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Construction Law/Delays by Nominated Sub-Contractor


Our main contractor has been granted twice a time extension. The main reason for granting the extensions was the delay by the nominated subcontractor. The latest revised completion date based on the 2nd EOT granted is 30 November 2014. This is on the basis that the NSC work will complete on 08 October 2014. However, the NSC works did not complete 08 October 2014. In accordance to their NSC agreement, and as also instructed by the Employer, the main contractor started calculating penalty against the NSC effective 09 October 2014. My question is, if the Employer grants the main contractor a 3rd Extension of Time, say till end of December 2014, how will this affect the penalty being imposed by the main contractor to the NSC?

Hi Seg
In the standard form of contract the contractor is entitled to an EoT for delays caused by the NSC.
Time however is different to costs and the contractor will have incurred costs for the time over run which he can collect from the Employer provided there are no concurrent delays of his own making.
If there are Liquidated Damages on the NSC contract then that is all the contractor can deduct.
The balance will have to be paid by the Employer.
Best regards
Mike Testro

Construction Law

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Mike Testro


Anything related to extensions of time and delay analysis.


45 years in the Construction Industry 15 Years as a consultant delay analyst - I now hold myself to be expert in this field.

Society of Construction Law Adjudication Society ex Planning Engineers Organisation

6 articles on the relevance of the India Contract Act 1872 and its relevance to modern construction in India. Waiting Publication

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Currently employed in India by Punj Lloyd as expert delay analyst. Engaged in ongoing arbitrations and EoT claims. Prior an Indepenent consultant in delay analysis.

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