Construction projects often face delays due to various factors, ranging from unforeseen circumstances to changes in scope or design. When these delays occur, the parties involved in the construction contract may need to negotiate an extension of time in order to complete the project. However, the question of whether time is of the essence in these situations can be complicated, and it is important to understand the case laws that apply.
In general, time is considered to be of the essence in construction contracts, meaning that timely completion of the project is a fundamental and essential term of the agreement. However, there are situations in which the parties may agree to extend the completion date, or where delay is caused by factors outside the control of the contractor. In these cases, the question of whether time is still of the essence can be a matter of contention.
One key case that provides guidance on this issue is the decision in the case of Hall and Another v Van Der Heiden [2010] EWHC 1301 (TCC). In this case, the court emphasized the importance of clear contractual provisions regarding the extension of time, and held that where the parties have agreed to an extension, time may no longer be considered of the essence.
Another case that is relevant to this issue is Jerram Falkus Construction Ltd v Fenice Investments Inc [2011] EWHC 1935 (TCC). In this case, the court considered whether delays caused by design changes constituted a breach of the time is of the essence clause. The court held that the clause did not apply in this situation, as the parties had agreed to a flexible completion date, and the delay was caused by factors outside the control of the contractor.
These cases highlight the importance of clear contractual provisions regarding the extension of time, as well as the need for careful consideration of the circumstances surrounding delays in construction projects. It is important for contractors and other parties involved in construction contracts to be aware of these case laws and to seek legal advice when negotiating extensions of time or dealing with delays that may affect the completion of the project.
In summary, while time is generally considered to be of the essence in construction contracts, there are situations in which an extension of time may be negotiated, or where delay is caused by factors outside the control of the contractor. In these cases, it is important to have clear contractual provisions regarding time extensions and to be aware of the relevant case laws in order to avoid disputes and ensure timely completion of the project.
