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Construction Law/Construction Contract - NOC's & Permits

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Question
Dear Manish,

In a construction contract, where attaining excavation permits and all other kind of permits from relevant authorities is the contractor's responsibility entirely.
In the tender documents, a full notification was given that the tenderers are required to familarize with the local regulations required to attain and maintain the validity of NOC's. The contractor shouldn't underestimate the time required, etc.
During the project execution, the permit issuing authority was unhappy with the contractor's housekeeping at site. And hence, revoked the permits issued to the contractor until the situation was rectified to their satisfaction.
The housekeeping situation was rectified within couple of months, but the authority still unhappy with the contractor's other contract works elsewhere in the city. Therefore, did not issue the permit for almost a year.
Non availability of permits caused a year of delay to that section of the contract works.
Question is; the delay due to non availability of permit because of the authority's unhappiness over the contractor's other contract works, can be considered unforeseen on this contract. Therefore the contractor is entitled to get time and associated cost?

Answer
Dear Mani,

Its an interesting situation. Since the "unhappiness" is just emotional factor I wont be able to comment on that. However situation has to be considered and if the Contractor can prove that this situation is "change in Authority Regulation" ...he might escape the delays after the rectification of housekeeping situation.

I would say that Authority is also answerable to hold Site A due to their "unhappiness" on Site B.

Its unforeseen but not contractual to say so.

Construction Law

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Manish Gupta

Expertise

I can answer questions related to Cost Planning, Contract Administration, Construction Law & Other Post Contract QS related areas.

Experience

7 Years with Contractors 12 plus Years with Owners & Consultants

Organizations
Calgary Project Consultants, Jacobs International, Turner International, J Ray McDermott Inc. Hindustan Construction Company

Education/Credentials
MRICS, MCIArb, BE (Civil), PGDCM LLM-Constuction Law in Arbitration and Adjudication

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