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ARTICLE · 14 APRIL 2010

Termination and Making Time of the Essence

Fenwick Elliott LLP
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What can a party do if there are delays to construction works? Is there any consequence if you demand that those works are completely urgently?

United KingdomReal Estate and Construction
Nicholas Gould
Nicholas Gould
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What can a party do if there are delays to construction works? Is there any consequence if you demand that those works are completely urgently? This particular problem came up in the case of Sunshine Ventures Limited & Rashmith Thakar v Hussein - [2009] EWHC 2866 (QB)

The Facts:

Sunshine Ventures owned a nursing home and one of its directors, Rashmith Thakar owned a flat. Both parties engaged Kurdeih to carry out work to the nursing home and the flat. There was very limited documentation. Disputes arose regarding delay and completion of the work as well as the making of interim payments to Kurdieh. Thakar demanded that outstanding work be completed as a matter of urgency. Two months later, the work to both the nursing home and flat was terminated by the claimants. At that time, the work had not yet been completed.

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