Order restored: High Court clarifies quantum meruit

After over a decade of uncertainty, the High Court yesterday reined in the use of the quantum meruit remedy. A majority of the Court found that builders can no longer seek compensation on a quantum meruit basis in relation to works where the builder has accrued a right to payment under the contract. While builders can commence a claim … Read more

Managing Contractor Insolvency: Part 3 – completing the project, engaging with the 2nd tier supply chain and relationship between insolvency and adjudication

This is part 3 of our 3-part blog series focusing on contractor insolvency. In part 1, we discussed the key signs and implications of contractor insolvency followed by part 2, which discussed the legal, commercial and other practical considerations for mitigating the impact of contractor insolvency. This part 3 concludes by exploring an employer’s options … Read more

New Malaysian Latent Damages Regime: Uncertainty out of Clarity?

On 1 September 2019, the Malaysian Limitation (Amendment) Act 2018 (“Act“) came into force, introducing, for the first time, a statutory limitation period regime for latent damages claims[1] – currently only applicable to negligence actions that do not involve personal injuries.[2] With the new Section 6A, the limitation period for non-personal injury negligence claims is … Read more

Case Digest: Court of Appeal finds contractual provisions requiring payment on sign-off were compliant with Construction Act and provides guidance on how non-compliant payment provisions will be replaced by Part II of the Scheme

In Bennett (Construction) Limited v CIMC MBS Limited (formerly Verbus Systems Ltd) [2019] EWCA Civ 1515, the Court of Appeal held that contractual payment terms, which included provisions requiring payment “on sign-off”, were in accordance with the Housing Grants, Construction and Regeneration Act 1996 (the “Construction Act“). This case also provides notable guidance on how … Read more

Managing Contractor Insolvency: Part 1 – key signs and implications of contractor insolvency and further consequences of insolvency involving a joint venture contractor

One of the biggest risks faced by an employer in a construction project is the impact of the main contractor becoming insolvent, particularly in the current economic climate where it has become clear that main contractors are not regarded as being “too big to fail”. In this 3-part blog series, we discuss how this risk … Read more

Case Digest: The importance of the written word – delays in moving (Heaven) and Earth

In Lucas Earthmovers Pty Limited v Anglogold Ashanti Australia Limited [2019] FCA 1049, the Federal Court of Australia considered several issues that typically arise in large-scale resources projects. In so doing, it reinforced the sanctity of the agreed bargain between the parties and highlighted the inherent difficulties in proving the oft-claimed, but rarely successful, misleading … Read more