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ARTICLE · 26 APRIL 2019

Prevention Principle And Expressly Agreed Terms

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Parties to a construction contract may allocate the risk of concurrent delay without being in contravention of the common law doctrine of prevention

United KingdomReal Estate and Construction

Key points:

  • Parties to a construction contract may allocate the risk of concurrent delay without being in contravention of the common law doctrine of prevention
  • In North Midland, the building contract provided that, where there was a delay caused by an event for which the contractor was responsible and this delay was 'concurrent' with a delay for which the employer was responsible, then the parties were free to allocate that responsibility of concurrent delay as they saw fit
  • If parties agree that the contractor bears the risk of concurrent delay, and therefore is not entitled to an extension of time and must pay liquidated damages for the period of delay, the courts will give effect to that provision in a contract

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