There is a common misconception that if a subcontractor is delayed by a contractor, the subcontractor must submit a detailed notification of it’s intention to claim an extension of time.
If a subcontractor requires an extension of time, the subcontractor indeed has to give notice to the contractor of his / her intention to claim for revision of the date for interim completion and/or practical completion.
The relevant clauses relating to the notice and claim of the extension of time is governed by the following clauses in the JBCC Nominated / Selected Subcontract Agreement (the subcontract) in relation to the edition which was entered into; edition 4.1 and edition 5 refers to clause 29 and Edition 6.1 refers to clause 23.
The circumstances in which the subcontractor is entitled to an extension of time and for which the n/s subcontract value will not be adjusted are listed in clauses 29.1 (ed 4.1 and 5) and 23.1 (ed 6.1) respectively. The circumstances in which the subcontractor is entitled to claim an extension of time and for which the n/s subcontract value may be adjusted are listed in clause 29.2 (ed 4.1 and 5) and 23.2 (ed 6.1) respectively.
If a situation arises which is not specifically listed in the agreement the subcontractor may still be entitled to an extension of time if a delay to the interim completion date is caused by circumstances which is out of the subcontractors control and which could not have been reasonably foreseen by the subcontractor.
In the above instances where the subcontractor may claim an extension of time the subcontractor must notify the contractor first and thereafter submit a formal claim for the revision of the date of interim completion.
The subcontractor must give notice to the contractor of his/her intention to claim for an extension of time before submitting the claim. This notice must be sent within 15 working days (Monday to Friday excluding public holidays and builders holidays) from the date when the subcontractor became aware of the potential delay (ed 4.1 & 5 cl 29.4.3; ed 6.1 cl 23.4.2 respectively). This notice must be submitted even if the delay is caused by the employer (ed 6.1 cl 23.4.2 only).
This notice need only be a simple written notification stating:
- that the subcontractor intends to submit a claim to the contractor for the revision of the interim completion date;
- the circumstance i.e. rain, late access;
- need not give full details of the claim, need not be on a formal letterhead and can be sent by way of an e-mail.
If the subcontractor fails to notify the contractor of his or her intention to claim an extension of time, the subcontractor will not be entitled to submit the claim (ed 4.1 & 5 cl 29.4.3; ed 6.1 cl 23.4.3 respectively). Edition 5 and 6 states that if the subcontractor fails to give notice to the contractor because the circumstances causing the delay occurred before the subcontractor commenced work on site or due to the fact that the contractor has already claimed an extension for practical Completion date for the same delay, the subcontractor will nevertheless be entitled to a extension of time (ed 5 cl 29.4.4 and ed 6.1 23.4.4; ed 4.1 does not contain this clause).
The subcontractor must, after notice is given, submit a detailed claim for extension of time to the contractor. In terms of Edition 4.1 the subcontractor must submit the claim as soon as the subcontractor can quantify the delay (cl 29.5). In terms of Edition 5 and 6.1 the subcontractor must submit the claim to the contractor within 20 working days from the date on which the subcontractor can quantify the delay (ed5 cl29.5 and ed6.1 cl23.5).
The notification must therefore be sent 15 working days from when the subcontractor became aware or ought to have become aware of the relevant circumstance and the claim needs to be submitted within 20 working days from when the subcontractor can quantify the delay. Its important to note that these two time periods are not calculated from the same date.
The details to be specified in the claim for an extension of time is listed in clause 29.6 (ed 4.1 and ed 5) and clause 23.6 (ed6.1) respectively. We will not deal with the requirements for the claim in this article.
In conclusion the notice for an extension of time is a written notification to be given by the subcontractor to the contractor simply stating his/her intention to claim for an extension of time and the reason why. It does not have to take on a specific format, does not have to be on a letterhead and does not have to be signed to be valid.
Recent Comments