at the rate of £700 per week. Under clause 24, the architect was required to issue a certificate if the contractor failed to complete the works by the completion date upon which the employer could inform the contractor in writing of its intention to subtract liquidated damages. A series of extensions of time were duly granted, for one of which a certificate and notice were issued, but after fixing a completion date of 20 May 1986, no further certificate was given until the final certificate on 25 April 1988. The defendant withheld £4,900 in liquidated damages, for which amount the claimant applied for summary judgment.

The Court, finding for the claimant, held that the correct construction of the contract required a certificate to be issued when a contractor failed to complete the works by the completion date and that a notice was superseded along with the certificate to which it applied. A certificate and notice were conditions precedent to the award of liquidated damages and in this instance neither had been given.