Neutral event

Many events on a project can result in delays to the completion date. Events which impact on the completion date but are not the fault of either the contractor or the client are called ‘neutral events’.

Neutral events can include:

• Exceptionally adverse weather.
• Civil commotion or terrorism.
• Statutory undertaker’s work.
• Force majeure (such as a war or an epidemic).
• A specified peril such as flood.
• National strikes.
• Changes in statutory requirements.
• Delays in receiving permissions that the contractor has taken reasonable steps to avoid.

Where the progress of the works is materially affected by a matters for which the client is responsible, the contractor may be entitled to claim direct loss and expense incurred, and/or an extension of time.

Where a delay which impacts on the completion date is caused by the contractor, the contractor may be liable to pay liquidated and ascertained damages (LADs) to the client.

[edit] Related articles on Designing Buildings Wiki

• Compensation event.
• Concurrent delay.
• Culpable delay.
• Delays on construction projects.
• Disruption claims in construction.
• Extension of time.
• Force majeure.
• Frustration.
• Henry Boot Construction Ltd v Alstom Combined Cycles.
• Liquidated damages.
• Loss and expense.
• Penalty.
• Prolongation.
• Relevant events v relevant matters.
• Remoteness.
• Variations.