KNOWLEDGE

I am entitled to additional time; can I also claim additional money?

Morton Fraser Senior Solicitor Hayley Swanson
Author
Hayley Swanson
Senior Solicitor
PUBLISHED:
25 January 2022
Audience:
Business
category:
Article

When an extension of time is granted it amends the completion date set out in the contract. Whether the extension of time affects the payment due to you will depend on the terms of the contract and the reasons for the extension of time.

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.

Disclaimer

The content of this webpage is for information only and is not intended to be construed as legal advice and should not be treated as a substitute for specific advice. Morton Fraser LLP accepts no responsibility for the content of any third party website to which this webpage refers.  Morton Fraser LLP is authorised and regulated by the Financial Conduct Authority.