GB Building Solutions Ltd v SFS Fire Services Ltd (t/a Central Fire Protection)

GB Building Solutions Ltd v SFS Fire Services Ltd (t/a Central Fire Protection)

The definition of 'Practical Completion' in the schedule of modifications does not apply to section 6; instead, clause 2.20 applies for ascertaining the terminal date. The defendant gave a valid notice under clause 2.20.1, and since the claimant did not dissent, practical completion was deemed to have occurred...

Source-derived case information.

Parties
Claimant: GB Building Solutions Limited (in administration); Defendant: SFS Fire Services Limited (t/a Central Fire Protection)
Jurisdiction
England and Wales
Judgment Date
25 May 2017
Procedural Posture
Civil (construction Dispute) / Judgment on Preliminary Issue
Outcome
Preliminary issue determined in favour of the claimant; the flood occurred after the terminal date.
Legal Topics
Contractual Interpretation, Practical Completion, Insurance Liability, Subcontractor Obligations, Specified Perils, Retention Release
Contract Law Construction Law Contractual Interpretation Practical Completion Insurance Liability Subcontractor Obligations Specified Perils Retention Release

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Parties

GB Building Solutions Limited (in administration)

Claimant

SFS Fire Services Limited (t/a Central Fire Protection)

Defendant

Procedural Posture

Civil (construction Dispute) / Judgment on Preliminary Issue

Legal Issues

  1. 1 Whether the flood occurred before or after the terminal date (practical completion) under the subcontract
  2. 2 Whether the definition of 'Practical Completion' in the schedule of modifications applies to section 6 or clause 6.1
  3. 3 Whether a valid notice of practical completion was given under clause 2.20.1 and its effect

Ratio Decidendi

The definition of 'Practical Completion' in the schedule of modifications does not apply to section 6; instead, clause 2.20 applies for ascertaining the terminal date. The defendant gave a valid notice under clause 2.20.1, and since the claimant did not dissent, practical completion was deemed to have occurred before the flood. Even if actual completion was relevant, it had occurred by 9 December 2009. Therefore, the flood occurred after the terminal date, entitling the claimant to advance its claim.

Court Disposition

Preliminary issue determined in favour of the claimant; the flood occurred after the terminal date.

Orders

  • It is declared that the flood occurred after the terminal date as defined by clause 2.20 of the subcontract.