Octoesse LLP v Trak Special Projects Ltd - Revision history

Designing Buildings at 07:38, 7 November 2020

2020-11-07T07:38:41Z

← Older revision		Revision as of 07:38, 7 November 2020
Line 29:		Line 29:
	* Practical completion.		* Practical completion.

−	[[Category:~~Case_law~~]] [[Category:~~DCN_Case_Law~~]] [[Category:Contracts_/_payment]]	+	[[Category:DCN_Case_Law]] [[Category:DCN_Commentary]] [[Category:DCN_Guidance]] [[Category:Case_law]] [[Category:Contracts_/_payment]]

Designing Buildings at 14:24, 21 February 2018

2018-02-21T14:24:57Z

← Older revision		Revision as of 14:24, 21 February 2018
Line 1:		Line 1:
−	The case of Octoesse LLP v Trak Special Projects Ltd. [2016] set an important precedent ~~regarding~~ ensuring the correct contractual procedures are adhered to when deducting liquidated damages.	+	The case of Octoesse LLP v Trak Special Projects Ltd. [2016] set an important precedent in ensuring the correct contractual procedures are adhered to when deducting liquidated damages.

−	Octoesse LLP (claimant) entered into an amended JCT Intermediate Building Contract with Trak Special Projects Ltd. (defendant) for the construction of residential units. Practical completion was significantly later than the original completion date, ~~causing~~ the defendant ~~to submit~~ an 18-week extension of time ~~claim~~. They were awarded 9.5 weeks by the contract administrator. No further certificate of non completion was issued.	+	Octoesse LLP (the claimant) entered into an amended JCT Intermediate Building Contract with Trak Special Projects Ltd. (the defendant) for the construction of residential units. Practical completion was significantly later than the original completion date, and the defendant submitted a claim for an 18-week extension of time. They were awarded 9.5 weeks by the contract administrator. No further certificate of non completion was issued.

	When the defendant issued a final certificate for payment, the claimant issued a pay less notice which deducted liquidated damages. An adjudication was begun by the defendant on the grounds that the pay less notice was invalid.		When the defendant issued a final certificate for payment, the claimant issued a pay less notice which deducted liquidated damages. An adjudication was begun by the defendant on the grounds that the pay less notice was invalid.

−	The case focused on the interpretation of clauses 2.22 and 2.23 ~~of the JCT-IC,~~ which is constructed such that:	+	The case focused on the interpretation of clauses 2.22 and 2.23 which are constructed such that:

	'If the Contractor fails to complete the Works or a Section by the relevant Completion Date, the Architect/Contract administrator shall issue a certificate to that effect. If an extension of time is made after the issue of such certificate, the extension shall cancel that certificate and the Architect/Contract Administrator shall where necessary issue a further certificate.'		'If the Contractor fails to complete the Works or a Section by the relevant Completion Date, the Architect/Contract administrator shall issue a certificate to that effect. If an extension of time is made after the issue of such certificate, the extension shall cancel that certificate and the Architect/Contract Administrator shall where necessary issue a further certificate.'
Line 29:		Line 29:
	* Practical completion.		* Practical completion.

−	[[Category:Case_law]] [[Category:Contracts_/_payment]]	+	[[Category:Case_law]] [[Category:DCN_Case_Law]] [[Category:Contracts_/_payment]]

Editor: Created page with "The case of Octoesse LLP v Trak Special Projects Ltd. [2016] set an important precedent regarding ensuring the correct contractual procedures are adhered to when deducting liquid..."

2018-02-20T18:17:47Z

Created page with "The case of Octoesse LLP v Trak Special Projects Ltd. [2016] set an important precedent regarding ensuring the correct contractual procedures are adhered to when deducting liquid..."

New page

The case of Octoesse LLP v Trak Special Projects Ltd. [2016] set an important precedent regarding ensuring the correct contractual procedures are adhered to when deducting liquidated damages.

Octoesse LLP (claimant) entered into an amended JCT Intermediate Building Contract with Trak Special Projects Ltd. (defendant) for the construction of residential units. Practical completion was significantly later than the original completion date, causing the defendant to submit an 18-week extension of time claim. They were awarded 9.5 weeks by the contract administrator. No further certificate of non completion was issued.

When the defendant issued a final certificate for payment, the claimant issued a pay less notice which deducted liquidated damages. An adjudication was begun by the defendant on the grounds that the pay less notice was invalid.

The case focused on the interpretation of clauses 2.22 and 2.23 of the JCT-IC, which is constructed such that:

'If the Contractor fails to complete the Works or a Section by the relevant Completion Date, the Architect/Contract administrator shall issue a certificate to that effect. If an extension of time is made after the issue of such certificate, the extension shall cancel that certificate and the Architect/Contract Administrator shall where necessary issue a further certificate.'

The defendant argued that it was an express condition of the claimant’s entitlement to deduct liquidated damages that the contract administrator issued a certificate of non completion. Further, the effect of clause 2.22 was that when the extension of time had been given, it had cancelled the certificate of non completion.

Justice Jefford held that the claimant was not entitled to deduct liquidated damages as they had agreed to an extension of time after a certificate of non completion had been issued.

If, on the other hand, the claimant had given notice of their intention to deduct damages, but an extension of time had then been made and a further certificate of non completion issued, then they would not need to give notice of the intention to deduct again.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Certificate of non completion.
* Completion date.
* Contract administrator.
* Culpable delay.
* Extension of time.
* Extension of time - approval letter example.
* Intermediate building contract.
* Liquidated damages.
* Practical completion.

[[Category:Case_law]] [[Category:Contracts_/_payment]]