Profiling of valid available grounds to claim extension of time in construction industry

Abstract

Construction projects have become increasingly complex and are subject to various risks, thus delays or extension of time to construction project become a popular issue in construction industry. In Malaysian Standard Forms of Contract PAM 2006, the lists of relevant events are provided to allow the construction parties to claim for extension of time. The contractors carry a burden of proof to establish with credible evidence in order to prove his entitlement to the claims. However, a lack of knowledge amongst the construction parties is the main reason of failure to prepare detailed supporting information and poor quality of documentations. It renders the extension of time claims becoming fatal. Therefore, this study aims to establish an available grounds to claim extension of time in construction industry, such as employer late issuing the architect’s instruction, late giving site possession by the employer, delay caused by Force Majeure events, delay caused by any appropriate authority and service provider in carrying out, main contractor failure to provide the necessary document and information, act of prevention or breach of contract by the employer, and delay or failure on the part of the sub-contractor to execute such work. Furthermore, this research is carried out mainly through documentary analysis of law journals. The data needed for this research is obtained via LexisNexis Malaysia which is Malayan Law Journal. Only 15 cases are related with the scope of the research. However, there are some of the grounds that available for claim the extension of time in construction industry. The judgment of each of the cases is analysed in order to find out either the application is successful or unsuccessful. This research also highlighted the construction parties involved in the cases and level of court interfere in the case. Hence, the finding of this research will provide a guideline for the construction players in future. This research will act as reference for them who need application for claim extension of time in Malaysian construction industry.