Settlement with employer does not affect subcontractor’s liability for delay damages

Carillion Construction Ltd v Woods Bagot Europe Ltd, EMCOR and AECOM [2016] BLR 382, [2016] EWHC 905 (TCC), 28 April 2016

In a complicated dispute between Carillion and Woods Bagot, EMCOR and AECOM regarding delays in completing the construction and fit out of the Rolls Building, the High Court had to grapple with the effect of successive settlement agreements and requests for extension of time in a preliminary issue hearing. The important background was that (1) Carillion entered into Supplemental Agreements with Woods Bagot, EMCOR and AECOM respectively, revising the completion date to 28 January 2011; and (2) Carillion entered into a Further Supplemental Agreement (FSA) with the employer which fixed a new completion date of 22 July 2011 and settled the payment of liquidated damage up to that date.