In today’s world, the construction company has been revolutionized by time, complexity and project expenses which are bound by contractual laws. However, cost and time constraints are entirely the responsibility of the contractor.
Sometimes the contractor’s job can be delayed by external factors, hence leading to failure to complete the task within the stipulated time frame and cost.
When this happens, the subcontractor might choose to file Extension of time (EOT), which constitutes to construction claims.
Factors that lead to filling of an EOT
Filling of an EOT has been regulated by FIDIC; this is an international federation of Consulting engineers which clearly states the rules and guidelines that govern a subcontractor before filling an EOT. It emphasizes that subcontractors can’t be allowed to file an EOT because of their dereliction of duties which was against the favorable schedule and allocated budget.
However, Extension of time claim might be granted if the previous subcontractor failed to meet the provided dateline and cost constraints.This is as a result of the fact that, the constructor’s job is dependent on the work that went on before the construction started. Therefore, allowances are given if the delay arises from the following:
- Delays in the provision of utilities and facilities that should be supplied by the contractor.
- Incomplete or missing blueprints
- If the previous schedule which the work depended on was not met.
- The administration of alterations in plans
The contract law requires the subcontractor to provide detailed information that led to the delay before documentation of the claim. It should be supported by factual causation, contractual reference and quantification of the resultant impact based on the documented evidence.
Upon the request of EOT, there are specific documentation that is used as a proof based on statutory and case contract law.
Details of subcontractor EOT claims
The following are the required documentation as per the required format:
- Delays as a result of Pending approval variation
- Delays resulting from pending request of information
- Delays resulting in total calendar days
- Site-dependent delays.
Therefore,to be on the safe side, the contractor should put under consideration any of foreseeable delays before bidding a job. Additionally, if the subcontractor feels that the contractor did not make a right determination, he is entitled to claim his rights in the court. It is with no doubt that, the subcontractor’s contract is vital and the essential elements of its format should be maintained.
Such a contract should include things such as:
- There should be parties attached to the contract ;(client, subcontractor, and contractor).
- Specific and general conditions
- The scope of work to be completed
- Duration of the project
All the documents should be signed as per the terms of the contract. In case of any revisions, all the parties involved should agree.However, who pays for the delays?
- The contractor or the sub-contractors can be liable for the delay if it is ascertained that it came from their sides. However, in most cases, it brings up a complex chain which can be only determined in the court of law.
Therefore, it is essential that the contractor and subcontractor should keep precise and accurate documentation as the job progresses.
SUMMARY
Well, it is wise for a subcontractor to stop continuity of the task if he realizes he will not meet the datelines and the estimated budget. It will be better to file the appropriate request for amendment before it is too late!
