What does it mean when someone says that ‘time is at large’ on a construction project?

When someone says the phrase time is at large on a construction project; it means that there is no fixed time for completion, or that the date for completion has become invalid and that the contractor is not bound by the obligation to complete the works by a certain date, but can complete the works within a reasonable period.

This latest post will discuss the main points whereby a construction project may find itself in such a situation.

Most construction contracts usually contain a date for when works are to be completed, so how do we get to a stage when time can become at large.  

The main reasons are:  

• There is no clear completion date specified in the contract;
• A situation arises as a result of events due to the parties of the contract failing to utilise the contract mechanisms (typically issuing an extension of time); and
• Alternatively, if there is no provision to extend the contract period.

No clear completion date specified in the contract

It is common to find that construction projects go beyond the planned completion date and if this is the fault of the contractor then the contract normally contains a provision to deduct liquidated or delay damages and pay those to the employer. 

However, if there is no enforceable, date to complete the works, then the employer’s rights to liquidated or delay damages are cancelled.

Parties to the contract failing to utilise the contract mechanisms 

If the works are delayed due to the fault of the employer or by agreed neutral events, the contract will generally provide for an extension of time to be granted, thereby changing the completion date to reflect the impact of any such delaying event.

However, if there has been a failure by the engineer and/or employer’s representative to award an extension of time as required by the contract, or there has been interference by the employer in the extension process to the detriment of the contractor, then this would also cause time to be at large.

No provision to extend the contract period

If the contract does not have a mechanism allowing the contract period to be extended, then time would be at large.  

The result of this would be that the employer would not be able to deduct any liquidated or delay damages from the contractor, as there would be no completion date which such damages could be calculated from and the contractor would then only be required to complete the works within a reasonable time.

Summary

As discussed, time is at large when:

• There is no clear completion date specified in the contract;
• A situation arises as a result of events due to the parties of the contract failing to utilise the contract mechanisms (typically issuing an extension of time); and
• Alternatively, if there is no provision to extend the contract period.

It is important to note, when entering into a contract to ensure that there is a clear completion date specified in the contract as well as mechanism to extend the contract duration.  Furthermore, when administrating a contract, the parties are to adhere to the extension of time provisions to mitigate such an occurrence of time becoming at large. 

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