What is the effect of employer-caused delay where the contract provides no applicable extension-of-time entitlement?
If the employer prevents timely completion and the contract contains no effective means of adjusting the completion date for that event, the stipulated date may cease to govern. The employer may then lose the liquidated-damages remedy tied to that date.
Employer prevention may set time at large where no applicable extension-of-time machinery preserves the completion date
The result depends on the contract and the event. If employer-caused delay falls within an operative extension-of-time provision, the completion date can be adjusted and liquidated damages may remain available for later contractor-responsible delay. If the event is not covered and prevents completion by the stipulated date, time may become at large. The contractor must then complete within a reasonable time, and the employer must prove any general damages for failure to do so.
| Issue | Position |
|---|---|
| Employer prevention covered | Completion date may be adjusted |
| Employer prevention not covered | Time may become at large |
| Time at large | Reasonable-time obligation replaces the stipulated date |
| Liquidated damages | May fail because their calculation date no longer operates |
| General damages | Require breach, causation and proof of loss |
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