Termination: how to get it right

By Steven Carey2023-05-02T10:00:00

A recent case on termination under contract and at common law provides guidance on complex post-termination disputes

Energy Works (Hull) Ltd entered into a contract with MW High Tech Projects UK Ltd to design, procure, contract, commission and test an energy-from-waste plant in Hull. The contract was based upon the IChemE Red Book, a form predominantly used for complex plant projects.

The project hit difficulties. On 4 March 2019, 11 months after the contractual completion date, parts of the plant had still not been commissioned and MW High Tech had suspended its works. Accordingly, Energy Works terminated the contract. Eventually the parties ended up before the Technology and Construction Court. The judgment runs to some 264 pages and addresses numerous issues. This article only touches on a few of those issues.

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