Cases - Steria Ltd v Sigma Wireless Communications Ltd

Record details

Name

Steria Ltd v Sigma Wireless Communications Ltd

Date

[2008]

Citation

BLR 79 TCC

Keywords

Contract administration - contract case law

Summary

The employer employed Sigma Wireless Communications Limited (Sigma) as the main contractor to provide a computer-aided mobilisation and communications project. Sigma sub-contracted a large element of the work to a sub-contractor, which was subsequently novated to Steria Limited. A dispute arose between Sigma and Steria, when Stigma failed to pay the final tranche of the price due to Steria. Sigma argued that Steria had delayed the completion of the sub-contract work.

The judgment covers a wide range of matters relating to extension of time and liquidated damages, however, the principal matter relates to the application of the prevention principle, where the judge followed the decision in Multiplex, holding that the employer's failure to comply with a notice provision did not then put the contractor's time for completion at large, i.e. the prevention principle does not apply in such a scenario.