Sub-contract claims - Building Contract Claims - page 479

than that previously stated, adjusted or fixed, the Contractor shall review the
extensions of time (if any) previously granted by him under Clause 7.2 of this
Sub-Contract in respect of the circumstances referred to in Clause 7.2(a)
accordingly.
17.7.3 Commentary on the extension of time clause
The first matter which should be noted - for it is highly relevant to claims -
is that the sub-contractor's obligation in clause 7.1 is to 'commence the
execution of the sub-contract works . . . proceed with the same regularly
and diligently and in accordance with the . . . Time Schedule and . . .
complete the same on or before the date or dates for completion . . . '. The
views expressed by Megarry J in London Borough of Hounslow v. Twickenham
GardenDevelopments Ltd 695 appear to be equally applicable to sub-contractor's
claims under this clause. If the sub-contractor:
'is well ahead with his works and is then delayed [by something giving
him a claim for extension of time], the [contractor] may nevertheless
reach the conclusion that completion of the works is not likely to be
delayed beyond the date for completion'. 696
Whether the sub-contractor has proceeded regularly and diligently with the
works is a question of fact 697 .
Extensions of time as such are dealt with by clause 7.2, the wording of
which makes it clear that the sub-contractor is entitled to extensions of time
only on the grounds stated in the clause. These grounds fall into three groups:
'Any circumstance entitling the Contractor to an extension of time' under the
main contract
Assuming that the ACA sub-contract is used in conjunction with the ACA
main form, there are two possibilities, since the main form contains alterna-
tive versions of clause 11.5 - Extensions of time.
Alternative 1 is the narrow version, since it entitles the main contractor
(and hence the sub-contractor) to an extension of time in respect of delay or
disturbance caused by 'any act, instruction, default, or omission of the
employer, or of the architect on his behalf, whether authorised by or in
breach of this Agreement', and this is apt to extend to breaches etc. of the
express and implied terms of the contract as appropriate.
Alternative 2 lists five specific causes 698 . It is essential, therefore, that the
sub-contractor is made aware of the alternative which is in operation under
the main contract.
695 (1970) 7 BLR 81.
696 (1970) 7 BLR 81 at 113 per Megarry J.
697 See Chapter 12, in section 12.2.4, 'Material effect on regular progress'.
698 In both cases refer to the commentary on the ACA main contract terms: see Chapter 15, in section
15.4.2, 'Grounds for extension of time'.