Notice condition precedent to claim liquidated ascertained damages (LAD)

Most forms of building contract include a clause entitling the employer to a specified amount of damages, referred to as liquidated and ascertained damages (LAD) if the contractor is late in constructing a project. This clause sets out the procedure and condition that need to be followed by the empl...

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Main Author:	Mansor, Nur Syaimasyaza
Format:	Thesis
Language:	English
Published:	2011
Subjects:	TH Building construction
Online Access:	http://eprints.utm.my/id/eprint/36798/1/NurSyaimasyazaMansorMFAB2011.pdf
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id	my-utm-ep.36798
record_format	uketd_dc
spelling	my-utm-ep.367982018-05-27T08:14:28Z Notice condition precedent to claim liquidated ascertained damages (LAD) 2011 Mansor, Nur Syaimasyaza TH Building construction Most forms of building contract include a clause entitling the employer to a specified amount of damages, referred to as liquidated and ascertained damages (LAD) if the contractor is late in constructing a project. This clause sets out the procedure and condition that need to be followed by the employer. Some provision for example in clause 40.1 PWD 203A (Rev. 2007) require the employer to issue notice of intention before claiming LAD. The purpose of the issuance of notice is to inform the contractor about the payment or deduction. However, does the issuance of notice is condition precedent to the said claim? Some provision does not specifically expressly state the requirement to issue notice. So, there is an argument that section 56(3) of Contract Act is effective as an implied term to the contract. Based on the respective situations, question arises whether the employer?s entitlement to liquidated damages is waived if he fails to issue the said notice. This study is carried out to determine whether notice is condition precedent to claim liquidated damages and the legal impact of notice provision for liquidated damages claim. The study was carried out mainly through documentary analysis of law journals. It was found that when the provision expressly state that notice is condition precedent, the failure to comply with notice provision might jeopardize the employer?s claim. However, the employer?s claim is not totally rejected because based on prevention principle, the contractor who caused the delay, cannot benefit from its wrong act. When the provision did not expressly state that notice is a condition precedent, it can be condition precedent by implication. The argument that section 56(3) is an implied term to the contract was wrong because section 56(3) is only applicable when the contract becomes voidable. 2011 Thesis http://eprints.utm.my/id/eprint/36798/ http://eprints.utm.my/id/eprint/36798/1/NurSyaimasyazaMansorMFAB2011.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:74152?queryType=vitalDismax&query=Notice+condition+precedent+to+claim+liquidated+ascertained+damages+%28LAD%29&public=true masters Universiti Teknologi Malaysia, Faculty of Built Environment Faculty of Built Environment
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	TH Building construction
spellingShingle	TH Building construction Mansor, Nur Syaimasyaza Notice condition precedent to claim liquidated ascertained damages (LAD)
description	Most forms of building contract include a clause entitling the employer to a specified amount of damages, referred to as liquidated and ascertained damages (LAD) if the contractor is late in constructing a project. This clause sets out the procedure and condition that need to be followed by the employer. Some provision for example in clause 40.1 PWD 203A (Rev. 2007) require the employer to issue notice of intention before claiming LAD. The purpose of the issuance of notice is to inform the contractor about the payment or deduction. However, does the issuance of notice is condition precedent to the said claim? Some provision does not specifically expressly state the requirement to issue notice. So, there is an argument that section 56(3) of Contract Act is effective as an implied term to the contract. Based on the respective situations, question arises whether the employer?s entitlement to liquidated damages is waived if he fails to issue the said notice. This study is carried out to determine whether notice is condition precedent to claim liquidated damages and the legal impact of notice provision for liquidated damages claim. The study was carried out mainly through documentary analysis of law journals. It was found that when the provision expressly state that notice is condition precedent, the failure to comply with notice provision might jeopardize the employer?s claim. However, the employer?s claim is not totally rejected because based on prevention principle, the contractor who caused the delay, cannot benefit from its wrong act. When the provision did not expressly state that notice is a condition precedent, it can be condition precedent by implication. The argument that section 56(3) is an implied term to the contract was wrong because section 56(3) is only applicable when the contract becomes voidable.
format	Thesis
qualification_level	Master's degree
author	Mansor, Nur Syaimasyaza
author_facet	Mansor, Nur Syaimasyaza
author_sort	Mansor, Nur Syaimasyaza
title	Notice condition precedent to claim liquidated ascertained damages (LAD)
title_short	Notice condition precedent to claim liquidated ascertained damages (LAD)
title_full	Notice condition precedent to claim liquidated ascertained damages (LAD)
title_fullStr	Notice condition precedent to claim liquidated ascertained damages (LAD)
title_full_unstemmed	Notice condition precedent to claim liquidated ascertained damages (LAD)
title_sort	notice condition precedent to claim liquidated ascertained damages (lad)
granting_institution	Universiti Teknologi Malaysia, Faculty of Built Environment
granting_department	Faculty of Built Environment
publishDate	2011
url	http://eprints.utm.my/id/eprint/36798/1/NurSyaimasyazaMansorMFAB2011.pdf
_version_	1747816460223250432

Notice condition precedent to claim liquidated ascertained damages (LAD)

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