Bluewater Energy Services BV v Mercon Steel Structures BV & Ors

Bluewater Energy Services BV v Mercon Steel Structures BV & Ors

Bluewater validly terminated the contract under Clause 30 due to Mercon's defaults, having complied with the contractual notice and remedy procedures. Mercon failed to take satisfactory action to remedy defaults, justifying termination. Bluewater was entitled to liquidated damages for delay, abatement for incomplete works, and recovery of additional costs post-termination. Mercon was not entitled to extensions of time, loss of profit, or further payment for variations where notice requirements were not met. The contractual exclusion of loss of profit was effective.

Parties
Claimant: Bluewater Energy Services BV; Defendant: Mercon Steel Structures BV; Defendant: Mercon Holding BV; Defendant: Mercon Groep BV
Jurisdiction
England and Wales
Judgment Date
30 June 2014
Procedural Posture
Commercial Construction Dispute / Final Judgment After Full Trial
Outcome
Judgment for Bluewater Energy Services BV (Claimant) against Mercon Defendants;
Legal Topics
Termination of Contract, Liquidated Damages, Extensions of Time, Variation Orders, Re Measurement, Reimbursable Costs, Loss of Profit, Non Conformance Reports, Russian Federation VAT, Post Termination Damages
Commercial Law Construction Law Contract Law Termination of Contract Liquidated Damages Extensions of Time Variation Orders Re Measurement +5 more

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Parties

Bluewater Energy Services BV

Claimant

Mercon Steel Structures BV

Defendant

Mercon Holding BV

Defendant

Mercon Groep BV

Defendant

Procedural Posture

Commercial Construction Dispute / Final Judgment After Full Trial

Legal Issues

  1. 1 Whether Bluewater validly terminated the contract under Clause 30 or was in repudiatory breach;
  2. 2 Whether Mercon was entitled to extensions of time for key milestones;
  3. 3 Whether Bluewater was entitled to levy liquidated damages and in what amount;

Ratio Decidendi

Bluewater validly terminated the contract under Clause 30 due to Mercon's defaults, having complied with the contractual notice and remedy procedures. Mercon failed to take satisfactory action to remedy defaults, justifying termination. Bluewater was entitled to liquidated damages for delay, abatement for incomplete works, and recovery of additional costs post-termination. Mercon was not entitled to extensions of time, loss of profit, or further payment for variations where notice requirements were not met. The contractual exclusion of loss of profit was effective.

Court Disposition

Judgment for Bluewater Energy Services BV (Claimant) against Mercon Defendants;

Orders

  • Bluewater validly terminated the contract under Clause 30;
  • Mercon's counterclaim for wrongful termination and loss of profit dismissed;