ABSTRACT
The basic idea of the extension of time and liquidated damages clauses in SBC, IC, ICD, MW, MWD and DB is very simple and straightforward. If the contractor does not complete the Works by the date for completion, the employer is to be paid pre-agreed damages. If, however, the contractor is delayed owing to certain specified events, the contract period will be extended, thus releasing the contractor from the obligation to pay damages for the overrun in respect of those events. In essence, that is all there is to the provision. In practice, however, the application of the clauses seems to cause problems out of all proportion to the issues at stake. Part of the difficulty lies in the number of myths and misunderstandings which cloud the sensible operation of the contract provisions.
