CASE DIGEST: Court rejected narrow interpretation of guarantee issued by parent company which sought to limit extent of guarantor’s on demand liability to those claims where liability was admitted and only quantum was disputed

In Rubicon Vantage International PTE Ltd v Krisenergy Ltd [2019] EWHC 2012 (Comm), the court determined that the fact that a parent company, and not a financial institution, issued the guarantee was no reason to limit the terms of the guarantee.  The wording of the guarantee was the key consideration when determining the scope of … Read more

The rule on penalties in Makdessi applied to EPC contracts

The decision in (1) GPP Big Field LLP and (2) GPP Langstone LLP v Solar EPC Solutions SL (formerly known as Prosolia Siglio XXI) [2018] EWHC 2866 (Comm) has applied the Supreme Court’s recast penalties test from Makdessi1. The decision is one of the few construction cases that have applied Makdessi in determining whether liquidated … Read more

The limits of the duty of mutual trust and cooperation

The NEC Form of Contract is now in wide use. The first clause says that the parties “shall act as stated in this contract and in a spirit of mutual trust and co-operation”, often referred to as “good faith”. What this means in practice is a question of importance for the construction industry, both in … Read more

Design liability under the NEC form of contract

In SSE Generation Limited v Hochtief Solutions AG and another decided on 21st December 2016, the Court of Session in Scotland considered a contractor’s potential design liability under the NEC Form of Contract. It concluded that the contractor was not obliged to guarantee the performance of the works where Option M (X15) was adopted so … Read more