Why is it necessary for employers to give extension of time?

An extension of time is usually regarded as a benefit to contractors. After all, they are the ones who have a duty to complete the project within the contracted time.

However, the obligation of contractors to complete the project is subject to the employer not preventing or hindering their works. For example, if the employer fails to deliver the possession of the site on time, then it would be considered that the contractor is prevented from carrying out his works.

When a contractor is prevented from carrying out his works, the employer should issue an extension of time for the contractor. Otherwise, time becomes at large and the contractor is then required to complete only within a reasonable time.

What constitutes a reasonable time depends on the circumstances of the case.

When time becomes at large, the employer also loses his right to insist on liquidated ascertained damages (LAD). Instead, the contractor would only be liable for general damages if he fails to complete within a reasonable time.

Therefore, extension of time does not only benefit contractors, it benefits employers also. By issuing an extension of time when reasonable to do so, employers prevent time from becoming at large. Furthermore, employers also preserve their contractual rights to LAD.

Kheng Hoe Advocates

Building contract and construction contract dispute lawyers
PS: If you have any building contract and construction contract related issues, I invite you to take advantage of my free one-to-one consultation to explore your next steps. There is totally no obligation on your part, and regardless whether you engage me or not, I guarantee that you will walk away with a clear idea as to where your case stands and how to take your case forward. To schedule an appointment, e-mail me with a brief description of your issue at khenghoe@khenghoe.com.

Our performance 2015

Happy New Year!

It’s been a tough year! We have had some major fights. But we have gone through our records, perused our statistics, and we are proud to announce that for 2015, our case performance has exceeded our expectations, although we fell slightly short on our revenue goals. Specifically, we have achieved:

  • 88% of our revenue goals
  • 63% of our cases were won
  • 26% of our cases were settled
  • 11% of our cases were lost

Of course, whether a case is won or lost is not entirely due to us. We do our best for every case, but a lot also depends on the facts, the quality of documentation, etc. However, we always aspire to ensure that 80% of our cases are either won or settled.

Anyway, what’s past is past, and now is the time to look forward to 2016. We will continue to aspire to serve you well, especially in the areas that we know best, namely building contract and construction contract disputes.

Here’s to a fantastic 2016!

Cheers!

Kheng Hoe Advocates

Building contract and construction contract dispute lawyers

PS: If you have any building contract and construction contract related issues, I invite you to take advantage of my free one-to-one consultation to explore your next steps. There is totally no obligation on your part, and regardless whether you engage me or not, I guarantee that you will walk away with a clear idea as to where your case stands and how to take your case forward. To schedule an appointment, e-mail me with a brief description of your issue at khenghoe@khenghoe.com.