Civil Engineering Reference
In-Depth Information
Thisisacommonproblemwhenthecontractisdividedintosections,eachwithitsowndate
for possession and completion, but two or more of the sections are interdependent. For ex-
ample, a refurbishment project may be divided into three sections, but section 2 may be de-
pendent on section 1 in a practical sense, because the contractor cannot physically be given
possession of section 2 until section 1 has been completed. That is usually because the oc-
cupants of section 2 have to be moved to section 1 when it is finished. Usually, the dates for
possession and completion of each section are inserted into the contract as a series of dates.
The date for completion of section 1 and the date for possession of section 2 will probably
be separated by a week or so to allow occupants and furniture to be moved from one section
to another.
If section 1 is not finished by the completion date, even if the contractor is at fault, the
contractorisstillentitledtotakepossessionofsection2ontheappointeddateinthecontract
particulars (see clause 2.4 of SBC) because that is what the parties have agreed and inserted
in the contract. If it is physically impossible for such possession to take place, the employer
will be in breach of contract. The contractor is, therefore, correct.
Where a project is split into sections, any extensions of time must be given in respect of
the particular section affected by the delaying event. There is no provision that the delay in
one section will affect another. Therefore, even if the whole of the delay to section 1 entitles
the contractor to an extension of time, it will be only section 1 that is extended and not sec-
tion 2.
Ifthecauseofthedelayisentirelythefaultofthecontractor,thearchitectmaysaythatthe
contractor, being responsible for the delay to section 1, is clearly responsible for the delay
to section 2 also, and it cannot expect to take possession of section 2 on the date set out in
thecontract particulars. Thisapproachisverycommonbutwrong.Thecause ofthedelayto
possessionofsection2isnotthecontractor'sdelaytosection1,butthefactthatthetwosec-
tions are linked. If they were not linked, the contractor's delay to section 1 would not affect
section 2. One of the difficulties where the dates for possession and completion are simply
set out as a series is that there is nothing to warn the contractor about the likely problem.
There are two probable supplementary issues: The first is whether anything can be done
to avoid the problem in new contracts; the second is whether anything can be done where
the situation outlined in the question is currently in place.
