This week’s Wise Up Wednesday is about damages and extension of time.
One of the biggest financial risks to you as a Specialist Subcontractor is the possibility of damages from the Contractor if you over-run your original completion date.
These over-run costs can be massive. Consider a contract with liquidated damages from the client of £10,000 per week, plus the weekly costs of the Contractor’s site staff and establishment, also those of other sub-contractors. You could be looking at £30,000 per week of over-run being deducted from your account and/or pursued from you through adjudication or litigation. Enough to sink many a smaller Subbie for good.
If you wait until disaster strikes before considering what you should do, then you are in big trouble. It’s probably too late by then in most amended subcontracts, and definitely those incorporating NEC/4 or NEC/3 as it was!
In JCT contracts what you must do is to give the Contractor written notice of individual delays immediately they become apparent, detailing the cause and the effect upon your programme.
In particular, you must notify the anticipated effect upon your completion date and request an extension of time. Then you must update these notices as the works proceed.
You must also keep and regularly submit good site records (i.e. site diary, progress reports etc.) in order to prove your entitlements when challenged. There is no need for all these notices and records to read like some legalistic document. Just tell it like it is, making reference to the facts, and the anticipated effects.
But you must submit these details in writing and as soon as you encounter the problem. You must also ensure that you comply with the specific requirements of the contract. And these can be onerous. If it says you must send such notices on blue paper in a green envelope tied up with pink ribbon, then that is what you must do to ensure the notice is valid!
If you have the notices records and evidence in place, then even if the Contractor comes at you, it should be possible to win in the end. So, to quote a well-worn phrase, ‘Don’t be shy – get noticed’.
In NEC/3 and NEC/4 contracts the situation is altogether different, so please get in touch if you don’t know what you should do.
Want To Know More?
If you would like to know more about the ways to Minimise Risk and Maximise Profit, that we have been putting into practice on behalf of Specialist Subcontractors for the last 27 years, I would like to invite you to our exclusive March Seminars.
You will have a thoroughly enjoyable delay where you can enjoy the company of other Specialist Contractors at this exclusively “Subbies” only event.
The atmosphere is relaxed and the presentations are down to earth and user friendly, packed with real life examples of what to watch out for, and all the information that you need to minimise risk and maximise the profitability of your business.
And as all the venues are specifically chosen for ease of access you’re sure to have a great day, where you can network, learn and share ideas in a vibrant and relaxed atmosphere.
The secrets are being revealed at our March events;
“Understand Your Contract to Minimise Risk and Maximise Profit”
“Introduction To Contractual Awareness and Using JCT Subcontracts”
WHEN/WHERE IS IT? The dates and fast access venues are as follows;
Too late for Leeds which was 15 March – Oulton Hall
Quick still time to book 22 March Nottingham Belfry close to M1 J26
Closing soon 29 March – The Village Hotel – Coventry close to M6 and M40
WHAT DOES IT COVER?
We will be unlocking the Secrets To Minimising Risk and Maximising Profit in a straightforward down to earth easy to follow style using real life examples.
Here’s what your fellow Subcontractors said about our last event;
“Fantastic! A great day”
“Easily digestible information delivered in an interesting and easy to understand format”
“Very detailed and informative”“Very informative and well delivered”
“We were struggling to get paid; not any longer!”
- Session 1 – Contract Formation
- Session 2 – Introduction to JCT Contracts and Construction Act
- Session 3 – Time, Notices and Delay and Disruption
- Session 4 – Instructions, Variations and Maximising Return
- Session 5 – Getting Paid On Time and the Right Amount
- Session 6 – Resolving Conflicts and Disputes
- Session 7 – Putting It All Together
WHO SHOULD ATTEND? This is exclusively for Specialist Contractors and is designed specifically to provide a broad appeal for Specialist Contractors staff who work with contracts which includes;
- Contracts Managers;
- Project Managers;
- Commercial Managers,
- Quantity Surveyors,
- Credit Controllers and
WHAT WILL WE GET OUT OF IT? The Secrets To Minimising Risk and Maximising Profit, including the best information available to resolve the all important problem of How To Get Paid!
Specialist Contractors don’t get paid because they don’t understand the contract or don’t apply it when they should. We will reveal all you need to know to enable you to understand the fundamentals of those subcontracts, and how to get paid.
WHAT DOES IT COST? You can book now for preferential discounts and rates – but be quick to ensure you receive your Early Booking Discount!
Book within the next few days and instead of paying £350, you can pay just £315.00 saving you 10% off the standard price.
Book two or more places and you can pay just £280 each saving you 20% off the standard price.
Special rates apply for our Buddies (members) – please ask Tanya for details.
All rates are subject to VAT
Booking couldn’t be simpler, just contact Tanya directly on 01773 712116 or firstname.lastname@example.org to confirm your places and she will take care of the rest. She is brilliant!
But hurry our last round of seminars sold out very quickly.
P.S. Please remember that we are here to provide solutions exclusively for Subcontractors. If you want access to professional solutions that work, then please give us a call on 01773 712116, or email email@example.com today.