Cases - Rosehaugh Stanhope plc v Redpath Dorman Long Ltd

Record details

Name

Rosehaugh Stanhope plc v Redpath Dorman Long Ltd

Date

(1990)

Citation

50 BLR 69

Keywords

Contract administration

Summary

A clause in a trade contract purported to give to the construction manager power to make a (temporarily) binding estimate of loss caused by breaches of contract by the trade contractor causing delay. The Court of Appeal found that the clause was ambiguous and, properly construed, did not give the construction manager power to make a binding decision as to the trade contractor's liability. Unless, therefore, liability was admitted or proved or unarguably existed, the construction manager's estimate was not binding and no payment had to be made pursuant to it.