Under our example contract, the SBCC Design & Build 2016, an extension of time does not automatically lead to an additional payment to the contractor.
It is a relevant matter which allows the contractor to claim direct loss and/or expense and thus claim additional money. Relevant matters include amongst others:
- Failure to give the contractor possession of the site;
- Delays in receiving instructions;
- Opening up works or testing works that then prove to have been carried out in accordance with the contract;
- Disruption caused by works being carried out by the client;
- Failure by the client to supply goods or materials; and
- Instructions relating to variations and expenditure of provisional sums.
As stated, a relevant matter should not be confused with a relevant event. A relevant event is the event that causes a delay to the completion date and entitles the contractor to claim an extension of time. A relevant event does not necessarily entitle the contractor to claim loss and expense. Similarly, a relevant matter need not necessarily result in a delay to the completion date, and so may not always entitle the contractor to an extension of time.
Next week we will consider liquidated damages. If you haven’t read our previous delay blogs, they can be found here.
Should you require assistance with any aspect of a construction contract, we have a large and experienced construction team who would be happy to discuss this with you.
