Civil Engineering Reference
In-Depth Information
J.F. Finnegan Ltd v. Community Housing Association Ltd
COURT OF APPEAL (CIVIL DIVISION)
(1995) 47 Con LR 25
In December 1986 the respondent J.F. Finnegan Ltd (Finnegan) entered into a written
agreement with the appellant, Community Housing Association Ltd (CHA), for the
construction of 18 flats at 46-47 Coram Street, London WC1, for the sum of just over
£750,000. The date for possession of the site was 1 December 1986 and the date for
completion was 1 March 1988. Liquidated and ascertained damages for non-completion
under clause 24 were stated to be at the rate of £2,500 a week or part of a week.
Clause 24 of the contract provided:
Certificate of Architect.
24.1 If the Contractor fails to complete the Works by the Completion Date then the
Architect shall issue a certificate to that effect.
Payment or allowance of liquidated damages.
24.2.1 Subject to the issue of a certificate under clause 24.1 the Contractor shall,
as the Employer may require in writing not later than the Final Certificate, pay or
allow to the Employer the whole or such part as may be specified in writing by the
Employer of a sum calculated at the rate stated in the Appendix as liquidated and
ascertained damages for the period between the Completion Date and the Date of
Practical Completion and the Employer may deduct the same from any monies due
or to become due to the Contractor under this Contract (including any balance stated
as due to the Contractor in the Final Certificate) or the Employer may recover the
same from the Contractor as a debt.
24.2.2 If, under clause 25.3.3, the Architect fixes a later Completion Date the
Employer shall pay or repay to the Contractor any amounts recovered, allowed or
paid under clause 24.2.1 for the period up to such later Completion Date.
Clause 25.3.3 provided:
25.3.3 Not later than the expiry of 12 weeks from the date of Practical Completion
the Architect shall in writing to the Contractor either
3.1 fix a Completion Date later than that previously fixed if in his opinion the
fixing of such later Completion Date is fair and reasonable having regard to any of
the Relevant Events . . .
On 9 March 1988 the architect certified under clause 24.1 that Finnegan had failed to
complete the works by the completion date. There was a delay to the project of 19 weeks
and CHA deducted £47,500 (i.e. 19 weeks × £2,500) from the certified amount, accom-
panying their cheque by a note which contained the following details:
Cert. 17
£61,518.00
LAD Damages
£47,500.00
£14,018.00
