Knutson Rainbow

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    AN ENGLISH LAWYER’S VIEW OF THE NEW FIDIC RAINBOW

     – WHERE IS THE POT OF GOLD?

    ROBERT KNUTSON

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    INDEX

    CLAUSE 1 - INTRODUCTION

    Implied Terms !der E!glis" La#

    Spe$ial Co!sidera%io! of %"e Sil&er 'oo(

    E!glis" Ca!o!s of I!%erpre%a%io! of $o!%ra$%s

    E!glis" la# of Tor%

    DISCUSSION O) CERTAIN *ENERAL CONDITIONS

    Defi!i%io!s

    I!%erpre%a%io!

    Comm!i$a%io!s

    La# a!d La!gage

    Priori%+ of Do$me!%s

    Co!%ra$% Agreeme!%

     Assig!me!%

    Dela+ed Dra#i!gs or I!s%r$%io!s

    CLAUSE 2 - T,E EPLO.ER

    Rig"% of A$$ess %o %"e Si%e

    Permi%s/ Li$e!$es or Appro&als

    Emplo+er0s )i!a!$ial Arra!geme!%s

    Emplo+er0s Claims

    CLAUSE 3 - T,E EN*INEER

    E!gi!eer0s D%ies a!d A%"ori%+

    33 I!s%r$%io!s of %"e E!gi!eer Ora!ge a!d Red 'oo(s

    34 I!s%r$%io!s Sil&er 'oo(

    CLAUSE 4 - T,E CONTRACTOR

    41 Co!%ra$%or0s *e!eral Oliga%io!s Ora!ge a!d Red 'oo(s

    42 Performa!$e Se$ri%+

    44 S-Co!%ra$%ors Red a!d Ora!ge

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    416 Si%e Da%a Red 'oo(

    412 U!foreseeale P"+si$al Co!di%io!s

    4157418A$$ess Ro%e7Tra!spor% of *oods

    419 Pro%e$%io! of %"e E!&iro!me!%

    CLAUSE 5 - DESI*N SIL:ER AND ORAN*E 'OO;S

    51 *e!eral Comme!%s - Desig! Sil&er a!d Ora!ge 'oo(s

    54 Te$"!i$al S%a!dards a!d Regla%io!s

    CLAUSE < - PLANT/ ATERIALS AND =OR;ANS,IP

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    141 T"e Co!%ra$% Pri$e

    148 Isse of I!%erim Pa+me!% Cer%ifi$a%es

    149 Dela+ed Pa+me!%

    1414 Cessa%io! of Emplo+er0s Liaili%+

    CLAUSE 15 - TERINATION '. EPLO.ER

    151 No%i$e %o Corre$%

    152 Termi!a%io! + Emplo+er 

    154 Pa+me!% af%er Termi!a%io!

    155 Emplo+er0s E!%i%leme!% %o Termi!a%io!

    CLAUSE 18 - SUSPENSION AND TERINATION '. CONTRACTOR

    CLAUSE 1< - RIS; AND RESPONSI'ILIT.

    1

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    %re %"a% E!gla!d is %"e "ome %o %"e Commo! La# i! %"is se!se as ma!+ o%"er risdi$%io!s

    "a&e eFi&ale!% legal %radi%io!s a!d i% is also/ %"ese da+s/ o!l+ par%iall+ %re %"a% E!glis" la# is

    !$odified I!deed #i%" %"e "a!ds of 'rssels a% so ma!+ of %"e s#i%$"es o! %"e $o!%rol

    pa!el %"is asi$ $o!$ep% of %"e Commo! La# seems is e$omi!g less impor%a!% i! ma!+

    areas of dail+ life

    T"e Commo! La# "as %#o grea% ra!$"es so far as si!essme! are $o!$er!ed %"e la# of 

    Co!%ra$% a!d %"e la# of Tor% $i&il #ro!g To %"is ma+ e added a!o%"er rela%i&el+ amorp"os

    $a%egor+ &ariosl+ $"ara$%erised as %"e la# of res%i%%io! or Fasi-$o!%ra$% *e!erall+

    spea(i!g/ %"e la# of res%i%%io! is more de&eloped i! ma!+ of E!gla!d0s former $olo!ies %"a!

    E!gla!d i%self #"ere %"e rles for re$o&er+ "a&e remai!ed rela%i&el+ $o!s%rai!ed + %"e same

    do$%ri!es of stare decisis a!d pre$ede!%s

    I% #as o!$e %"og"% + some %"a% Co!s%r$%io! La# #as !o%"i!g more %"a! a ma!ifes%a%io! of 

    %"e la# of Co!%ra$%s/ a!d !o% a par%i$larl+ spe$ial o!e a% %"a% 1 =i%" %"e e!a$%me!% of spe$ial

    legisla%io! deali!g e>$lsi&el+ #i%" Co!s%r$%io! Co!%ra$%s/ for e>ample #i%" respe$% %o ,eal%"

    a!d Safe%+ a!d %"e resol%io! of $o!s%r$%io! disp%es/ %"is is less %re %"a! i% #as %#e!%+

    +ears ago )r%"er a ss%a!%ial od+ of spe$ialis% $o!s%r$%io! la# $ase ma%erial a!d

    do$%ri!al #ri%i!gs "as ee! de&eloped a!d ser&es as a sefl gide for legal pra$%i%io!ers i!

    %"is area despi%e %"e o$$asio!al a%%emp%s %o i!di$a%e %"a% ea$" Co!%ra$% ms% e $o!sidered

    i!di&idall+ #i%"o% regard %o %"a% od+ of la#2

    ="e! $o!sideri!g %"e )IDIC Co!%ra$%s/ o!e mig"% reaso!al+ %"i!( %"a% E!glis" la# $a!

    ma(e a !iFe/ posi%i&e $o!%ri%io! %o %"eir !ders%a!di!g a!d a!al+sis I% is a simple fa$%

    %"a% %"e i!%er!a%io!alis% ami%io!s of E!glis" e!gi!eers assis%ed i! %"e spread of E!glis" $i&il

    e!gi!eeri!g $o!%ra$% %ermi!olog+ %o dis%a!% risdi$%io!s lo!g efore %"e e!d of %"e las%

    $e!%r+/ a!d %"a% %"e 'ri%is" Empire spread E!glis" Commo! La# !o%io!s/ i! par%i$lar for 

    %"ese prposes/ $o!s%r$%io! la# !o%io!s/ li%erall+ all aro!d %"e =orld )i!all+ i% is #ell (!o#

    %"a% %"e firs% edi%io! of %"e )IDIC Red 'oo( #as ased o! %"e ICE 4 %"  edi%io! 1@55 $i&il

    e!gi!eeri!g $o!%ra$% %"a% #as firs% plis"ed i! U;

    I% is i!deed a fas$i!a%i!g e>er$ise %o go a$( %o 1@ %" $e!%r+ la# repor%s a!d &ersio!s of 

    $o!s%r$%io! $o!%ra$%s %o see #"a% is %"e "is%or+ of par%i$lar $o!s%r$%io! rela%ed !o%io!s a!d

    p"rases is A simple e>ample lies i! %"e $o!$ep% of a$$elera%io! If o!e #ere %o do a legal

    da%aase $omp%er sear$" o! %"e #ord a$$elera%io! i% #old/ so far as I (!o#/ appear i! &er+

    fe# moder! repor%ed E!glis" $ases I% is of $orse a $o!$ep% #"i$" is !o# deepl+ roo%ed i!

     Ameri$a! $o!s%r$%io! $o!%ra$% risprde!$e Del&i!g deeper i!%o %"e E!glis" pas% %"og" I

    #as amsed %o fi!d i% sed i! a! 19560s $ase #"ere %"e+ sed %"e $o!$ep% a% a %ime #"e!

    1  See %"e $omme!% ma(i!g e>a$%l+ %"is poi!% i! %"e S#edis" $"ap%er 2 T"is is i!deed a s%ra!ge !o%io! $o!sideri!g %"e f!dame!%al ases of E!glis" la# i%self

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    !for%!a%e arris%ers $ler(s "ad %o !der%a(e a form of impa$% a!al+sis lo!g efore %"e+

    $old $all o! %"e aid of $omp%er assis%ed e>per%s

    E!glis" la# as i% mig"% e applied %o )IDIC #i%"o% a spe$ifi$ $ase %o $o!sider %"is is al#a+s

    a spe$la%i&e e>er$ise #ill %"s e applied #i%" a se!se of "is%ori$al gra&i%+ a!d of $orseeFi&o$a%io! e$ase #"ils% %"e la# is reaso!al+ #ell es%alis"ed i! mos% areas %"e

    Commo! La# $a! al#a+s de&elop a!d $"a!ge as o!e $olleage said/ #i%" !e# de$isio!s %o

    s"o# s #"a% %"e la# "as al#a+s ee!

    Impli! T"m# $%!" E%&li#' L()

    I% is reaso!al+ #ell a$$ep%ed %"a% !li(e ma!+ $o!%i!e!%al s+s%ems/ E!glis" la#/ par%i$larl+

    %"e la# of $o!%ra$%s/ does !o% pla$e a! oliga%io! %o a$% i! good fai%" o! $o!%ra$%i!g par%ies

    T"e la# does "o#e&er impose a $er%ai! !mer of Gimplied %ermsH i!%o $o!s%r$%io!

    $o!%ra$%s/ !less %"e+ are e>pressl+ e>$lded + %"e $o!%ra$% i%self T"ere are &arios

    formla%io!s of %"ese implied %erms % %+pi$all+ Claima!% $o!%ra$%ors mig"% plead %"a% %"ere

    #ere implied %erms alo!g %"e follo#i!g li!es-

    1 T"a% %"e Emplo+er #old !o% "i!der or pre&e!% %"e Claima!% $o!%ra$%or from

    $arr+i!g o% i%s oliga%io!s i! a$$orda!$e #i%" %"e %erms of %"e $o!%ra$%?

    2 T"a% %"e Emplo+er #old !o% "i!der or pre&e!% %"e Claima!% $o!%ra$%or from

    $arr+i!g o% %"e =or(s i! a reglar a!d orderl+ ma!!er?

    3 T"a% %"e Emplo+er #old !o% "i!der or pre&e!% %"e Claima!% $o!%ra$%or from

    $omple%i!g %"e =or(s i! a$$orda!$e #i%" %"e $o!%ra$%or0s programme?

    4 T"a% %"e Emplo+er #old %a(e all s%eps reaso!al+ !e$essar+ %o e!ale %"e

    $o!%ra$%or %o dis$"arge i%s oliga%io!s i! a$$orda!$e #i%" %"e %erms of %"e $o!%ra$%

    a!d %o e>e$%e %"e =or(s i! a reglar a!d orderl+ ma!!er i! a$$orda!$e #i%" %"e

    programme?

    5 T"a% #"ere i! %"e $o!%ra$% %"e spe$ifi$a%io!s !amed sppliers or ma!fa$%rers

    #ere lis%ed %"e sppliers or ma!fa$%rers so !amed #ere ale %o mee% %"e

    reFireme!%s se% o% i! %"e %erms of %"e $o!%ra$% or spe$ifi$a%io! i! respe$% of #"i$"

    %"e+ #ere lis%ed?

    8 T"a% %"e E!gi!eer #old pro&ide %"e $o!%ra$%or #i%" $orre$% i!forma%io! $o!$er!i!g

    %"e =or(s0

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    e$%ed i! a$$orda!$e #i%" s$" pla!s a!d spe$ifi$a%io!s3

    I% $a! e see! %"a% implied %erms do m$"/ i! reali%+/ %o ma(e p for a!d per"aps e&e! go

    e+o!d %"e oliga%io!s imposed + %"e oliga%io! %o a$% i! good fai%"

    Sp*i(l C+%#i!"(,i+% +- ,' Sil." B++/

    T"e Sil&er 'oo( for Tr!(e+ a!d 'OT Proe$%s "as pro&e!/ p %o %"e %ime of #ri%i!g %"is/ %o e

    Fi%e $o!%ro&ersial T"e s%a%ed aim of %"e a%"ors is %o s"if% a#a+ from a GfairH allo$a%io! of 

    ris( %o o!e #"i$" pla$es a grea%er rde! po! %"e $o!%ra$%or 4 I! par%i$lar i% "as also ee!

    !o%ed + a !mer of par%ies %"a% %"e allo$a%io! of ris( pro&isio!s ma+ !o% i! fa$% #or( !der 

    $i&il la# s+s%ems5  U!der E!glis" la# %"e pri!$iples of Gfreedom of $o!%ra$%H are s$" %"a% %"is

    is less li(el+ %o e a prolem al%"og" %"e do$%ri!es rela%i!g %o i!%erpre%a%io! of $o!%ra$%s/

    !fair $o!%ra$% %erms/ contra pro&erentu$/ ma+ all e $alled %o aid par%ies "a&i!g %role #i%"

    %"e allo$a%io! of ris( !der %"is $o!%ra$% I! par%i$lar/ !der E!glis" la# $o!%ra$%ors or 

    i!deed a!+ aggrie&ed par%+ $a! $laim rig"%s ei%"er !der %"e $o!%ra$% or for rea$" of $o!%ra$%

    *rai'ht Ltd v. ( ) + (oldin's# 1@89 13 'LR 28 If %"e $laim is for rea$" of $o!%ra$% %"e!

    %"e !o%ifi$a%io! pro&isio!s s"old !o% !ormall+ appl+ Cros"y ) Sons v. ortland /DC 5 'LR

    121 If %"e Sil&er 'oo( $alls %o e i!%erpre%ed !der E!glis" la# + &ir%e of a go&er!i!g la#

    $lase %"ese are all do$%ri!es #"i$" ma+ e $alled %o assis% par%ies %r+i!g %o mi%iga%e %"e

    o!eros !a%re of $er%ai! of %"e Sil&er 'oo( $lases

    3 +horn v London 19

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    E%&li#' C(%+%# +- I%,"p",(,i+% +- *+%,"(*,#

    I% ms% al#a+s e rememered %"a% !der E!glis" La#/ %"e perso! i!%erpre%i!g %"e $o!%ra$% is

    spposed %o gi&e effe$% %o %"e li%eral mea!i!g of %"e #ords T"e GrleH %"a% #ords ms% egi&e! %"eir ordi!ar+ a!d !a%ral mea!i!g mea!s %"a% %"e la# does !o% easil+ a$$ep% %"a%

    people "a&e made li!gis%i$ mis%a(es/ % o! %"e o%"er "a!d/ if o!e #old $o!$lde from %"e

    a$(gro!d %"a% some%"i!g "as go!e #ro!g/ %"e la# #ill !o% a%%ri%e %o %"e par%ies a!

    i!%e!%io! #"i$" %"e+ plai!l+ $old !o% "a&e "ad T"e la!gage $a!!o% e read i% a ma!!er 

    %"a% Gfla!%s si!ess $ommo!-se!seH ntaios Co$pania 0aviera S v. Salen 1ederierna 2

    J1@95K AC 1@1 ,o#e&er/ E!glis" dges do !o%/ as !der $er%ai! $i&il la# s+s%ems s%ri&e %o

    gi&e effe$% %o %"e i!%e!%io!s of %"e par%ies8

    T"e+ #ill also a%%emp% %o gi&e effe$% %o %"e #"ole of %"e do$me!% a!d %o %r+ %o gi&e mea!i!g

    %o e&er+ #ord T"ere is !a%rall+ s%ill s$ope for i!%erpre%a%io!/ % i% is !o% ge!erall+ permi%%ed/

    !der E!glis" $a!o!s of i!%erpre%a%io! %o fi!d mea!i!g #"e! !o!e e>is%s or %o loo( e"i!d %"e

    #ords %o fi!d %"e %re i!%e!%io!s of %"e par%ies . T"e asi$ approa$" is li%eral/ !o% prposi&e

    O! %"e o%"er "a!d/ o!e is e!%i%led %o loo( a% %"e fa$%al ma%ri> of e&e!%s srro!di!g %"e

    forma%io! of %"e $o!%ra$% renn v. Si$$onds J1@

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    So %"ere #ere %"ree appare!%l+ simple %es%s %o es%alis" liaili%+

    1 T"e defe!da!% o#ed %"e plai!%iff a d%+ of $are?

    2 T"e defe!da!% #as i! rea$" of %"a% d%+3 T"e plai!%iff sffered damage as a resl% of %"a% rea$"

     As is o%li!ed + Da&id Cor!es9  %"e la# #as e>%e!ded gradall+/ espe$iall+ i! %"e area of 

    $o!s%r$%io! $o!%ra$%s !%il %"e $ase of 4unior 2ooks v. 5eitchi  @i! 1@93/ #"ere Emplo+er !o%

    i! $o!%ra$% #i%" spe$ialis% floori!g s$o!%ra$%ors s$$essfll+ sed %"em for defe$%i&e

    floori!g No allega%io! #as made %"a% %"ere #as prese!% or immi!e!% da!ger %o %"e o$$pier 

    as a resl% of %"e defe$%s

    )rom %"e! %"ere #as a gradal a!d $o!fsi!g re%rea% as s$$essi&e $or%s !arro#ed %"e

    gro!d po! #"i$" a s$$essfl a$%io! $old e rog"% Claims for Gpre e$o!omi$ lossH

    al#a+s diffi$l%/ e$ame more or less impossile !less %"ere #as !eglige!% ad&i$e fi%%i!g

    sFarel+ #i%"i! (edley 2yrne/ a!d #i%" fe# e>$ep%io!s/ !o re$o&er+ $old arise for damage %o

    %"e proper%+ i%self16

    I! m$" of %"e res% of %"e Commo!#eal%"/ "o#e&er/ %"e %es%s remai!ed more fai%"fl %o %"e

    pri!$iples as origi!all+ e!!$ia%ed %"ere #as !o re%rea% T"e resl% is %"a% if +o "a&e a

    po%e!%ial $ase i! !eglige!$e agai!s% a desig!er/ s$o!%ra$%or/ %"e $o!%ra$%or or a %"ird par%+

    +o ma+ #ell e more s$$essfl if %"e la# of Ne# Meala!d/ As%ralia/ Ca!ada/ or some o%"er 

    Commo!#eal%" $o!%r+ is applied Of $orse/ +o s%ill "a&e %o "a&e a! ari%ra%io! $lase/

    !less +o $a! ma(e se of a! ICSID %+pe 'ila%eral I!&es%me!% Trea%+ A! ordi!ar+ a$%io! i!

    %"e E!glis" Cor%s or Cor%s #"ere %"e damage #as sffered is %"e fi!al possiili%+

    I% is !li(el+/ !der E!glis" la# a!d #"ere %"ere is a $o!%ra$%/ %"a% re$o&er+ i! %or% e+o!d

    #"a% #as re$o&erale i! $o!%ra$% #ill e permi%%ed + %"e Cor% or ari%ra%or/ % i% is possile

    (olt v ayne Skillin'ton 1@@5 4@ CON LR @@ CA

    9 Iid@ J1@93K AC 52616  T"is is !e$essaril+ a! all %o rief smmar+ please refer i! spe$ifi$ $ases %o la#+ers #"o $a! gi&e +o e!%irel+a$$ra%e ad&i$e

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    DISCUSSION OF CERTAIN GENERAL CONDITIONS

    D-i%i,i+%#

     Appare!%l+ o!e of %"e goals of %"e )IDIC draf%i!g $ommi%%ee11

      #as %o i!$rease %"e Gser-frie!dli!essH of %"e !e# )IDIC 'oo(s/ amo!gs% o%"er %"i!gs/ + ma>imisi!g %"e ge!eral

    $o!di%io!s so as %o mi!imise %"e par%i$lar $o!di%io!s? a!d + ide!%if+i!g o!e lo$a%io! for 

    esse!%ial G$o!%ra$%-spe$ifi$H da%a ="ile %"is is e!%irel+ ladale/ %"e firs% impressio! o!e "as

    o! readi!g %"e defi!i%io!s is %"a% Gser-frie!dli!essH "as !o% ee! assis%ed a% all + %"e de!se

    le&el of $ross-refere!$i!g !eeded %o #"oll+ !ders%a!d %"ese defi!i%io!s a!+ defi!i%io!s

    refer %o o!e or more of %"e o%"er S-Clases of %"e Co!%ra$%s - al%"og" o!e ma+ e

    pleased %o see %"a% Gda+H mea!s a $ale!dar da+ a!d G+earH mea!s 385 da+s #i%"o% %"e !eed

    for a $ross-refere!$e Refere!$e mig"% "a&e ee! made "ere %o !o!-*regoria! $ala!ders

    I% #old also "a&e ee! more ser frie!dl+ %o pla$e all %"e Defi!ed Terms "ere/ as some are

    spread %"rog"o% %"e 'oo(s/ a!d %o "a&e pla$ed %"em i! e!%irel+ alp"ae%i$al order

    1121 I% is i!%eres%i!g %"a% Clase 1121 defi!es GPar%+H as o!l+ %"e Emplo+er or %"e

    Co!%ra$%or so i% is $o!firmed i! some se!ses %"a% %"e E!gi!eer is !o% a par%+ %o

    %"e $o!%ra$% al%"og" %"is defi!i%io! s"old "a&e li%%le impa$% o! %"e fa$% %"a% %"e

    E!gi!eer is %"e age!% of %"e Emplo+er #i%" %"e legal impli$a%io!s of %"is

    112< O!e of %"e mos% s%ri(i!g aspe$%s of %"e !e# oo(s is %"e Gdrop deadH $laim

    pro&isio!s fo!d i! Clase 26 T"is mig"% immedia%el+ gi&e rise %o %"e sspi$io!

    %"a% %"e !e# $o!%ra$%s ma+ e e>"ii%i!g a $er%ai! imala!$e i! %"eir %rea%me!% of 

    Co!%ra$%ors O!e o!l+ "as %o go so far as Clase 112< a!d %"e defi!i%io! of 

    GCo!%ra$%ors0 Perso!!elH %o see fr%"er i!fere!%ial e&ide!$e of %"is T"e defi!i%io!

    of perso!!el is e>%e!ded %o Ga!+ o%"er perso!!el assis%i!g %"e Co!%ra$%or i! %"e

    e>e$%io! of %"e =or(sH/ a pro&isio! #"i$" proal+ $as%s %"e !e% of liaili%+

    !reaso!al+ #ide Cer%ai!l+ E!glis" la# #old !o% e>%e!d a $o!%ra$%or0s

    liaili%+ %o i!$lde a!+ perso! #"o assis%s %"e Co!%ra$%or !o ma%%er "o#

    i!formall+ or mi!%el+ i! %"e e>e$%io! of %"e =or(s Nor #old E!glis" la#

    $o!sider %"a% a!+ s$" perso!0s a$%io!s $old !e$essaril+ e imp%ed %o %"e

    Co!%ra$%or I% is of $orse %"e $ase %"a% ma!+ people #old arge %"a% %"ese

    pro&isio!s are esse!%ial %o a&oid $laims Gams"esH a% %"e e!d of %"e $o!%ra$%/

    a!d o%"er#ise promo%e god admi!is%ra%io! of %"e $o!%ra$% ="e%"er or !o% %"ese

    pro&isio!s !eed %o e so asol%e %o a$"ie&e %"ese #ell i!%e!%io!ed e!ds/ a!d

    #"e%"er or !o% %"e pro&isio!s are %"emsel&es al#a+s goi!g %o e effe$%i&e #ill !o

    do% $o!%i!e %o e dea%ed i! +ears %o $ome

    11 +he three Ma6or 0ew FIDIC 2ooks + Pe%er L 'ooe! J2666K ICLR 24 a% 2

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    1143 I% is i!%eres%i!g %"a% %"e defi!i%io! of %"e #ord GCos%H i! Clase 1143 "as ee!

    e>pa!ded %o mea! all e>pe!di%re reaso!al+ i!$rred or %o e i!$rred + %"e

    Co!%ra$%or/ #"e%"er o! or off %"e si%e/ i!$ldi!g o&er"ead a!d similar $"arges/

    4%"  edi%io! Red 'oo( Go%"er $"argesH % does !o% i!$lde profi% Some

    i!%er!a%io!al $o!%ra$%ors $er%ai!l+ $o!sider %"a% o&er"ead i!$ldes a profi%eleme!% Also %"e $ommo! "ai% of addi!g simple per$e!%ages %o Go! $os%H #ill

    do li%%le %o dem+s%if+ %"is area or red$e %"e s$ope for argme!%

    11416 I% is proal+ !for%!a%e %"a% %"e par%i$larl+ 'ri%is" $o!$ep% of a GPro&isio!al

    SmH "as ee! i!$lded i! %"e Ora!ge a!d Red 'oo(s As a $o!$ep% i% is

    $er%ai!l+ !o% !i&ersall+ !ders%ood a!d "as freFe!%l+ led %o disp%es or a% leas%

    mis!ders%a!di!gs/ par%i$larl+ i! i!%er!a%io!al $o!%ra$%s i!&ol&i!g !o!-'ri%is"

    par%ies

    1153/

    1154/

    115< a!d/

    1159 T"e &age a!d $ir$lar defi!i%io!s of Ga%erialsH/ GPerma!e!% =or(sH/

    GTemporar+ =or(sH/ a!d G=or(sH G=or(s mea!s %"e Perma!e!% =or(s a!d

    %"e Temporar+ =or(s/ or ei%"er of %"em as appropria%eH are ide!%i$al i! all %"ree

    Co!%ra$%s #i%" %"e e>$ep%io! %"a% %"e Sil&er 'oo(0s defi!i%io! of Perma!e!%

    =or(s i!$ldes perma!e!% #or(s %o e desig!ed a!d e>e$%ed + %"e

    Co!%ra$%or !der %"e Co!%ra$% T"is does &er+ li%%le %o $lear p %"e $o!$ep%al

    $o!fsio! i! %"e dis%i!$%io! e%#ee! perma!e!% #or(s a!d %emporar+ #or(s/

    #"i$" $a!/ e #or%" li%erall+ %e!s of millio!s of dollars i! $er%ai! %+pes of 

    $o!%ra$% *ro%i!g i! %!!els is o!l+ o!e e>ample of a Ga%erialH #"i$" ma+ e

    par% of o%" %"e %emporar+ a!d perma!e!% #or(s/ a!d #"i$" ma+ or ma+ !o%

    Falif+ for pa+me!%

    1189 GU!foreseealeH I% is #el$ome %o "a&e a $o!%ra$%al defi!i%io! of #"a% is or is

    !o% foreseeale a!d %"e $"oi$e "ere of #"a% is !o% reaso!al+ foreseeale + a!

    e>perie!$ed $o!%ra$%or + %"e da%e of smissio! of %"e %e!der seems li(e a

    reaso!ale $"oi$e T"is is despi%e %"e fa$% %"a% o!e $a! easil+ a!d reaso!al+

    foresee si%a%io!s #"ere differe!$es of opi!io! $old arise as %o #"e%"er or !o% a

    par%i$lar e&e!% or $ir$ms%a!$e #as !foreseeale #i%"i! %"e %erms of %"is

    defi!i%io! )r%"er/ #"a% "appe!s if some%"i!g G!o% reaso!al+ foreseeale +

    a! e>perie!$ed $o!%ra$%orH #as a$%all+ foresee! + %"e $o!%ra$%or i!

    Fes%io!B Or *erma! $o!%ri%ors poi!% o% %"a% i! fa$%/ e&er+%"i!g is

    foreseeale a!d "as proal+ ee! e>perie!$ed + e>perie!$ed i!%er!a%io!al

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    $o!%ra$%ors ="e%"er or !o% pro&isio! is made i! %"e pri$e for %"em is a! e!%irel+

    separa%e ma%%er

    118@ G:aria%io!H 1189 Sil&er 'oo( T"is defi!i%io! is srprisi!gl+ res%ri$%i&e I% s%ar%s

    off #ell - Ga!+ $"a!ge %o %"e =or(sH % %"e! goes o! %o sa+ Hi!s%r$%ed or appro&ed as a &aria%io! !der Clase 13H/ #i%" %"e impli$a%io! %"a% if i% is !o% so

    i!s%r$%ed or appro&ed/ i% is !o% a G:aria%io!H as defi!ed T"is ma(es $laims for 

    rea$" of $o!%ra$%/ for failre %o i!s%r$% or appro&e/ more li(el+ !der %"e !e#

    si%e %"a! !der %"e Red 'oo( 4%" edi%io!

    ="a% is or is !o% a &aria%io! #ill depe!d primaril+ o! a proper $o!s%r$%io! of %"e

    $o!%ra$% pro&isio!s (enry 2oot Construction Li$ited v lsto$ Co$"ined Cycles

    Ltd 1@@@ 3 ' 123? J2666K 'LR 24< CA a!d if addi%io!al #or( is $arried o%

    #"i$" does !o% fi% #i%"i! %"e $o!%ra$%al defi!i%io!s/ %"e! %"e !ormal E!glis" la#

    pri!$iples rela%i!g %o res%i%%io!ar+ rig"%s or damages for rea$" of $o!%ra$% #ill

    appl+ so lo!g as %"e $laim "as ee! framed i! %"e appropria%e fas"io!

    I%,"p",(,i+%

    12 S $lase 12$ s%a%i!g %"a% pro&isio!s i!$ldi!g %"e #ords GagreeH/ GagreedH/

    or Gagreeme!%H reFire %"e agreeme!% %o e re$orded i! #ri%i!g $a! e a %rap for 

    %"e !#ar+/ a!d #old e i!%erpre%ed li%erall+ !der E!glis" la# ,o#e&er/

    ase!% a! agreeme!% i! #ri%i!g/ if o!e par%+ a$%s o! a! oral agreeme!% %o %"eir 

    de%rime!%/ #i%" %"e (!o#ledge of %"e o%"er par%+/ %"is ma+ gi&e rise %o a!

    es%oppel

    C+mm$%i*(,i+%#

    13 T"is is %"e mai! Ge&er+%"i!g ms% e i! #ri%i!gH pro&isio!/ #"i$" is !o do% a

    "elpfl pre$a%io! T"e $omme!%s !der 12 ao&e appl+ eFall+ "ere

    T"e de&elopme!% of %"e !e#er forms of proe$% $ollaora%io! sof%#are/ allo#i!g

    for o!li!e real %ime e>$"a!ges ma+ &er+ #ell fa$ili%a%e %"is/ a!d #i%" %"e

    Eropea! dire$%i&es o! ele$%ro!i$ sig!a%res/ %"ere s"old e !o prolems #i%"

    legali%+/ a% leas% so far as Eropea!s are $o!$er!ed

    I% is appropria%e %o i!$lde i! %"e Co!%ra$%s %"e $o!$ep% fo!d i! 13 %"a%

    Gappro&als/ $er%ifi$a%es/ $o!se!%s a!d de%ermi!a%io!s s"all !o% e !reaso!al+

    #i%""eld or dela+edH I% is of $orse a! ope! Fes%io! as %o #"a% #ill $o!s%i%%e

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    a! !reaso!ale #i%""oldi!g or dela+/ % if i% is fo!d %o "a&e "appe!ed/ %"e

    resl% #ill proal+ e a rea$" of $o!%ra$% + %"e Emplo+er

    I! %"e $ase of La&ar'e 1edlands ''re'ates Ltd v. Shephard (ill Civil 

    E!gi!eeri!g ,L 2< l+ 2666 %"e ,ose of Lords "eld %"a% #"a% is areaso!ale period of %ime is i! almos% e&er+ $ase a pre Fes%io! of fa$%/ %

    %"a% if o%"er par%ies rig"%s are i!&ol&ed s$" as s$o!%ra$%ors %"e! o%"er 

    Fes%io!s ma+ $ome i!%o %"e eFa%io! T"e+ "eld as a ma%%er of la# %"a% %"e

    $o!%ra$%or $old !o% s%if+ a! 19 mo!%" dela+ i! fig"%i!g a s$o!%ra$%or i!

    ari%ra%io! e$ase %"e $o!%ra$%or #a!%ed %o !ego%ia%e a se%%leme!% #i%" %"e

    Emplo+er

    L() (%! L(%&$(&

    14 I% is !for%!a%e %"a% %"e draf%ers "ere $"ose %o reFire %"a% a posi%i&e a$%io! of 

    s%a%i!g %"e go&er!i!g la# a!d la!gage T"ere is alread+ a% leas% o!e !e# form

    )IDIC $o!%ra$%/ #i%" %"e disp%e #ell !der#a+/ #"ere !o go&er!i!g la# #as

    s%a%ed i! %"e Appe!di> I% is s% a ma%%er of good drag"%sma!s"ip %o pro&ide

    defal% pro&isio!s so %"a% %"ere is as li%%le !$er%ai!%+ as possile i! %"e ge!eral

    $o!di%io!s I% #old "a&e ee! &er+ simple i!s%ead %o "a&e s%a%ed %"a% %"e

    Co!%ra$% s"all e go&er!ed + la# of %"e $o!%r+ or o%"er risdi$%io! #"ere %"e

    Si%e is lo$a%ed !less o%"er#ise s%a%ed i! %"e Appe!di> %o Te!der I! %"e real

    =orld fe# emplo+ers #ill agree %o a go&er!i!g la# o%"er %"a! %"e la# of %"eir 

    o#! $o!%r+

    Similarl+/ i% s"old e rememered %"a% a failre %o s%a%e %"e la!gage go&er!i!g

    i! a!+ ari%ra%io! or DA' pro$eedi!gs #ill lea&e ope! %"e possiili%+/ more li(el+

    #i%" %"e ICC Rles %"a! some o%"ers/ %"a% disp%es ma+ !o% e $o!d$%ed i! %"e

    same la!gage as %"e $o!%ra$% la!gage12

    P"i+"i,0 +- D+*$m%,#

    15 T"e Ora!ge a!d Red/ % !o% Sil&er 'oo(s/ $o!%ai! %"e s%a%eme!% GIf a!+

    amigi%+ or dis$repa!$+ is fo!d i! %"e do$me!%s/ %"e E!gi!eer s"all isse

    a!+ !e$essar+ $larifi$a%io! or i!s%r$%io!H T"is ma+ or ma+ !o% i!&ol&e a

    :aria%io! from %"e $o!%ra$%or0s poi!% of &ie#/ a!d i% "as %o e read #i%" %"e

    !o%ifi$a%io! of errors pro&isio! i! Clase 19 No% i!freFe!%l+/ !o $larifi$a%io!s

    are issed a!d %"e DA' or Ari%ra%io! Tri!al e!d p resol&i!g %"e Fes%io!

    12  No%e Ar%i$le 18 of %"e ICC Rles #"i$" allo#s %"e la!gage of %"e ari%ra%io! %o e a la!gage o%"er %"a! %"ela!gage of %"e $o!%ra$%

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    O!e prolem %"ese oo(s do !o% deal #i%" #ell is do$me!%s #"i$" are !o%

    des$ried i! %"e $a%egories se% o% T"e+ %"e! e$ome + defal% Ga!+ o%"er 

    do$me!%s formi!g par% of %"e Co!%ra$%H a!d are ra!(ed a% %"e o%%om of %"e

    priori%+ leage

     A!o%"er prolem %"a% freFe!%l+ o$$rs "ere is #"a% %o do ao% amigos a!d

    $o!%radi$%or+ $orrespo!de!$e Of%e! e>$"a!ges of pre-$o!%ra$% le%%ers ao%

    %"e pri$e a!d o%"er &i%al eleme!%s of %"e =or(s #ill e o!d i! %o %"e $o!%ra$%/

    a!d !der E!glis" la#/ effor%s "a&e %o e made %o gi&e se!se %o all %"e par%s of 

    %"e Co!%ra$% ="ile o! %"e o!e "a!d/ %"e priori%+ #ill e respe$%ed/ o! %"e o%"er/

    resor% ma+ e made %o legal ma>ims s$" as Gspe$ifi$ #ordi!g go&er!s o&er 

    ge!eralH or G%"e las% i! %ime pre&ailsH T"e resl% of slopp+ las% mi!%e $"a!ges

    ma+ e !$er%ai!%+ a!d a! !sa%isfa$%or+ priori%+ for spe$ifi$ pro&isio!s

    C+%,"(*, A&"m%,

    18 U!der E!glis" la# i % is Fi%e possile %"a% a $o!%ra$% #old e formed +

    a$$ep%a!$e %"og" %"e Le%%er of A$$ep%a!$e of %"e Te!der #i%" !o%"i!g fr%"er13

    T"e defi!i%io!s of GLe%%er of A$$ep%a!$eH a% 1113 !o% i! %"e Sil&er 'oo( a!d

    %"e pro&isio!s of Clase 18 reFiri!g %"e par%ies %o e!%er i!%o a Co!%ra$%

     Agreeme!% 29 da+s af%er %"e le%%er of a$$ep%a!$e/ ma+ e&e!%all+ $rea%e some

    i!%eres%i!g $ase la#/ % a% firs% gla!$e %"ere is li%%le reaso! %o de&ia%e from %"e

    &ie# %"a% %"e $o!%ra$% #ill e formed #"e! %"e par%ies agree i% #ill e formed

    T"e asi$ eleme!%s of a ildi!g $o!%ra$% !der E!glis" la# are simpl+ a!d offer/

    a$$ep%a!$e $o!sidera%io! a!d a $er%ai! amo!% of $er%ai!%+ as %o %"e %erms/

    espe$iall+ %"e pri$e T"ese eleme!%s $a! e/ a!d "a&e ee! fo!d %o e>is%/ i!

    id $orrespo!de!$e prior %o %"e e>e$%io! of formal $o!%ra$% do$me!%s

    A##i&%m%,

    1< Assig!me!% !der E!glis" la# is !o% go&er!ed par%i$larl+ + formali%ies

    reFiri!g/ for e>ample/ !o%i$e No!e%"eless/ %"e legal $o!seFe!$es of %"e

    &arios $ompli$a%ed s%r$%res %"a% "appe! i! pra$%i$e "a&e led o&er %"e +ears %o

    some $o!&ol%ed $ase la# ao% legal a!d eFi%ale assig!me!%s/ a!d %"e

    de&ol%io! of respo!siili%ies a!d rig"%s do#! %"e $"ai!s of rela%io!s"ips

    Dl(0! D"()i% +" I%#,"$*,i+%#

    1@ T"is $lase "as ee! e>pa!ded from %"e pre&ios dra#i!gs $lase Clase 84

    i! %"e Red 'oo( %o i!$lde %"e $o!$ep% of dra#i!gs or i!s%r$%io!s/ %"e la%%er 

    13 See a! e>ample of %"is isse ei!g raised i! 5(! Construction Ltd v. Mclpine J1@@

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    ei!g a ra%"er #ider a!d more impor%a!% $o!$ep% T"e Co!%ra$%or #ill e e!%i%led

    %o mo!e+ a!d7or %ime if i!s%r$%io!s or dra#i!gs are dela+ed % if %"e i!s%r$%io!

    or dra#i!g is dela+ed as a resl% of %"e Co!%ra$%or0s fal% !o s$" e!%i%leme!% #ill

    e>is% T"is $old e a fri%fl sor$e for $laims a!d i!deed $o!%er$laims/ as %"e

    $ase of a!+ dela+ or i! fa$% %"e e>is%e!$e of %"e dela+/ $a! e !$lear i! ma!+proe$%s of a reaso!ale sie14

    CLAUSE 2  THE E3PLOYER

    Ri&', +- A**## ,+ ,' Si,

    21 A po%e!%ial $laim #ill e>is% if %"e Emplo+er does !o% gi&e a rig"% of a$$ess + %"e

    %ime7s s%a%ed i! %"e Appe!di> %o Te!der ,o#e&er/ %"a% rig"% of possessio! ma+

    !o% e e>$lsi&e %o %"e Co!%ra$%or Read %"is S-Clase #i%" S-Clase 48

    Differe!$es ma+ &er+ #ell e>is% as %o #"a% le&el of $o-opera%io! ma+ e e>pe$%ed

    #i%"o% $laims/ #"ere for e>ample/ foo%i!g $o!%ra$%ors are la%e a!d %"s dela+

    ere$%io! $o!%ra$%ors

    P"mi,#4 Li*%*# +" App"+.(l#

    22 E!glis" la# does !o% +e% impose a!+ ge!eral oliga%io! of good fai%" o!

    $o!%ra$%i!g par%ies/ so %"e $o!%ra$%al reFireme!% %"a% %"e Emplo+er pro&ide

    Greaso!ale assis%a!$eH #i%" Gpermi%s/ li$e!$es or appro&alsH !der %"e La#s of 

    %"e Co!%r+/ s"old e par%i$larl+ "elpfl #"ere %"e Emplo+er is a go&er!me!%

     Alleged failre or i!aili%+ %o o%ai! &isas/ for e>ample/ $omes p Fi%e freFe!%l+

    as a! e>$se for la%e performa!$e A $lase reFiri!g Greaso!aleH assis%a!$e

    s"old !o% e i!%erpre%ed as reFiri!g assis%a!$e regardless of %"e $os% )or 

    e>ample/ if %"e emplo+er is a s%a%e go&er!me!% i! a federal s%a%e/ %"e! i% ma+ e

    !reaso!ale %o as( %"a% i% do a!+%"i!g o%"er %"a! #ri%e some implori!g le%%ers %o

    %"e federal a%"ori%ies $o!%rolli!g &isas

    T"is pro&isio! ma+ per"aps also e i!&o(ed i! $ir$ms%a!$es #"ere %"ere is a

    !as%+ srprise a% %"e e!d of %"e o/ #i%" go&er!me!%7$s%oms7%a> i!spe$%ors

    $omi!g o!%o si%e a!d allegi!g gross rea$"es of %"is or %"a% os$re s%a%%e I%

    does "o#e&er "a&e %o e read #i%" %"e $lase reFiri!g $omplia!$e #i%" all lo$al

    la#s/ #"i$" implies (!o#ledge of %"ose la#s If +o (!o# %"e la#s/ +o #ill

    (!o# as #ell %"a% some od+ o%"er %"a! %"e depar%me!% +o are deali!g #i%" #ill

    !ormall+ "a&e %"e dis$re%io! as %o #"e! a!d "o# &isas s"old e issed

    14  See %"e Mclpine (u$"eroak v. McDer$ott International 1@@2 59 'LR 1 CA $ase/ me!%io!ed #i%" respe$% %oa$%s of pre&e!%io!/ as a! e>ample of a $ase !der E!glis" la# #"i$" failed for la$( of proof ao% s$" dela+s

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    Empl+0"’# Fi%(%*i(l A""(%&m%,#

    24 T"is $lase reFires %"e Emplo+er %o smi% reaso!ale e&ide!$e %o %"e

    Co!%ra$%or %"a% Gfi!a!$ial arra!geme!%s "a&e ee! made a!d are ei!g

    mai!%ai!ed #"i$" #ill e!ale %"e Emplo+er %o pa+ %"e Co!%ra$% Pri$e ases%ima%ed a% %"a% %ime i! a$$orda!$e #i%" Clase 14 JContract rice and 

    ay$ent KH ="ils% %"is ma+ e see! as a $o!$essio! %o %"e reaso!ale i!%eres%s

    of Co!%ra$%ors/ i% does !o% of $orse reFire %"e Emplo+er %o pa+ as %"is is deal%

    #i%" + %"e pa+me!% pro&isio!s

    T"e areas #"ere %"is ma+ pro&e sefl %o Co!%ra$%ors as a! earl+ #ar!i!g

    s+s%em/ ra%"er %"a! as a separa%e i!depe!de!% rig"% %o se %"e Emplo+er/ #old

    e i! 'OT or pri&a%e fi!a!$e %+pe arra!geme!%s #"ere %"e Emplo+er #as o!l+

    e!%i%led %o dra# agai!s% a li!e of $redi% pro&ided + 'a!(s or )!di!g Age!$ies

    po! $er%ai! $o!di%io!s If %"ose $o!di%io!s #ere !o% ei!g me% %"is #old

    presmal+ e a Gma%erial $"a!ge %o %"e fi!a!$ial arra!geme!%sH #"i$" %"e

    $o!%ra$%or s"old (!o# ao%

     A!o%"er area #"ere %"is ma+ $ome i! "elpfl is i! rela%io! %o f!ded

    arra!geme!%s #"ere/ some%imes/ %"e spe$ial prpose &e"i$le for a proe$% is de

    %o e #o!d p #i%"i! a rela%i&el+ s"or% %ime af%er %"e e!d of %"e defe$%s liaili%+

    period or %"e go&er!me!% depar%me!%0s li!e of $redi% from %"e f!di!g age!$+ is

    de %o e>pire O!e "as see! se%%leme!%s of maor $laims made simpl+ o! %"e

    asis %"a% %"e impe$!ios go&er!me!% depar%me!% #old e losi!g i%s rig"% %o

    a dra#do#! #i%"i! a rela%i&el+ s"or% period of %ime

     A% leas% o!e a%"or "as Fes%io!ed #"e%"er or !o% %"is $lase is so &age as %o

    e !e!for$eale If i% is e!for$eale/ %"e $lear impli$a%io! !der E!glis" la# is

    %"a% a failre %o respo!d %r%"fll+ %o s$" a reFes%/ or e&e! failre %o #ar! of 

    Gma%erial $"a!gesH mig"% e>pose %"e Emplo+er %o a! a#ard of damages for 

    rea$"/ or e&e! i! some $ases %o damages for %"e %or% of de$ei%

    Empl+0"’# Cl(im#

    25 If %"e Emplo+er G$o!siders "imself %o e e!%i%led %o a!+ pa+me!% !der a!+

    Clase of %"ese Co!di%io!s or o%"er#ise i! $o!!e$%io! #i%" %"e Co!%ra$%/ a!d7or 

    %o a!+ e>%e!sio! of %"e Defe$%s No%ifi$a%io! Period/ %"e Emplo+er or %"e E!gi!eer 

    s"all gi&e !o%i$e a!d par%i$lars %o %"e Co!%ra$%orH S$" !o%i$e is reFired %o e

    gi&e! Gas soo! as pra$%i$ale af%er %"e Emplo+er e$omes a#are of %"e e&e!% or 

    $ir$ms%a!$es gi&i!g rise %o %"e $laimH/ % %"ere is !o Gdrop deadH da%e I% is

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    !o%i$eale %"a% i% is %"e Emplo+er0s (!o#ledge a!d !o% %"e E!gi!eer0s (!o#ledge

    %"a% is rele&a!% "ere

    T"ose of s #"o "a&e #or(ed #i%" %"e Gas soo! as pra$%i$aleH $o!$ep% #ill

    (!o# i% %o e ra%"er fle>ile )or e>ample/ i% #old %a(e a ra&e ari%ra%or %oree$% %"e !o%io! %"a% sa+ %"ree #ee(s #as Gas soo! as pra$%i$aleH % for 

    #ee(s #as !o% GAs soo! as pra$%i$aleH is !o% as Fi$( as Gas soo! as

    possileH a!d %"e Emplo+er #old !o% "a&e %o Gdrop e&er+%"i!gH %o p% %"e $laim

    i! GAs soo! as pra$%i$aleH $o!!o%es doi!g some%"i!g #i%" all reaso!ale

    dispa%$" "a&i!g regard %o all %"e $ir$ms%a!$es e7i$ v. 2ritish Colu$"ia 1@@2

    @8 DLR 4%" 13< a% 14@ 'CCA

     A s%ri(i!g aspe$% of %"ese $o!%ra$%s is %"e $o!%ras% e%#ee! %"ese ra%"er frie!dl+

    pro&isio!s a!d %"e "ars" regime se% o% + %"e se$o!d paragrap" of Clase 261

    #"i$" simpl+ s%a%es %"a% if a Co!%ra$%or fails %o gi&e !o%i$e of a $laim Gas soo! as

    pra$%i$ale/ a!d !o% la%er %"a! %#e!%+ eig"% da+s af%er %"e Co!%ra$%or e$ame

    a#are/ or s"old "a&e e$ome a#are/ of %"e e&e!% or $ir$ms%a!$eH

    o%"er#ise %"e $laim is spposed %o e effe$%i&el+ dead

    U!der E!glis" la#/ e>$lsio!s of %"e $ommo! la# rig"%s of aa%eme!% a!d se%-off 

    #ill o!l+ e es%alis"ed %"rog" &er+ $lear la!gage/ Federal Co$$erce v 

    Molena 89:;2 :?; / a!d %"a% is proal+ i!%e!ded "ere + %"e las% paragrap"/

    % #"e! o!e e>ami!es %"e $ases o! %"e %opi$/ o!e feels i% #old "a&e ee!

    es% %o e>pressl+ me!%io! GeFi%aleH se% off15 

    No!e%"eless/ %"e s%r$%re of %"is $o!%ra$% si%e !o# raises sFarel+ %"e isse of 

    #"e%"er or !o% %"e i!%e!%io! of %"e drag"%people #as %o pro&ide a "erme%i$all+

    sealed a!d $omple%e disp%e resol%io! s$"eme #i%" (ll $laims/ #"e%"er + %"e

    emplo+er or $o!%ra$%or "a&i!g %o go %"rog" %"e emplo+er or $o!%ra$%or $laims

    disp%e s%r$%re i! order %o e re$og!ised T"e fa$% is/ #"a%e&er %"e i!%e!%io!s

    of %"e drag"%speople/ %"is Fes%io! is doomed %o e a!s#ered imperfe$%l+

    e$ase differe!% %ri!als i! differe!% pla$es a!d %imes/ #ill !o do% a!s#er %"e

    Fes%io! differe!%l+ To %a(e o!e o&ios e>ample/ !der %"e la#s of some

    $o!%ries/ i% is !o% possile for !o!-s%a%e %ri!als %o de$ide Fes%io!s i!&ol&i!g

    $er%ai! i!%erim or $o!ser&a%or+ measres

    CLAUSE 5 THE ENGINEER

    15  See 0!I +ho$pson Ltd v *i$pey Construction CILL 1@9< p3$lde %"e rig"% %o #i%""old pa+me!% + #a+ of eFi%ale se% off

    Co!&ersel+/ a $lase gara!%eei!g reglar pa+me!% #as !o% effe$%i&e #"e! %"e $o!%ra$%or rea$"ed %"e $o!%ra$%So!a% Offs"ore & Amerada ,ess Cill No&emer 1@9< p3

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    T"e E!gi!eer fea%res i! %"e Red a!d Ora!ge 'oo(s U!der E!glis" la# i% "as lo!g ee!

    es%alis"ed %"a% for some d%ies a% leas%/ "e ms% e i!depe!de!% a!d impar%ial  Sutcli&&e –v-

    +hackrah J1@

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    #"ile o! %"e o%"er "a!d sa+i!g !o a$%io! or omissio! of %"e E!gi!eer $a!

    relie&e %"e Co!%ra$%or from a!+ respo!siili%+ T"is s"old e reaso!al+

    effe$%i&e %o i!sla%e %"e E!gi!eer from a!+ liaili%+ %o#ards %"e Co!%ra$%or 

    !less/ per"aps/ i% is some%"i!g li(e a s%a%%or+ liaili%+ s$" as %"a% imposed

    !der "eal%" a!d safe%+ legisla%io! #"i$" $a!!o% e affe$%ed + %"e %erms of %"eCo!%ra$% a!d #"i$" is e!gaged + %"e simple fa$% %"a% a $o!s%r$%io! a$%i&i%+ is

    %a(i!g pla$e/ or liaili%+ i! %or%

    I% is some%imes %"og"% o! %"e a$( of $ases s$" as aci&ic ssociates v.

    2axter J1@@3K 1 AC @@3 %"a% e!gi!eers $a!!o% !der a!+ $ir$ms%a!$e "a&e a!+

    legal respo!siili%+ !der E!glis" la# %o $o!%ra$%ors18 )rom %"e pra$%i$al poi!% of 

    &ie#/ %"a% is from %"e perspe$%i&e of #"e%"er or !o% ari%ra%ors or $or%s #ill "old

    e!gi!eers a$$o!%ale %o %"e $o!%ra$%or for %"eir deeds or misdeeds i!sofar as

    %"e+ "a&e affe$%ed %"e $o!%ra$%or0s performa!$e !der %"e $o!%ra$%/ i% is !o%

    li(el+ %"a% i! all $ases %"e+ #ill e "eld %o e e+o!d effe$%i&e legal reproa$"

    T"e legal ma!!er of e>pressi!g %"is #old e %o sa+ %"a% emplo+ers "a&e ee!

    rela%i&el+ freFe!%l+ "eld respo!sile for %"e a$%io!s of %"eir e!gi!eer a$%i!g as

    a! age!% Similarl+/ $o!%ra$%ors ma+ re$ei&e relief o!e #a+ or a!o%"er if %"e

    E!gi!eer "as failed i! "is Gd%+H as a GFasi ari%ra%orH/ for e>ample i! $er%if+i!g

    or de%ermi!i!g $laims

    I see !o reaso! #"+/ + #a+ of ills%ra%io!/ E!gi!eers $old !o% !der %"e

    #ordi!g of %"is $o!%ra$% a!d i! par%i$lar $ir$ms%a!$es e "eld %o e liale for 

    %"e %or% of a$%io!ale i!%erfere!$e #i%" $o!%ra$%/ see/ for e>ample 4ohn Mowle$

    v !a'le Start Insurance ) %thers  1@@2 82'LR 128 'D I% simpl+ feels

    #ro!g %o %"i!( %"a% a par%+ $old e i! a posi%io! of po#er % "a&e !o

    respo!siili%+ a!d E!glis" la# "as !o%/ "is%ori$all+/ ee! "app+ %o adop% s$" a

    posi%io! T"e (edley 2yrne  pri!$iple $o!%i!es %o de&elop E!gi!eers $a! e

    "eld %o "a&e a$%ed !eglige!%l+ for %"eir emplo+ers see I$perial Colle'e v 

    0or$an ) Dow"arn 1@98 9 Co!LR 16< 'D

     A!o%"er fa$%or #"i$" ma+ &er+ #ell affe$% %"is si%a%io! is %"e !e# Co!%ra$%s

    Rig"%s of T"ird Par%ies A$% 1@@@ #"i$" $ame i!%o for$e i! E!gla!d i! a+ 2666

    Tradi%io!all+ %"e $o!$ep% of %"ird par%+ e!efi$iaries %o $o!%ra$%s "as !o% e>is%ed

    !der E!glis" la#/ a fa$% #"i$" alo!g #i%" %"e ase!$e of %"e do$%ri!e of good

    fai%" o%" of #"i$" e>is% !der Ameri$a! la# "as from %"e ridi$al poi!% of &ie#

    made E!glis" $o!%ra$%s ra%"er dis%i!$%i&e

    I% ma+ #ell e %"e $ase %"a% %"e Co!%ra$%or is a %"ird par%+ po! #"om a e!efi%

    is $o!ferred i! %"e Co!%ra$% e%#ee! %"e Emplo+er a!d %"e E!gi!eer for %"e

    18  See for e>amples %"e $o!%ras%i!g dis$ssio!s of %"is poi!% i! %"e Si!gapore a!d ala+sia! $"ap%ers

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    performa!$e of %"e E!gi!eer0s ser&i$es as E!gi!eer !der %"e Co!s%r$%io!

    Co!%ra$% T"e E!gi!eer also "as d%ies %o a$% fairl+ i! %"e admi!is%ra%io! of %"e

    Co!%ra$% a!d %o oser&e $er%ai! s%a!dards U!der %"e Co!%ra$%s Rig"%s of T"ird

    Par%ies A$% 1@@@ if %"e E!gi!eer is i! rea$" of %"ese pro&isio!s %"e Co!%ra$%or 

    ma+/ se$% %o %"e reFireme!%s of %"e A$%/ e i! a posi%io! %o $laim damagesagai!s% %"e E!gi!eer for failre %o rea$" %"ose s%a!dards T"e possiili%+ of %"is

    is re$og!ised i! E!glis" forms + %"e e>$lsio! of %"e effe$%s of %"is A$%

    ="e%"er or !o% %"e A$% #old affe$% par%ies %o a! o&erseas $o!%ra$% #"o "a&e

    $"ose! E!glis" la# as %"e go&er!i!g la# ma+ e a! i!%eres%i!g Fes%io!

    I!sofar as %"e $o!%ra$%or0s a$%io!s $er%ai!l+ ge!era%e re&e!e for %"e E!gi!eer/

    %"e E!gi!eer ma+ also e %"og"% %o e a %"ird par%+ e!efi$iar+ %o $o!s%r$%io!

    $o!%ra$%s T"e fll impli$a%io!s of %"is "a&e +e% %o e #or(ed o%/ as i% is s%ill

    earl+ da+s so far as %"e A$% is $o!$er!ed1

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    I% is i!%eres%i!g %"a% S-Clases 33 a!d 41 %oge%"er are %"e $rre!% eFi&ale!%

    %o %"e former Red 'oo( Clase 131 % "a&e remo&ed %"e possiili%+ for %"e

    Co!%ra$%or %o $ompl+ if #or(s are !o% Glegall+ or p"+si$all+ impossileH a!d "a&e

    also remo&ed %"e refere!$e %o %"e sa%isfa$%io! of %"e E!gi!eer No!e%"eless/

    !der S-Clase 41 %"e E!gi!eer ma+ i!s%r$% #"e%"er "e is Gsa%isfiedH or !o%Presmal+ Clase 1@ is %"e more logi$all+ pla$ed repla$eme!% of %"e

    impossiili%+ $o!$ep%s

    34 I%#,"$*,i+%# Sil&er 'oo(

    ,ere/ %o refle$% %"e Co!%ra$%or0s grea%er desig! respo!siili%+/ %"e Emplo+er ms%

    refer %o spe$ifi$ $o!%ra$%al $lases #"ere %"e oliga%io! arises/ a!d %"e S-

    Clase e>pressl+ $o!%empla%es %"e possiili%+ %"a% %"e i!s%r$%io! ma+ e a

    :aria%io!

    CLAUSE 6 THE CONTRACTOR

    41 C+%,"(*,+"’# G%"(l O7li&(,i+%# Ora!ge a!d Red 'oo(s

    T"e rela%io!s"ip e%#ee! S-Clases 33 a!d 41 "as alread+ ee! dis$ssed

    ao&e O!e fr%"er poi!% #"i$" mig"% e made o! $o!s%r$%io! is %"a% Clase

    33 reFires %"e Co!%ra$%or %o $ompl+ #i%" %"e i!s%r$%io!s gi&e! + %"e E!gi!eer 

    or delega%ed assis%a!%/ o! a!+ ma%%er rela%ed %o %"e Co!%ra$% #"ils% 41 o!l+

    reFires %"e Co!%ra$%or %o desig! %o %"e e>%e!% spe$ified i! %"e Co!%ra$%/

    e>e$%e a!d $omple%e %"e =or(s i! a$$orda!$e #i%" %"e Co!%ra$% a!d #i%" %"e

    E!gi!eer0s i!s%r$%io!s H I% $a! e see! %"a% #"ils% o! %"e o!e "a!d/ Gi!

    a$$orda!$e #i%" %"e Co!%ra$%H ma+ e see! %o i!$orpora%e + refere!$e $lase

    33 #i%" i%s #ider !o%io! of Ga!+ ma%%er rela%ed %o %"e Co!%ra$%H/ i% mig"% also e

    easil+ imagi!ed %"a% spe$ifi$ i!s%r$%io!s mig"% e o! a ma%%er rela%ed %o %"e

    Co!%ra$% % ei%"er !o% !e$essaril+ Gi! a$$orda!$e #i%" %"e Co!%ra$%H or/ i!deed/

    deal% #i%" i! a!+ #a+ + %"e Co!%ra$% I! o%" s$" $ases %"e i!s%r$%io! s"old

    e p% for#ard as a :aria%io!/ !less i% deals #i%" a! !flfilled oliga%io! or 

    remedial #or(s

    All B++/#

    T"e fi%!ess for prpose oliga%io! fo!d "ere i! S-Clase 113 a!d all %"e

    o%"er $lases/ s$" as %"e pa+me!% $lases %"a% refer %o #or( ei!g i!

    a$$orda!$e #i%" %"e pro&isio!s of %"e Co!%ra$% #as %"e se$% of some

    $o!%ro&ers+/ a!d as i% is Gas defi!ed i! %"e Co!%ra$%H #ill e ope! %o ma!+

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    i!%erpre%a%io!s T"is is all %"e more so as S-Clase 113 does !o% $o!%ai! %"e

    Gas defi!ed i! %"e Co!%ra$%H Falifi$a%io!/ % %"is ma+ i! a!+ e&e!% e impli$i%

    T"e fi%!ess for prpose oliga%io! is !o% $o!%ro&ersial i! some risdi$%io!s

    e$ase i% alread+ e>is%s see %"e *erma! $"ap%er for e>ample % i! o%"ers i%$old #ell e mis!ders%ood See %"e dis$ssio! o! %"is poi!% fo!d elo# i!

    respo!se %o S-Clase 54

    42 P"-+"m(%* S*$"i,0

    T"e la# i! E!gla!d a!d =ales rela%i!g %o 'o!ds a!d *ara!%ees is $omple> %

    ge!erall+ i! li!e #i%" i!%er!a%io!al !orms T"a% is %o sa+ %"e performa!$e

    se$ri%ies are ge!erall+ %"og"% %o $rea%e oliga%io!s separa%e a!d dis%i!$% from

    %"e !derl+i!g $o!%ra$% for #"i$" performa!$e is gara!%eed E!for$eme!% ms%

    e s%ri$%l+ i! a$$orda!$e #i%" %"e %erms of %"e i!s%rme!% a!d #"ils% i% is %"og"%

    + some %"a% frad #ill $o!s%i%%e a! e>$ep%io! %o %"e ge!eral rle %"a% %"e

    i!s%rme!% is e!for$eale i! a$$orda!$e #i%" i%s %erms/ m+ impressio! is %"a% %"e

    s$ope of %"is e>$ep%io! a!d i%s appli$a%io! is !o% as $lear i! E!gla!d as i% is i!

    some $i&il la# $o!%ries

    T"e Ameri$a! !o%io! of sre%ies is !o% #idel+ (!o#! i! E!gla!d a!d m+

    impressio! is %"a% A!!e> D #i%" i%s al%er!a%i&e forms of #ordi!g $old raise some

    i!%eres%i!g isses i! %"e E!glis" Cor%s I% is !o%i$eale %"a% %"e e>amples of %"e

    performa!$e se$ri%+/ ad&a!$e pa+me!% gara!%ee a!d so o! do !o% refer %o a!+

    form of disp%e resol%io! pro$ess I% also seems %o me %"a% i! E!gla!d Se$%io!

    9 of %"e Co!%ra$%s Rig"%s of T"ird Par%ies A$% 1@@@ rela%i!g %o %"ird par%ies

    rig"%s %o a!d oliga%io!s %o !der%a(e ari%ra%io! #"ere a! ari%ra%io! agreeme!%

    e>i%s ma+ i! some $ir$ms%a!$es resl% i! a reFireme!% %"a% oliga%io!s %o pa+

    !der %"ese 'o!ds #ill "a&e %o e ari%ra%ed #"ere a! ari%ra%io! agreeme!%

    e>is%s i! rela%io! %o %"e mai! Co!%ra$%

    S-Clase 42$ allo#s %"e Emplo+er %o ma(e a $laim !der %"e Performa!$e

    Se$ri%+ po! a Gfailre + %"e Co!%ra$%or %o remed+ a defal% #i%"i! 42 da+s

    af%er re$ei&i!g %"e Emplo+er0s !o%i$e reFiri!g %"e defal% %o e remediedH

    ="ils% %"e S-Clase 42d is reaso!al+ e>%raordi!ar+ i! allo#i!g a $laim %o

    e made i! G$ir$ms%a!$es #"i$" e!%i%le %"e Emplo+er %o %ermi!a%e !der s-

    $lase 152 J+er$ination "y !$ployer K/ irrespe$%i&e of #"e%"er !o%i$e of 

    %ermi!a%io! "as ee! gi&e! Jemp"asis addedK T"is pro&isio! is Fi%e fa&orale

    %o for$efl emplo+ers a!d #ill gi&e Emplo+ers mi!ded %o se i% i! %"is fas"io! a

    &er+ s%ro!g #eapo! i! e!d of Co!%ra$% !ego%ia%io!s o! %"e fi!al sms de %o %"e

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    Co!%ra$%or T"e !e# S-Clase is a srprisi!g deroga%io! from %"e pro%e$%io!

    afforded %o %"e Co!%ra$%or !der $lase 163 of %"e Red 'oo( )IDIC 4 %" Edi%io!

    1@9< #"i$" a% leas% e!%i%led %"e Co!%ra$%or %o a !o%i$e efore %"e Emplo+er 

    ma(es a $laim o! %"e Performa!$e Se$ri%+ T"is $old of $orse e redressed

    + simple addi%io!s reFiri!g !o%i$e i! %"e se$ri%+ i!s%rme!% i%self

    44 S$78C+%,"(*,+"#  Red a!d Ora!ge

    T"e old s%a%eme!% %"a% GT"e Co!%ra$%or s"all e respo!sile for %"e a$%s or 

    defal%s of a!+ S-Co!%ra$%or/ "is Age!%s or Emplo+ees/ as if %"e+ #ere a$%s or 

    defal%s of %"e Co!%ra$%orH ma+ e some#"a% diffi$l% %o re$o!$ile #i%" some

    areas of E!glis" la# i! rela%io! %o S-Co!%ra$%ors as $o!%ra$%ors are !o% al#a+s

    liale for e&er+ a$%io! of e&er+ s-$o!%ra$%or T"e $ase la# as de&eloped is

    largel+ %o %"e effe$% %"a% %o %"e e>%e!% %"a% par%i$lar ma%erials are %"e

    respo!siili%+ of %"e S-Co!%ra$%or a!d %"e Co!%ra$%or "ad !o $"oi$e i! %"ose

    ma%erials %"e Co!%ra$%or s"old !o% e respo!sile for %"e desig! S-Clase

    52$ii s%a%es %"a% %"e S-Co!%ra$% s"old spe$if+ %"a% %"e S-Co!%ra$%or a!d

    s"old i!dem!if+ %"e Co!%ra$%or agai!s% failres of %"e S-Co!%ra$%or is a

    %"eore%i$al $o!%er-ala!$e %o %"is prolem % prespposes %"a% oe$%io!s #ill

    e made a% a %ime #"e! rela%io!s ma+ e Fi%e ros+ a!d %"e Co!%ra$%or ma+ !o%

    #is" %o seem diffi$l% a!d %"a% %"e defe$%s or failres i! oliga%io!s #ill e a$(

    %o a$(

    I% s"old also e poi!%ed o% %"a% !der E!glis" la# assig!me!% of %"e e!efi%s of 

    s-$o!%ra$%s as $o!%empla%ed + s-$lase 44d is !o% a! e!%irel+ s%raig"%

    for#ard se$% e&e! if/ as seems %o e assmed "ere/ %"e s-$o!%ra$%

    assig!me!% pro&isio!s "a&e ee! fll+ %"og"% o% a!d modelled for %"e

    par%i$lar Co!%ra$% a!d S-Co!%ra$% #or(s

    416 Si, D(,( Red 'oo(

     A% firs% gla!$e %"is $lase seems %o e Fi%e reaso!ale #"e! $ompared %o

    )IDIC 4%" Edi%io! Clase 11 I% is "o#e&er Falified + %"e reFireme!% for %"e

    Emplo+er %o o!l+ %r! o&er Grele&a!%H da%a #"i$" ma(es %"is a Fes%io! of 

    se$%i&e opi!io! #"i$" #as !o% %"e $ase i! %"e pas% all da%a "ad %o e %r!ed

    o&er T"e !o%io! of rele&a!$e i! %"is $ir$ms%a!$e seems %o ope! p %"e

    possiili%+ %"a% some%"i!g $old e $o!sidered %o e foreseeale % !o% rele&a!%

    a!d %"s !o% $ag"% + %"is pro&isio!

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    T"e Sil&er 'oo( &ersio! of S-Clase 416 i!$ldes %"e Emplo+er0s oliga%io!

    %o dis$lose rele&a!% da%a o! ssrfa$e a!d "+drologi$al $o!di%io!s/ a!d also

    ma(es %"e Co!%ra$%or respo!sile for G&erif+i!gH a!d i!%erpre%i!g s$" da%a/ %

    goes o! %o prpose %o e>$lde %"e Emplo+er0s respo!siili%+ for %"e Ga$$ra$+/

    sffi$ie!$+ or $omple%e!essH of s$" da%a e>$ep% as s%a%ed i! S-Clase 51T"is e>$lsio! of respo!siili%+ ma+ #ell fall s"or% of %"e s%a!dard of 

    Greaso!ale!essH !der %"e UCTA 1@ample/ a

    s%ri(e a% a &i%al por% #as a! GAd&erse P"+si$al Co!di%io! a!d Ar%ifi$ial

    Os%r$%io!H/ %"e %"eor+ ei!g %"a% a s%ri(e #"i$" a$%all+ pre&e!%ed ma%erials

    from ei!g deli&ered %o %"e si%e #as a! Gar%ifi$ialH os%r$%io! )IDIC 4 %" Edi%io!

    $lase 122 GNo% )oreseeale P"+si$al Os%r$%io!s or Co!di%io!sH p% a! e!d %o

    %"is i!%eres%i!g if ra%"er diffi$l% argme!% e$ase i% $learl+ refers %o GP"+si$al

    Os%r$%io!s or P"+si$al Co!di%io!sH I!%eres%i!gl+ %"e !e# S-Clase 412

    ope!s #i%" %"e p"rase GI! %"is S-Clase Gp"+si$al $o!di%io!sH mea!s !a%ral

    p"+si$al $o!di%io!s a!d ma!-made or o%"er p"+si$al os%r$%io!s a!d poll%a!%s/

    H T"e s%ri(e i! %"e por% argme!% "as ee! resrre$%ed as %"is $old $learl+

    e $o!sidered %o e Ga ma!-made p"+si$al os%r$%io!H

    T"e prolem of $orse #i%" %"e por% argme!% #as %"a% !der %"e pre&ios

    edi%io!s %"e e!$o!%eri!g of p"+si$al os%r$%io!s or $o!di%io!s #as limi%ed %o

    p"+si$al os%r$%io!s or $o!di%io!s o! %"e Si%e I% #as diffi$l% %o arge %"a% a

    s%ri(e a% %"e por% #as a $o!di%io! e!$o!%ered o! %"e Si%e ,o#e&er %"is

    prolem does !o% e>is% i! %"e $rre!% edi%io! e$ase %"e os%r$%io! or 

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    $o!di%io! merel+ "as %o e e!$o!%ered a% %"e Si%e a!d logi$all+ %"ere is !o

    reaso! #"+ some%"i!g %a(i!g pla$e ma!+ miles a#a+ mig"% !o% "a&e a! effe$% a%

    %"e Si%e/ #"i$" is %"e #ordi!g !o# %o e sed

    '+ #a+ of $omme!% i% seems s%ra!ge %"a% %"e $o!$ep% of Gpoll%a!%sH "as ee!si!gled o% al%"og" e!&iro!me!%al $o!%ami!a%io! isses "a&e ee! of &er+ "ig"

    &isiili%+ i! re$e!% +ears I% seems %o i!di$a%e %"a%/ for e>ample/ %"e fores% fires

    #"i$" affli$%ed %"e a%mosp"ere i! So%" Eas% Asia re$e!%l+ $old e $ase for a

    $laim I!deed/ $o!sideri!g %"e $omme!%ar+ o! $lase 416 ao&e/ s$" fores%

    fires ma+ e $o!sidered %o e GforeseealeH % !o% GSi%e Da%aH rele&a!% %o

    %e!der prepara%io!

    T"ere are o%"er po%e!%ial diffi$l%ies "ere Co!sider a $ase #"ere %ropi$al rai!s

    "a&e red$ed a! !pa&ed soil a$$ess road %o a s%a%e of &ir%al impassaili%+ If 

    %"is #as a% %"e Si%e $old i% e $o!sidered %o e a Gs-srfa$e a!d "+drologi$al

    $o!di%io!H or #old i% e e>$lded + %"e pro&iso e>$ldi!g G$lima%i$ $o!di%io!sH

    O!e of %"e more $o!%ro&ersial aspe$%s of $lase 412 #ill e %"e pro&isio!

    allo#i!g %"e E!gi!eer %o re&ie# #"e%"er o%"er p"+si$al $o!di%io!s i! similar par%s

    of %"e =or(s if a!+ #ere more fa&orale %"a! $old reaso!al+ "a&e ee!

    foresee! #"e! %"e Co!%ra$%or smi%%ed %"e Te!der/ a!d %o red$e %"e i!$rease

    i! $os%s + refere!$e %o %"e red$%io! i! Cos% de %o %"ose more fa&orale

    $o!di%io!s T"is "as of $orse ee! a! argme!% emplo+ed + E!gi!eers a!d

    a!%i%+ Sr&e+ors for a &er+ lo!g %ime a!d is !o% o&iosl+ fair U!derl+i!g i% is

    %"e !o%io! %"a% Co!%ra$%ors s"old !o% e allo#ed a!+ more profi% %"a! %"e+

    mig"% "a&e e>pe$%ed a% %"e s%ar% of %"e #or(s/ e&e! if %"e $o!di%io!s are #orse

    %"a! e>pe$%ed

    T"ere is a fair amo!% of E!glis" $ase la# o! %"e ICE eFi&ale!% of %"is S-

    Clase

    4157418 A**## R+$,9T"(%#p+", +- G++!#

    T"e pre&ios $lases i! )IDIC 4 %" Edi%io! rela%i!g %o %"is 2@1 %"rog" %o 364

    did !o% so $learl+ pla$e %"e respo!siili%+ for damage $ased + %raffi$ o! %"e

    Co!%ra$%or S-Clase 415 $learl+ s%a%es %"a% $os%s de %o !o!-si%aili%+ or 

    !o!-a&ailaili%+/ for %"e se reFired + %"e Co!%ra$%or/ of a$$ess ro%es are %o e

    or!e + %"e Co!%ra$%or a!d %"a% %"e Emplo+er is !o% respo!sile for a!+ $laims

    #"i$" ma+ arise from %"e se or o%"er#ise of a!+ a$$ess ro%e Referri!g %o m+

    %ropi$al road e>ample ao&e/ i% does !o% seem %o me %"a% %"is is e!%irel+

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    reaso!ale i! %erms of allo$a%io! of ris( par%i$larl+ if %"e Emplo+er is a

    go&er!me!% or go&er!me!% depar%me!%/ #"i$" ma+ e dire$%l+ or i!dire$%l+

    respo!sile for %"e road i! %"e firs% pla$e

    I% also seems %"a% %"ere ma+ e a possiili%+ a% leas% %"a%/ regardless of %"epro&isio!s of %"e Co!%ra$%/ i!sofar as %"e+ reFired a par%i$lar form of %ra!spor%

    %"e Emplo+er7E!gi!eer ma+ e oi!%l+ respo!sile %o %"ird par%ies + &ir%e of %"e

    la# rela%i!g %o oi!% liaili%+ of %or% feasors

    419 P"+,*,i+% +- ,' E%.i"+%m%,

    U!der %"is $lase %"e Co!%ra$%or is reFired %o %a(e all reaso!ale s%eps %o

    pro%e$% %"e e!&iro!me!% o%" o! a!d off %"e Si%e a!d %o limi% damage a!d

    !isa!$e %o people a!d proper%+ resl%i!g from poll%io!/ !oise a!d o%"er resl%s

    of "is opera%io!s Al%"og" e&e! a limi%ed sr&e+ of %"e la# rela%i!g %o

    e!&iro!me!%al $o!%ami!a%io! is !o% possile "ere/ i% is agai! !o% a% all $lear 

    !der E!glis" la# %"a% a Co!%ra$%or #or(i!g a% %"e e"es% of a! Emplo+er #old

    e solel+ respo!sile %o %"ird par%ies !der E!glis" La# for e!&iro!me!%al

    $o!%ami!a%io! or poll%io! $omi!g from proper%+ o#!ed + %"e Emplo+er

    CLAUSE : DESIGN ;SILVER AND ORANGE BOOKS<

    51 G%"(l C+mm%,# 8 D#i&% ;Sil." (%! O"(%& B++/#<

    Clase 51 of %"e Ora!ge 'oo( $o!%ai!s a #arra!%+ %"a% %"e Co!%ra$%or/ "is

    desig!ers a!d desig! S$o!%ra$%ors "a&e %"e e>perie!$e a!d $apaili%+

    !e$essar+ for %"e desig!

    'o%" Co!%ra$%s i!$lde a Co!%ra$%or0s !der%a(i!g as follo#s-

    T"e Co!%ra$%or !der%a(es %"a% %"e desig!/ %"e Co!%ra$%or0s Do$me!%s/ %"e

    e>e$%io! a!d %"e $omple%ed =or(s #ill e i! a$$orda!$e #i%"-

    a T"e La#s i! %"e Co!%r+/ a!d

    T"e do$me!%s formi!g %"e Co!%ra$% as al%ered or modified +

    :aria%io!s

    U!der E!glis" la# %"is is a sefl addi%io! T"ere is !o par%i$lar reaso! %o

    assme %"a% a $o!%ra$%or ildi!g some%"i!g i! E!gla!d #old e i! rea$" of 

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    $o!%ra$% merel+ e$ase %"e %"i!g $o!s%r$%ed di !o% $ompl+ #i%" e&er+ la# %"a%

    mig"% appl+ %o i%

    54 T*'%i*(l S,(%!("!# (%! R&$l(,i+%#

     All Co!%ra$%s also i!$lde a! !der%a(i!g "ere i! 54 %"a% %"e desig! s"all

    ge!erall+ $ompl+ #i%" all of %"e Co!%r+0s %e$"!i$al s%a!dards a!d o%"er 

    s%a!dards spe$ified i! %"e Emplo+er0s ReFireme!%s appli$ale %o %"e =or(s

    I% is of $orse self-e&ide!% %"a% e&er+ $o!%ra$%or ms% $ompl+ #i%" %"e lo$al la#s

    or ris( ei!g i! rea$" of %"ose la#s

    T"e p"rase Ge fi% for s$" prposes for #"i$" %"e par%ies i!%e!ded as are

    spe$ified i! %"e Co!%ra$%H is fo!d i! S-Clases 41 of %"e Sil&er/ Ora!ge a!d

    Red 'oo( U!der E!glis" la# %"e !o%io! of ei!g fi% for %"e prposes for #"i$"

    %"e par% is i!%e!ded ri!gs %o mi!d $ase la# #"i$" i!di$a%es %"a% a par%i$lar i%em

    ma+ e fi% for %"e par%i$lar prpose for #"i$" i% is i!%e!ded % !o% fi% for ge!eral

    or e>%raordi!ar+ prposes for #"i$" i% #as !o% desig!ed

    )or a !mer of +ears !o# I "a&e ee! ma(i!g %"e poi!% %"a% i!%er!a%io!all+ %"is

    p"rase is mos% $er%ai!l+ goi!g %o e i!%erpre%ed i! a differe!% fas"io! i! differe!%

     risdi$%io!s I% is a $o!$ep% rela%i!g %o %"e sale of goods i! E!glis" a!d

    Commo!#eal%" la# a!d/ #i%" &aria%io!s/ i! Ameri$a! la# rela%i!g %o %"e sale of 

    goods I% is Fi%e #ro!g %o a%%emp% %o %a(e p"rases li(e %"is o% of i%s par%i$lar 

    $o!%e>% a!d appl+ i% i! i!%er!a%io!al $ir$ms%a!$es #"ere %"e la$( of !iform

    i!%erpre%a%io! #ill almos% $er%ai!l+ lead %o se$%i&i%+ i! i!%erpre%a%io! a!d

    appli$a%io!

    Of $orse as %"e Co!%ra$%or0s desig! "as %o $ompl+ #i%" %"e s%a!dards se% i! %"e

    Emplo+er0s ReFireme!%s/ %"ere is !o%"i!g %o pre&e!% a! Emplo+er from s%a%i!g

    i! %"ose reFireme!%s %"a% %"e desig! #ill e Gs%a%e of %"e ar%H a!d fi% for all

    prposes T"is i! %r! $old lead %o %"e appli$a%io! i! o%" %"e Ora!ge a!d

    Sil&er 'oo(s of S-Clase 59 s%a%i!g-

    @I& errors, o$issions, a$"i'uities, inconsistencies, inadeuacies or other 

    de&ects are &ound in the ContractorEs Docu$ents, they and the *orks shall 

    "e corrected at the ContractorEs cost, notwithstandin' any consent or 

    approval under this Clause.B 

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    T"e a&oida!$e of road la!gage a!d prod$%io! of de%ailed a!d measrale

    spe$ifi$a%io!s + %"e Emplo+er is m$" %o e preferred O%"er#ise/ disp%es are

    o!d %o fi!d fer%ile gro!d i! %"ese $o!$ep%s

    CLAUSE = PLANT4 3ATERIALS AND WORK3ANSHIP

    %e!sio! of %ime or !o!e is gra!%ed #"e! i% s"old "a&e ee!

    a!d if a! emplo+er Gpre&e!%sH %"rog" "is o#! a$%io!s %"e $o!%ra$%or from $omple%i!g #i%" %"e

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    spe$ified %ime for $omple%io!/ %ime e$omes Ga% largeH a!d %"e $o!%ra$%or is gi&e! a

    reaso!ale %ime i! #"i$" %o $omple%e eak v. McKinney   1@8@ 1 'LR 111 CA LiFida%ed

    damages fall a#a+ No%e %"a% %"ere are %#o reFireme!%s %"e firs% ei!g !o me$"a!ism for 

    e>%e!di!g %ime/ a!d %"e se$o!d ei!g a! a$% of pre&e!%io! #"i$" a$%all+ pre&e!%s

    $omple%io! o! %ime

    T"e do$%ri!e so!ds Fire radi$al % is i! fa$% simpl+ a par%i$lar appli$a%io! of roma! la#

    do$%ri!es %o %"e effe$% %"a% par%ies s"old !o% e dges i! %"eir o#! $ases/ a!d par%ies

    s"old !o% e allo#ed %o e!efi% from %"eir o#! rea$"es of $o!%ra$% T"is ei!g %"e $ase/

    o!e $old #o!der #"e%"er Ari%ra%io! A#ards are floa%i!g aro!d #i%" %"e effe$%i&e

    appli$a%io! of %"is do$%ri!e i! $i&il la# risdi$%io!s

    T"e E!glis" di$ial %e!de!$+ i! re$e!% +ears "as ee! %o a%%e!a%e some#"a% %"e s%ri$%

    oser&a%io! of %"e $o!seFe!$es of %"e do$%ri!e a!d %"e e>%e!% %o #"i$" i% mig"% e relied

    po! + Co!%ra$%ors/ espe$iall+ #"e! %"e+ are loo(i!g a% $i%i!g i% e$ase %"e+ #ere !o%

    gi&e! a! e>%e!sio! for a las% mi!%e &aria%io! i!s%r$%i!g %"em %o pai!% %"e las% door i! a large

    ildi!g from red %o gree! Mclpine (u$"eroak v. McDer$ott International 1@@2 59 'LR 1

    CA

    I% is per"aps !for%!a%e %"a% %"e #ord Gpre&e!%io!H $o!%i!es from %"e 4 %" edi%io! Red 'oo( i%

    #as !o% i! %"e 3rd i! S-Clase 94 of all %"ree &ersio!s of %"e Co!%ra$% as %"is is a

    pe$liarl+ E!glis" $o!$ep% #"i$" "as !o% ee! #idel+ e>por%ed a!d/ al%"og" lo!g s%a!di!g/ i%

    does !o% "a&e par%i$larl+ #ell defi!ed o!daries

    No!-E!glis" la#+ers s"old (!o# as #ell %"a% E!glis" la# does !o% easil+ e!$ompass

    do$%ri!es s$" as %"e do$%ri!e of $o!s%r$%i&e a$$elera%io! fo!d i! Ameri$a! la#

     A!o%"er aspe$% of E!glis" la# #"i$" s"old e impor%a!% for par%ies %o ear i! mi!d is %"a% %"e

    e>%e!sio! of %ime pro&isio!s ge!erall+ are %"og"% %o "a&e ee! i!ser%ed for %"e e!efi% of 

    Emplo+ers ra%"er %"a! Co!%ra$%ors i! order %o alle&ia%e %"e po%e!%ial $o!seFe!$es i!$ldi!g

    %"e rig"% %o pa+me!% of liFida%ed damages of %"e do$%ri!e of a$%s of pre&e!%io! T"is

    approa$" ma+ e $o!%ras%ed #i%" %"e S#edis" a!al+sis fo!d i! %"e S#edis" $"ap%er T"s

    al%"og" some $omme!%a%ors ma+ disagree #i%" %"is/ a!d al%"og" %"e #ordi!g of %"e $lase

    #old !o% i! a!+ #a+ i!di$a%e %"is/ %"e $lase e>is%s for %"e e!efi% of Emplo+ers %o preser&e

    o%" %"eir liFida%ed damages a!d %"e se$ri%+ of %"e %ime for $omple%io! Iro!i$all+ %"erefore

    %"e more se&ere %"e !o%i$e a!d impleme!%a%io! pro&isio!s of %"e e>%e!sio! of %ime $lase are

    %"e more li(el+ i% is %"a% %ime #ill e se% Ga% largeH T"e effi$a$+ of %"e )IDIC pro&isio!s is %"s

    Fes%io!ale #"e! &ie#ed i! %"is #a+ T"e more diffi$l% %"e e>%e!sio! pro&isio!s are %o

    #or(/ %"e more li(el+ i% is %"a% %ime #ill e p% a% large + %"e a$%io!s of %"e Emplo+er or "is

    E!gi!eer

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    O!e of %"e mai! areas !der E!glis" La# gi&i!g rise %o prolems i! rela%io! %o e>%e!sio!s of 

    %ime is %"e Fes%io! of $o!$rre!% dela+ U!der %"is s$e!ario %"ere are a !mer of 

    siml%a!eos or o&er-lappi!g $ases of dela+ #"i$" $mla%i&el+ dela+ %"e #or(s as a #"ole

    Some #ill e a%%ri%ale %o emplo+er a!d some %o %"e $o!%ra$%or or %o %"ird par%ies*e!erall+ spea(i!g %"e rles i! rela%io! %o %"is are #ell se%%led/ % %"e+ are !o% !e$essaril+

    ss$ep%ile %o simple as%ra$% $odifi$a%io!

    T"e So$ie%+ of Co!s%r$%io! La# a%%emp%ed i! 2662 %o es%alis" a Pro%o$ol se%%i!g o% #"a%

    %"e ge!eral rles are/ % #as $ompelled s$$essi&el+ %o #a%er do#! i%0s $ode !%il i% e$ame

    simpl+ a s%a%eme!% of asser%ed es% pra$%i$e O!e of %"e maor faili!gs of %"e Pro%o$ol is

    %"a% i% impor%ed %"e prel+ Ameri$a! sol%io!s %o $omple> $o!$rre!$+ !amel+ %"a% %"e

    $o!%ra$%or ge%s G%ime % !o mo!e+H T"is pre-CP sol%io! "as i%s meri%s % $a!!o% e i!

    a!+ #a+ asser%ed %o e %"e sol%io! arri&ed a% + E!glis" la#

    N,)+"/ A%(l0#i# (%! Dl(0

    ="ile repor%ed E!glis" de$isio!s do !o% go i!%o %"e dep%" of a!al+sis some%imes fo!d i! %"e

     Ameri$a! la# repor%s rela%i!g %o !e%#or( a!al+sis/ %"e es%alis"ed pri!$iples are rela%i&el+

    $lear a!d 'ri%ai! is "ome %o a large !mer of spe$ialised $laims $o!sl%a!%s/ some

    "omegro#! a!d some affilia%ed #i%" Ameri$a! orga!isa%io!s/ #"o e!sre %"a% %"e &er+ la%es%

    %e$"!iFes are al#a+s sed i! prod$i!g %"is %+pe of a!al+sis for de%ermi!i!g %"e !e% amo!%

    of dela+ a!d i%s $os%s T"e proa%i&e &ale of %"e a!al+sis ma+ #ell e a%%a$(ed if i% is !o%

    ased o! a$%al da%a

    94 E,%#i+% +- Tim -+" C+mpl,i+%

    S-Clase 94 of %"e Sil&er 'oo( does !o%/ li(e i%0s sis%er oo(s/ i!$lde

    Ge>$ep%io!all+ ad&erse $lima%i$ $o!di%io!sH or G!foresee! s"or%ages i! %"e

    a&ailaili%+ of perso!!el or *oods $ased + epidemi$ or *o&er!me!% a$%io!sH

    as a reaso! for a! e>%e!sio! U!der E!glis" la# if %"e Emplo+er is a

    go&er!me!% a!d go&er!me!% a$%io!s pre&e!% %"e $o!%ra$%or from $omple%i!g o!

    %ime %"is ma+ #ell amo!% %o a! Ga$% of pre&e!%io!H #i%"i! %"e mea!i!g of %"e

    p"rase for #"i$" a! e>%e!sio! $a!!o% e gra!%ed T"is is e$ase !der %"is

    Co!%ra$% see S-Clase 1122 #"ere GEmplo+erH mea!s %"e perso! !amed

    as %"e Emplo+er i! %"e Co!%ra$% Agreeme!% a!d %"e legal s$$essors i! %i%le %o

    %"is perso! i% is a! ope! Fes%io! as %o #"e%"er or !o% %"is i!$ldes go&er!me!%

    odies "ig"er p %"e %ree of go&er!me!% a%"ori%ies o&er #"i$" %"e a$%al

    Emplo+er !der %"is $o!%ra$% ma+ "a&e !o $o!%rol

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    I! s$" $ir$ms%a!$es %"e $laim #old "a&e %o e s"oe-"or!ed i!%o S-Clase

    95 Dela+s Cased + A%"ori%ies ,o#e&er a!o%"er prolem #i%" S-Clase

    95 ge!erall+ is %"a% o!e $old arge i% is al#a+s reaso!al+ foreseeale + a!

    e>perie!$ed Co!%ra$%or/ espe$iall+ i! i!%er!a%io!al $o!%ra$%s/ %"a% legall+

    $o!s%i%%ed pli$ a%"ori%ies $a! dela+ a!d disrp% $o!%ra$% #or(19

      T"e e>a$%me%"od + #"i$" %"e =or(s #ill e dela+ed ma+ !o% e foreseeale a!d o!e

    %"s is fa$ed #i%" a p"ilosop"i$al Fes%io! as %o #"a% %+pe or degree of 

    foreseeaili%+ is !e$essar+ %o $rea%e liaili%+

    9< Dl(0 D(m(&#

    LiFida%ed damages for dela+ ms% e a reaso!ale pre-es%ima%e of %"e a$%al

    $os% of %"e damage !der %"e leadi!g $ase Dunlop v. neu$atic +yres v 0ew 

    ara'e  J1@15K AC is% i! E!glis" la# eak v. McKinney 1@8@ 1 'LR 111 CA

     A! i!%eres%i!g a!d as +e% !o% defi!i%i&el+ se%%led Fes%io! #old e>is% i! %"is area

      #"a% "appe!s if %"e dela+ damages are !o% pa+ale e$ase/ for e>ample/

    %"ere #ere a$%s of pre&e!%io!B Normall+ !der E!glis" la# ge!eral damages

    #old e pa+ale/ % if %"e Ca!adia! Spreme Cor% $ase of !lsley v. S

    Collins 1@H s$" $lases are i!%e!ded %o %a(e effe$% #"ere %"ere is a rea$" of 

    $o!%ra$% Co!seFe!%l+%/ if !o rea$" of $o!%ra$% o$$rs/ %"ere ma+ e !o room for %"e appli$a%io! of %"e Dunlop do$%ri!es !CD v /niversal %il  J1@93K =LR 3@@ ,L

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    %o %"e ridi$al !a%re of %"e period are more li(el+ %o arise if i% is des$ried as a GDefe$%s

    No%ifi$a%io! PeriodH %"a! if i% is des$ried as a HPeriod of ai!%e!a!$eH T"e reaso! for %"is is

    %"a% %"e p"rase GDefe$%s No%ifi$a%io!H seems a% leas% %o impl+ %"a% !o defe$%s ma+ e !o%ified

    af%er %"e e!d of %"is period ="a% is i!%e!ded seems %o e %"a% defe$%s s"old o%" e

    !o%ified a!d $orre$%ed dri!g %"e period If %"e+ are !o%/ %"e Emplo+er0s remed+ ma+ e i! a!$laim for a! aa%eme!% or se%-off

    T"e legal effe$% of %"e defe$%s !o%ifi$a%io! period seems Fi%e freFe!%l+ %o e mis!ders%ood

    i! %"e i!%er!a%io!al $o!%e>% Some people $er%ai!l+ seem %o %"i!( %"a% i% i! some #a+ i%

    repla$es %"e pres$rip%io! or limi%a%io! period #"i$" #old !ormall+ arise prel+ as a ma%%er of 

    la# from %"e a$%io!s of %"e $o!%ra$%or i! $omple%i!g %"e #or( U!der E!glis" la# %"is is

    $er%ai!l+ !o% %"e $ase T"e limi%a%io! period $omme!$es from %"e da%e of %"e a$%io! or 

    i!a$%io! gi&i!g rise %o %"e $omplai!% a!d %"e o!l+ possile legal sig!ifi$a!$e of %"e a$%i&i%ies of 

    %"e $o!%ra$%or dri!g %"e defe$%s !o%ifi$a%io! period is %"a% fr%"er a$%i&i%+ of %"e $o!%ra$%or i!

    remed+i!g defe$%s ma+ prolo!g %"e period #i%"i! #"i$" legal a$%io!s ms% e $omme!$ed i!

    respe$% of %"e remedial #or( prior %o ei!g arred + &ir%e of %"e passi!g of %"e limi%a%io!

    period

    O%"er %"a! %"a%/ %"e oliga%io!s of %"e par%ies !der Clase 11 are go&er!ed e!%irel+ +

    Co!%ra$%/ as %"ere is !o la# i! E!gla!d spe$if+i!g periods of mai!%e!a!$e af%er %"e #or(s

    "a&e ee! $omple%ed s$" as e>is% i! some risdi$%io!s

    111 C+mpl,i+% +- O$,#,(%!i%& W+"/ (%! Rm!0i%& D-*,#@ (%!

    112 C+#, +- Rm!0i%& D-*,#

    T"e e>pressio! Gfair #ear a!d %ear e>$ep%edH is a po%e!%iall+ %rolesome

    e>pressio! as i% arises primaril+ from %"e E!glis" la# of la!dlord a!d %e!a!%

    Spe$ifi$all+ i% refers %o %"e oliga%io!s of %e!a!%s %o re%r! proper%+ %o %"e s%a%e i%

    #as i! po! %a(i!g o&er %"e proper%+ apar% from Gfair #ear a!d %earH #"i$" mig"%

    reaso!al+ "a&e ee! e>pe$%ed as a resl% of %"e se of proper%+

    T"is ei!g %"e $ase/ if o!e #ere %o do a $omp%er sear$" of %"e p"rase Gfair 

    #ear a!d %ear e>$ep%edH %"ere #old !o do% e "!dreds if !o% %"osa!ds of 

    refere!$es I% is !o% e!%irel+ $lear "o# %"is &as% od+ of la# mig"% reaso!al+ e

    adap%ed %o %"e $ir$ms%a!$es of $o!s%r$%io! $o!%ra$%s #"ere %"e $o!%ra$%or 

    %oo( o&er a si%e/ il% some%"i!g a!d o$$pied %"e si%e %o a $er%ai! e>%e!% #"ile

    $omple%i!g %"e res% of %"e #or(s T"ere #ill e #ear $ased + %"e o$$pa%io!

    + %"e Co!%ra$%or of $omple%ed par%s of %"e =or(s #"ile %"e res% are fi!is"ed

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    Defe$%s No%ifi$a%io!s Periods $a! of%e! $ase prolems i! %"is $o!%e>% A!

    e>ample I rememer from %"e 1@960s o$$rred #"e! %"e e!gi!eer spe$ified a!d

    %"e Co!%ra$%or il% a %arma$adam asp"al% par(i!g lo% #i%" a spe$ified

    %"i$(!ess of asp"al% of o!l+ 56mm o! %op of "ard$ore I% #as proal+ a

    !or%"er! "emisp"ere spe$ifi$a%io! e$ase !der %"e "o% %ropi$al s!s of %"esi%e/ %"e %arma$adam #as %or! p %"e firs% a!d e&er+ sseFe!% %ime a %r$( did

    a %ig"% %r! o! %"e lo% *i&e! %"e E!gi!eer0s defi$ie!% spe$ifi$a%io!/ #as %"is Gfair 

    #ear a!d %earHB U!der )IDIC 2!d #"i$" #as %"e rele&a!% Co!%ra$% a% %"e %ime %"is

    #as !o% a% all $lear T"e pro&isio!s of S-Clase 112 #old "a&e ee! of 

    m$" assis%a!$e e$ase %"e Gopi!io! of %"e E!gi!eerH "as "appil+ ee!

    remo&ed from %"is pro&isio! a!d i% simpl+ s%a%es Gif a!d %o %"e e>%e!% %"a% s$"

    #or( is a%%ri%ale %o a!+ o%"er $ase %"e &aria%io! pro$edre s"all appl+H

    T"e Sil&er 'oo( reFireme!% i! S-Clase 112 %"a% %"e Co!%ra$%or remed+ all

    damage de %o %"e desig! of %"e =or(s a% "is o#! $os% #"e%"er %"a% desig! #as

    se% o% i! %"e Emplo+er0s ReFireme!%s or !o% #old e more e&e!l+ ala!$ed

    if i% "ad ei%"er e>$ep%ed i%ems for #"i$" %"e Emplo+er is respo!sile !der S-

    Clase 52/ or simpl+ adop%ed %"e Red 'oo( formla of o!l+ p%%i!g i% a% %"e

    Co!%ra$%or0s $os% of %"e remedial #or( #as Gdesig! for #"i$" %"e Co!%ra$%or is

    Jsolel+ or primaril+K respo!sileH S-Clase 112a

    113 E,%#i+% +- D-*,# N+,i-i*(,i+% P"i+! all 'oo(s

    T"is is a! i!%eres%i!g !e# pro&isio! #"i$" $a! e #el$omed o! %"e o!e "a!d

    e$ase i% pro&ides a Glo!g s%opH %o %"e si%a%io! o!e some%imes sees #"ere

    fi!al $er%ifi$a%es "a&e ee! #i%""eld de %o #ra!gli!g o&er #"e%"er or !o%

    defe$%s "a&e ee! properl+ re$%ified )rom %"e $o!%ra$%ors poi!% of &ie# %"is is

    also a! impor%a!% period so far as i%s o!ds are $o!$er!ed

    I do !o% (!o# #"+ %"e Emplo+er is e!%i%led %o a! e>%e!sio! of %"e Defe$%s

    No%ifi$a%io! Period simpl+ + reaso! of Ga defe$% or damageH T"is pro&isio!

    mig"% "a&e ee! more e&e!l+ ala!$ed if i% i!di$a%ed %"a% %"e period $old e

    e>%e!ded + reaso! of a defe$% or damage for #"i$" %"e Co!%ra$%or is

    respo!sile

    114 F(il$" ,+ Rm!0 D-*,#

    S-Clase 114$ appears %o allo# %"e Emplo+er/ #i%"o% refere!$e %o %"e

    E!gi!eer/ #"ere i! %"e Ora!ge Red 'oo(s a! E!gi!eer #ill "a&e ee!

    appoi!%ed a!d #i%"o% a de%ermi!a%io! + %"e E!gi!eer as %o #"e%"er or !o%

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    defe$%i&e #or( is Ga%%ri%ale %o a!+ o%"er $aseH !der Clase 112 %o se% a

    da%e !o mi!imm !mer of da+s is me!%io!ed a!d if %"e allegedl+ defe$%i&e or 

    damaged #or( is !o% remedied/ %o Gre$o&er all sms paid for %"e =or(s pls

    fi!a!$i!g $os%s a!d %"e $os%s of disma!%li!g %"e same/ $leari!g %"e si%e a!d

    re%r!i!g %"e pla!% a!d ma%erials %o %"e Co!%ra$%orH T"is appears %o e somesor% of !$lear #eapo! !e#l+ gra!%ed %o %"e Emplo+er i! rela%io! %o alleged

    defe$%s a!d is fo!d i! all %"ree oo(s of %"e !e# rai!o# U!der %"e !ormal

    pri!$iples of E!glis" $o!%ra$% la# i% is i!$o!$ei&ale %"a% a! Emplo+er $old "a&e

    a!+ s$" rig"%s ,e #old e e!%i%led %o damages !der %"e !ormal measre of 

    foreseeale damages !der %"e rles i! (adley ) 2axendale  a!d 5ictoria

    Laundry  a!d %"e measre of %"ose damages #old e se$% %o "is oliga%io! %o

    mi%iga%e "is loss

    E(mpl#

    Ta(e %"e "+po%"e%i$al posi%io! of a pla!% #"i$" is pla!!ed %o prod$e some%"i!g

    @@Q pre a!d %"e $o!%ra$%or for %e$"!i$al reaso!s $a! o!l+ prod$e %"e prod$%

    %o a le&el of 96Q pri%+ As %"e Emplo+er reFires @@Q pri%+ for &arios

    prposes %"e prod$% is e!%irel+ seless %o "im a!d "as !o resale &ale U!der 

    E!glis" la# "e #old e e!%i%led %o $laim #as%ed e>pe!di%re a!d per"aps a

    $er%ai! amo!% of los% profi% % i% is !o% li(el+ %"a% "e #old e e!%i%led %o a!

    a#ard of %"ose los% profi%s for %"e e!%ire life of %"e pla!% as i% mig"% reaso!al+ e

    e>pe$%ed %"a% if %"e prod$% #as p"+si$all+ $apale of ei!g prod$ed "e #old

    e!gage a!o%"er $o!%ra$%or %o prod$e i% #i%"i! a reaso!ale period of %ime ,e

    #old !o%/ a% firs% gla!$e a!d i! %"e ase!$e of spe$ial $ir$ms%a!$es/ e ale %o

    rae %"e fa$%or+ %o %"e gro!d a!d re$o&er %"e #"ole of %"e $o!%ra$% pri$e pls

    %"e fi!a!$i!g $os%s

    I! a!o%"er e>ample o!e mig"% imagi!e a 'OT proe$% #"i$" is spposed %o

    prod$e a $er%ai! amo!% of ele$%ri$i%+ for a s%a%e ele$%ri$al grid % #"i$" is o!l+

    $apale of prod$i!g pe$%ed %o

    e sed for 36 +ears a!d %"e! %r!ed o&er %o %"e *o&er!me!% ,ere agai! %"e

    pri!$iples rela%i!g %o mi%iga%io! of damages #old e e>pe$%ed %o %a(e effe$% a!d

    i% #old !o% e possile for %"e Emplo+er %o $laim a!d e>pe$% %o e a#arded %"e

    los% profi% dis$o!%ed prese!% &ale $ased + %"e 25Q s"or%age o&er %"e

    #"ole of %"e 36 +ear period *i&e! %"e $api%al $os% of %"ese %+pes of proe$%s i% is

    also !li(el+ %"a% %"e damages a#arded !eeded %o ma(e p %"e 25Q s"or%fall

    #old e more %"a! %"e $api%al $os% of %"e i!i%ial pla!% as paid %o %"e Co!%ra$%or

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    E!glis" la# is s%ill refi!i!g %"e posi%io! rela%ed %o %"ese %+pes of poi!%s/ a!d

    $ases i!&ol&i!g s#immi!g pools a!d s%a!ds i! s%adims "a&e led %"e #a+ i!

    i!di$a%i!g %"a% reaso!ale damages ma+ i! some $ir$ms%a!$es e less/

    some%imes Fi%e a i% less/ %"a! fll repla$eme!% $os%/ or %"e #"ole of %"e

    Dis$o!%ed Cas" :ale as de%ermi!ed + e>per% a$%aries T"is does !o% mea!%"a% E!glis" la# is !o% $ommi%%ed %o some%"i!g less %"a! Gpromp% effe$%i&e a!d

    adeFa%eH $ompe!sa%io! as reFired + &arios 'ila%eral I!&es%me!% Trea%ies/

    % ra%"er %"a% %"e appre$ia%io! of #"ere o! %"e s$ale of possiili%ies %"e

    measre of %"a% $ompe!sa%io! lies ma+ a$%all+ properl+ e elo# %"e le&el as

    de%ermi!ed + ma%"ema%i$al a!al+ses

    I! smmar+ S-Clase 114$ seems %o me %o e a! !si%ale !e# addi%io! %o

    %"ese Co!%ra$%s a!d o!e #"i$" #old e diffi$l% %o appl+ o! i%s li%eral %erms

    !der E!glis" la# T"e %ri$(+ area for emplo+ers ma+ #ell lie i! s$$essfll+

    argi!g %"a% %"e+ "a&e ee! depri&ed of Gss%a!%iall+ %"e #"ole e!efi%H of %"e

    pla!%7=or(s S$" si%a%io!s are o!d i! %r%" %o e o%" rare a!d "ig"l+

    argale

    11@ P"-+"m(%* C",i-i*(,

    U!der %"e EPC Tr!(e+ Sil&er 'oo( defal% pro&isio!s are added #"i$" resl% i!

    %"e Performa!$e Cer%ifi$a%e ei!g deemed %o "a&e ee! issed i! $er%ai!

    $ir$ms%a!$es I% is !o% appare!% #"+ %"is formla "as !o% ee! follo#ed i! %"e

    Ora!ge a!d Red 'oo(s as #i%""oldi!g of %"e Performa!$e Cer%ifi$a%e is of%e! a!

    isse la%e i! %"e da+/ a!d $laims for a! issa!$e + Ari%ra%io! Tri!als of %"e

    Cer%ifi$a%e are !o% !$ommo!/ !o% leas% e$ase %"e+ ma+ e a! impor%a!%

    miles%o!e i! %"e fi!a!$i!g arra!geme!%s

     A Fes%io! immedia%el+ arises !der E!glis" la# as %o #"e%"er or !o% %"e

    issa!$e of %"is Cer%ifi$a%e is fi!al a!d $o!$lsi&e as %o %"e Co!%ra$%or0s

    sa%isfa$%or+ performa!$e of %"e Co!%ra$% a!d %"s s%ops %"e Emplo+er from

    sseFe!%l+ allegi!g %"a% %"e #or( #as defe$%i&e T"ere is $er%ai!l+ a li!e of 

    E!glis" a%"ori%ies o! differe!% forms of Co!%ra$% a!d ari%ral de$isio!s i!

    i!%er!a%io!al $o!%ra$%s %o %"is effe$% T"e )IDIC la!gage fo!d "ere $er%ai!l+

    allo#s s$" argme!%s %o e made/ al%"og" %"eir effi$a$+ ma+ e %empered +

    S-Clase 116 As 11@ o!l+ refers %o %"e Co!%ra$%or0s oliga%io!s G$o!sidered

    %o "a&e ee! $omple%ed H a!d does !o% se %erms s$" as Gfi!al a!d

    i!di!gH i% is !li(el+ %"a% %"e issa!$e of %"e Performa!$e Cer%ifi$a%e #old ar 

    sseFe!% $omplai!%s ao% !flfilled oliga%io!s

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    1116 U%-$l-ill! O7li&(,i+%#

    T"is $lase "as i%s eFi&ale!% i! )IDIC Red 'oo( 4 %" Edi%io! $lase 822 a!d

    )IDIC Red 'oo( 3rd Edi%io! $lase 823 I am !o% a#are of a!+ E!glis" $ases

    $o!sideri!g %"e legal effe$% of s$" $lases % i% seems %o me !li(el+ %"a%$laims #old e $apale of ei!g made af%er (!o#ledge of %"e a$% or omissio!

    $omplai!ed of #as i! %"e possessio! of o!e par%+ or %"e o%"er a!d %"e limi%a%io!

    period "ad e>pired T"e ICE 1@55 form $o!%ai!ed a! eFi&ale!% $lase 823

    #"i$" #as des$ried + i! IN D!$a! =alla$e as Ge#ilderi!gH 26  A ,o!g ;o!g

    $ase ,o!g ;o!g follo#s E!glis" la#/ #i%" %"e o$$asio!al e>$ep%io! of i!di!g

    lo$al pre$ede!%s i!$o!sis%e!% #i%" E!glis" la#  .. o& (on' Kon' v *an' 

    Chon' Construction Co$pany Ltd  9 Co!s% L 13< 1@@1 did $o!sider %"e

    ,o!g ;o!g *o&er!me!% S%a!dard )orm eFi&ale!% a!d de$ided %"is mea!% %"a%

    %"e issa!$e of %"e mai!%e!a!$e $er%ifi$a%e did !o% ar a $laim arisi!g from

    !performed $o!%ra$%al oliga%io!s T"e S-Clase i! %"ese $o!%ra$%s also

    "as %o e read #i%" S-Clases 1$lsio! $lase pro&idi!g %"a%-

    @+o the extent that &ull co$pensation &or any rise or &all in Costs is not covered "y the

     provisions o& this or other Clauses, the ccepted Contract $ount shall "e dee$ed 

    to have included a$ounts to cover the contin'ency o& other rises or &alls in costs.B 

    T"e Sil&er 'oo( pro&ides %"a% ads%me!%s for C"a!ges i! Cos%s are $al$la%ed i! a$$orda!$e

    #i%" %"e pro&isio!s of %"e Par%i$lar Co!di%io!s/ so if %"ere are !o s$" pro&isio!s/ %"ere is !o

    $o!%ra$%al rig"% !der %"is S-Clase A similar posi%io! applies %o %"e Red 'oo(/ % "ere

    o!e "as %o loo( for $os% ads%me!% da%a i! %"e Appe!di> %o Te!der

     A% %"e %ime of $"e$(i!g %"is %e>% !e 2663 %"ere is a =orld 'a!( dis$ssio! form

    $o!sideri!g %#o $o!sl%a!%s0 argme!% %"a% !ei%"er go&er!me!%s !or $s%omers s"old ear 

    e>$"a!ge ra%e ris(/ % %"a% i!&es%ors s"old pi$( i% p21 

    I! pra$%i$e/ i% is $lear from %"e !mer of %imes %"is isse arises i! i!%er!a%io!al ari%ra%io! %"a%

    $ompre"e!si&e a!d $lear pro&isio!s are !eeded if i% is %o e deal% #i%" s$$essfll+ !der %"e

    26 ,dso!0s 'ildi!g Co!%ra$%s 16%" ed/ 1@#ell/ Lo!do!/ P49@21   P"il *ra+ a!d Tim Ir#i! GAllo$a%i!g E>$"a!ge Ra%e ris( i! Pri&a%e I!fras%r$%re Proe$%s

    G####orlda!(org7"o% %opi$sasp

    http://www.worldbank.org/hothttp://www.worldbank.org/hothttp://www.worldbank.org/hot

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    %erms of %"e $o!%ra$% O!e ms% #o!der if %"is si!gle se!%e!$e is goi!g %o e adeFa%e %o

    pre&e!% all e$o!omi$ diseFilirim or pra$%i$al impossiili%+ $laims i! %"e f%re O!e

    sspe$%s %"a% %"e a!s#er ms% e GNoH

    131 Ri&', ,+ V("0

     A ge!eral poi!% is %"a% S-Clase 131 pro&ides %"a% &aria%io!s ma+ e i!i%ia%ed

    + %"e E!gi!eer a% a!+ %ime prior %o issi!g %"e Ta(i!g-O&er Cer%ifi$a%e for %"e

    #or(s T"is gi&es rise !li(e pre&ios edi%io!s of )IDIC %o a Fes%io! !der 

    E!glis" la# as %o #"e%"er or !o% %"e E!gi!eer ma+ isse a!+%"i!g o%"er %"a!

    i!s%r$%io!s $o!%empla%ed + %"e Defe$%s No%ifi$a%io! Period pro&isio!s af%er %"e

    issa!$e of %"e Ta(i!g-O&er Cer%ifi$a%e U!li(e %"e pre&ios edi%io!s of )IDIC i%

    #old appear %"a% %"e la!gage of %"is S-Clase ars a!+ s$" i!s%r$%io!

    ="ils% %"is is $o!sis%e!% #i%" a rela%i&el+ da%ed li!e of E!glis" $ases sgges%i!g

    %"a% %"e E!gi!eer "as !o po#er %o &ar+ %"e $o!%ra$% af%er %"e issa!$e of %"e

    Ta(i!g-O&er Cer%ifi$a%e/ i% is !o% par%i$larl+ $o!sis%e!% #i%" $ommo! se!se I!

    m+ e>perie!$e o! a !mer of i!%er!a%io!al $o!s%r$%io! proe$%s i% "as ee!

    desirale/ i!deed sefl/ for %"e e!gi!eer %o $learl+ "a&e a po#er %o order 

    &aria%io!s af%er %"e issa!$e of %"e Ta(i!g-O&er Cer%ifi$a%e T"ese

    $ir$ms%a!$es arise of%e! #"e! %"ere is a la%e realisa%io! o! %"e par% of %"e

    Emplo+er7E!gi!eer %"a% %"e+ #old li(e addi%io!al fa$ili%ies added %o %"e

    $omple%ed #or(s or %o "a&e perfe$%l+ adeFa%e e>is%i!g fa$ili%ies repla$ed #i%"

    some%"i!g Fali%a%i&el+ differe!% ="ils% %"is $a! al#a+s e sol&ed + a separa%e

    agreeme!%/ %"is $a! gi&e rise %o !!e$essar+ $ompli$a%io!s a!d addi%io!al

    paper#or(

     A!o%"er poi!% %o ma(e ao% S-Clase 131 i! %"e Red 'oo( is %"a% %"e p"rase

    @the Contractor shall not $ake any alteration andor $odi&ication o& the

    er$anent *orks, unless and until the !n'ineer instructs or approves a

    5ariationG  is proal+ !#or(ale for $er%ai! %+pes of $o!%ra$%s s$" as dredgi!g

    a!d %!!elli!g #or(s #"ere/ i! %!!els/ i!s%a!% de$isio!s as %o %"e gro%i!g for 

    e>ample/ ma+ "a&e %o e made/ a!d ma+ e $o!sidered %o e par% of %"e

    perma!e!% #or(s

    T"e $ir$ms%a!$es i! #"i$" %"e Co!%ra$%or ma+ refse %o e>e$%e :aria%io!s

    differ e%#ee! %"e 'oo(s If as is ope! %o "im !der %"e Sil&er 'oo( %"e

    Co!%ra$%or !o%ifies %"e Emplo+er %"a% %"e :aria%io! #ill ad&ersel+ affe$% %"e safe%+

    of %"e =or(s for #"i$" %"e Co!%ra$%or is respo!sile or ad&ersel+ affe$% %"e

    a$"ie&eme!% of %"e Performa!$e *ara!%ees agai! Co!%ra$%or0s respo!siili%+

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    a!d %"e :aria%io! I!s%r$%io! is $o!firmed/ ris( for %"e :aria%io! s"old %ra!sfer %o

    %"e Emplo+er No $o!%ra$%al #ordi!g is i! pla$e for %"is %o "appe!

    132 V(l$ E%&i%"i%&

    + perso!al &ie# is %"a% %"e i!%rod$%io! i!%o S-Clase 132 of %"e !o%io! %"a%

    &aria%io!s $a! e red$ed i! &ale + %a(i!g i!%o a$$o!% %"e red$%io! if a!+ of 

    %"e &ale %o %"e Emplo+er of %"e &aried #or(s is a! ope! i!&i%a%io! %o disp%es

    $ased + se$%i&i%+ a!d spe$la%i&e asser%io!s from o%" Par%ies O!e mig"%

    also as( #"+ %"e i!$rease i! %"e &ale %o %"e Emplo+er of %"e &aried #or(s

    s"old !o% also e %a(e! i!%o a$$o!% i! %"is formla

    133 V("i(,i+% P"+*!$"

    No!e of %"e oo(s seems %o $o!%empla%e :aria%io!s as defi!ed ei!g made

    #i%"o% rela%i&el+ de%ailed proposals from %"e Co!%ra$%or or i!s%r$%io!s from %"e

    Emplo+er/ #"i$" ma+ or ma+ !o% reFire a proposal from %"e Co!%ra$%or

    ,o#e&er/ as Gappro&alH is !o% a defi!ed %erm !der S-Clase 133/ :aria%io!s

    as defi!ed 11897@ ma+ $ome ao% %"rog" e>$"a!ges of Si%e

    $orrespo!de!$e of %"e !ormal sor%/ a!d i! a ra%"er more i!formal fas"io! %"a!

    %"e )IDIC drag"%speople i!%e!ded

    W'% i# ( .("i(,i+% %+, ( V("i(,i+%?

    T"e Red Ora!ge 'oo(s do !o% allo# $"a!ges %o %"e Perma!e!% =or(s #"i$"

    $o!$ep% is &er+ poorl+ defi!ed #i%"o% a prior appro&al or i!s%r$%io! from %"e

    E!gi!eer T"e Sil&er 'oo( does !o% allo# Emplo+er desig!ed i%ems %o e

    :aria%io!s as defi!ed see %"e defi!i%io! of perma!e!% #or(s desig!ed a!d

    e>e$%ed + %"e Co!%ra$%or So #"a% "appe!s if %"ere is a maor modifi$a%io!

    i! Temporar+ =or(s or i! Sil&er %o %"e Perma!e!% =or(s desig!ed + %"e

    Emplo+erB E!glis" dges a!d Ari%ra%ors "a&e !o%/ "is%ori$all+/ ee! "app+ %o

    see Emplo+ers re$ei&e some%"i!g for !o%"i!g/ a!d %"ere are do$%ri!es s$" as

    Fa!%m meri%/ defi!i%io!al de&i$es/ a!d o%"er mea!s %o e!sre fair!ess is

    a$"ie&ed I% s"old e re$alled %"a% "is%ori$all+/ if !o rig"% #as gi&e! %o %"e

    Emplo+er %o &ar+ %"e $o!%ra$%/ "e $old !o%/ a!d %"e Co!%ra$%or #as perfe$%l+

    e!%i%led %o perform i! %"e $o!%ra$%all+ agreed fas"io! a!d dema!d pa+me!%

    If %"e rela%i&el+ res%ri$%i&e )IDIC :aria%io! pro$edre does !o% appl+ for o!e

    reaso! or a!o%"er/ i% is ope! %o ari%ra%ors a!d o%"er addi$a%ors %o de%ermi!e

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    %"a% a $olla%eral $o!%ra$% or per"aps e&e! a separa%e agreeme!%/ ga&e rise %o a

    rig"% %o pa+me!%

    CLAUSE 16 CONTRACT PRICE AND PAY3ENT

    141 T' C+%,"(*, P"i*

    U!der E!glis" la# a!d %"e do$%ri!e of Ge!%ire $o!%ra$%sH %"e Commo! La# rig"%

    %o pa+me!% for %"e sppl+ of goods a!d ser&i$es does !o% arise !%il %"e #"ole

    $o!%ra$% "as ee! performed T"is $a! e modified + $o!%ra$% % %"e

    $o!%ra$%al e!%i%leme!%s $a! o!l+ arise o! s%ri$% performa!$e of %"e oliga%io!s

    #"i$" #ill gi&e rise %o %"e e!%i%leme!%

    I! %"e $ase of G!i% pri$eH $o!%ra$%s or s%aged pa+me!%s/ some $omme!%a%ors

    "a&e arged %"a% %"ese gi&e rise %o a series of Ge!%ireH $o!%ra$%s #i%"i! %"e

    o&erall frame#or( S$" a! a!al+sis #old gi&e a s%ifi$a%io! for i!%eres%

    pa+me!%s from %"e da%e %"e oliga%io!7s%age is $omple%ed

    148 I##$ +- I%,"im P(0m%, C",i-i*(,#

    O&er %"e +ears E!gla!d "as see! a fair amo!% of $ase la# o! %"e

    $ir$ms%a!$es !der #"i$" a! emplo+er ma+ #i%""old pa+me!%s !der 

    $o!%ra$%s of %"is !a%re e$ase of alleged faili!gs o! %"e par% of %"e $o!%ra$%or

    Dis%i!$%io! ms% e made e%#ee! $o!%ra$%al rig"%s %o #i%""old sms said %o e

    de as fo!d i! %"is S-Clase a!d rig"%s #"i$" e>is% a% Commo! La#

    Rig"%s said %o e>is% a% Commo! La# e>is% + &ir%e of %"e opera%io! of %"e

    do$%ri!e of se%-off ="ils% %"e la# i! %"is area is proal+ !!e$essaril+

    $ompli$a%ed/ i% is $er%ai!l+ %re %o sa+ %"a% %"e rig"% %o se%-off ms% e

    dis%i!gis"ed from %"e rig"% %o $o!%er$laim if a disp%e arises Se%-off li(e

    aa%eme!% is a! asol%e defe!$e #"i$" e>is% + &ir%e of %"e opera%io! of %"e

    la# a!d $old !ormall+ e raised &er+ la%e i! %"e da+ e&e! if assmi!g a! ICC

     Ari%ra%io! $lase %"e Terms of Refere!$e "ad ee! fi>ed !der Ar%i$le 19 of %"e

    ICC Rles a!d/ per"aps/ e&e! if %"e Tri!al made a de%ermi!a%io! !der Ar%i$le

    1@ of %"e Rles %"a% i% #as %oo la%e i! %"e da+ %o raise %"e se%-off $laim

    ="ile i% ma+ e eas+ %o asser% %"a% $o!%ra$%al me$"a!isms s"old #or( i!

    a$$orda!$e #i%" %"eir %erms a!d of $orse %o e effe$%i&e s"old e opera%ed

    e>a$%l+ i! a$$orda!$e #i%" %"e $lase i! Fes%io!/ %"e e>is%e!$e of %"is do$%ri!e

    is a %"rea% %"a%/ !der E!glis" la#/ %"e $o!%ra$%al pa+me!% pro&isio!s #ill e

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    frs%ra%ed i! %"e fa$e of a se%-off $laim U!for%!a%el+/ i% ma+ depe!d &er+ m$"

    o! %"e lo%%er+ of #"a% sor% of %ri!al +o are i! fro!% of

    149 Dl(0! P(0m%,

    U!der E!glis" la# legal rig"%s e>is% %o re$ei&e i!%eres% for dela+ed pa+me!%

    ,o#e&er for "is%ori$al reaso!s %"e rig"% "as ee! $ompli$a%ed + %"e

    reFireme!% %o dis%i!gis" e%#ee! %"e period prior %o %"e issa!$e of %"e #ri% or 

    dema!d/ %"e period dri!g #"i$" %"e dema!d is addi$a%ed po!/ a!d %"e

    period af%er #"i$" %"e a#ard is issed22

    ,is%ori$all+ i% #as also diffi$l% a% o!e %ime %o re$ei&e $ompo!d i!%eres% i!

    $er%ai! $ir$ms%a!$es T"is "as !o#/ for ari%ra%io!s a% leas%/ ee! sol&ed +

    Se$%io! 4@ of %"e Ari%ra%io! A$% 1@@8 #"i$" gra!%s road po#ers %o ari%ra%ors

    #"ere %"e sea% of %"e ari%ra%io! is i! E!gla!d No!e%"eless/ %radi%io!all+ mi!ded

    ari%ra%ors ma+ feel %"a% o!l+ simple i!%eres% s"old e paid/ #"a%e&er %"eir rig"%s

    as ari%ra%ors %o a#ard i!%eres% ma+ e

    )or E!glis" $o!%ra$%ors/ a!d a!+ o%"er orga!isa%io! #i%" a Gss%a!%ial li!(H %o

    %"e U;/ relief ma+ also e a&ailale %"rog" T"e La%e Pa+me!% of Commer$ial

    De%s I!%eres% A$% 1@@9/ al%"og" %"ere are some res%ri$%io!s o! #"o %"is A$%

    applies %o If S-Clase 149 is !ame!ded i! %"e $o!%ra$% i! Fes%io!/ i% #ill

    proal+ !o% appl+ If i% "as ee! dele%ed/ %"e A$% mig"% appl+

    Dela+ed pa+me!% $lases ma+ argal+ some%imes !o% resl% i! a rig"% %o

    i!%eres% or fi!a!$i!g $"arges for %"e period of dela+ i! $ir$ms%a!$es #"ere !o

    rig"% %o pa+me!% arose e$ase %"ere #as a serios differe!$e as %o e!%i%leme!%

    a!d e!%i%leme!% did !o% $ome i!%o e>is%e!$e !%il %"e dge or Ari%ra%or de$ided

    %"a% a rig"% %o a! i!$reased $er%ifi$a%io! or pa+me!% e>is%ed

     A DA' #ill !o% e ale %o a#ard i!%eres%/ !less i% is G%"e pa+me!% of fi!a!$i!g

    $"arges i! a$$orda!$e #i%" %"e Co!%ra$%H DA' Pro$edral Rles Clase 5f 

    Sil&er 'oo( or 9f Red 'oo(/ so if i!%eres% is a large eleme!% of %"e disp%e/

    resor% %o ari%ra%io! ma+ e !e$essar+ %o re$o&er i% U!li(e %"e DA'/ %"e Ari%ral

    Tri!al $old a#ard i!%eres% a% i%s dis$re%io! #"e%"er S-Clase 14< "ad

    ee! opera%ed or !o%

    I% is also #or%"#"ile %o re$ord %"a% %"e p"rase Gfi!a!$i!g $"argesH is a legal %erm

    of ar% i! E!gla!d a!d ma+ e/ e$ase of %"e $ompli$a%ed $ase la# referred %o

    ao&e/ dis%i!gis"ed from %"e $o!$ep% of i!%eres% as damages for la%e pa+me!%

    22 See paragrap" 9699 i! =alla$e (udsonEs 2uildin' Contracts 99th edition Lo!do!/ S#ee% a!d a>#ell/ 1@@5

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    I! Minter v. *(+S% 1@96 13 'LR 1/ fi!a!$i!g $"arges for la%e pa+me!% of 

    &aria%io!s for dis%red progress #as re$o&erale as Gdire$% loss a!d e>pe!seH

    I% ms% %"s e realised %"a% al%"og" %"e rig"% %o re$ei&e Gfi!a!$i!g $"argesH

    pa+me!% for dela+ed pa+me!% i! S-Clase 149 is %o e #el$omed/ %"eopera%io! of %"e S-Clase ma+ !o% e #i%"o% diffi$l%+ I! par%i$lar/ i% "as

    ee! s$$essfll+ arged %"a% as %"ere #as !o fi!a!$i!g i! fa$%/ !o fi!a!$i!g

    $"arges are pa+ale I% #old e s%ra!ge/ % !o% !%"i!(ale/ %"a% a! ari%ra%or 

    mig"% a$$ep% a &ersio! of s$" a! argme!% "ere

    I% s"old fi!all+ e !o%ed %"a% as is %"e $ase #i%" %"e famos Lo!do! I!%er 'a!(

    Offer Ra%e LI'OR/ #"i$" $o!sis%s of 4 differe!% ra%es/ %"e $o!$ep% of %"e

    Gdis$o!% ra%e of %"e Ce!%ral 'a!( i! %"e $o!%r+ of %"e $rre!$+ of pa+me!%H is

    li(el+ %o $ase diffi$l%+ e$ase %"ere ma+ or ma+ !o% e some%"i!g $alled a

    dis$o!% ra%e i! %"e $o!%r+ i! Fes%io! a!d %"ere $old