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ARTICLE · 22 NOVEMBER 2024

FES Ltd v HFD Construction Group Ltd

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In a dispute over FES's entitlement to loss and expense under the SBC/Q/Scot contract, the court upheld the adjudicator's decision that FES's failure to comply with the notice requirement in clause 4.21 barred their claim. Lord Carloway emphasized the clarity of the contract's wording, affirming that notice was a condition precedent for recovery.

United KingdomReal Estate and Construction
Jeremy Glover
Jeremy Glover
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[2024] CSIH 37

We discussed this case in Issue 285. The parties had entered into a contract for fit-out works based on the Standard Building Contract with Quantities for use in Scotland (SBC/Q/Scot) (2016 edition), as amended. During the project, FES had encountered various delays, including site closure due to the COVID-19 pandemic. There was a dispute about FES's entitlement to an extension of time and their claim for related loss and expense. A preliminary issue arose as to whether or not the giving of a notice in terms of clause 4.21 was a condition precedent for recovering loss and expense. The adjudicator and the court, at first instance, said that it was. As FES had not given the required notice, then they would have no entitlement to direct loss and expense. FES appealed.

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This article is taken from Fenwick Elliott's 2021/2022 Annual Review. To read further articles go to Fenwick Elliott Annual Review 2021/2022

This article is based on recent summaries from the Fenwick Elliott Dispatch, a monthly newsletter which highlights some of the most important legal developments during the last month, relating to the building, engineering and energy sectors. You can find further details here: https://www.fenwickelliott.com/knowledge-hub/dispatch-articles/

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