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As referred to Clause 51.1 (a)(i), which is when a contractor fails to commence work within two
weeks after the date of site possession., he/she is liable to determination by the client. Client can choose
whether to charge the contractor with Liquidated Ascertained Damages (LAD) or to terminate the contract
with the contractor and sign a new contract with another contractor of his choice. A contractor has to be
responsible to what he was assigned with. This matter cannot be taken lightly as it would bring difficulties
to both parties. Client will waste time dealing with a contractor who cannot proceed with the given tasks
and contractor will have to be punished as referred in Conditions of Contract.
Construction projects usually and almost most of the time run into delay of works, whether as a
result of his own default, acts of the client, or circumstances which is out of control of either sides, and
claims relating to delay can be unusually complex. The contractors obligations in respect of time for
completion of works under a construction contract will depend on the express provisions of the contract or,
where such terms are not express, upon terms implied by law, and in certain circumstances, terms implied
for the purposes of business efficacy. It is normal for contracts to include an express provision requiring
the contractor to complete the works either by a specified date or within a specified time period. Where the
contract provides for the works to be completed within a set of time period, the commencement date needs
to be clearly defined in order for the completion date to be identified. If the contract does not provide
expressly for a completion date, it will be implied that the contractor is to finish the tasks within a reasonable
time. In these circumstances, what constitutes a reasonable time will be a question of fact. Based on the
principles set out in Pantland Hick v Raymond and Reid, excluded any causes of delay which were under
the contractors control.
Construction contracts provide for the payment of Liquidated Ascertained Damages in respect of
certain types of breach of contract. Construction contracts commonly provide that if the contractor fails to
finish the tasks by the period of time, or within the date given, as stipulated in the contract, then the
contractor must pay to the employer, by most cases, the employer will be entitled to deduct or file a lawsuit,
at an agreed rate either daily or weekly, from the contractual date for completion until the date that the
works are actually completed. The incorporation of liquidated damages clause of this nature has points of
interest for the two gatherings. From the contractors perspective, such statements are ordinarily thought to
be an impediment of the contractual worker's obligation for delay, enabling the temporary worker to
comprehend the degree of its hazard for late fruition and consider that risk into tender price. From the
employer's perspective, liquidated damages clauses give the employer a contractual right to pay at a
concurred rate, making it superfluous for the employer to seek after a claim against the contractor for
general damages for breach of contract. The enforceability of any liquidated damages clause is liable to
various standards, incorporating the rules in connection to "penalty clauses". As indicated by this rules, in
order for the clause to be enforceable the liquidated damages must be set at a level which reflects an
authentic pre-estimate of the employers feasible misfortunes emerging from any deferral.
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