Construction & Real Estate

Contractors and principals generally understand the importance of a well thought out, detailed and comprehensive construction programme that is then administered by a superintendent. It is surprising then, how often subcontracts and consultancy agreements associated with major construction projects lack a programme with equivalent levels of detail or any programme at all.

This not only has significant impact on the day-to-day management of works but also on the rights that may be enforced under those subcontracts and consultancy agreements. There are a number of significant contractual provisions that are dependent for their application on a clear programme – extensions of time, liquidated damages, acceleration and termination or take out works in circumstances of excessive delay or failing to maintain progress. Aligned with these are a number of ancillary rights, such as calls on security, defects liability and ability to recover upstream under head contracts. The loss or diminishment of rights under these provisions can have significant impacts for contractors both in terms of financial costs and their relationship with the Principal and Superintendent under the head contract.

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