Damages for Delays to Completion addresses the legal and financial repercussions associated with breaches of contract in relation to missed completion dates. It also highlights how sums can be determined in the event of breach of contract.
Should a contractor be late in completing a project, they may be liable to award damages to the client. In some cases, potential compensation levels are contractually predetermined. However, contracts often do not contain damage clauses, meaning an assessment is generally required into the impact of the delay on the client. In both cases, independent arbitration is generally required and this new guidance is designed to assist all parties throughout the process.
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Commenting, Alan Muse, RICS Director, said: "The issue of damages is an extremely important issue for those involved in the construction industry. Potential sums are not always entered into contracts before a project is undertaken. Therefore, guidance is required in order to determine an appropriate sum, as the impact of the delay on earnings and any difficulties incurred must be correctly assessed.
"This new guidance will prove to be an invaluable resource for RICS members and those involved in contracts and damages. Assessing the level of damages can sometimes be problematic and, through publishing this new guidance, we are aiming to make the process as straight forward and transparent as possible."
(GK/CD)
