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Litigation & ADRFebruary 02, 20265 min readJURISDICTION:Republic of Cyprus / International

Liquidated Damages and Extensions of Time in Major Infrastructure Disputes

AuthorAssociate, Engineering & Construction Law
Liquidated Damages and Extensions of Time in Major Infrastructure Disputes

An examination of FIDIC clauses, liquidated damages enforceability, and delay analysis methods in commercial construction.

Infrastructure projects often experience delays, leading to disputes over extensions of time (EoT) and liquidated damages (LD). Managing these conflicts requires a deep understanding of Cap. 149 and FIDIC contract structures.

01

1. Enforceability of Liquidated Damages

Under Section 74 of Cap. 149, penalty clauses are subject to court review. Liquidated damages must represent a genuine pre-estimate of loss rather than a punitive penalty. We draft and defend LD clauses to withstand judicial challenges.

02

2. Establishing Extension of Time Claims

To secure an EoT, contractors must prove that the delay was caused by employer actions or unforeseen events. We utilize forensic delay analysis, mapping critical paths in accordance with the SCL Delay and Disruption Protocol.

03

3. Resolving Disputes via Dispute Adjudication Boards (DAB)

We represent developers and contractors before DABs and tribunals, managing evidence preparation and expert witness testimony to resolve disputes before costly litigation begins.

VERIFIED LEGAL SOURCES & AUTHORITIES
Cyprus Contract LawCap. 149, Section 74
FIDIC Red Book Conditions1999 Edition, Clause 8.7
SCL Delay and Disruption Protocol2nd Edition (2017)
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This briefing is prepared for general informational purposes and does not constitute direct legal advice. Clients are advised to complete independent compliance and conflict verification before making capital commitments.

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