THE Construction Industry Collective Voice (CICV) is producing a series of practice notes to support the organisation’s Best Practice Guide.
The first one concerns notices and aims to improve the commercial management of construction projects by guiding sub-contractors and contractors on best practices.
Authored by experienced construction consultants Len Bunton, Sean Bradley, and Mark Holden-Smith, the note highlights key recommendations with the overarching intention of improving commercial project management, avoiding disputes, and ensuring compliance with contract provisions.
On the importance of notices in construction contracts, the practice note says one of the most common pitfalls for contractors is failing to issue contractual notices at the required time, adding that notices play a crucial role in protecting entitlements to extensions of time (EOT), additional payments, and other contractual rights.
To avoid disputes and safeguard contractual rights, contractors are advised to read contracts carefully; maintain proof of service; and educate project teams so that everyone understands the notice requirements.
The practice note goes on to say that failure to issue a ‘timely and compliant’ notice can invalidate a contractor’s entitlement. A notable legal precedent is the Scottish Court of Session case, FES Limited v HFD Construction Group [2024] CSOH 20, where a claim for an extension of time was rejected because the contractor failed to provide a notice within the stipulated timeframe.
Common situations requiring notices are also listed and include changes to work scope; late receipt of information impacting progress; potential delay events; disruption affecting work schedules; loss and expense claims arising from employer-related delays; and unforeseen events beyond the contractor’s control.
Applicability to different contract forms is also covered. The guidance primarily applies to JCT and SBCC contracts but is also relevant to NEC4 contracts, which contain a dedicated communications section outlining notification requirements. Also, almost every subcontract will contain condition precedents in relation to notices.
The final advice states that contractors should not be concerned about issuing multiple notices, explaining that doing so is simply complying with contractual obligations and protecting their legal and financial position. Employers, contract administrators and contractors should recognise the necessity of issuing notices and acknowledge them accordingly.
