Bramble introduces the subject as follows (focus is on delay):<\/p>\n

Notice to the appropriate contract representative that an excusable delay has occurred is important.\u00a0 From the owner\u2019s perspective it is extremely important because the owner may have no knowledge of the events that affect the contractor\u2019s performance.\u00a0 Even if the owner has knowledge of the events, it may be ignorant of their effect on the contractor\u2019s performance.\u00a0 Notice will allow the owner an opportunity to remedy the problem, mitigate the damages, or plan for the consequences.\u00a0 Further, the owner may take steps to document the validity of the claim and the effect on the contractor. [Bramble p2-28]<\/p>\n

Pickavance addresses the rationale as follows (focus is on delay):<\/p>\n

5.12 Without notice, D [developer, owner, or similar] may have no knowledge of the event which has affected or is likely to affect C\u2019s [contractor\u2019s] performance.\u00a0 Even if D has knowledge of the circumstances giving rise to an entitlement to an extension of time, without C\u2019s advice, it may be ignorant of its impact on C\u2019s progress.\u00a0 One of the principal effects of a notice of delay to progress or disruption can be expected to be that both the CA [contract administrator] and D may give some thought as to how instructions could be given so as to reduce the effects of the event of which complaint is made.\u00a0 [Pickavance p140]<\/p>\n

Many contracts require that notice be given within a specified period (e.g. 10 days, 21 days).\u00a0 With such a defined (and arguably short) time period, several points are important.\u00a0 Perhaps the most important is the commencement or start date of the notice period.\u00a0 Several possibilities exist.\u00a0 One start concept is the date that an event occurs.\u00a0 This ambitious and (potentially) problematic concept, coupled with a short notice period (say 10 days) can be extremely difficult to completely unrealistic in the context of project execution.<\/p>\n

Pickavance addresses THE COMMENCEMENT OF THE PERIOD OF NOTICE in paragraphs 5.49-5.51.\u00a0 In this regard (and always the case), the parties need to obtain the specifics from their contract language.<\/p>\n

Another arrangement could be that the period starts at the time of recognition.\u00a0 This more relaxed approach allows the party that is obliged to provide notice time to recognize the event or possibly see the results.\u00a0 Some call this recognition.<\/p>\n

Using recognition as a concept, the party must consider when they recognized or should have recognized the event or its results.\u00a0 As you can see, the matter becomes increasingly complicated.<\/p>\n

Where is the lesson here?<\/p>\n

All parties need to have in place proper and legitimate mechanisms for detecting events and\/or results (sometimes call impacts).\u00a0 These plans and procedures should be addressed in the Project Execution Plan [PEP], Risk Management Plan (often within PEP), or project \/ job procedures.\u00a0 It is not constructive to have an implementation procedure that calls for writing letters (or other documents) on an intensive basis.\u00a0 Letter writing factories tend to aggravate and not resolve an issue.\u00a0 Sound managerial judgment is needed.<\/p>\n

Of course, this is a managerial perspective.<\/p>\n

Project planning and management teams need legal advice from a competent source that understands the contract, applicable law, case law (if any) and other key legal aspects of this subject.\u00a0 The solution requires an integrated planning, management and legal approach.<\/p>\n

The references and resources I discussed above represent a starting point for understanding notice requirements as well as implementation approaches.\u00a0 Actual analyses are complicated and require consideration of many factors.\u00a0 In subsequent posts, I will elaborate on some of these considerations and factors.\u00a0 Careful and thoughtful analyses are required in order to achieve fair and equitable compensation (money, time and other considerations) to the contractor(s) in situations where changed work \/ variations, delays, disruption and other events are significant.<\/p>\n