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Construction Law/Interpretation of Clause


I would like to inquire about the interpretation of the below Clause.

Clause 5: Project Duration and delivery:
5.1- The Contractor hereby commits to deliver the Project within a period of maximum 28 months from the date the Contractor obtains the construction permit that is expected to be obtained within a period of maximum 8 months from the Contract signature date.
5.2-In case the Contractor fails to deliver the Project within a period of maximum 3 months from the date the period stipulated in Clause 5.1 is completed, then the Contractor shall pay liquidated damages of a value of ---$/day until project is actually delivered.

Could you please advise of the contractual duration the Contractor is entitled to to deliver the Project, bearing in mind that:
A- as per the Contractor interpretation, duration is 31 months from the date of the permit acquisition.
B- as per my interpretation, duration is 39 months from the Contract Signature date.

Look forward to receiving your feedback and remain available for any clarifications required

Hi Georges
The way I read it is:
Contract Signature 0 month
Expected construction Permit 8 months
Project delivery 8 months + 28 months = 36 months max
Start date of LD's = 36 months + 3 months = 39 months Max
I hope that helps
Best regards
Mike Testro

Construction Law

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Mike Testro


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

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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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