We have recently posted our latest slideshare on the comprehensive topic of extension of time. Take a look and share it if helpful.
Time is money.
This adage is all the more important in the construction industry where every delay is costly.
There is of course the issue of LAD imposed by employers on the main contractors, and usually passed down the line. The employers themselves may face LAD claims from end-purchasers.
But in addition to LAD, there is also the fact that construction requires co-ordination of many parties. There will be many sub-contractors involved, and a delay on one part may end up delaying the works of many others down the line, resulting in an amplified effect.
Hence, it is becoming more commonplace for acceleration of works to be instructed when there is delay in lieu of extension of time.
Acceleration of works refers to the instruction to the contractors to apply additional resources in order to complete the task at hand. Such acceleration would usually be compensated unless the delay was the contractor’s in the first instance.
If acceleration of works fails, there can always be a limited extension of time to provide for any residual works yet to be completed.
However, it must be borne in mind that acceleration of works can only be instructed if there is an express provision in the contract. Of course, without an express provision, acceleration of works can also take place if parties mutually agree.
What happens if there is a dispute as to who is responsible for the delay that resulted in the need for acceleration in the first place? Well, I guess that’s where we lawyers come in.
Kheng Hoe Advocates
Building contract and construction contract dispute lawyers
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