Claims Under ACA 3 - Building Contract Claims - page 382

of recovering unliquidated damages for late completion and based on
actual loss, and is one alternative open to him under the contract, as the
alternative clause 11.3 so provides and entitles the employer to deduct
such unliquidated damages from amounts otherwise payable to the con-
tractor.),
. the maintenance period (clause 12.2).
The same information is required as regards the alternative version for
sectional completion, with appropriate adjustments. The final part of the
time schedule is headed 'Issue of Information'. Under the normal contract
procedure, where the architect is to be responsible for the preparation and
issue of all drawings etc., the architect may set out under this heading the
items he proposes to issue and when, to the intent that the contractor can
then prepare his construction programme taking this into consideration.
(An alternative heading is for use where the contractor is to supply draw-
ings etc., in which case he completes it appropriately.)
The dates stated in the time schedule are those against which 'regular
progress of the Works' is to be judged and, under clause 7, failure by the
employer or the architect to adhere to those dates may give rise to a claim
and will do so if delay or disruption results.
Clause 7.2 and clause 7.3 lay down the actual claims procedure, and exact
adherence to it is essential if the contractor is to be reimbursed as the
contract proceeds. The procedural steps may be summarised in this way:
(1) The contractor must give written notice to the architect of any event
giving rise to a claim, i.e. any act, omission, default or negligence of the
employer or his architect. The notice must be specific and identify the
event(s) relied on.
(2) This notice must be given immediately 'upon it becoming reasonably
apparent that any event giving rise to a claim under clause 7.1 is likely
to occur or has occurred' . This means that the notice must be given as soon
as regular progress is likely to be disrupted or delayed.
(3) When he makes his next interim application for payment after the issue
of his notice, the contractor must submit to the architect a written
estimate of the adjustment to the contract sum that he requires to take
account of the claim, in respect of the damage etc. which he has suffered
prior to the date of submission of the estimate. The use of the word
'estimate', although often taken to mean 'an approximate judgment' is
here used in its strictly accurate sense 650 . If the contractor's estimate is
accepted by the architect then, as will be seen, the contract sum is to be
adjusted accordingly 'and no further or other additions or payments
shall be made in respect of such claim'. The contractor's estimate is to be
supported 'by such documents, vouchers and receipts as shall be neces-
sary for computing the same or as may be required by the architect' : see
650 See Crowshaw v. Pritchard & Renwick (1899) 16 TLR 45, where the court considered that a
contractor's estimate, dependent on its terms, may amount to a firm offer and then acceptance by
the employer will result in a binding contract.