Rinlgley group logo
  • Home
  • Who We Are
    About Us Our People Awards Savings for Clients Results for Clients Our Impact & ESG Community & Charities Market Overview Leasehold Reform Campaign Money Back Guarantee
  • What We Do
    • Block Management
      • Block Management Overview
      • for RTM Companies
      • for Freehold Management Companies
      • for Resident Management Companies
      • for Estates of Houses
      • for Freeholder Investors
      • Ground Rent Collection
      • How to Change Agent
      • Block Management Packages
      • Can't Afford an Agent?
      • Legal work & Tribunals
      • Section 20 Major Works
      • Ringley's Top 10 Tips
      • Staff on Site
      • Moving or Buying?
      • Report an Incident
    • Asset Management
      • Asset Management Clients
      • Asset Management Overview
        • Asset Management Overview
        • Stabilised Assets
        • Project Monitoring
        • Mobilisation & Lease up
        • Accounting & Reporting
        • ESG Consultancy & Implementation
        • Brands & URLs for sale
        • UK Build to Rent
          • UK Build to Rent
          • Smart Technology
          • Strategic Marketing
          • Resident Experience
          • Tenancy Management
          • UK Later Living Opportunities
            • Later Living Opportunity
            • Smart Technology
            • Strategic Marketing
            • Resident Experience
            • Tenancy Management
            • UK Coliving
              • UK Coliving
              • Asset Managers TechStack
              • UK Student housing
                • Student Housing
                • Site Finding/Digital Land Search
              • Law
                • Legal Services Overview
                • Our People
                • Recommendations
                • Right to Manage
                • Lease Extensions
                • Freehold Purchase
                • Absentee Freeholder
                • Court Appointed Manager
                • Conveyancing
                • Service Charge/Rent Arrears Recovery
                • Company Secretary
              • Valuation
                • Valuation Overview
                • Company Accounts
                • Lease Extensions
                • Freehold Purchase
                • Rent Reviews
                • Development Valuations
                • Purchase & Mortgage
                • Insurance Valuations
                • Expert Witness & Litigation
                • Tax, Trusts & Accounts Valuations
                • Trading Business
                • Compulsory Purchase
                • Residential Valuations
              • Engineering
                • Engineering Overview
                • EWS1 Consultancy
                • Asbestos
                • Contract Administration
                • Fire Assesment
                • Homebuyer Survey
                • Building Survey
                • Schedules
                • Party Wall Matters
                • Principle Designer
                • Disability Access Audits
                • Small Building Works
              • Finance
                • Finance Overview
                • Get Accounts Quote
                • The Law & Property Accounts
                • Industry Update
                • To audit or Not?
            • Insights
              Property Management Articles Property Management Blogs Rental Market Blogs Customer Comments FAQ - Ask Our Experts
            • E-books
            • Portal Login
            • Get In Touch
            • Clear Filter
            • Property Blog INDEX
            • PlanetRent Blog

            What are the Notice periods for 'liquidated damages' LADS in a JCT Construction contract


            Liquidated damages' LADS in a JCT Construction contract are deductions on a weekly basis for contract overrun.  One would fall foul of the JCT Contract for making a deduction without going through the LADS process.  And failing to pay a Certificate within time (usually 14 days) would entitle the Contractor to interest and may end up with the Contractor triggering the dispute mechanisms in the lease often 'Adjudication'.  

            Over-run issues are dealt with by LADS and are for triggered by the contract end date not being met, save for where it is altered (usually extended) by a time extension certificate.  This could be triggered either by serving a Certificate of Non Completion - which may in law take the effect of calling an end to the contractor or by serving a Certificate of Practical Completion which sets the end date of the contract.

            LADS are also triggered by a NOTICE REGARDING LIQUIDATED DAMAGES which ordinarily the Client is responsible for serving on the Contractor not the Contract Administrator.    The pitfalls of a wrong notice are fatal - so a construction solicitor or experienced engineer should prepare such notice.  Often the process for serving LADS is a TWO STEP process:
            Step 1:   WARNING NOTICE that you as Client (the Employer within the JCT Contract) may require payment of, or may withhold or deduct liquidated damages - which must be served before the due date for the final payment under the contract
            Step 2:   NOTICE DEMANDING PAYMENT OR DEDUCTING LADS at the rate stated in the contract particulars, no later than 5 days before the final date for payment of the amount payable under the contract 


            WARNING:   The timing and sequencing of the notices is important and notices should be served in the correct order.
            1.  A Notice of Non-Completion is a prerequisite to the Employer's ability to deduct LADs.  Failure to issue such a notice, or as the case of Octoesse v Trak [2016] EWHC 3180 (TCC) illustrates that 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.

            2.  Typically the JCT does not specify an interval or time period between the warning notice and the deduction notice.
            3.  Both can be served almost simultaneously - as the case of Grove addressed the length of time required before service of the deduction notice and held that despite it being seconds between serving a Warning Notice and the Deduction Notice - this was not a defence.


            Social
            Facebook Linkedin Twitter Blogger

            Insights, Blogs, Research, E-Books

            Landlord blog bg

            Landlord blog
            Read landlord blog
            Property blog bg

            Property blogs
            Read property blogs
            Articles bg

            Property articles
            Read property articles
            E book

            E-books
            Read E-books
            Facebook footer Instagram footer Linkedin footer Twitter footer
            Facebook footer
            Instagram footer
            Linkedin footer
            Twitter footer
            • Ringley Group
            • About us
            • CSR
            • ESG
            • BusyLiving
            • PlanetRent
            • Fire door inspection
            • Talk to us
            • Careers
            • Ask a Question
            • Insight
            • Articles
            • Blogs
            • Subscribe
            • What we do
            • Asset Management
            • Block Management
            • Facilities Management
            • Property Law
            • Surveying / Valuation
            • Building Engineering
            • Financial Services
            • Managing Agents
            • Block Management Locations
            • Co-working
            • Offices
            • London
            • Ringley House
            • 1 Castle Road
            • London
            • NW1 8PR
            • T: 0207 267 2900
            • Manchester
            • 11 Swan Street
            • Northern Quarter
            • Manchester
            • M4 5JJ
            • T: 0330 174 7777
            • Cardiff
            • 122 Bute Street
            • Cardiff Bay
            • Cardiff
            • CF10 5AE
            • T: 0330 174 7747
            • Email: solutions@ringley.co.uk
            • Emergency line 1: 0207 428 2056
            • Emergency line 2: 0207 267 2900
            • Report incident
            Privacy Policy
            Ringley Staff
            Ifsm Irpm member New iso Arla licensed Ombudsman services Rics vertical

            All content © copyright 2022. Ringley Limited. All Rights reserved. Ringley Limited, incorporated and registered in England and wales. Registered office: Ringley House, 1 Castle Road, London, NW1 8PR. Company No. 03302438
            Terms of use | Privacy policy | Modern slavery act | COVID-19 risk assessment