Links In The Chain: Recent Trends In Sub-Contracting

Is a sub-contractor required to proceed 'regularly and diligently' with sub-contract works?

The case of Leander Construction Ltd v Mulalley & Company Ltd [2011] EWHC 3449, heard before the Technology and Construction Court in the United Kingdom, recently considered the question as to whether a sub-contractor is under an implied obligation to a main contractor to proceed 'regularly and diligently' with the sub-contract works. The case provides useful guidance as to when a sub-contractor may be liable to a main contractor for losses suffered as a result of the sub-contractor's delay.

Background

Leander was a sub-contractor engaged by main contractor, Mulalley, to carry out various groundworks at a development site in London. The sub-contract entered into between the parties stated a commencement and completion date, but did not otherwise contain any contractual programme dates or provisions relating to the progress of the sub-contract works. Within approximately eight months it became clear that the sub-contract works were not being progressed in accordance with an activity schedule, which formed part of the sub-contract documents attached to the terms and conditions of the sub-contract.

Mulalley sought...