Extensions of time / loss and expense

Question 1

What is an extension of time?

Answer 1

Extension on the date of completion due to the occurrence of a relevant event

Question 2

What is the process of an EOT?

Answer 2

1) Contractor notifies CA of EOT as soon as reasonably apparent + details on cause / effect
2) CA assessment
3) CA notifies PC as soon as reasonably apparent but within 12 weeks

Question 3

What is a relevant events?

Answer 3

A delay which impacts the completion date not caused by the fault of the contractor

Question 4

What are some examples of relevant events?

Answer 4

• Variations / instructions
• Deferment of giving possession of site
• Antiques found on site
• Exceptionally adverse weather
• Works by statutory undertakers
• Force majeure

Question 5

What counts as Exceptionally adverse weather?

Answer 5

Exceeding the long term average for that time of year / location

Question 6

What is the time frame for a contractor to raise a relevant event?

Answer 6

As soon as reasonably apparent

Question 7

What is a Relevant Omission?

Answer 7

Omission of any work or obligation through an instruction for a variation

Question 8

What is Concurrent Delay?

Answer 8

Where contract delay and employer delay occur at the same time, need to assess in detail to see which arose first

Question 9

What is Loss & Expense?

Answer 9

Contractor can claim direct loss and / or expense as a result of the progress of the works being materially affected by a relevant matter

Question 10

Process of Loss & Expense?

Answer 10

1) Contractor gives written notice as soon as reasonably apparent with cause + effect
2) CA assessment
3) CA has 28 days to respond and 14 days per subsequent monthly update

Question 11

What is a Relevant Matter?

Answer 11

A relevant matter is a matter for which the client is responsible that materially affects the progress of the works.

Question 12

Examples of Relevant Matters?

Answer 12

• Failure to give the contractor possession of the site
• Delays in receiving instructions
• Opening up and testing works
• Discrepancies in contract documents
• Issues relating to CDM
• Disruption caused by works being carried out by the client

Question 13

What’s the difference between a Relevant Event and a Relevant Matter?

Answer 13

Time and cost

Question 14

What are the common heads of claim in Loss & Expense claims?

Answer 14

• Prolongation
• Thickening of preliminaries
• Disruption
• Head office / administration costs
• Acceleration costs

Question 15

What is force majeure?

Answer 15

Events that are beyond reasonable control of a party, such as war or an epidemic