Liquidated damages not payable in absence of replacement Non-Completion Certificate (D McLaughlin v Linthouse Housing Association)

Table of contents

• What are the practical implications of this case?
• What was the background?
• Failure to issue Non-Completion Certificate
• Refusal to dismiss DMS’s claim in the absence of a relevant basis to establish the extent of its entitlement and the true value of its work
• Entitlement to extension of time and loss and expense
• What did the court decide?
• Case details

Article summary

Construction analysis: The Sheriff Appeal Court found that where a Non-Completion Certificate was originally issued, and liquidated damages (LADs) deducted, but an extension of time was subsequently granted which revised the initial date for completion and resulted in the LADs being reduced, the employer’s architect/contract administrator should have issued a replacement Non-Completion Certificate in respect of the revised date of completion being missed. A failure to do so resulted in the employer losing its right to deduct LADs notwithstanding that, even with the extension, the works were still completed late.