Delays are common in construction projects and can be caused by various factors. They can impact project costs, schedules, and may result in legal disputes. In this article we will explain how to manage the Extension of Time for JCT Contracts.
What is Relevant Event in JCT Contracts?
A relevant event in JCT contracts is an occurrence that may allow the contractor to request an extension of time for completing the construction works. This can include events like adverse weather, changes in scope, or delays in approvals.
The contractor is required to give notice and provide evidence of how the event has impacted the project schedule. It’s important to review the specific JCT contract being used and seek advice from construction experts for proper understanding and application of relevant events.
What are the Common relevant events?
According to Construction News article approximately 90% of large construction projects have experienced delays due to disruptions caused by the pandemic. Among these projects, which have a cost of over £100 million each, nearly 25% were delayed by more than 250 days.
In JCT contracts, relevant events may include below items.
- Severe weather conditions
- Civil unrest or acts of terrorism.
- Failure to provide necessary information.
- Delays caused by subcontractors nominated by the client.
- Work carried out by statutory undertakers.
- Delays in granting the contractor access to the construction site.
- Force majeure events that are beyond a party’s control, such as war or epidemics.
- Losses resulting from specific risks, such as floods.
- Delays caused by the client’s supply of materials and goods.
- National strikes affecting project progress.
- Changes in statutory requirements.
- Delays in obtaining necessary permissions despite reasonable efforts by the contractor to avoid them.
See our article to read more: Top 5 Reasons Why Construction Projects Get Delayed
The relevant event definition can be found under the Clause 2.29 of JCT 2016.
If There is Delay in Your Construction Project, What will you do as contractor?
JCT contract advises to give notification to the Contract Adminstrator when a delay become reasonably apparent. As a contractor facing a delay in a construction project under a JCT contract, there are several steps you can take:
- Review the contract: Carefully review the JCT contract terms and conditions, specifically the clauses related to delays, extensions of time, and relevant events. Understand your rights and obligations as well as the procedures for notifying and documenting delays.
- Provide notice: Give timely written notice to the relevant parties, such as the employer or the contract administrator, about the delay and the reasons for it. Follow the specific notice requirements and timelines stated in the contract to ensure compliance.
- Document the delay: Keep detailed records of the delay, including the causes, impacts, and duration. Collect evidence such as photographs, correspondence, and reports to support your claim for an extension of time.
- Mitigate the delay: Take reasonable steps to mitigate the delay and minimize its impact on the project. Keep records of the mitigation efforts made, such as rearranging work schedules, allocating additional resources, or adjusting the construction sequence.
- Communicate and negotiate: Maintain open and transparent communication with the other parties involved, and seek to negotiate a resolution. Follow the dispute resolution procedures outlined in the contract, such as mediation, adjudication, or arbitration, if necessary.
- Seek professional advice: Consider engaging legal professionals or construction experts who are experienced in JCT contracts to provide guidance and representation in navigating the delay and extension of time claims process.
It’s important to act promptly, adhere to the contract requirements, and seek professional advice to protect your rights and interests as a contractor facing a delay in a JCT contract project.
How can you give notification for the delay?
To provide a written notice for a delay in a construction project under a JCT contract, prepare a professional document that includes specific details about the delay, references relevant contract clauses, attaches supporting documentation, and follows the contract’s requirements for format, timeline, and recipients. Use a delivery method that provides proof of delivery and keep copies for your records. Follow up with the relevant parties and maintain transparent communication throughout the process. Consulting legal professionals or construction experts with experience in JCT contracts may also be advisable to ensure compliance and protect your rights as a contractor.
The delay notice related clauses can be found under Adjustment of Completion Date section under JCT 2016 contracts.
If you are looking for a EOT Letter Sample to manage your extension of time under JCT contracts: See our article here: Construction Delay Claim Template
What If you do not know the exact impact?
If you are aware of a delay in your construction project under a JCT contract but you do not know the exact impact yet, it is still important to provide a written notice as soon as possible.
In the notice, mention that the delay has occurred, and specify any known details, such as the date of the delay event and the reasons for it. You can also indicate that the impact of the delay is still being assessed and that you will provide further information once it becomes available.
It’s crucial to follow the contract’s requirements for providing notice, including the timeline and format, and to maintain open communication with the other parties involved. Keeping records of all communications and updates related to the delay is also recommended for future reference.
How can you assess the Delay?
Assessing the delay in a construction project under a JCT contract typically involves a thorough analysis of the circumstances surrounding the delay and its impact on the project schedule. Here are some general steps that can help you assess the delay:
- Gather relevant information: Collect all relevant information related to the delay, such as the cause of the delay, the date of the delay event, and any documentation, reports, or evidence related to the delay.
- Review contract provisions: Refer to the relevant clauses or provisions in the JCT contract that pertain to delays, extensions of time, and relevant events to understand the contractual framework for assessing delays.
- Analyze project schedule: Review the original project schedule and compare it with the actual progress of the project to determine the extent of the delay. Identify the critical path and any dependencies that may have been impacted by the delay.
- Consider delay causes: Evaluate the causes of the delay, including any factors that were beyond your control, such as weather conditions, changes in design, or acts of third parties, as well as any delays that may have been within your control, such as resource allocation or sequencing issues.
- Assess time impact: Determine the time impact of the delay by estimating the additional time needed to complete the delayed activities or to recover from the delay. Consider any ripple effects on other project activities and the overall project timeline.
- Quantify delay costs: Evaluate the costs associated with the delay, including any additional labor, equipment, material, and overhead costs that may have been incurred due to the delay.
- Document findings: Document your findings and calculations related to the delay assessment, including supporting evidence, reports, and documentation, as this information may be required for dispute resolution or claim purposes.
- Communicate with other parties: Keep open and transparent communication with the other parties involved in the project, including the employer, other contractors, and relevant stakeholders, to discuss the delay assessment findings and potential mitigation measures.
Assessing the delay in a construction project requires careful analysis, documentation, and communication with other parties involved. Following the contractual requirements can help ensure a thorough and accurate assessment of the delay in accordance with the JCT contract.
If you are looking for an EOT Delay Analysis Consultancy, reach us here: Delay Claims & EOT Consultancy
How can You assess the delay in the construction schedule?
Assessing the impact of a delay on a construction schedule typically involves analysing the actual progress of the project against the planned schedule to determine the extent of the delay. Here are some steps to help you assess the delay on the construction schedule:
- Review the latest agreed baseline: Start by reviewing the latest agreed baseline, including the planned start and finish dates for each activity, as well as any dependencies or constraints.
- Identify the delay event: Identify the specific event or events that caused the delay, such as weather conditions, design changes, or other unforeseen circumstances. This may require reviewing project documentation, reports, and communication records.
- Insert the delay activities: Insert the delay activities to the schedule preferablly under a different WBS named variations. And make activity connections to the impacted existing programme activities.
- Evaluate the time impact: Assess the time impact of the delay on the affected activities and the overall project timeline. Consider the duration of the delay, any ripple effects on other activities, and any potential changes to the critical path.
- Update the schedule: Update the project schedule to reflect the actual progress of the project and the impact of the delay. This may involve revising the start and finish dates of affected activities, adjusting dependencies, and re-sequencing tasks as necessary.
- Quantify the delay: Quantify the delay in terms of the number of days or weeks that the project has been delayed as a result of the specific event or events.
What will you do once you assessed the Delay?
After the delay assessment, now it is time to communicate the Contract Adminstrator or the Client and inform them about the extension of time claim. This will be most likely associated with the preliminaries and other relevant costs. So we advise to include all your relevant costs in this claim file.
Which sections does an Extension of Time Claim include for JCT Contracts?
It depends on the quantity surveyor or the commercial team’s decisions. But as construction experts here is our standard claim file;
- Executive Summary
- EOT Narrative
- Programmes List
- Relevant Events list with Chronological Order
- Time Slippages Explanation with Chronological Order
- Delay Analysis
- Exact Impacts Explanation
- Referring to the Contract Clauses
- Delay Summary
- Impact Programmes
- Critical Path(s)
- Relevant Cost Quotation
The article covers various aspects for managing extension of time under JCT Contracts, including defining relevant events in JCT contracts, identifying common relevant events, and providing guidance for contractors on how to respond to delays. It includes information on giving proper notification, assessing the impact of the delay (even if the exact impact is unknown), and how to assess the delay in the construction schedule. Additionally, it offers insights on the steps to take once the delay has been assessed and the sections that should be included in a JCT EOT claim. For those seeking assistance with their EOT claims, we are also available to provide a free consultation. Contractors are welcome to reach out to us for expert guidance and support in navigating the complexities of EOT claims under JCT contracts.