The Case

In proceedings arising out of a contract on Institute of Chemical Engineers Red Book (Third Edition) General Conditions of Contract, the court ruled that: (i)on its true construction, the phrase, 'actual costs incurred' in Sch10 of the contract referred to costs that had actually been incurred and not to sums that the claimant had yet to spend; and (ii)that there was nothing in the wording of any of the absolute guarantees in Sch10 that imposed a condition precedent for recovery by the claimant of remedial costs 'to achieve' specified performance standards that the relevant performance tests actually be taken and passed after completion of the remedial works in question.