GETTING NOTICED – THE IMPORTANCE OF COMPLYING WITH CONTRACTUAL NOTICE PROVISIONS
Many contracts contain requirements for the giving of notices to qualify for contractual entitlements.
For example, notice of claim under an insurance policy is required before a party is entitled to an indemnity under an insurance policy or notice of termination before an employee may exit from a contract of employment.
However, unfortunately, arguments about whether notice complies with the requirements of the contract often arise and frequently turn into satellite disputes to be resolved before substantive entitlements under the contract can be considered.
Much jurisprudence concerning notices arises from contracts for the construction of works, which due to the complex and challenging nature of construction projects, are a rich source of disputes. That jurisprudence can guide others on the giving of compliant notices to avoid problems of not ‘getting noticed’.
Clause 20.1 of the Conditions of Contract for Construction for Building and Engineering Works designed by the Employer 1999 Edition published by FIDIC, commonly known as the ‘Red Book’, provides guidance as outlined below.
“20.1 Contractor’s Claims. If the Contractor considers himself to be entitled to any extension of the Time for Completion and/or any additional payment, under any Clause of these Conditions or otherwise in connection with the Contract, the Contractor shall give notice to the Engineer, describing the event or circumstance giving rise to the claim. The notice shall be given as soon as practicable, and not later than 28 days after the Contractor became aware, or should have become aware, of the event or circumstance.
Jul-Sep 2024 issue
Adrian Cole