Extension of time and how it is granted to a contractor (Referencing JCT 2005) (GROUP 5) Extension of time and how it is granted to a contractor (Referencing JCT 2005) (GROUP 5) CONSTRUCTION CONTRACT ADMINISTRATION (QTS 411)

GROUP MEMBERS ISHOLA HALEEMAH SOLIHU 13/31QS014 MUHAMMAD ZULFAT O. 14/31QS062 OSADARE BENJAMIN DAMMY 14/31QS055 BADMUS BASHIR 13/31QS008

 Introduction  Aims and Objectives  Extension of time  Time and delay related provisions  Relevant Events  Assessment and Granting of Extension to contractor  Conclusion TABLE OF CONTENTS

INTRODUCTION  In a construction contract, both the employer and the contractor may contribute to causing delay and thus, the need for extension of the presumed date of completion.  There are also delays that are caused by events which neither party has control over e.g. force majeure and adverse weather.

AIMS AND OBJECTIVES Aims  The aim of this report is to explain the term ‘Extension of time in building contract’ with references to the provisions in the JCT  Explain how extension of time is assessed and granted to a contractor by a contract administrator on a building project.

The main objectives of this report is to; AIMS AND OBJECTIVES  Explain the term extension of time.  Highlight the factors leading to extension of time.  Examine Clauses in the Joint contract tribunal (JCT) 2005 dealing with time and delay related provisions and by that extension of time.  Examine how extension of time is granted to a contractor.

EXTENSION OF TIME (EOT) WHAT IS EXTENSION OF TIME?  A simple definition; Construction contracts generally allow the construction period to be extended where there is a delay that is not the contractor’s fault.  However, there are more to extension of completion time; the causal agents for extension needs to be explained with the provisions in the JCT, also the procedure for securing an extension and more detailed explanations are given as we proceed.

TIME AND DELAY RELATED PROVISIONS (JCT 2005) The parties’ obligations relating to provisions on time and delay in the current JCT contracts have been structured well and are extensive. The provisions include clauses on; 1. POSSESSION OF SITE  Delay in allowing “possession of the site" as mentioned in clause 2.4 of the JCT 2005 may lead to;  A claim for extension of time by the contractor under the Relevant Events clauses, Unless stated in the contract otherwise.  Deferment of the provision of site possession is allowed up to six weeks under clause 2.5 of the current JCT contract.  The contractor may be entitle to an extension of time if the possession of site is defer by the employer.

TIME AND DELAY RELATED PROVISIONS (JCT 2005) 2. PROGRESS OF THE WORK  Upon receiving site possession, the contractor is obliged to proceed to conduct/deliver the work “regularly and diligently“, as regarding;  Compliance with all the authorities required under the contract and Statutory Requirement, the contractor is free to plan their own methods for executing the contract and completing their obligations on time.  Using their ‘best endeavours to prevent delays in the progress of works’.

TIME AND DELAY RELATED PROVISIONS (JCT 2005) 3. COMPLETION OF WORK  Under clause 2.4, the contractor is responsible to execute his work regularly and diligently and “...to complete the same on or before the relevant Completion Date";  Delay will be calculated starting from this point, in the event the contractor fails to complete the work by the completion date.  If the employer is found to have hindered the contractor from finishing the work before or on the completion date, the date of completion specified in the contract will be ineffective.  Thus, it could be said that; Completed works or ‘Practical Completion’ of a construction projects under JCT contracts is easier to be identified rather than defined.

TIME AND DELAY RELATED PROVISIONS (JCT 2005) 4. CONTRACTOR’S PROGRAMME  To enable the employer to monitor and anticipate the contractor’s plans for the completion of the project, An efficient programme will normally consist of;  The identification of the critical path.  The sequencing of activities and Identification of the critical activities.  The provisions require the contractor to submit a ‘master programme’ with the identified critical path and sequencing on the execution of the contract. NOTE: The programme is only considered as a measuring tool and does not form part of the contract document.

TIME AND DELAY RELATED PROVISIONS (JCT 2005) 5. NOTICE OF DELAY  Under clause 2.27 of the current contract the contractor is obliged to serve a notice of delay to the Architect or Contract Administrator on the event and about how “works or any section is being or likely to be delayed”  It requires the contractor to submit particulars on the expected impact of the events listed in the notice  what are the consequences if the contractor failed to issue such a notice?.  Architect should always consider whether an event may lead to delay and grant appropriate extension of time even though the contractor failed to submit a notice on the delay.

TIME AND DELAY RELATED PROVISIONS (JCT 2005) 6. ADJUSTMENT OF COMPLETION DATE  The current JCT 2005 allows the Contract Administrator to reduce the completion date earlier and also extend the date of completion fixed before.  It also provided the extension of time clause to preserve the rights of deducting liquidated damages in the case of an employer’s delaying event.  Under clause 2.29, there are lists (next slide) prescribing the ‘Relevant Events’ which will give the contractor entitlement to an extension of time, for example;  Clause to considers the delay caused by employers and neutral events which are not caused by either, still entitles the contractor to claim for an extension of the contract date of completion.

RELEVANT EVENTS AND DELAY  Relevant Events: is the terminology and provision used in JCT contracts 2005 to describe grounds to be considered by the contract administrator for an extension of time.  The ‘event’ must be the cause of the delay and affect the date of completion of the contract.  Delay might be;  Contractor caused.  Employer caused.  A neutral or relevant event.

EXAMPLES OF RELEVANT EVENTS  Variations  Deferment Of Site Possession  Suspension Of Work By The Contractor  All Inclusive Clause of; I mpediment, prevention or default  Civil Commotion

EXAMPLES OF RELEVANT EVENTS  Statutory Undertaker  Exceptionally Adverse Weather  Loss Or Damage By Any Of Specified Perils  Force Majeure

ASSESSMENT AND GRANTING OF TIME EXTENSION TO CONTRACTOR In practice it is probable that the contract administrator will base an extension of time decision on:  The latest agreed programme.  Information submitted by the contractor.  Awareness of progress to date.  Careful consideration of available facts at the time.

 Whilst the extension of time and loss and expense clauses are clearly related, it is not necessary the case that time and money claims are linked.  From a practical standpoint, granting an extension is likely to be a complex matter because, unless the project is a simple one, there is unlikely to be a single cause of delay, as there may be;  Concurrent delays and,  Some delay events may be more significant than others (i.e. a dominant cause of delay).  As a result the legal principle of mitigation (reasonable action to minimize the amount of loss suffered). ASSESSMENT AND GRANTING OF TIME EXTENSION TO CONTRACTOR

In summary ;  When it becomes reasonably apparent that there is a delay, or that there is likely to be a delay that could merit an extension of time, the contractor gives written notice (notice of delay) to the contract administrator identifying the relevant events that has caused the delay.  If the contract administrator accepts that the delay was caused by a relevant event, then an extension of time may be granted and the completion date adjusted. ASSESSMENT AND GRANTING OF TIME EXTENSION TO CONTRACTOR

CONCLUSION  According to the JCT 2005 ( Clause ),the contractor is entitled to an extension of time for relevant events where the contract completion date is likely to be delayed.  An important consideration with regard to both extensions of time and delay is the long standing legal principle of mitigation i.e. reasonable action to minimize the amount of loss suffered by the employer.  Contractor in non culpable delay cannot just sit back, rub his hands together and wait for the money to pour in from the employer. The contractor must employ a fair and reasonable means to reduce the impact of the circumstances in question 

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