Why a Time is of the Essence Provision is Important Part 1
Whenever entering into a construction contract, it is almost an unspoken rule that the project will, or at least, should be completed on time. After all, timing is everything. However, many times this is not the case. There are few projects that move along perfectly without some sort of interruption. If the completion of a project is indeed critical, a Time is of the Essence provision is your solution. For the rest of our article, head over to part two.
What is a Time is of the Essence Provision?
When discrepancies arise on a project, it’s time to review your contract. Hopefully, your contract addresses project delays. This where a Time is of the Essence provision should come into play. This provision means that one party must perform its obligations (labor, goods, or services) by a specific date and time in order to compel the other contractual party’s performance. Since missing a deadline does not automatically constitute a breach of contract, drafting this provision is vital to enforce project timelines.
Why the Time is of the Essence Provision is Important
What does your contract say about work not being completed within a specific timeframe? Including a Time is of Essence provision in your contract will ensure that if a delay of performance occurs, it will result in a breach of contract. This is where it is beneficial to consult an expert West Palm construction lawyer. With this provision, the nonbreaching party has the right to terminate the contract. Where a subcontractor is involved, the general contractor can choose to terminate the contract and sue the subcontractor. The general contractor could also find another subcontractor to complete the remaining work. It prevents courts from providing the breaching party with extra time or “reasonable” time to complete the obligation.
On the other hand, if there is no provision written in the contract, the nonbreaching party cannot terminate the contract or sue the breaching party for a material breach as long as the breaching party completes the project within reasonable timeframes.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.