New construction case (\u201cBl\u00e5lysbygget\u201d) decided in the H\u00e5logaland Court of Appeal (LH-2024-159305). The appeal deadline is 21.05.25. The judgment has not been appealed as of now.<\/p>\n
The construction of the \u201cBl\u00e5lysbygget\u201d (\u201cBlue Light Building\u201d), which is intended to house Fauske Municipality\u2019s emergency services, was delayed by seven months.<\/p>\n
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\u2019s liquidated damages claim and the contractor\u2019s payment claim.<\/p>\n
Here are some key points from the judgment:<\/p>\n
1. Fixed-price contracts without adjustable quantities \u2013 greater need for thorough bids and risk assessments\nIn a fixed-price contract without quantity adjustments, the contractor bears the risk of quantity deviations.
\nPractical implication:
\nContractors should carefully review the base documentation (geotechnical data, quantities, etc.) before submitting a bid and include greater risk contingencies.
\nClients should clarify whether \u201cfixed price\u201d means all quantity deviations are borne by the contractor, or specify if certain quantities will be adjusted.<\/p>\n
2. Design-and-build contractor\u2019s risk for the client\u2019s design
\nPractical implication:
\nContractors must carefully assess which parts of the client\u2019s design they take responsibility for, and make reservations if the material appears uncertain or incomplete.
\nClients can place risk on the contractor, but must ensure that the information passed on is accurate and relevant.<\/p>\n
3. Condictio indebiti \u2013 strict requirements for recovering paid construction claims
\nPractical implication:
\n\nClients should state reservations in writing if they are uncertain about the validity of a claim and are paying under pressure or uncertainty.
\n\nContractors should maintain clear documentation for their claims to minimize any potential repayment risk later.<\/p>\n
The judgment highlights the need for:
\nPrecise and clear contract drafting
\nClear handling of risk transfer
\nWritten reservations when making payments<\/p>\n