In this episode, Bill Barton of Barton Legal unpacks the critical concept of extensions of time (EOT) in construction contracts, with a particular focus on JCT contracts.
He explains that every construction project hinges on three elements: time for completion, EOT provisions, and the consequences of delay (like liquidated damages).
Key points from the discussion include:
Programme & Delays: The essential role of a project programme in managing timelines, preventing delays, and assigning fault for EOT and liquidated damages (LADs).
Time for Completion: Why this date is a contentious negotiation point due to potential contractor liabilities.
What is EOT? A formal mechanism to adjust the completion date when delays occur that are not the contractor's fault, protecting them from liability.
Circumstances for EOT: How modern contracts cover various delay events, including employer-initiated variations.
"Time at Large": The concept where the completion date becomes unenforceable for LADs if a delay event isn't covered by the contract, stemming from the 'prevention principle'.
Types of Delay: Distinguishing between employer delays and neutral delays (e.g., weather, strikes, force majeure), and how contract drafting impacts EOT entitlement for the latter.
Dynamic EOT Clauses: The evolving application of EOT clauses as knowledge and control over disruptions (like COVID-19) change.
JCT Contracts: A detailed look at JCT's 'relevant events' and 'after the event' notification approach for EOT.
NEC Contracts: How NEC uses 'compensation events' and emphasizes early warning and cooperation, with a forward-looking approach to anticipating delays.
Bill concludes by stressing the importance of comprehensive contracts, robust programmes, and clear definitions to avoid poorly drafted clauses that can lead to oppressive consequences or 'time at large' impacting both parties.
He highlights the contrast between JCT's strict adherence and NEC's collaborative focus.
Bill invites listeners to contact Barton Legal for any questions.
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