ABSTRACT
The date of commencement of the Works is the date from which the contractual date for Completion of the Works is computed. The Employer’s initial obligation is usually to give possession of the Site on the commencement date. Construction contracts typically provide damages for late Completion by specifying liquidated damages. If liquidated damages are not a genuine pre-estimate of damage they are an unenforceable penalty. The provision of a programme of activities by the Contractor is vital to the successful completion of the Contract. The terms of the Contract, particularly ‘who owns the float’ will determine whether the Contractor reveals its true plan for the Works in the programme. Critical and non-critical delay are discussed and illustrated pictorially. Case law on concurrent delay and the common sense test of causation is reviewed. The concepts of prolongation, disruption, and acceleration are explained. Extension of time claims must be submitted in accordance with the Contract, or a time bar may apply. The prevention principle (or doctrine of prevention) applies where an act by the Employer prevents the Contractor from undertaking its obligations and rights under the Contract. If the Contractor is not awarded an extension of time because of the Employer’s prevention, time may be set ‘at-large.’ If either party fails to fulfil its obligations timeously, the other may be entitled to recover delay damages. A construction contract usually makes provision for termination for lack of due diligence in execution of the Works by the Contractor. The right of the Engineer to order suspension and its consequences are discussed. The principle of waiver or estoppel may apply if the Employer leads the Contractor to believe that it does not require the work to be finished by the completion date, and because of this the Contractor does not give notice of claims for extensions of time or slows down the work.
