Expert: Ashish Gurav - 2/1/2012

Question
In a item rate construction contract, employer has already agreed and granted extention of time. Employer contention now is granting extention of time to contractula completion date does not mean that contracual intermidiate mile-stone dates also change. Employer wishes to levy LD for slippage in milestone dates. Our opinion is that once EOT is granted employer can not levy LD. What do you advise.

Answer
Dear Mahim,

We have to see under what heads and for what milestone the extension of time is granted. If there are intermediate milestones, and if the Employer has granted an extension to all of them or has not specified to which specific milestone he is granting an extension, then by default, all the milestones are re-casted and extension applied to all of them.

Regards.