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What are extensions of time? What are the relevant clauses in JCT DB 11?
Adjusts the completion date and relieves the contractor’s liability to pay liquidated damages for the period of the extension
Clause 2.23
What are liquidated damages? What is the relevant clause in JCT DB 11?
A genuine pre-estimate of the likely loss incurred by the employer should the completion date not be metClause 2.29
What must be in place before LDs can be deducted?
A non completion certificate
A withholding notice
What if the client tells you the LDs are to be £100,000 per week?
Check that they do believe that they are a genuine pre-estimate of likely loss
Explain the dangers that they might be construed to be a penalty
What if the liquidated damages are construed to be a penalty?
They will be unenforceable
The employer will have to sue for any actual direct loss that can be proved
What are the benefits of liquidated damages to the contractor?
The contractor knows the consequences of delay from the outset.
What if the employer actually suffered no loss / damage?
It doesn’t matter
They can still deduct the liquidated damages stated in the contract
What are the benefits of being able to grant an extension of time?
It relieves the contractor’s liability for liquidated damages for a delay that they did not cause
It enables another completion date to be set, which maintains the employer’s ability to take liquidated damages if another delay occurs
What happens when ‘time is at large’?
There is no set completion dateThe contractor only has the obligation to complete the works in a ‘reasonable time’No liquidated damages - cannot be claimed because no date to take them fromThe employer has to prove that the contractor had not completed in a reasonable time
What is the procedure for claiming an extension of time?
As soon as it is reasonable apparent that a delay is or is likely to occur they should write to the architect to notify themThis should identify the cause of the delay and if any of the causes are a Relevant Event, and give an indication of the extent of the likely delayThey should give any other further information requested by the architectThe architect must notify the contractor in writing of their decision
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