Delay notice
A delay notice is a formal communication issued by a contractor or subcontractor to notify the client (or sometimes the main contractor) of a delay that affects the progress of the construction works. This could be due to various reasons such as unforeseen site conditions, weather, supply chain issues and so on.This notice is a crucial part of project management and contractual compliance, as it informs the relevant parties about disruptions and helps manage expectations, mitigate risks, and assess potential impacts on project timelines and costs.
Many construction contracts, including standard forms like those from JCT (Joint Contracts Tribunal) or NEC (New Engineering Contract), include provisions that require contractors to issue a delay notice within a specified time frame once a delay is identified.
Proper documentation and record-keeping are critical. The delay notice should be well-documented, with all relevant evidence and supporting information to substantiate the claim of delay.
A typical delay notice might include:
- A detailed explanation of the cause and nature of the delay.
- The date the delay began and the estimated duration of the delay.
- Assessment of how the delay will affect the project’s timeline, milestones, and completion date.
- Steps being taken to mitigate the delay.
- Any requests for extensions of time (EOT) or additional resources.
Prompt issuance of a delay notice is essential. Contracts often specify a time limit within which the notice must be given after the contractor becomes aware of the delay. Failure to provide timely notice can affect the contractor's ability to claim an extension of time or additional costs.
The delay notice is typically the first step in the process of applying for an extension of time. If the delay is justified and beyond the contractor’s control, the contract administrator may grant an EOT, thereby adjusting the project schedule without imposing liquidated damages for late completion.
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