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Extensions of Time

The Christmas break is fast approaching, and builders should start planning ahead for all projects that are currently in progress.

One factor that should be addressed is Extensions of Time.  Most standard building contracts allow the builder to extend the contract period for, amongst other things, the industry shut down period, being approximately 5 weeks in length and starting from on or about 19 December 2008.

In order to claim this extension of the contract period, the builder should check his contract to see what the procedure is for claiming the extension.  It is common in standard building contracts for the builder to give the client a written notice detailing both the extension of time (5 weeks) and the cause of the delay (industry shut down) within 10 business days of becoming aware of both the cause and extent of the delay (which would be 10 business days after the 19 December 2008).

Despite what standard building contracts usually state, you should still check your contract just to make sure. 

By failing to follow the procedures in your contract, you may not be able to legally claim an extension of the contract period, and this may result in the project being completed after the contract period, which may make you liable to pay the client liquidated damages, which is compensation paid to the client for not completing the project on time.