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ARTICLE · 03 OCTOBER 2018

Construction Law Update - Excluding Concurrent Delay And The Prevention Principle

North Midland (contractor) and Cyden (employer) entered into a contract based on an amended JCT 2005 form.

SingaporeReal Estate and Construction

In North Midland Building Ltd v Cyden Homes Ltd (2018) EWCA Civ 1744, the Court of Appeal of England and Wales (CA) held that a clause excluding a contractor's entitlement to an extension of time for concurrent delay was enforceable. More controversially, in reaching its decision, the CA also suggested that parties to a construction contract could contract out of the prevention principle.*

Facts of the Case

  • North Midland (contractor) and Cyden (employer) entered into a contract based on an amended JCT 2005 form. The clause in question, Clause 2.25.1.3(b), stipulated that where North Midland caused delay, and such delay was concurrent with delay caused by Cyden, Cyden need not need to take such delay into account when calculating North Midland's entitlement to an extension of time ("EOT").

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