Extensions of time
Delays are common within construction projects and need to be administered efficiently. These delays might come from issues over which the employer has control, for example handing over possession of the site, or neutral causes such as exceptionally adverse weather conditions.
Where a contractor considers that completion of the works is likely to be delayed beyond the contract completion date by an event for which the contract provides relief, the contractor should notify and apply for an extension of time in accordance with the contract requirements. Where an entitlement is established, the granting of an extension of time fixes a new completion date and releases the contractor from liability for delay damages for the period of the extension.
The calculation of the payment of any additional costs caused by the delay is completely separate and is not dependent on the extension of time calculation. Under the NEC form of contract, the calculation of compensation events, where a relevant event has an effect on the programme, is done to include the effects of the delay on the programme for remaining work within the compensation event.
This section is maintained by Susan Hanley FRICS of CostNexus Ltd.