1. Extension of Time (EoT)
Relevant Events (Grounds for EoT):-
Clause 23.8(a) – (x)
2. Generally, the relevant events for EoT are
natural events that are the fault of neither
party or events that are the responsibility of
the employer.
These events do not render for additional
payment by the employer under terms of the
contract but merely entitles the contractor to
extension of time.
3. Clause 23.8 (a)-Force Majeure
Thomas Borthwick (Glasgow) Ltd v Faure and
Fairclough Ltd
Per Donaldson J:’ The precise meaning of this
term (force majeure)…has divided the
lawyers for years. Commercial men have no
doubts as to its meaning. Unfortunately, no
two commercial men can be found to agree
upon the same meaning’.
4. Matsoukis v Priestman
Held:Force majeure has a more extensive
meaning than act of God or vis major which
are overwhelming superhuman events
5. Force majeure
Can be classified:
Act of god
An extraordinary occurrence or circumstances
which could have been foreseen and which could
not have been guarded against, or more
accurately, as an accident due to natural causes,
directly and exclusively without human
intervention-e.g accident, storm, earthquake,
extraordinary flood, big tide, death, lunacy
6. Vis major
An irresistible force, which may or may not
involve human intervention but including act of
god; e.g strikes, war, seizure of a ship, Act of
Parliament, direct legislative or administrative
interference
7. Penang Development Corp v Teoh
Eng Huat
The appellant claimed that the govt policy in
support of bumiputra contractors had delayed
the completion of the housing units.
Held: The resp purchaser has the right to
claim for damages for late delivery as the
problem could have been overcome.
8. Humber Oil Terminals Trustee Ltd v
Harbour and General Works
Held: Force majeure normally involve
adverse physical obstructions or conditions
which have an impact upon performance
9. Cl 23.8 (b)- Exceptionally
inclement weather
Generally adverse weather condition would
be no excuse for contractor’s non
performance.
Maryon v Carter
The contractor agree to build a house for
specified price. He also agreed to build the foot
path to the house in return for further payment.
The contractor agreed to complete the house by a
certain date but requested 4 additional days
because of bad weather.
10. Held: Notwithstanding the bad weather,
which prevented the contractors from
completing on time, the delay disentitled the
contractor from recovering the further sum.
Cl 23.8 (b) emphasize on exceptionally
inclement weather- two views:
Judged against the average conditions for the locality at
the relevant time of the year
Judged against the circumstances in which carrying out
of the building is concerned
11. Walter Lawrence & Son Ltd v Commercial
Union Properties (UK) Ltd
Held: The contractor could claim for
extension of time if his work is affected by
exceptionally inclement weather even though
he is already in culpable delay during the
original or extended contract period arising
from his own fault.
12. Cl 23.8 (d)-civil commotion, strike or
lock out
Civil commotion refers to tumult or turbulence:
Levy v Assicurazioni Generali
Per Luxmoore J: ‘This phrase is to indicate a stage
between a riot and civil war. It has been defined as
meaning an insurrection of the people for the general
purposes, though not amounting to rebellion…The
element of turbulence or tumult is essential; an
organized conspiracy to commit criminal acts, where
there is no tumult or disturbance until after the acts,
does not amount to civil commotion.’
13. Strike: covers two kinds of trades-
1. Those employed upon the work themselves
2. Those engaged in the preparation, manufacturing
or transportation of goods or materials for the
works
14. The strike must involved trade which is
directly involved the works. Indirect effects of
a strike is not covered by cl 23.8 (d)
Boskalis Westminster Construction Ltd v
Liverpool City Council
Held: A strike by workers of a statutory public
water body directly engaged by the employer to
execute work not forming part of the contract is
not covered by the provision on EoT.
15. New provisions on relevant events of
EoT
Cl 23.8 (f)
Cl 23.8(g)
Cl 23.8(l) (i)-(iii)
Cl 23.8(n)- (w)
16. New provisions on EoT
Cl 23.9- EoT after issuance of certificate of
non completion
Cl 23.10- architect review of EoT after
practical completion