The use of large up-front fees and disproportionate deposits has already resulted in significant cost consequences for one care provider.
What is Concurrent Delay?
Concurrent delay is when there are two or more reasons for delays to construction works that happen simultaneously, one of which would usually give the contractor an extension of time (“a Relevant Event”) and the other that is a contractor risk. Previously it was not clear (because of the “prevention principle”) whether a client could exclude the contractor’s entitlement to an extension of time for the Relevant Event, even though the contractor would not have been able to achieve an earlier completion date due to the delay that is the contractor’s risk.
What is the Prevention Principle?
If the employer’s actions prevent the contractor from completing the works on time and the contract doesn’t give the contractor an extension of time, time is considered to be ‘at large’. Time ‘at large’ means that the completion dates under the contract no longer apply and the employer is not entitled to claim liquidated damages for delays; the contractor only has to complete the works within a reasonable time.
North Midland Building Ltd v Cyden Homes Ltd
North Midland Building Ltd (“North Midland”) entered into a JCT Design and Build Contract 2005 (“the Contract”) with Cyden Homes Ltd (“Cyden Homes”) to build a large house described by North Midland as “the most important house to be constructed in the county for many years”. Due to delays with the works, North Midland applied for an extension of time relying on several different reasons for these delays – one being the weather (a Relevant Event). However, the main causes of delay were lighting to the main house and the asphalt roofing (both of which were caused by the contractor). Cyden Homes responded stating that the contractor delays meant that North Midland was not entitled to an extension of time.
The extension of time clause in the Contract was amended as follows:
“any delay caused by a Relevant Event which is concurrent with another delay for which the Contractor is responsible shall not be taken into account”
North Midland tried to use previous case law on the “prevention principle” to argue that an extension of time should be awarded. However, this was unsuccessful, and the Judge said that “the prevention principle simply does not arise” because the contractor delays meant that the Relevant Event did not actually “prevent” the contractor from finishing on time.
This is the first time that an English Court has considered the exclusion of concurrent delay under a construction contract, Employers seeking to rely on similar exclusion clauses can take comfort in the Court’s findings.
Schedules of amendments to JCT suite of contracts should be checked to see that they include a clause that is similar to the one set out in this e-briefing.
The government announced on 16 May that it will provide a fund of £400m to cover the costs of removal and replacement of cladding to high rise residential blocks which have failed tests.
Whilst some people are under the impression that preparing a Lasting Power of Attorney (LPA) is simply a case of completing a form and ticking a few boxes, it is about far more than this.
A big fear for some people facing divorce and the inevitable carving up of the matrimonial assets. They seek assurances that such assets will be “ring-fenced” and retained for them.
Thinking about the legal status of being a cohabitant probably isn’t at the top of the ‘to do’ list.
When an individual is thinking about making a gift to another individual, consideration needs to be given to the Potentially Exempt Transfer (PET) trap.
We are now only a few weeks away from the biggest change to data protection laws in over 20 years. Are you compliant?
The tragedy, in this case, is that there were options readily available to the midwives that they could have used. This was not a case of having to go above and beyond.
Arising from the recent Family Division announcement, people who think they are legally divorced may in fact still be married.
The SCCS has issued providers in the scheme a series of updated and new documents in order to assist with their National Minimum Wage review.
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