As we have seen, contracts are made between the parties (such as the employer and the contractor) and they contain terms which give the parties both rights and obligations. If a term is broken, then this is likely to be a breach of contract. In a construction contract these terms will normally be written down and can be found in the conditions of contract, the specification, the contract particulars, the works information, details and dimensions shown on the drawings and so on. For the employer one of the most important terms is the completion date for the contract. The employer is paying for its new asset and will want the benefit of that new asset on the due date. If the contractor is late in completing the project, without a valid reason for additional time, then this will be a breach of contract. Late completion happens on many projects, largely due to the difficulties inherent in construction.
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- Liquidated damages
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- Chapter 16