EFFICIENCY OF EXTENSION OF TIME AND LIQUIDATED DAMAGES CLAUSES: A COMPARISON BETWEEN SINGAPORE AND CHINA STANDARD FORM OF CONTRACT

Abstract

Time is one of the important considerations for a construction project. The contract period is often fixed, thus the provisions for liquidated damages is valid when the Contractor cannot complete the work on time. However, when the Contractor’s delay is caused by default on the part of the Employer or his agent, reasonable time for completion applies. Therefore, an applicable extension of time clause on the contract is needed to prevent time being set at large. This dissertation focuses on the evaluation and comparison of the extension of time and liquidated damages clause in standard form of contract used in Singapore and China. The review of the concept of delay formulated the analytical framework to evaluate the contractual provisions in selected standard forms of contract. Case studies were elected based on the findings from literature review to evaluate the application issues of Singapore Institute of Architects (SIA) Articles and Conditions of Building Contract 9th edition. Interviews were conducted to understand how the individual firm interpreted the General Clause and modified based on the needs of the project, and the application difficulties when using GF – 1999 – 0201. A comparison analysis of the extension of time and liquidated damages clauses of the two contracts was presented subsequently. The comparison of the meaning of the contractual provisions and procedural application will help to assess the certainty and validity of the clause. The analysis of concurrent delay was not included and interviews were only conducted highly selective were the limitations of the study. Main findings were summarized to highlight the time and cost efficiency of the contractual provisions.