Question: QUESTION 4 9 A contractor has submitted his quotation for building a single detached house, his price being based on Architect's drawings only. The contract
QUESTION A contractor has submitted his quotation for building a single detached house, his price being based on Architect's drawings only. The contract documents amount to the drawings and a simple exchange of letters agreeing: the price; the commencement and completion dates; the fact that the works will be supervised by the Architect; the fact that the electrics will be installed by the employer's own electrician who will be employed by the employer and the contractor must accommodate him on site at the appropriate time within the contractor's own programme; and finally liquidated damages of per week for late completion representing the anticipated rental income to be earned from the property. The contractor issues his proposed programme before commencement of work in the form of a bar chart to indicate exactly when the electrician will be required on site and how long he has to complete the first fix and second fix elements of his work. In the event the electrician is two weeks late commencing the first fix works and takes one week longer than he should. He is a further one week late in turning up for the second fix works and takes three weeks longer than he should. The works are thus potentially delayed because of the electrician by up to weeks, but because of the contractor's good management and organisation he is able to minimise this to just weeks delay. The contractor is worried about the liquidated damages. Which following statement is correct? a The contractor must pay liquidated damages of b The Architect must award an extension of time of weeks c The Architect must award an extension of time of weeks d Time has become at large and the contractor has a reasonable time to finish the project but is still susceptible to unliquidated damages
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