Image: Credit to Brandon Woyshnis of Woyshnis Media
A contractor must complete the works under a construction contract by the date for practical completion. However, in contracts where acceleration is addressed, a Principal can instruct the contractor to accelerate the works for additional payment.
If acceleration isn’t stipulated in the contract, but both the Contractor and the Principal agree to implement it, they should first settle on payment terms for the contractor to accelerate the works. It’s advisable for contracting parties to agree on the documentation required when acceleration is used.
Certain contract formats allow for acceleration through instruction or mutual agreement. However, the Contractor cannot be compelled to accelerate to counteract delays caused by the Principal unless the contract explicitly permits.
If acceleration is instructed or agreed upon, the Contractor cannot claim compensation for time saved due to Principal-caused delays. Before initiating acceleration measures to avoid potential liquidated damages, the Contractor should attempt to resolve any disputes regarding entitlement to an Extension of Time (EOT) per contract procedures.
Implementing measures to mitigate Principal-caused delays doesn’t automatically mean the full costs were solely caused by such delays. Incremental costs should be compared with potential prolongation costs, considering any resulting productivity loss that may lead to a disruption claim.