Jurisdiction(s):
United Kingdom

Privy Council on FIDIC Yellow Book: no variations within lump-sum design risk; strict clause 20.1 time-bar; Engineer cannot waive; termination does not revive claims

Published on: 23 January 2026

Published by a LexisNexis Construction expert

Legal News

Article summary

Uniform Building Contractors Ltd v The Water and Sewerage Authority of Trinidad and Tobago [2026] UKPC 2

What was the background?

The Privy Council appeal arose from a 2007 design-and-build, lump sum contract governed by the 1999 FIDIC Yellow Book, concluded between the Water and Sewerage Authority of Trinidad and Tobago (WASA) and Uniform Building Contractors Ltd (UBC) for the design, supply and installation of pipelines. The works were structured as two discrete packages, each on a lump-sum basis. Executed on 23 May 2007, the agreement incorporated the Yellow Book, bespoke Conditions of Particular Application, the Employer’s Requirements, together with a Bill of Quantities (BoQ). Mr Barry Paul was appointed as the Engineer under the contract. During execution, disputes between the parties arose over performance. WASA served termination notices dated 28 May and 4 June 2009. UBC commenced proceedings in May 2013, shortly before the limitation period expired, and WASA advanced a counterclaim. At first instance, the court dismissed both UBC’s claim and WASA’s counterclaim in full. WASA did not appeal the dismissal of its counterclaim; UBC, however, challenged the dismissal of its own claim. The Court of Appeal of Trinidad and Tobago allowed UBC’s appeal and awarded substantial damages...

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