Extensions of time: North Midland v Cyden Homes

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  1. For those of us who can’t pick apart the legal chat – Who won the case?
    I understood all of it until the judgement.
    Please don’t make me use a sad emoji face, I hate it when people do that.

  2. Judgement in favour of the Employer I believe

  3. The previously “accepted” position in law was that where there were two concurrent causes of delay, one the responsibility of the Employer, the other the responsibility of the Contractor, the Contractor would be entitled to “time” but not costs – see Henry Boot -v- Malmaison 1999 and confirmed more recently in “Walter Lilly” 2012.

    The effect of amendment made in the contract above was to remove the Contractor’s right to an extension of time, and, as a consequence, left the Contractor exposed to liquidated damages for delay. As amendments go, not a particularly sensible one from the Contractor’s perspective.

  4. I can’t see this judgement standing the test of time, notwithstanding the amendments to clauses 2.25/2.26. Logic dictates that if the Contractor is prevented by the Employer from recovering its own concurrent delays, due to Relevant Events, then the Employer cannot benefit (by receiving liquidated damages) from its own defaults. In this case Cyden is clearly benefitting from its own acts of prevention.

  5. “This is usually a disaster for a developer or employer as the contractor is only required to complete within what is deemed a reasonable period of time.”

    A requirement that the contractor is “only” required to complete within a reasonable period of time seems, to me, to be, well, reasonable, very reasonable, feasible, realistic even. What else would be expected? Completion within an unreasonable period of time? How about completion within a miraculously short period of time?
    Calling something which is reasonable a disaster simply indicates unrealistic expectations, from which all disappointments follow.
    The guy is a contractor. He can’t pull rabbits out of a hat.
    When I engage a lawyer, I expect his best endeavours, not a guarantee of success.

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