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Delay Clauses in International Construction Contracts
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Delay clauses in construction contracts are notoriously inadequate when invoked.The inherent, evidentiary uncertainties surrounding the causes and effects of projectdelays render them not only difficult to resolve when a dispute arises, but also difficultto regulate contractually. It is not surprising, then, that the governing law of the contractoften plays a role when it comes to interpreting and applying contractual clauses dealingwith delays, such as liquidated damages clauses and time extension clauses. And inmany jurisdictions the governing law, while asserting the parties' right to contractualfreedom, in fact fully or partly disables such clauses by restraining the employer's rightto claim liquidated damages or imposing unfair contract terms rules.
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