Bentham University ("Bentham") enters into a contract with Wilkins & Sons Ltd ("Wilkins") for the construction of some new student accommodation. The contract is a JCT Design and Build 2016 contract and has a contract price of 1 million. It is timetabled to last one year.

Clause 1.1 of the Contract states: "Liquidated Damages shall be recoverable at a rate of 100,000 per week or part thereof".

Clause 2.19.1 of the Contract states: "If and whenever it becomes reasonably apparent that the progress of the Works or any Section is being or is likely to be delayed the Contractor shall forthwith give the Employer notice of the cause of the delay. I in the Employer's opinion completion of the Works or Section has been, is being or is likely to be delayed beyond the relevant Completion Date by any of the Relevant Events, then, save where these Conditions expressly provide otherwise, the Employer shall by notice to the Contractor give a fair and reasonable extension of time for completion of the Works."

During the course of the works, it is discovered that the ground conditions are not chalk as expected, but clay, which means that the planned foundations are not adequate and they have to be redesigned and the works are temporarily suspended on site. At the same time as the works being redesigned, there is a freak cold snap with temperatures of -10 degrees, which means the ground is frozen and foundation works cannot take place in any event.

The Contract risk register states that ground conditions and weather conditions are at the risk of the Employer, Bentham.

The foundations take 2 weeks to redesign and the cold snap lasts 3 weeks. After that, Wilkins returns to site and finishes the works. However, Wilkins finishes the works 10 weeks late.

Bentham comes to you seeking advice.

1) Bentham wants to claim liquidated damages. What are the potential issues with the liquidated damages figure being 100,000 per week?

2) Does Wilkins have any claim for an extension of time in respect of the foundations and/or the weather? If so, for how long? What is the relevance of the two different delay events happening at the same time?

3) Bentham says it wants the money from Wilkins quickly. Confidentiality is however of the utmost importance to Bentham. Advise Bentham on the different dispute resolution procedures open to it and which is most appropriate to Bentham.

4) Explain the relevance of the redesign happening early on in the project in relation to cost control.

The following learning objectives are particularly relevant to the assessment:

• The law relating to contracts
• JCT Standard Form of Building Contract
• Project cost management

The following learning outcomes are particularly relevant to the assessment:

• Understand and apply the law relating to the contracting parties' obligations
• Provide an overview of the requirements of the JCT Standard Form of Contract (2016)