ASSESSMENT OF CONTRACTUAL REMEDIES FOR DELAY IN ROAD CONSTRUCTION PROJECTS IN ONDO STATE, NIGERIA

Abstract

The primary aim of every road construction project is completion within contract time, specified budget, scope and to achieve the strategic goals. Whist it may not be possible to eliminate delay in road project construction, the law and construction contracts provide for certain remedies for delay. Whenever delays occur in the course of project execution, construction contracts usually provide liquidated damages as the remedy. The study determined whether contractual remedies for non-excusable delay in public road projects in Ondo State achieve their purposes in practice and investigated factors militating against application of contractual remedies for non-excusable delay in public road projects. The study also examined the effect of application of contractual remedies for non-excusable delay on public road project delivery in the study area. Using a survey research design and stratified random sampling technique, the study sampled 143 respondents. The study found that the technicality of termination clause (Severity Index = 0.766) militates against the application of remedy of termination and also found that application of contractual remedies for non-excusable delay significantly affects (p < 0.05) the delivery of public road projects. The study concluded that factors such as technicality of contractual clauses, fear of wrongful termination, and misinterpretation of termination notice by contractual parties were found to hinder effective use of the remedy of termination. The study recommended that a contracting party proposing to terminate a construction contract should assess the reasons for proposing to terminate the contract; assess whether such reasons are grounds for termination under the construction contract and/ or common law; understand the procedural steps required before formally terminating the construction contract; and assess potential exposure to damages in the event of wrongful termination.