Parkway Construction Ltd (In Liquidation) v Howard De Walden Estates Ltd
2014
TECHNOLOGY AND CONSTRUCTION COURT
UK
CORAM
- MR JUSTICE AKENHEAD
Areas of Law
- Contract Law
- Civil Procedure
- Construction Law
2014
TECHNOLOGY AND CONSTRUCTION COURT
UK
CORAM
AI Generated Summary
This case involves Parkway Construction Ltd's claim against Howard de Walden Estates Ltd over disputed building works, extensions of time, and liquidated damages. Parkway's insolvency complicated the matter, leading to a summary judgment application. The court dismissed the application, citing the need for a full trial to resolve significant factual disputes and finding that accrued rights were enforceable post-termination.
JUDGMENT
Mr Justice Akenhead:
The Claimant, Parkway Construction Ltd (“Parkway”) retained by the Defendant, Howard de Walden Estates Ltd (“HDW”), to carry out building works, seeks mainly declaratory relief by way of a summary judgment application which has been described by its own advocate representative as unorthodox. That it is unorthodox, at the very least, arises out of the facts that Parkway’s claims in these proceedings relate to its final account, for loss and expense, for extension of time and for declarations germane to such alleged entitlements and that these claims are factually challenged.
Background
In September 2007, Parkway was employed by HDW to carry out structural alterations and external repairs and construct a mansard roof (“the Works”) at 42-50 Weymouth Street, London W1. The contract was in the JCT Intermediate form of Building Contract (Revision 1 2007). The Contract Administrator was Howard de Walden Management Ltd. Parkway was required to commence the Works and, subject to any entitlements to extension of time, to complete by 22 September 2008. The Contract Sum was £1,557,670. Liquidated damages for delay were to be at the rate of £24,000 per week.
Clause 2.21 provided for practical completion of the Works to occur when the Contract Administrator so certified. The liquidated damages provisions were:
“2.22 If the Contractor fails to complete the Works….by the relevant Completion Date, the… Contract Administrator shall issue a certificate to that effect…
2.23.1 Provided:
.1 the Contract Administrator has issued a certificate under rule 2.22; and
.2 the Employer has informed the Contractor in writing before the date of the Final Certificates that he may require payment of, or may withhold or deduct, liquidated damages,
the Employer may, not later than 5 days before the final date for payment of the debt due under the Final Certificate, give notice in writing to the Contractor in the terms set out in clause 2.23.2.
.2 A notice from the Employer under clause 2.23 shall state that for the period between the Completion Date and the date of practical completion of the Works…:
.1 he requires the Contractor to pay liquidated damages at the rate stated in the Contract Particulars or lesser rate stated in the notice, in which event the Employer may recover the same as a debt; or
.2 that he will withhold or deduct liquidated damages at the rate stated in the Contract Particulars…from monies due to the Contractor.”
Clause 8 addre