ABSTRACT
This chapter deals with delay beyond that contractual deadline and the consequences thereof. The conventional method for the Contractor to limit its potential liability for failure to deliver the work by the contractually agreed deadline is to incorporate into the contract a mechanism for compensating the Company for delay by way of payment of liquidated damages. Offshore construction contracts often provide that the consequence of an error or omission by the Company which prevents or hinders the Contractor's performance of the work is that the Contractor is entitled to an extension of time for completion. In the context of the overall project, the contract in dispute was a subcontract for part of the deck structure. The Contractor agreed to build pallets for incorporation into the weather deck of a tension leg platform for the Hutton field in the North Sea. The design for the platform was described as 'novel' and the pallets themselves had a bespoke design.
