£122,500 Reduction in Liquidated Damages Secured in Extension of Time Adjudication

Working with and advising a specialist roofing contractor on an extension of time and liquidated damages dispute.

Holmes & Hills' construction solicitors acted for a specialist roofing contractor in an adjudication concerning delay to the refurbishment of a high-end car manufacturer's UK showroom.

Background

The roofing contractor had been engaged by a main contractor to undertake the roofing works. As the project approached completion, the main contractor rejected most of the roofing contractor's applications for extensions of time and attributed ten weeks of delay to it.

The main contractor then deducted liquidated damages at the contractual rate of £2,500 per day. The roofing contractor disputed responsibility for the delay and maintained that the main contractor's own activities had prevented it from progressing work on the project's critical path.

Extension of time adjudication

Holmes & Hills commenced an adjudication to determine the roofing contractor's entitlement to an extension of time and the main contractor's corresponding entitlement to liquidated damages.

The adjudication was technically complex and included expert delay evidence from both parties. The central issue was whether the roofing contractor had been able to progress the critical works during the relevant period, or whether progress had been prevented by the main contractor's activities on site.

The outcome

The adjudicator substantially accepted the roofing contractor's case and awarded extensions of time for seven of the ten disputed weeks. This reduced the main contractor's entitlement to liquidated damages by £122,500.

The decision also created the basis for the parties to negotiate and successfully settle the final account shortly afterwards.

Why the case matters

Extension of time disputes often turn on the quality of the contemporaneous project records and the parties' ability to demonstrate what affected the critical path. A focused adjudication can resolve that issue quickly, reduce or defeat a deduction of liquidated damages and unlock negotiations over the wider final account.

Get expert construction adjudication advice

If an extension of time has been rejected or liquidated damages are being deducted, early advice can help identify the records and expert evidence needed to protect your position.