Delay and Daybreak Liability

Stein Frederick Janzon

sfj@byggogprosjektjus.no

In any construction contract, the closing time limit is covered by day mulch unless otherwise specifically agreed. Daytime mulch responsibilities are normally considered to be particularly burdensome for a contractor, and for good reason. Since the daily allowance normally amounts to 1 0/00 of the contract amount, these are significant amounts, and these are costs that go right to the bottom line. Taking into account that the daily allowance is a conventional fine that is incurred completely regardless of whether the builder has suffered a financial loss or not, it can often be perceived as unreasonable to have to pay daycare.

The short version

The closing date is always daymulched unless the parties have agreed otherwise

The day mulch is normally 1 ^{! 0}/₀₀ of contract sum, and upwards limited to 10% of contract sum. That means that a maximum day mulch period is 100 days.

Partial deadlines can also be covered with day mulch, but in this case it is agreed separately.

It follows from the standard contracts that even if partial deadlines are covered with day mulch, the maximum daily mulch is still 10%. If the parties wish to opt out, this must be agreed separately.

If the contractor's delay is due to a circumstance that can be characterized as grossly negligent or intentional, the 10% limitation does not apply. An example would be that the contractor stops work without having a legitimate reason for doing so.

When the contractor is delayed relative to the closing deadline, the daybreak ceases to run on the first day of the takeover business assuming the business ends with a handover.

If a contractor is delayed in relation to a partial deadline in turnkey contracts, or delayed in relation to daymulched deadlines in general in execution contracts, he has the opportunity to ask the builder whether the latter will require day mulch.

The builder has an obligation to respond to such enquiry as mentioned in paragraph 7. If he does not respond, he loses the right to claim daycare for the relationship in question.