- Court considers multiple issues in termination dispute (PBS Energo v Bester Generacion)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Ground conditions risk (paras –)
- Implied terms regarding performance security (paras –)
- Rejection of EOT claim (paras –)
- Milestone payment (paras –)
- Abandonment of the works (paras –)
- Liquidated damages (paras –)
- Case details
Construction analysis: The Technology and Construction Court rejected a sub-contractor’s claim that it had been entitled to terminate a sub-contract based on the FIDIC Silver Book 1999, instead finding that it was the main contractor that had been entitled to terminate due to abandonment of the works by the sub-contractor. In reaching its conclusion, the court made various findings in relation to (among other things) responsibility for ground conditions, implied terms relating to performance security, whether the rejection of a valid extension of time (EOT) claim amounted to a material breach, the prevention principle in the context of abandonment of the works and whether the right to liquidated damages survived termination.
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