ABSTRACT
Contractor was unable to complete the outstanding work by the agreed deadline for commencement of operations under the terms of the delivery agreement. The Company claimed payment of liquidated damages for the Contractor’s failure to rectify all items by the drilling deadline, even though drilling operations commenced on the deadline, notwithstanding the existence of outstanding items of work and the Company suffered no loss. 17.23 Solution: Liquidated damages were payable even though no loss had occurred, because of the contractual agreement which the parties had made. The Contractor unsuccessfully tried to rely on the ambiguous wording of the hastily drafted carry over agreement to dispute whether liquidated damages were payable once drilling operations had commenced.2
