If an extension of time is awarded subsequently, a fresh Notice of Non-Completion must be issued by the Employer. Completion Certificate is called a NonCompletion Notice and - should be issued by the Employer. Much has been written about the Court of Appeal decision in Grove v S & T in the context of adjudication practice, but the case also provided guidance over the timing of the requisite notices under JCT contracts where liquidated damages are to be deducted. Grove had sent the third notice before S&T could reasonably have received and considered … Your comment could not be posted. Construction and engineering law articles, Construction and engineering law seminars, Procurement Portal and public procurement law blog, « MF/1 on Liquidated Damages | The motorist, Mr Beavis, overstayed and did not pay the charge. In terms of the implications of this case on construction contracts, where the wording of the clause links the application of liquidated damages to practical completion by the initial contractor (as is the case under many industry forms of contract such as JCT and FIDIC contracts), then the liquidated damages clause will not apply in … Adjudications and claims. Following … A sample notice of dispute for use with JCT contracts (in PDF and Word format). the Employer will withhold or deduct LADs from the Contractor at the rate in the Contract Particulars, or any lesser rate stated in the notice (as set out in clause 184.108.40.206). In total there are potentially four notices. Grove sent the second notice at 49 seconds after 5 pm and the third 8 seconds later. Some contracts (such as the JCT Minor Works Building Contract) do not require that a certificate of non-completion is issued, although it may be considered best … JCT wording is very different to the NEC and specifically requires the employer, not the contract administrator, to make the deduction for liquidated damages. The Judge clarified that the reservation of the right to withhold or deduct liquidated damages in a notice validly served under clause 2.23 would be unaffected by there having been a further extension of time (insofar as the extension of time did not remove the Employer's entitlement to deduct liquidated damages from the … View an alternate. JCT MW:MWD contracts. However the judgment acknowledges that the procedure provides no obvious benefit to anyone, if the employer warns the contractor of what he may do just seven or eight seconds before he actually does it. Adjudications followed regarding contract terms, S&T’s entitlement to an extension of time and the validity of Grove’s pay less notice. You as employer do not then have to issue a separate pay-less notice for delay damages because they are already included in the notified sum of the amount due. Why have two notices? Here, the key notices were the second and third. A few seconds later, Grove sent a liquidated damages deduction notice to S&T. The first notice was the general notice that the employer might deduct liquidated damages. You may also be interested in these other Mills & Reeve resources: The information on this blog is not intended to be legal advice. Under the standard JCT wording the employer must issue a non-completion notice stating that the works did not complete on time. This is only a preview. For example, the issue of a Notice of Non-Completion is a prerequisite to the Employer's ability to deduct LADs so the failure to issue such a notice, or as the case of Octoesse v Trak  EWHC 3180 (TCC) illustrates, to issue a fresh Notice of Non-Completion where an extension of time fixes a new Completion Date, can prevent the Employer being able to deduct LADs. The judge held … Email address will not be displayed with the comment.). File type: PDF; Size: 48.93 KB; ... For liquidated damages this includes how amounts are inserted in the contract and how this is to be deducted or certified. A Notice of Non-Completion (clause 2.28, JCT 2016 Design and Build): If the Contractor fails to complete the Works or a Section by the relevant Completion Date, the Employer is required to issue a notice to that effect. Collection of liquidated damages letter template that will perfectly match your demands. The provisions are detailed and there are possible pitfalls for the unwary.