What is the Purpose of a Notice of Delay?
The primary purpose of a Notice of Delay is to notify stakeholders of disruptions impacting the construction schedule formally. This ensures all parties are informed and can take action to mitigate potential delays or additional costs.
- It provides a record of the delay event for accountability.
- Helps safeguard the contractor’s rights to submit claims for schedule extensions or compensation.
- Ensures compliance with the delay notification requirements stated in the contract.
Sending this notice promptly also protects the contractor from disputes or penalties, such as liquidated damages, that may arise due to unreported delays.
When Should a Notice of Delay Be Sent?
A Notice of Delay should be issued as soon as a delay is identified or anticipated. Most construction contracts specify strict timelines for sending the notice, often within 10 to 21 days of recognising the delay.
- If the delay is caused by unforeseen circumstances, like force majeure events, it’s important to act immediately.
- Early notification allows for adjustments to project schedules and budgets, minimising disruptions.
Failure to adhere to these deadlines may result in losing the right to an Extension of Time Claim or additional costs.
What Should Be Included in a Notice of Delay?
A well-prepared Notice of Delay should include the following details:
- Description of the Delay: A concise explanation of what caused the delay and when it occurred.
- Impact on the Project: Information about the delay's effect on the schedule, such as critical path activities or milestone dates.
- Estimated Costs: Potential financial impacts, including labour, materials, or equipment costs.
- Supporting Evidence: Documentation like weather reports, photos, or correspondence to validate the claim.
Including these details ensures the notice is comprehensive and aligned with the requirements outlined in contract administration clauses.
Why Is a Notice of Delay Important in Construction Contracts?
A Notice of Delay is critical for maintaining transparency and compliance in construction projects. It:
- Protects the contractor’s ability to make claims for additional time or costs.
- Provides the client or construction superintendent with timely updates about project status.
- Helps prevent disputes by documenting the reasons and impacts of the delay.
Without a notice, contractors risk forfeiting their claims, facing penalties, or being held responsible for unanticipated delays.
What Happens if a Notice of Delay Is Not Sent?
Failing to send a Notice of Delay can have serious consequences.
- Contractors may lose their right to claim an EOT or cost recovery.
- The client may apply penalties, such as liquidated damages, for not meeting deadlines.
- Disputes can arise, potentially leading to allegations of breach of contract.
Timely and accurate notices ensure that all parties remain informed and disputes are minimised, protecting the project’s overall success.
