Contract Practice - Level 3 (EOT) Flashcards
Are all Relevant Events also Relevant Matters?
No!
Relevant Event - EOT (Time)
Relevant Matter - Loss & Expense (Time & Money)
You talk about advising on issuing an EAI preventing the Contractor in carry out works and entitle them to an extension of time. Was this not a relevant matter and therefore time and money?
Yes this could have been a relevant matter and entitled them to loss and expense
What is a Relevant Matter?
Term in the contract relating to categories for which a Contractor is entitled to an Extension of Time and Money
An something the client has caused that has resulted in a delay for the Contractor and entitles them to an EOT and L&E
(D&B Clause 4.21)
What is a Relevant Event?
A term in the contract relating to categories for which a Contractor is Entitled to an Extension of Time.
A list of instances in the contract which, in theory, if they happen will entitle the Contractor to an EOT
(D&B Clause 2.26)
Why is it important for the Contractor to get an EOT?
If they need to extend their programme and mitigate the need for Liquidated Damages
Can you give some Examples of Relevant Events?
Variations Instructions Deferment of Possession Suspension by the Contractor Impediment by the Employer Statutory works Exceptional adverse weather Specified Perils (Fire, lighting, floods) Civil Commotion Strikes Force Majeure
What should happen if the contractor is delayed by a Relevant Event?
Contractor should issue a Delay Notice as soon as reasonable apparent:
- Stating the cause of the delay
- Identify the Relevant Event
The EA should:
- Give an EOT
- Notify the Contract
- Give reason of EOT within 12 weeks
- State EOT in relationship to each Relevant Event
- Fix a New Completion Date