In an important decision released earlier today, the Court of Appeal has provided welcome clarification on how the termination rights under NZS3910 operate in practice.
Musings of a busy mind
When we read in the press of yet another public sector procurement debacle, or that the project has been fraught with difficulties, it rather begs the question – what was the project for and how was the budget set? All too frequently, it is less that a project cost more or took longer than that the project expectations were ill-defined or poorly understood and the relationship between key parties broke down.
Under any construction contract, there will be provision for extensions of the time for completion caused by qualifying events, for example variations or delays by the employer or its agents (primarily the architect/engineer). The purpose of such provisions is to preserve the employer’s entitlement to claim delay damages.