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EXTENSIONS OF TIME AND LOSS AND EXPENSES

2.10.2014

An extension of time should be granted, under clause 2.28.1 of the JCT Standard Building Contract without Quantities 2011, if the completion of works is likely to be delayed beyond the completion date due to a relevant event that is not the contractor’s fault, such as variations, adverse weather, or strikes.  The completion date will be defined in the contract as the date for completion or a substitute date if there has been a previous extension of time.  Whilst a contractor is obliged, under clause 2.9.1.2, to provide a programme, the date for intended completion stated on this document is irrelevant when considering an extension of time.

Contractors are allowed to finish the work before the contractual completion date, but there is no obligation for the employer or developer to go out of their way to enable the contractor to do so.  A contractor is therefore only able to claim prolongation costs for the delay beyond the contractual completion date and will not be entitled to any costs for the time between the intended completion date in the programme and the one stated in the contract.

An entitlement to loss and expenses, under clause 4.23, arises if the regular progress has been, or is likely to be, materially affected because of a relevant matter.  This clause however does not make reference to a completion date and means that a contractor may still be entitled to recover losses and expenses if work is delayed past their intended completion date.  Disruption costs, such as uneconomic working, could be claimed if there has been an interruption in work even if it has not delayed the project beyond the contractual completion date.

For further advice on whether contractors are entitled to an extension of time and to loss and expenses, David Brown can be reached at [email protected]

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