A very significant recent case, Walter Lilly v Mackay [2012] EWHC 1773 (TCC) has provided the construction industry with some much needed guidance and clarity in relation to treatment of many of the common elements of construction disputes: extensions of time, concurrent delay and loss and expense.
The project, the construction of a luxury town house for Mr Mackay and his family, was labelled by Mr Justice Akenhead as "a disaster waiting to happen". Design responsibility remained for the most part with the client’s architect although when construction began very little of the design had been finalised. The list of design decisions awaiting client approval grew longer as did the lists of alleged defects as the project progressed. Unsurprisingly the project fell behind programme and the relations between the parties deteriorated badly. Walter Lilly brought proceedings seeking:
An extension of time until the date of practical completion
The return of liquidated damages and sums wrongly deducted and
Loss and expense related to the delays on the project and unpaid value of the works.
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