Delays are common on construction projects. Changes, late information, weather, access issues and unforeseen conditions can all affect when the works are completed.
However, whether a Contractor is entitled to additional time depends on the contract.
JCT, NEC and FIDIC all provide mechanisms for dealing with delay, but they approach the issue differently. For Quantity Surveyors, understanding these differences is essential.
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Under JCT, extensions of time are dealt with through the concept of Relevant Events.
If an event delays completion and falls within the list of Relevant Events under the contract, the Contractor may be entitled to an extension of the Completion Date.
Examples can include:
- Changes
- The Employer impeding or preventing works
- Exceptionally adverse weather
- Force majeure
- Certain statutory delays
The Contractor is required to notify the delay and provide sufficient information to allow the Employer to assess its impact.
One of the most important points under JCT is the distinction between time and money.
A Relevant Event may give the Contractor additional time, but it does not automatically provide entitlement to additional cost.
Financial entitlement is generally dealt with separately through the Relevant Matters provisions.
A QS therefore needs to ask two separate questions:
Is the Contractor entitled to more time?
and
Is the Contractor entitled to recover the additional cost?
Extensions of Time | NEC
NEC takes a different approach.
Rather than operating a traditional standalone extension of time process, delays are generally dealt with through the Compensation Event mechanism.
A Compensation Event can result in adjustments to both the Prices and the Completion Date.
Examples may include:
- Changes to the Scope
- Failure by the Client to provide access
- Certain physical conditions
- Certain weather events
- Client instructions
This means time and cost are often assessed together rather than through separate mechanisms.
The Accepted Programme is extremely important under NEC.
When assessing a Compensation Event, the impact on planned Completion is generally forecast using the Accepted Programme. If the event delays planned Completion, the Completion Date may be moved accordingly.
NEC also contains an important notification requirement.
Where the Contractor is responsible for notifying a Compensation Event, it generally has eight weeks from becoming aware of the event to notify it.
Failing to do so can potentially result in the loss of entitlement to both time and money, subject to the wording of the contract and any applicable exceptions.
Extensions of Time | FIDIC
FIDIC uses a more formal claims-based approach.
Under the FIDIC Red Book 2017, a Contractor may be entitled to an Extension of Time where completion is delayed by specified contractual events.
These can include Variations, exceptionally adverse climatic conditions and other events giving entitlement under the contract.
The claims procedure is particularly important.
A Contractor will generally need to issue a Notice of Claim within 28 days of becoming aware, or when it should have become aware, of the event giving rise to the claim.
A fully detailed claim will then normally need to follow within the contractual timescale, often 84 days.
This means FIDIC places significant emphasis on notices, records and formal claims administration.
The Key Differences
The biggest difference is the way each form structures entitlement.
JCT separates time and money through Relevant Events and Relevant Matters.
NEC generally assesses time and cost together through the Compensation Event process.
FIDIC uses a formal Extension of Time and claims procedure with strict notification requirements.
For a QS, the key checks should always be:
- What caused the delay?
- Which clause provides entitlement?
- Is there entitlement to time, money or both?
- Has the correct notice been issued?
- Is there a contractual time bar?
- What programme supports the delay?
- Has the Completion Date been formally adjusted?
The important lesson is simple: do not treat delay claims the same way under every contract.
Understanding the correct notice requirements, programme obligations and entitlement provisions can be the difference between successfully securing additional time and losing entitlement altogether.
At Metroun, we support contractors, consultants and clients with contract reviews, change management, notices and wider commercial management.
Visit Metroun.co.uk to find out how we can support your project.
