Abstract:
The ubiquity of liquidated damages clauses in construction contracts cannot be gainsaid as parties have become accustomed to not having to prove damages from first principles, whether due to convenience, costs or the difficulty of quantifying losses. This note serves as a commentary on the Triple Point Technology, Inc v PTT Public Company Ltd (“Triple Point”) case and its potential implications on the construction industry. In the light of Triple Point, parties should be mindful of the drafting of contractual provisions in order to make expressly clear whether the mutual intentions are for liquidated damages clauses to survive the termination or suspension of a contract.