Issue 16

If your contract makes no provision that a contractor must proceed regularly and diligently, can you still terminate if the contractor falls into delay?

Liquidated damages tend to be a fairly standard part of most construction and engineering projects.

The Court of Appeal decided that the lengthy delays (which it was estimated could run into decades) in the proceedings challenging the award in Nigeria were such that it would be inconsistent with the principles of the New York Convention if IPCO had to wait until the outcome of those challenges in the Nigerian courts before being able to enforce the award.

This article revisists the relevant legal implications that may arise in affected areas, covering both a reminder of how force majeure will operate, and also when the principle of frustration might apply.