QUESTION
SOLUTION
Activity 6.1
If situations in which extension of time can be granted under the contractual terms then the clauses of the Contract between the parties will be followed but in certain situations which are qualified by delay that means wherein extension of time is not allowed then in those situations Sub Clause 34.3 comes into picture which is an exclusive clause and states that the extension of time can be granted by the Superintendent to the Contractor in the circumstances wherein it becomes practically difficult for the Contractor to complete the work under completion and there is a reasonable cause for the delay taking place in completing the work. In order to avail this extension of time it is important for the Contractor to write a claim for the extension of time to the Superintendent within 28 days of his coming to now that he will not be able to finish the work on stated time and date stating the reason for such delay to the Superintendent.(Uther and Devenport, 2002) If in case there is further delay in completing the work then in that case a further written claim can be filed with the Superintendent evidencing the cause for further delay in the work. Superintendent will assess the claim for the extension of time by the Contractor and decide whether the extension of time to be granted or not.
Activity 6.2
Sub clause 39.1 of the AS4000 learning manual states that when there is a breach of the Contract by one of the parties to the contract including repudiation then in that case there is nothing that can prejudice the other party from making a claim to recover damages or to exercise any other right or remedy which is available to that party under the contract. In simple word the right of the suffering party to recover damages or to avail any other remedy cannot be prejudiced.( www.hia.com.au
,2012)
1. Sub clause 39.4 of the learning manual AS4000 states the right of the Principal upon breach of the extension of time term of the Contract by the Contractor. A Contractor is supposed to inform the Principal of any reasonable cause for delay in the completion of the work but if he fails to do so that is if the Contractor fails to provide any reasonable cause for the delay in the work on the stated time and date to the Principal then in that situation the Principal has a right to give a written notice to the Contractor and through that notice he can take away from the hands of the Contractor the complete or any part of the work which still remains to be completed and he can also suspend payments to be made to the contractor till the time the payment becomes due and payable under the provisions of sub clause 39.6.( http://www.contracts.com.au/,2012) The Principal can also exercise his right to terminate the Contract if there is no reasonable cause of delay taking place in the completion of the work is provided to him by the Contractor on the stated time and date.
Sub clause 39.9 provide certain rights to the Contractor and states that in case the Principal fails to provide a reasonable cause for delay by the stated date and time then the contractor through a written notice to the Principal can suspend either complete or any part of the work under completion. If the breach by the Principal is remedied then the contractor can start the work and remove the suspension of the work. There can be a situation wherein within 28 days of the suspension of the work the Principal has not remedied the breach of the contract and if the breach of the contract is such that it cannot be remedied and there is no other arrangement made by the principal to provide reasonable satisfaction to the contractor then in these situation the Contractor can terminate the contract by making a written notice to the Principal. The damages which are suffered by the Contractor because of the suspension of the work are to be assessed by the Superintendent who can certify the money due and payable to the Contractor for the work done by the Contractor for the Principal.
References
2. Uher & Devenport, 2002 Fundamentals of Contract Management, UNSW Press, Sydney
3. Home Building Contracts Act 1991 AustLII
4. Members best in the business, viewed on 22nd may 2012,
5. Contracts and Purchasing Services Pty Ltd. , viewed on 22nd may 2012,http://www.contracts.com.au/
6. Joint Building Contacts committee, viewed on 22nd may 2012,www.jbcc.co.za
7. ASC4000 Learning Manual
LE02
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