How Long Is A Construction Contract Good For?

Blackstone Solicitors explores the intricacies of contract duration in the realm of construction projects within England and Wales. A construction contract serves as the roadmap for a project, outlining the rights and obligations of both the employer (client) and the contractor. One crucial aspect to consider is the contract’s lifespan – how long does it remain valid and enforceable? In this article, How Long Is A Construction Contract Good For, we will delve deeper into the subject.

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Free Initial Telephone Discussion

For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of construction contracts and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.

Contract Duration vs. Project Completion

It’s essential to differentiate between contract duration and project completion. The contract duration refers to the legal lifespan of the agreement itself, while project completion signifies the physical handover of the finished building.

Factors Affecting Contract Duration

Several factors influence the duration of a construction contract:

• Project Complexity: Larger, more intricate projects with numerous phases often necessitate longer contracts to encompass potential complexities and unforeseen circumstances.
• Contract Type: Different contract types (e.g., traditional, design and build) may have implicit or explicit durations based on the allocation of responsibilities. For instance, design and build contracts may have a more defined timeframe as the contractor assumes design and construction duties.
• Specified Completion Date: Most construction contracts establish a target completion date for the project. However, this doesn’t necessarily dictate the contract’s expiry. Provisions for extensions of time due to delays beyond the contractor’s control are usually included.
• Defects Liability Period ( DLP): The DLP is a period following project completion where the contractor remains liable for rectifying any defects arising from their workmanship or materials. This period often extends beyond the physical completion of the project and is specified within the contract.

Standard vs. Bespoke Contracts

• Standard Form Contracts: Industry bodies often publish standard form construction contracts like JCT (Joint Contracts Tribunal) or NEC (New Engineering Contract) contracts. These pre-drafted agreements may have a designated timeframe for completion, but flexibility usually exists for extensions due to unforeseen circumstances.
• Bespoke Contracts: Uniquely drafted contracts tailored for specific projects may have a more explicitly defined duration, encompassing the anticipated project timeline and DLP.

The Importance of Clear Drafting

Regardless of the chosen contract type, clear and unambiguous drafting is paramount. The contract should explicitly address:

• Target Completion Date: A realistic target date for project completion should be outlined.
• Extension of Time Provisions: Clear mechanisms for requesting and granting extensions due to unforeseen delays (e.g., adverse weather, material shortages) should be established. These provisions should define the process for determining the validity and duration of extensions.
• Defects Liability Period: The DLP duration should be clearly defined, outlining the timeframe within which the contractor is responsible for rectifying defects.

Consequences of an Expired Contract

While a contract may technically expire after its designated duration, certain aspects often remain enforceable beyond that timeframe. Here’s what to consider:

• Defects Liability Period: If a defect arises after the contract’s expiry but within the DLP, the contractor remains liable for rectification.
• Outstanding Payments: Unpaid invoices for work completed within the contract period remain valid and enforceable even after expiry.
• Dispute Resolution Mechanisms: Procedures outlined in the contract for resolving disputes (e.g., mediation, arbitration) typically remain valid for a reasonable period after expiry.

Blackstone Solicitors: Your Guide to Effective Construction Contracts

At Blackstone Solicitors, our construction law team has a proven track record in advising clients on all aspects of contract duration and project lifecycles. We can assist you by:

• Reviewing and negotiating construction contracts to ensure clear provisions regarding target completion dates, extension of time procedures, and the DLP.
• Advising on industry best practices for drafting contract duration clauses that protect your interests.
• Guiding you through the implications of contract expiry and ensuring clarity on ongoing obligations.

Conclusion

The duration of a construction contract in England and Wales is multifaceted. Understanding how project completion, DLP, and various contractual clauses interact is crucial. Blackstone Solicitors is your trusted partner in navigating the complexities of construction contracts. We can help you ensure your contract effectively addresses duration, minimizes risks, and protects your interests throughout the project lifecycle.

How we can help

We have a proven track-record of helping clients deal with construction contracts. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner and support and advise you with all the negotiations. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

Please click here to find out more about our construction legal services.

How to Contact our Construction Solicitors

It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of saving you money and ensuring you achieve a positive outcome.

To speak to our Construction solicitors today, simply call us on 0345 901 0445 , or allow a member of the team to get back to you by filling in our online contact form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Blog, News Tagged as

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