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Provision of Notice in Construction Contract

  • Oct 06, 2021 | Devi Prasad Bal

Notice clauses are contained in several contracts and play a vital role in the construction industry in terms of the contract.

These clauses need client and contractor to contracts or to notify one another in certain circumstances to form each other awake to any issues which could return up issues.

Notice clauses are easy or straightforward to ditch once work begins on the positioning. However, if a contractor fails to follow the contract once giving notice it's going to notice that it's not entitled to claim anything.

When dealing with notice clauses, it is important to look out for:

  • Given notice and making of claims

  • Practicalities

Construction contracts often include needs or requirements for the parties to issue notices to one another under certain circumstances. This is typically meant to supply a warning to the mechanism, sanctioning the parties to arrange for, or react to, specific things. The contract should give details about circumstances under which notice is needed,

Failure to follow the right procedure may end up in a subsequent claim being defeated.

Notice clauses are important and necessary because they allow the employer in a construction project an opportunity to consider the issue raised and solve time to react to problems such as delays. The employer needs to find out the cause of the issue and whether or not the contractor may be entitled to additional time or money as a result.

The notice makes clear what the contractor has to do to comply with responsibility under the contract and if it hits problems such as delay and needs to extend the completion date or claim additional money.

Notices include:

The requirements for a notice clause should be clear and straightforward. A typical notice clause will contain:

  • What the notice should look like

  • Whether it can be sent by post, fax, or email

  • The information it should contain

  • The time limit for sending it

In several cases, the courts may take into account giving notice to be a condition precedent for creating a valid claim. This can rely on the kind of claim and also on the language of the notice clause. Typically, clauses use the words 'condition precedent' when describing the importance of notice, however, if these specific words don't seem to be used the clause will still have its impact.

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