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 06 Clause 21.1, PAM 98 Clause 21 (1), JKR/PWD 203A Clause 38.2, IEM CE 2011 Clause 40.1 (1), CIDB cl 17.1 JKR PWD DB/T Clause 12.2 refer to Possession of Site and Commencement.
Consequently, PAM 06 Clause 21.1, PAM 98 Clause 21 (1), JKR/PWD 203A Clause 38.2, IEM CE 2011 Clause 43.1(1), CIDB Clause 17.1 JKR PWD DB/T Clause 12.2 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.
This topic of whether the contractor is required or obliged to apply for Extension of Time (“EoT”) is usually a very poorly understood topic. This article will try to provide some understanding on this topic.
