Time of the Essence Clause
(Construction Contract)

Summary

This time of the essence clause can be included a construction contract to establish that time will be of the essence for all dates, time limits, and time requirements imposed on the contractor. This clause includes practical guidance and drafting notes. A time is of the essence clause allows a party to insist on strict compliance with deadlines and other requirements under the agreement. In the absence of this clause, the law of some jurisdictions may not afford a party a remedy (or may provide for only limited recovery) for the other party's delayed or sporadic performance of its contractual obligations. Capitalized terms used in this clause should be conformed to those used in the relevant contract. For a list of key resources covering construction-related tasks for a first-year associate, see First Year 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 information on the construction process, see Construction Resource Kit. For additional construction resources, including form contracts and drafting guidance, see Construction Contract, Owner and Contractor Agreement Resource Kit.