WHEN IT'S OVER, IT'S OVER

摘要

A recent Court of Appeal decision provides much-needed clarity on the operation of liquidated damages clauses in respect of delay after the termination of a construction contract. The case, Triple Point Technology Inc vs PTT Public Co Ltd [2019] EWCA Civ 230, concerned a contract for procurement of software and related services between PTT as employer and Triple Point as supplier. The contract documents provided for payment by milestones, but also included specific dates for payment. Work under the contract was delayed and Triple Point sought payment according to the dates referred to in the contract documents. PTT refused payment on the basis that the relevant milestones had not been achieved. Triple Point suspended work for non-payment and PTT purported to terminate the contract for Triple Point's default. Among other issues in dispute, a question arose as to whether PTT could claim liquidated damages for delay. The clause in question required Triple Point to pay "the penalty at the rate of 0.1% of undelivered work per day of delay from the due date for delivery up to the date PTT accepts such work"