In the event of construction time extension under public contract, controversy and conflict regarding responsibilities for the cause of time extension and additional costs are intensifying between the contractors. In construction work, if the entire c...
In the event of construction time extension under public contract, controversy and conflict regarding responsibilities for the cause of time extension and additional costs are intensifying between the contractors. In construction work, if the entire construction period is extended due to delays, it is necessary to clarify the responsibility for who provided the cause. The result of clarification is directly connected to the rights of one party and the damage of the other party, and if it does not become clear about the responsibilities, there will be a dispute and as a result, either party will suffer unjustified damage. Under the contract law, the extension of the construction period is mostly due to the contract partner`s responsible reasons which cause delay for the construction, and the circumstance changes of the ordering organization. Generally, in case of construction delays, there is a burden of proof to the claiming party, which is usually the Constructor. It should be clearly stated in the official document at the time of proving the fact that the debtor has a debt and has not fulfilled it, and the fact that the borrower has a reason for the deduction, so that certain losses have occurred. In addition, as compensation for losses proved, the Constructor, if not responsible for the delay, can request the actual expenses incurred during the extension period and increase in contract amount. However, compensation for losses caused by construction time extension depends on the conditions of the contract. In principle, if both sides, the owner or the constructor, are not responsible for the delay it should be understood that time extension is possible but compensation for the losses of time extension is impossible.