Will Your LADs Survive Termination?

Those involved with construction and engineering contracts recognise the benefits of agreeing a predetermined level of damages (LADs) which will be payable to the employer, and which will operate as an exclusive remedy in the event the works are delayed beyond the specified completion date. Within this framework, the question as to whether the LADs agreed at the outset will survive the termination of a contract in delay is an important one. Part of the answer is, of course, that it depends on what the contract says. However, as Marc Wilkins explains, the judgment handed down by the Court of Appeal in Triple Point Technology Inc. v PTT Public Company Ltd¹ earlier this year has prompted those involved in construction projects to look at the provisions relating to LADs.