ABSTRACT
Contractor accepts the Company’s rejection as a repudiation and claims damages, the Contractor’s losses may include the costs incurred due to the cancellation of the transportation contract. 19.8 A dispute arises during the testing procedures, which the Contractor and the Company agree to resolve before delivery. The parties agree a compromise, which is set out in a ‘carry over’ agreement, as explained in more detail in Chapter 17. During the negotiation of such compromise, substantial demurrage for the transportation vessel is incurred. In the absence of an express contractual remedy, the Contractor would be liable for the additional transportation costs unless these are apportioned in the carry over agreement. 19.9 A delay may have been caused by the impact of Company-introduced variations. As explained in Chapter 6 on change orders, the Contractor may experience the consequences of a major change to the work only at the late stages of construction. The consequence of this may be an unexpected delay occurring at the outfitting phase when the additional volume of work caused by such variation becomes known. In such cases, the Contractor has a difficult burden of proving entitlement to additional compensation for the consequences of the variation. However, if there is an opportunity for the Contractor to recover such additional compensation, it could include the cost of transportation vessel standby, if this was a natural consequence of the impact of the variation.
