ABSTRACT

In most construction contracts, the contractor is expected to complete the contract works by a specified date. This date may be revised under the provisions of the contract in defined situations. A contractual provision which allows such revision is referred to as an ‘extension of time’ clause. Failure of the contractor to complete by the due date of completion would normally result in liability for damages for breach of contract. A common practice is to include a liquidated damage clause that states the amount payable in case of delayed completion. This chapter explains, first, the legal principles governing delays, extension of time, and liquidated damages relating to contracts in general. The specific provisions of the JCT 98 on these issues are then discussed.