ABSTRACT
This chapter outlines a number of principles of the background law. These affect the application of the remedies available beyond the contract terms, but also give substance to the provisions of the contracts themselves. Within the particular sphere of construction contracts, an important distinction is determined between a contract performed, albeit perhaps with difficulty, and a contract broken off. The usual purpose of liquidated damages in main building contracts is to provide against late completion of the works by the contractor. A contractor may choose to expend some amount of effort in drawing up a claim over one of the major contingencies which the standard forms recognise. Contracts and subcontracts generally require the contractor to provide the architect or, in the case of loss and expense, the quantity surveyor with limited information in support of a notice or application from which the person acting may calculate the contractual entitlement.
