The recent decision in the Court of Appeal case of Triple Point Technology, Inc. v PTT Public Company Ltd [2019] EWCA Civ 230 challenges certain assumptions typically made in relation to liquidated damages clauses, and is of considerable relevance to the construction industry. The decision related to the interpretation of a liquidated damages clause for delay where the supplier never achieved completion and the contract was terminated. The Court of Appeal held that, given the wording of the clause, it was engaged only where the work was completed by the contractor but not where it was left incomplete, and that in the latter scenario the employer was entitled only to general damages.
We have previously written about this decision here on our Litigation Notes blog. In this e-bulletin, we reflect in further detail on the potential implications of the decision for construction and engineering contracts.