New construction case (“Blålysbygget”) decided in the Hålogaland Court of Appeal (LH-2024-159305). The appeal deadline is 21.05.25. The judgment has not been appealed as of now.
The construction of the “Blålysbygget” (“Blue Light Building”), which is intended to house Fauske Municipality’s emergency services, was delayed by seven months.
The Court of Appeal found that the delay in the project was mainly due to a contractual breach by the design-and-build contractor, who demanded additional payment for preloading the construction site. This was taken into account when calculating the client’s liquidated damages claim and the contractor’s payment claim.
Here are some key points from the judgment:
1. Fixed-price contracts without adjustable quantities – greater need for thorough bids and risk assessments
In a fixed-price contract without quantity adjustments, the contractor bears the risk of quantity deviations.
Practical implication:
Contractors should carefully review the base documentation (geotechnical data, quantities, etc.) before submitting a bid and include greater risk contingencies.
Clients should clarify whether “fixed price” means all quantity deviations are borne by the contractor, or specify if certain quantities will be adjusted.
2. Design-and-build contractor’s risk for the client’s design
Practical implication:
Contractors must carefully assess which parts of the client’s design they take responsibility for, and make reservations if the material appears uncertain or incomplete.
Clients can place risk on the contractor, but must ensure that the information passed on is accurate and relevant.
3. Condictio indebiti – strict requirements for recovering paid construction claims
Practical implication:
Clients should state reservations in writing if they are uncertain about the validity of a claim and are paying under pressure or uncertainty.
Contractors should maintain clear documentation for their claims to minimize any potential repayment risk later.
The judgment highlights the need for:
Precise and clear contract drafting
Clear handling of risk transfer
Written reservations when making payments
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