In this installment of the series, the Entrusty Group will provide the answer to the frequently asked question above. Construction contracts usually have a fixed time frame for the Contractor to complete the works (i.e. time is of the essence – time being a fundamental term of the contract). PAM 98 cl 21.1, PAM 69 cl 21 (1), JKR 203/A cl 38 (b), IEM cl 38 (a), CIDB cl 17.1 JKR PWD DB/ T cl.39.2 refer to Possession of Site and Commencement.
Consequently, PAM 98 cl 21.1, PAM 69 cl 21(1), JKR 203/A cl 38 (b), IEM cl 38 (a), CIDB cl 17.1 (a) and JKR PWD DB/T cl. 39.2 also specify the Contractor’s primary obligation to complete the Works by the completion date. If the Contractor fails to complete the Works by the Date for Completion or within the extended time, the Contractor is in breach. Under Section 75 of the Contract Acts 1950 (CA 1950) the Contractor shall bear the damages suffered by the Employer.
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