Cases - McAlpine Humberoak v McDermott International

Record details

Name

McAlpine Humberoak v McDermott International

Date

(1992)

Citation

58 BLR 1

Keywords

Construction contracts - liquidated damages - variations/additional work - delay notwithstanding variations/additional work - extension of time - whether contractor liable under liquidated damages clause

Summary

The claimant was a contractor engaged by the defendant to supply and install steel parts for an oil platform off the Shetland Islands. From the outset, the works fell into delay, with both parties blaming each other for the same. Extra work was ordered by the defendant towards the end of the construction process, on 11 June 1982.

The Court of Appeal held the claimant responsible for the majority of the delay and, notwithstanding the late instruction of additional work, the claimant was only entitled to an extension of time until 30 April 1982 (i.e. prior to the instruction of that additional work). Lloyd LJ put the point succinctly as follows:

'If a contractor is already a year late through his culpable fault, it would be absurd that the employer should lose his claim for unliquidated damages just because, at the last moment, he orders an extra coat of paint.'