Cases - Pigott Foundations v Shepherd Construction

Record details

Name

Pigott Foundations v Shepherd Construction

Date

(1993)

Citation

67 BLR 48

Keywords

Construction contracts - liquidated damages - damages for delay - whether onerous and exhaustive liquidated damages clause avoided

Summary

The claimant was a specialist piling contractor who was engaged by the defendant main contractor in respect of the construction of an office block in Coventry. The piles proved to be unsatisfactory and additional piles had to be installed. Instead of completing works by August 1989, Pigott did not leave site until October 1989. A particular clause incorporated into the contract between the parties provided that 'damages would only apply in the event of Pigott's not completing within 10 weeks and any sum would be limited to £40,000 (max) at the rate of £10,000 per week.' The Court held that this liquidated damages provision was an exhaustive agreement in respect of damages for non-completion or delay. The maximum limit set by such a provision could not be sidestepped by claiming general damages for delay resulting from a breach of any other provision of the contract.