ABSTRACT

Delay is one of the most common causes of disputes in offshore construction contracts; the contract will usually contain many provisions relating to dates for completing each phase, extensions of time and liquidated damages for delay. Chapter 8 looks first at the various different contractual dates against which delay may be measured. It then discusses the consequences of delay, in particular, the liquidated damages regime, and whether a liquidated damages clause may be unenforceable as a penalty clause. The chapter considers delay and disruption claims, and how these may be formulated for the court or tribunal when it may be difficult to track the delay caused by numerous individual events. The final section looks at delay caused by the Company, the application of the prevention principle and its interaction with contractual regimes dealing with delay.