City Inn v. Shepherd – a matter of judgement

The recent Scottish case of City Inn Ltd v. Shepherd Construction Ltd provides some instructive guidance on how a contractor’s entitlement to extension of time should be assessed. In particular, the court looked at the inherent weaknesses of computer-based delay analysis techniques and expressed the view that older, precomputer techniques may be more reliable. In addition the court clarified how concurrent delays should be treated, concluding that liability for the delay should be apportioned between the parties on the basis of ‘causative significance’ of the delays. This paper explores the various methodologies used by analysts for assessing delay and considers the implications of this Scottish decision. The paper also explains the complications that can be caused by concurrent delays and welcomes the straightforward and pragmatic approach adopted in this case.