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ARTICLE · 17 MAY 2017

Contractors: can you be paid for idle time?

If you didn't negotiate a clause into the contract, you might be to claim the cost of idle time as a price variation.

AustraliaReal Estate and Construction

Contractors are sometimes kept waiting on site by a disorganised principal or head contractor. Their usual response is to make a claim much later for the wasted cost of keeping idle labour and plant on site.

However, unless the contract requires the principal to ensure the contractor's works will not be prolonged or disrupted, or to compensate the contractor for idle time, such a claim is unlikely to succeed.

In our view, the better way to deal with the cost of idle time (if you weren't able to negotiate the clause described above into the contract) may be to claim a price variation based on changes to the construction program. This is particularly so, if the project site is remote and you cannot just go and come back at the convenience of the disorganised principal or head contractor.

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