Causation is one of the topics rarely discussed but plays a key role when dealing with commercial disputes. In construction disputes, all parties including claimants, defendants, independent assessors, experts, adjudicators, arbitrators or judges have to deal with causation during the course of their role. This paper discusses and explains how causation should be analysed in construction claims.
Causation is determined by a strong logic (a factual matter) and rules of interpretation (a legal matter). The court cases referred to in this paper are cited to explain the logic and are not meant to provide a legal position.
Causation in construction contracts is a relatively simple matter to understand and does not involve any metaphysical or scientific view or microscopic analysis.
If one of the contracting parties does not fulfil its obligation, it may cause the other party to incur damages. There are three major principles which limit the damages: causation, remoteness and mitigation.
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