T016 & T017 Contract Practice & Admin - Extensions Of Time Rics Apc

Front 1

What are extensions of time? What are the relevant clauses in JCT DB 11?

Back 1

Adjusts the completion date and relieves the contractor’s liability to pay liquidated damages for the period of the extension

Clause 2.23

Front 2

What are liquidated damages? What is the relevant clause in JCT DB 11?

Back 2

A genuine pre-estimate of the likely loss incurred by the employer should the completion date not be met

Clause 2.29

Front 3

What must be in place before LDs can be deducted?

Back 3

A non completion certificate

A withholding notice

Front 4

What if the client tells you the LDs are to be £100,000 per week?

Back 4

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

Front 5

What if the liquidated damages are construed to be a penalty?

Back 5

They will be unenforceable

The employer will have to sue for any actual direct loss that can be proved

Front 6

What are the benefits of liquidated damages to the contractor?

Back 6

The contractor knows the consequences of delay from the outset.

Front 7

What if the employer actually suffered no loss / damage?

Back 7

It doesn’t matter

They can still deduct the liquidated damages stated in the contract

Front 8

What are the benefits of being able to grant an extension of time?

Back 8

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

Front 9

What happens when ‘time is at large’?

Back 9

There is no set completion date
The 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 from
The employer has to prove that the contractor had not completed in a reasonable time

Front 10

What is the procedure for claiming an extension of time?

Back 10

As soon as it is reasonable apparent that a delay is or is likely to occur they should write to the architect to notify them
This 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 delay
They should give any other further information requested by the architect
The architect must notify the contractor in writing of their decision

Front 11

What are the time periods related to granting extensions of time?

Back 11

The architect has 12 weeks from notification to decide on an extension of time
If there is less than 12 weeks to PC, they should endeavour to decide before PC
The architect has up to 12 weeks after PC to review any previous EOTs previously given or to award further EOTs

Front 12

What are Relevant Events, how many are there?

Back 12

13 events that entitle the contractor to an extension of time

Front 13

What are the relevant events?

Back 13

In DB2011 they are set out in Clause 2.26
1) Variations
2)Instructions
3) Execution of an approx quantity that is not a reasonably accurate forecast
4) Deferment of possession of the site
5) Suspension by the contractor for non-payment
6) The carrying out of work by statutory authorities
7) Impediment, prevention or default by the employer
8) Loss or damages occasioned by the Specified Perils (fire, flood etc)
9) Exceptionally adverse weather conditions
10) Strike or lock out
11) Civil commotion or terrorism
12) The exercise of any statutory power after the base date by the UK gov
13) Force majeure

Front 14

What happens if there are several 'competing' cayuses of delay?

Back 14

If work is delayed due to two or more competing causes of delay, one the fault of the contractor and one the fault of the employer, is there an entitlement to an EOT/loss and expense?

No clear rule on which delay takes precedence where a number of delays occur

Each case has to be judged on its merits

Have to make efforts to identify all causes and effects

Front 15

Who owns programme float?

Back 15

No clear rule – generally it belongs to the contractor
The contractor normally includes float in his programme to accommodate his risk items and also provide time for correcting mistakes
THEREFORE the actual impact of the delay should be considered
When there is a delay at the middle of the project, would you consider the actual delay or the delay for the whole period?
The actual delay caused by the item in question.
It is not fair to offset against any float time the contractor may have built up through good progress.