The provision of liquidated damages for
delay in the completion of a project is common in construction contracts
worldwide. The contracting parties are aware of the agreed completion
date, which marks the application of the damages and progress is
monitored accordingly. However, all too often, due to delays
attributable to both the owner and the contractor, the completion date
passes, a time extension is not issued and the new completion date is
left undetermined. At some point during the works, the owner decides to
apply liquidated damages for contractor’s failure to complete the
works. Aside from the question of concurrency of delay, and its effect
on rendering such application of damages unenforceable or subject to
apportionment, there is the question of the owner’s obligation to
forewarn the contractor of the new completion date so that the
contractor works to that date and takes the necessary measures to
achieving this date (regardless of whether the contractor agrees to such
date). This paper tackles this second question from an Egyptian law
perspective. Two case studies are examined that illustrate the effect
of this prior notification by the owner of the new completion date, or
lack thereof, on the contractor’s progress. Recommendations are
summarized at the conclusion of the paper for construction
practitioners.