Jurisdiction(s):
United Kingdom

High Court (TCC) clarifies no right to suspend works, LADs after termination, scope of wilful default, and financing costs not excluded, awarding £119m in Energy Works v MW

Published on: 23 January 2023

Published by a LexisNexis Construction expert

Legal News

Article summary

Energy Works (Hull) Ltd v MW High Tech Projects UK Ltd and another [2022] EWHC 3275 (TCC)

What are the practical implications of this case?

The comprehensive judgment of the Honourable Mr Justice Pepperall sets out the practical hazards and challenges frequently faced on energy and infrastructure schemes, particularly where advanced technology intensifies complexities in design and construction.

It further highlights the significance of a contractor’s reporting duties, within a contractual framework that did not restrict liability for wilful defaults, including the deliberate misreporting of progress.

This ruling will be of clear interest to practitioners, construction professionals and other stakeholders working across the construction, infrastructure and energy sectors.

The court also provided useful guidance and clarification on several broader legal issues relevant to disputes arising in construction, infrastructure and energy projects.

First, the court confirmed that, in the absence of express contractual or statutory provisions, a contractor has no general right to suspend works or to address an employer’s breach as it chooses; the principal remedy remains a claim for damages. This is particularly pertinent for those advising clients who are...

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