Materials shortage prompts extra planning
Material Shortages Are Your Responsibility!
A common question asked by Specialist Contractors is: “Do material shortages and extended delivery periods entitle me to claim for an extension of time on the basis that this was unforeseen circumstances outside of our control?"
The short answer is no, it probably doesn't!
Extension of Time Explained
Most construction subcontracts allow the construction period to be extended where there are delays that are not the Specialist Contractor's fault due to matters set out in the contract. This is described as an extension of time. Commonly abbreviated to EOT.
Not all Sub-Contracts are the same, and you need to be particularly careful when it comes to contracts drafted by the Contractor, or if the Contractor has heavily amended a standard form contract.
Crucially, even in a Standard Form JCT contract there is no provision for extension of time due to inability to obtain materials!
Is There A Way You Can Avoid The Consequences?
If you delay the Contractor, you become liable for a big thick sandwich of costs.
These are:
• Liquidated Damages (if the delay results in the Contractor incurring them)
• The Contractor's own costs
• Any other Subcontractor's cost (if delayed by your delay)
So, it's imperative that you look carefully to see if there are other arguments to run, such as "force majeure".
One things for sure, and that's it isn't straightforward, because when it comes to risk and money, Employers and Contractors like to pass the former down the supply chain and hang on to the latter!
More information is available at: https://www.streetwisesubbie.com/
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