Condition Precedent, what does it mean and how does it effect you?

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Condition Precedent, what does it mean and how…

 Show Interest
A condition precedent is an event which must occur, before performance under a contract becomes due, i.e. before a contractual duty exists. 

Or as recently found in a sub-contract I was reviewing

"The Sub-Contractor shall liaise with the Contractor throughout the Sub-Contractor’s performance of his obligations under this Sub-Contract and give (within 14 days’ of a matter becoming reasonably apparent) written notice to the Contractor of any matter which could increase the Final Sub-Contract Sum, delay or disrupt the progress of the Sub-Contract Works (or the design of the Sub-Contract Works), and/or impair the quality and/or performance of the completed Sub-Contract Works and which an experienced Sub-Contractor acting competently and diligently could have foreseen (including without limitation in relation to the financial standing and/or performance of any sub-Sub-Contractor).

The Sub-Contractor shall co-operate with any reasonable measures proposed by the Contractor to avoid and/or reduce the effect of any matters notified by the Sub-Contractor and/or identified by the Contractor and agree actions to implement such avoidance and/or reduction.  Compliance by the Sub-Contractor with the timescale for notification set out in this clause 2.4C shall be a condition precedent to the Sub-Contractor’s entitlement to claim an extension of time for the completion of the Sub-Contract Works and/or an adjustment to the Sub-Contract Sum."

So if the notice of delay isn`t issued within 14 days then the main contractor can refuse an extension of time and any cost incurred.

Do you know what`s in your contract and the implications of what your client is both asking off you and also telling you how to act? what would you rather be, accused of being contractual or covered under the contract??

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