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Construction Law/Effective date of contract


Please have a look on the following data
1-Date for Subcontract coming into force is 23-06-2013
2-Effective date of subcontract(10% advance payment) is 15-11-2013
3-Time to handover the civil works to subcontractor is 771 days
4-Predecessor for subcontract work is "civil works" and not the effective date as per submitted schedule of subcontractor

You are requested to please clarify the following
1-Does it become responsibility of subcontractor to intimate about the delays in civil works since the subcontract coming into force, as this is a condition precedent to claim EOT to intimate 7 days after occurrence of 1st delay?
2-If effective date is as mentioned above, then will all the correspondence before effective date regarding delays be considered as null & void?
3-Are both contractor & subcontractor bind to oblige terms&conditions of agreement since the agreement came into force i.e.23-06-2013

M Shaiba Hassan

Dear M Shaiba Hassan,

You do not mention the form of contract, nor the applicable law, so the following comments will be generic.

A basic premise of all contracts is that all parties must work actively to mitigate any delays.

1. The subcontractor is obligated to give as much warning as possible for any delays, and any delays in giving a warning could reduce any award.
2. Unless there is anything to the contrary in the Contract, all correspondence after signature of the Contract is relevant.  The effective date starts the clock ticking for the time for completion.  
3.  Both parties are bound by the terms of the agreement, once that it has been signed and come into force.  If the civil works are delayed, then there could be a case for an extension of time due to delays in handover of civil works.  The devil is in the detail and the precise wording of the Contract.  

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Peter M. Elliott


First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol before submitting a question.


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Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

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