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Clarity on liquidated damages claims for delay after termination

A recent Court of Appeal decision provides much-needed clarity on the operation of liquidated damages clauses in respect of delay after the termination of a construction contract. The case, Triple Point Technology Inc vs PTT Public Co Ltd [2019] EWCA Civ 230, concerned a contract for procurement of software and related services between PTT as employer and Triple Point as supplier. The contract documents provided for payment by milestones, but also included specific dates for payment. Work under the contract was delayed and Triple Point sought payment according to the dates referred to in the contract documents. PTT refused payment on the basis that the relevant milestones had not been achieved. Triple Point suspended work for non-payment and PTT purported to terminate the contract for Triple Point’s default. 

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