Relevant events v relevant matters

Relevant events and relevant matters are terms used in some construction contracts, such as JCT contracts. They are sometimes confused, but the differences are very important.

A relevant event is an event that causes a delay to the completion date, which is caused by the client, or a neutral event not caused by either party. The contract should set out what constitutes a relevant event. Relevant events entitle the contractor to claim an extension of time; that is for the completion date to be moved.

Relevant events might include:

• Variations.
• Exceptionally adverse weather.
• Civil commotion or terrorism.
• Failure to provide information.
• Delay on the part of a nominated sub-contractor.
• Statutory undertaker's work.
• Delay in giving the contractor possession of the site.
• Force majeure (such as a war).
• Epidemics.
• Loss from a specified peril such as flood.
• The supply of materials and goods by the client.
• National strikes.
• Changes in statutory requirements, or the exercise of statutory powers.
• Delays in receiving permissions that the contractor has taken reasonable steps to avoid.
• Discovery of asbestos, contamination or unexploded ordnance not identified in the contract documents.

A relevant event does not necessarily entitle the contractor to claim loss and expense. To claim loss and expense, a relevant matter must have occurred.

A relevant matter is a matter for which the client is responsible that materially affects the progress of the works. This enables the contractor to claim direct loss and/or expense that has been incurred.

Relevant matters might include:

• Failure to give the contractor possession of the site.
• Failure to give the contractor access to and from 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.
• Discrepancies in the contract documents.
• Disruption caused by works being carried out by the client.
• Failure by the client to supply goods or materials.
• Instructions relating to variations and expenditure of provisional sums.
• Inaccurate forecasting of works described by approximate quantities.
• Issues relating to CDM.
• Discovery of asbestos, contamination or unexploded ordnance not identified in the contract documents.

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.

If delays are not caused by the client and are not neutral events, but are caused by the contractor, and this results in a failure to achieve practical completion by the completion date set out in the contract, the contractor may be liable to pay liquidated damages to the client.

The JCT 2024 suite of contracts made a number of changes to these provisions. Epidemics were added as a discrete relevant event and relevant matter in their own right (rather than being treated only as an aspect of force majeure), and the lists were extended to cover delays caused by the exercise of statutory powers, guidance issued by the Construction Leadership Council (or its successor), and the discovery of asbestos, contamination or unexploded ordnance not identified in the contract documents. The 2024 edition also shortened the employer's decision period for extension of time notices from 12 weeks to 8 weeks, and introduced a new procedure requiring the employer to request any further information needed to assess a notice within 14 days, failing which the right to request it is lost; the 8-week period then restarts once the contractor provides the requested information.

NEC contracts deal with these issues under the single heading 'compensation events'. They do not treat compensation events as an allocation of blame, but rather an allocation of risk. Any risk that is not specifically identified as being attributed to the client is borne by the contractor.

[edit] Related articles on Designing Buildings

• Compensation event.
• Concurrent delay.
• Delays on construction projects.
• Extension of time.
• Liquidated damages.
• Loss and expense.
• Relevant event.
• Relevant matter.