On a £2 million main contract, with delays resulting from numerous Variations, the Employer decided to terminate the main contract, even though the project was just 3 months from completion. The Employer then sought to recover his losses from our client. The two key issues here were (a) was the Employer within his rights to terminate the main contractor’s employment and if so was the Employer entitled to recover damages and if so how much or (b) was the Employer in breach of contract enabling the main contractor to recover his damages resulting from that breach.
How did Edge Consult help:
Following Edge Consult’s appointment, it was evident the difference between the two parties’ positions were insurmountable without a decision from a third party. Having reviewed all available documents, Edge Consult believed the main contractor was in a strong position. As such, they prepared an adjudication. This involved establishing (a) the Employer was in breach of contract, (b) the main contractor was entitled to extensions of time due to the Variations and (c) the value of the final account including loss and/or expense.
The Adjudicator’s decision was the Employer was in breach of contract. This was essential in removing the risk of any damages becoming due to the Employer and enabling the main contractor to recover his costs. The adjudicator also awarded an extension of time for much of the delay period and decided the amount of money to be paid to the main contractor. As a result, the main contractor was able to recover most of his costs and without any payment becoming due to the Employer.