JCT and timelines (and missing deadlines)

[puntloos]

One thing that's hard to search for ("search terms "time" or "missed" or "deadline" don't work well in this context):

 

What provisions are there in a JCT or any type of contract that can deal with missing deadlines?

 

Sometimes there is 'hand of god' stuff happening (covid is a good example) and I guess it's not unreasonable that certain dates are misssed, but in general, how can we agree on a timeline for an entire build and make sure builders have reasons - probably financial penalties - to adhere to these? I often hear stories of builders just switching to doing something else for whatever reasons that are logical for them but not in my interest as a client.

 

Are there some ways to put in a contract sentences like:

 

"If first fix isn't started by Jan 1st, then the contractor will pay xyz per week delay (unless reason abc)"

 

where xyz of course is something reasonable that will make them think twice to delay and abc are things that no builder could legitimately foresee?

Edited July 9, 2022 by puntloos

[nod]

No builder in there right mind would agree to time penalties 

With a massive shortage of labour still 

Companies are struggling to keep hold of there best trades 

Especially bricklayers Redrow and co are all paying the brick Barons on a weekly basis A friend has over 80 bricklayers working for him with a weekly wage bill of up to 150k

He doesn’t supply PPE tools materials 

He doesn’t even own a van 

It really is desperate out there 

Your builder will rely on subcontractors and May through no fault of his find that he can’t get a trade when needed 

At least lead times on materials have come down 

[PeterW]

Add a time penalty for every week - say £5k a week - and then look at your schedule. Let’s say it’s a 26 week schedule, and I would factor in 20% delay currently.. so let’s say 5 weeks …

 

And if you want me to sign up to your contract I’ll just add £30k into my price. 
 

That’s how fixed price contract penalties work - unless you have some monumental cost of capital, or have an exact deadline you need to hit, then just try and be reasonable. 

[puntloos]

Fair points, both, like I said I don't want to penalize people for things they have no control over, so indeed brick shortages - assuming the builder showed a bit of "due diligence" are sad-but-fine pretty much indefinitely in my book.  So in that case what about excluding any supply problems, assuming that the order itself can be shown to be made "correctly" at some "reasonable" point in time?

 

Again I'm okay with delays that are not their fault, but I would like to make sure the builder doesn't run off and does something 'more profitable' and keeps me waiting. Or is that an unlikely scenario?

[crispy_wafer]

Depends on the builder, if it is a small firm, then Stage payments and make sure money paid is for work done and not work to do.  They'll usually buy materials on account, so no need for you to pay up front for this either.  Hold a percentage back for when the job is finished too for snagging.  Worked for us, infact that's what my builder at the time suggested to me.  Its in their interest to get the job done in as few hits as possible as they'll no doubt have a diary full.