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Construction Contracts: Liquidated Damages Recoverable for Period Prior to Termination | White & Case LLP


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In Triple Point Technology v PTT, the Supreme Court of the United Kingdom has restored the orthodox position on how termination prior to completion of work affects the operation of a liquidated damages provision.
Liquidated damages clauses for delay in the completion of work are a common feature of commercial contracts. In 2019, however, significant doubt was cast on one aspect of their operation by the ruling of the Court of Appeal of England & Wales in
Triple Point Technology v PTT [2019] EWCA Civ 230 (see here): if the contract is substantially delayed, but terminated before completion of the work, to what extent (if at all) is the contractor liable to pay liquidated damages? ....

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