Cases - Bruno Zornow (Builders) v Beechcroft Development

Record details

Name

Bruno Zornow (Builders) v Beechcroft Development

Date

[1990]

Citation

51 BLR 16

Keywords

Construction contracts - liquidated damages - delayed completion - extension of time - JCT standard form of building contract (1963 edition) - sectional completion dates - expansion of scope of works to be carried out in two phases - whether court prepared to imply term for sectional completion dates

Summary

This dispute concerned preliminary works for a housing development carried out under the JCT Standard Form of Building Contract, 1963 edition (1977 revision). The date for possession was set as 10 June 1985 with completion by 10 August 1985. The original works programme provided for payment of liquidated damages in the sum of £200/week for each block from the date when it ought to have been completed.

Following the commencement of works, a revised construction programme was sent which expanded the scope of works and provided that the same should be carried out in two phases, the first to complete in May 1986 and the second in November 1986. Completion occurred in December 1986, and extensions of time were granted to July 1986 and December 1986 for each phase respectively. The architect held back liquidated damages in the sum of £40,000, using the liquidated damages provision relating to the original (unphased) construction programme. The Court refused to imply a term for sectional completion dates, and no liquidated damages were payable.