Construction Law/EoT

Advertisement


Question
Hello Mr. Elliot,

Whilst awaiting a building permit for which we will be awarded an EoT, we undertook excavation works and substructure works, basically we worked for 7 months until receiving the permit. We advised the client that this was our risk and they also paid us for the work carried out.
When determining the EoT, is the client obliged to deduct the works we undertook at our risk?

Thank you,

BG

Answer
Dear Brian,

You do not mention the form of contract, nor the applicable law, so the following comments are generic in nature.  In all matters regarding EoT, I suggest that people download and study the SCL Delay and Disruption Protocol, and give a copy to their counterpart, www.eotprotocol.com so that all parties are working to the same guidelines. In order to get an EoT, you must prove that an activity on the critical path was delayed by the Client's action or inaction.

Obliged? Strange choice of word.  In the main, the Client is obliged to follow the Contract.  We are discussing time, not money, and the Client's obligation is to return you to the state that you would have been in, had the event not occurred.  I presume that you are claiming 7 months EoT due to the delay in getting the permit.  I suggest that it would be reasonable to make an allowance for the work done during the first seven months, especially as you have been paid for your work.  The size of the allowance is up for discussion and I suggest that you tread gently at this stage.  Get the critical path analysis done and support your claim with an objective analysis.  

Construction Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


Peter M. Elliott

Expertise

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 www.eotprotocol.com before submitting a question.

Experience

Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

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

Education/Credentials
B Sc(Hons) in Civil Engineering

©2016 About.com. All rights reserved.