Contract Practice: JCT - Relevant Events

Question 1

What are relevant events under JCT?

Answer 1

• A relevant event is an event that causes a delay to the completion date, which is caused by the client, or is a neutral event not caused by either party
• Relevant events entitle the contractor to claim an extension of time
• Relevant event does not necessarily entitle the contractor to claim loss and expense, Similarly, a relevant matter need not necessarily result in a delay to the completion date, and so may not always entitle the contractor to an EOT

Question 2

What are the relevant events in the contract?

Answer 2

There are 13 RE
- Variations
- Instructions
- Execution of an approx quant that is not a reasonably accurate forecast
- Deferment of possession of the site
- Suspension by the contractor for non-payment
- The carrying out of work by statutory authorities
- Impediment, prevention or default by the employer
- Loss or damages occasioned by the Specified Perils (fire, flood etc)
- Exceptionally adverse weather conditions
- Strike or lockout
- Civil commotion or terrorism
- The exercise of any statutory power after the base date by the UK gov
- Force majeure

Question 3

What is Force Majeure?

Answer 3

• Extraordinary event or circumstance outside control of parties
• Prevents one or both parties form fulfilling their contractual obligations
• Such as war, strike, riot, crime, act of nature (floods, earthquake, volcano)

Question 4

How is a relevant event notified?

Answer 4

• The cause of delay - detail of how and why the delay is occurring or likely to occur, (must state one of relevant events)
• Estimated effect on completion - contractor should also give an estimate of delay in his notice so that the contract administrator can form his own opinion
• The clauses on which the contractor relies in requesting an extension of time
• The contractor is required to prevent or mitigate the delay and any resulting loss, even where the fault is not their own