Time at Large

 

Time at large  Time for completion completion of the Works Works is said to be “at large” large” when the Contractor’s obligation to complete the Works within the specied time or certied extended time is lost. That is to say, the Contractor is no longer bond by the contract pro!ision that he has to complete the Works by a certain date or extended date. The obligation of the Contractor is then to complete the Works Works within what is called “reasonable time”.  Time for completion completion of the Works Works can be said to be, or or made, “at large” in the following !e sitations" (a) No time for completion is fixed in the contract; c ontract; (b) Improper administration or misapplication of the extension of time provision in the contract; (c) Waiver Waiver of time requirements; (d) The Employer’s interference in the certification process; (e) When the extension of time provision does not confer poer on the En!ineer"#rchitect"$%&% to extend the time for completion of the Wor's on the occurrence of event or events hich fall(s) ithin the obli!ation of the Employer%

 The signicant conse#ence of time for completion b being eing at large is that that the li#idated damages clase in the contract becomes inoperati!e and the $mployer cannot rely on this li#idated damages clase to impose li#idated damages onto the Contractor.%& Contractor.%& The other signicance when time for completion is at large is that the original completion date or the contractally certied extended completion date no longer binds the Contractor Contractor.. The Contractor’s remaining obligation is to complete the Works within what is called “reasonable “reasonable time” the meaning of which we now trn. 1. NO TIME NOR DATE FIXED IN THE CONTRACT

Completion on time is important in modern construction contracts. If the project is late the Employers return on his investment is reduced and the Contractors costs frequently increased. Many construction contracts and Standard Forms of contract usually place an obligation on the contractor to complete the wors by a specified completion date or within a specified period. If no date or period is fi!ed by the contract then the objective intention of the parties must be ascertained. In the case of a contract under the Supply of "oods and Services #ct $%&'( if the date is not fi!ed by a course of dealing between the parties( a term will be implied that the contractors obligation is to complete within a reasonable time )Section $*)$++.

2. Time or Date Ceases to Apply

 

'any e!ents may pre!ent completion on time inclding ad!erse weather conditions, labor or material shortages, strikes or local distrbances, lack of information or plain hman error, and interference, hindrance or pre!ention by the $mployer. $mployer. The rights and remedies of the parties depend pon the apportionment of liability for the delay and the express terms of the contract which may limit the remedies otherwise a!ailable. (f part of the delay in completion is at the risk of the contractor, then to that extent the $mployer is entitled to damages for breach of the obligation to complete on time. (f the contract makes proper pro!ision for li#idated damages, then the measre of damages is the stated sms of li#idated damages. (f on the other hand the delay is at the risk of the $mployer then the contractor will be entitled to damages for breach of the particlar obligation casing the delay. delay. (f instead the risk e!ent was not cased by breach of contract then the contractors remedy will only be as stated in the contract. )tandard forms of contract apportion liability for delay throgh th rogh extension of time clases. (f the contractor is entitled to an extension of time for an expressly stated e!ent, then the $mployer carries the risk, otherwise it lies with the contractor. Which party carries the risk of the additional cost for the delay will depend pon the other terms of the contract.  The wording of of the extension of time clase clase will determine determine when and the extent to which the risk of delay passes from the contractor to $mployer. $mployer. The description of the particlar e!ent is all important. (f notices and*or sbstantiation are a condition of an entitlement to an extension of time, then the risk will only pass to the $mployer if and*or when the contractor pro!ides that information. )ome e!ents that case delay are not nder the control of either party, sch as weather or local distrbances. They are netral e!ents. The e!ent may howe!er be cased by one of the parties. The $mployer may for instance order extra work or otherwise !ary the contract. The $mployer, in breach of contract, may not gi!e possession of the site or may not pro!ide information at a particlar date to allow the contractor time. The conse#ence maywhich be to wold so delay contractor thatto hecomplete is frtheron delayed by the netral e!ent, n not otthe ha!e occrred bt for the original delay. +oth the order of !ariations and the $mployers breaches of contract are acts of pre!ention that may delay the contractor. contractor. (f the extension of time clase does not entitle the contractor to ha!e the time for completion extended for delays actally cased by sch acts of pre!ention, then the contractor will no longer be nder an obligation to complete within the specied period. is obligation is instead only to complete within a reasonable period. Time is said to be at large. What is a reasonable time is a #estion of fact and all the factal circmstances mst be taken into accont.

 

(f the contract pro!ides for the dedction of li#idated damages shold the contractor o!errn the time for completion, then the pro!ision will no longer be enforceable when time is at large. There is no specic certain date from which li#idated damages can rn. The $mployer will then only be entitled to damages that he can pro!e in the normal way if he can establish that the contractor has not completed within a reasonable time. 4. Acts of Prevention

(n modern constrction contracts, extension of time clases are careflly drafted to entitle the contractor to extension of the period of completion for any acts of pre!ention by the $mployer. $mployer. The extension of time clases are for the benet of the $mployer.. They keep ali!e the contractors obligation to complete by a specied $mployer date and preser!e the $mployers right to dedct li#idated damages for breach of that obligation. (n order to protect the $mployers right to li#idated damages, $xtension of Time Clases need to pro!ide a contractal remedy for the expected range of acts of pre!ention by the $mployer. 5. Waiver or Election

 Time may become become at large if if the original obligation obligation to complete is wai!ed. (n Charles Rickards td v !ppenheim "#$5%& , a -olls -oyce motor car was not bilt by the agreed deli!ery date, bt new dates agreed. $!entally, ppenheim ga!e written notice to -ickards stating that nless he recei!ed the car by a rm date, for weeks away, he wold not accept it. The car was not deli!ered within the time specied and was not completed ntil some months later when ppenheim refsed to accept it. The Cort of /ppeal held that he was 0stied in doing so. /fter wai!ing the initial stiplation as to time, ppenheim was entitled to gi!e reasonable notice making time of the essence again, and on the facts the notice was reasonable.  This principle applies applies to constrction contracts. ((f, f, becase of wai!er, ttime ime becomes 1at large2, the $mployer can gi!e the contractor reasonable notice to complete within a xed reasonable time, ths making time of the essence againTaylor v 'ro(n "#)*$&. The $mployer will ha!e lost his right to li#idated damages so that if the contractor fails to complete by the re!ised agreed date the $mployer will be left with the remedy of general damages. (t is not clear whether the $mployer can make time of the essence, if it was not pre!iosly so. +. ,ail-re of Contract-al achinery

(f the time or date for completion is e3ected by e!ents which entitle the contractor to an extension of time, bt the contractal machinery can no longer operate, then time is at large. The circmstances will be rare

 

The principle of time at lar/ea

(n short, the common law principle of “time at large” is this" if a delay e!ent occrs that is the employer’s falt and the contract does not allow the completion date to be extended in that e!ent, the original completion date, and any liquidated damages regime, fall away and time is pt “at large”. This means that the contractor has a reasonable time to complete the works and the employer is no longer entitled to claim li#idated damages for delay 4althogh it may still be able to claim general damages5. (t is an application of the “pre!ention principle”, that a party may not insist on compliance with a contractal obligation in circmstances where it has itself pre!ented sch compliance. (f the works are delayed becase of e!ents for which the client is responsible 4an act of pre!ention5 or by agreed netral e!ents, the contracts will generally pro!ide for an extension of time to be granted, changing the completion date 4see rele!ant e!ents5. (f contracts did not allow the constrction period to be extended nder sch circmstances, then time wold be at large. The client client wold  wold then not be able to claim li#idated damages  damages from the contractor contractor as  as there wold be no date against which they cold be calclated and the contractor contractor wold  wold then only ha!e to complete the works in a 2reasonable2 time. The client client wold  wold only be entitled to damages damages  if they cold established that the contract was not n ot completed within a reasonable time.

Constrction contracts will contracts will sally inclde a date by which the works described in the contract shold be completed. This is generally the date by which practical completion mst completion  mst be certied.  The phrase 6time at large’ large’ describes the sitation where where there is no date for completion,, or where the date for completion has completion completion has become in!alid. The contractor contractor is  is then no longer bond by the obligation to complete the works by a certain date.  Time can become become at large becase becase there is no clear completion date specied date specied in the contract, or can be a sitation that arises as a reslt of e!ents 4typically by agreement of the parties or by failre of the contract 6machinery’5, or if the contract does not allow the constrction period to be extended. (t is not ncommon on constrction pro0ects that the works are not completed by the date for completion. completion. (f this is becase of delays for which the contractor contractor is  is responsible, then then the contract will generally inclde a pro!ision for them to pay li#idated damages to damages to the client client.. These are pre7determined damages damages based  based on a calclation of the actal loss that the client client is  is likely to incr if the contractor contractor fails  fails to meet the completion date. date. )ome contracts re#ire that a certicate of non7 completion is completion  is issed as a pre7re#isite to dedcting li#idated damages. damages.

 

(f the works are delayed becase of e!ents for which the client client is  is responsible 4an act of pre!ention5 or by agreed netral e!ents, the contracts will generally pro!ide for an extension of time to time to be granted, changing the completion date 4see date 4see rele!ant e!ents5. e!ents 5. (f contracts did not allow the constrction period to be extended nder sch circmstances, then time wold be at large. The client client wold  wold then not be able to claim li#idated damages from damages from the contractor contractor as  as there wold be no date against which they cold be calclated and the contractor contractor wold  wold then only ha!e to complete the works in a 2reasonable2 time. The client client wold  wold only be entitled to damages damages if  if they cold established that the contract was not completed within a reasonable time. (t is important therefore that clases describing rele!ant e!ents co!er e!ents co!er all necessary e!entalities, otherwise if an e!ent occrs that is not co!ered, time will be at large. 8+ Constrction contracts generally contracts generally inclde a pro!ision re#iring that the contractor contractor proceeds  proceeds 6reglarly 6reglarly and diligently’ diligently’ irrespecti!e of whether it is apparent that the completion date will date will be achie!ed. 8+ 8$C contracts refer contracts refer to 6compensation 6compensation e!ents’ e!ents’ rather than 6rele!ant 6rele!ant e!ents’. e!ents’. +oth parties mstshold gi!e early anything that may delay the works, or a!oid increase costs. They thenwarning h old an of hold early warning meeting to discss how to or mitigate impacts on the pro0ect. (n the case of a compensation e!ent, e!ent, if the contractor contractor fails  fails to gi!e early warning of a possible delay to the works, or increase in costs, they will only be compensated for e3ects that wold ha!e remained e!en if they had gi!en early warning.

7.Reasonable Time

The question of hat duration of time is reasonable is one of fact not la% It is a question of fact ta'in! into consideration all relevant factors and circumstances obectively assessed% *e!rettably as it is this is one of the elastic concepts for hich there ill be no fixed anser% What constitute reasonable time has to be considered in relation to circumstances hich existed at the time the contract obli!ations are performed but excludin! circumstances hich are under the control of the party performin! those obli!ations normally the +ontractor in our case% c ase%

 

7. Reasonable Time

If time does become ,at lar!e- the contractor-s obli!ation is to complete ithin a reasonable time% What constitutes a reasonable time is a question of fact% The principles to be applied are those in .antland /ic' v *aymond 0 *eid 123456% What constitutes a reasonable time has to be considered in relation to circumstances hich existed at the time hen the contract obli!ations are performed but excludin! circumstances hich ere under the control of the contractor% con tractor% In 7ritish $teel +orporation v +leveland 7rid!e 0 En! +o 124326 897:*2 :ord