Commencement, Completion of the Work, and Time Extensions Clause
(Construction Subcontract Agreement)

Summary

This clause can be included in the general terms and conditions of a construction subcontract to address issues related to the timing of the work to be performed. This clause includes practical guidance, drafting notes, and an optional clause. Treatment of timing is key on any construction project. The general contractor's use of subcontractors adds additional risk to the contractor because it must ensure not only its own performance, but also that of its subcontractors. Thus, the contractor will want a timing clause that provides time is of the essence for the subcontractor's performance. The general contractor will also want to ensure that the subcontract sets forth a clear process for dealing with delays and time extensions. For its part the subcontractor will want to ensure that any time of the essence requirement applies to both parties. For additional construction subcontract resources, see Construction Subcontract Agreement and Construction Subcontract Agreement Resource Kit. For a template that addresses changes in the work and change orders in a subcontract, see Changes in Work Clause (Construction Subcontract Agreement). For a discussion of change orders and related matters, see Changes in Work and Claims Provisions in Construction Contracts. For a discussion of pay-if-paid clauses and pay-when-paid clauses in subcontracts, see Contingent Payment Clauses in Construction Subcontracts State Laws Survey. For a full listing of key content on the construction process, see Construction Resource Kit. For a construction management agreement, see Construction Management Agreement. For a template that addresses the contractor's right to terminate the subcontract because the subcontractor has defaulted in its performance of the work, see Failure to Perform and Termination for Default Clause (Construction Subcontract Agreement). For a list of key resources covering construction-related tasks for a first-year associate, see First Year Associate Resource Kit: Construction. For a list of key resources covering construction-related tasks for a junior associate, see Junior Associate Resource Kit: Construction. For a discussion of issues and tasks commonly encountered by in-house lawyers and counsel working on construction-related matters, see In-House Construction Resource Kit. For a list of key resources covering construction-related tasks for a summer associate, see Summer Associate Resource Kit: Construction. For a list of key resources covering construction-related tasks for a federal government summer intern, see Federal Government Summer Intern Resource Kit: Construction. For related treatises, see Construction Law P 2.05 (Subcontractor Bidding and Selection), Construction Law P 6.14 (Relationship Between Prime Contractor and Subcontractor), and Construction Law P 3.01 (Construction Contracting Relationships).