Multiplex Constructions (UK) Ltd v Cleveland Bridge UK Ltd

Multiplex Constructions (UK) Ltd v Cleveland Bridge UK Ltd

The Supplemental Agreement was effective with retrospective effect from 15 February 2004 and superseded the Heads of Agreement. No binding oral valuation agreement for £32.66 million was reached or incorporated into the contract. Multiplex's deductions and conduct did not amount to repudiatory breach; CB repudiated the contract by ceasing work. Clause 7 of the Supplemental Agreement was unenforceable as an agreement to agree. Abatement is available for defective works, measured by diminution in value, but not for professional services or delay claims.

Parties
Claimant/part 20 Defendant: Multiplex Constructions (UK) Limited; First Defendant/part 20 Claimant: Cleveland Bridge UK Limited; Second Defendant: Cleveland Bridge Dorman Long Engineering Limited
Jurisdiction
England and Wales
Judgment Date
05 June 2006
Procedural Posture
Civil (construction/commercial) / Judgment on Preliminary Issues After Consolidated Trial
Outcome
Judgment on preliminary issues; directions for parties to draft order reflecting findings; no outright winner.
Legal Topics
Interpretation of Construction Contracts, Repudiatory Breach, Abatement, Settlement Agreements, Variation and Valuation of Works, Interim and Final Payments, Dispute Resolution Clauses
Construction Law Contract Law Commercial Law Interpretation of Construction Contracts Repudiatory Breach Abatement Settlement Agreements Variation and Valuation of Works +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 6 Authorities cited 15 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Multiplex Constructions (UK) Limited

Claimant/part 20 Defendant

Cleveland Bridge UK Limited

First Defendant/part 20 Claimant

Cleveland Bridge Dorman Long Engineering Limited

Second Defendant

Procedural Posture

Civil (construction/commercial) / Judgment on Preliminary Issues After Consolidated Trial

Legal Issues

  1. 1 Whether the Supplemental Agreement had retrospective effect and superseded the Heads of Agreement
  2. 2 Whether the Heads of Agreement imposed enforceable obligations as to programme and diligence
  3. 3 How disputed and undisputed variations were settled by the Supplemental Agreement

Ratio Decidendi

The Supplemental Agreement was effective with retrospective effect from 15 February 2004 and superseded the Heads of Agreement. No binding oral valuation agreement for £32.66 million was reached or incorporated into the contract. Multiplex's deductions and conduct did not amount to repudiatory breach; CB repudiated the contract by ceasing work. Clause 7 of the Supplemental Agreement was unenforceable as an agreement to agree. Abatement is available for defective works, measured by diminution in value, but not for professional services or delay claims.

Court Disposition

Judgment on preliminary issues; directions for parties to draft order reflecting findings; no outright winner.

Orders

  • Supplemental Agreement effective retrospectively from 15 February 2004, superseding Heads of Agreement.
  • No binding valuation agreement for £32.66 million; interim certificates not final.