The contractor’s obligation to proceed with due diligence in his works is an important (but often overlooked) aspect in construction contracts. While it is tempting to assume that the contractor should ordinarily proceed regularly and diligently with his works, this does not necessarily hold true in every case.

Mr. Ian de Vaz will examine the relevant legal principles and discuss the implications of contracts in which insufficient care has been given to the wording of due diligence provisions. Some of the topics that will be discussed are:

•    Is the contractor liable for failing to follow project timelines / schedules even though he manages to complete the project on time, and why should the employer be concerned in any event?
•    What do usual terms like “due diligence”, or “regularly and diligently” actually mean or connote?
•    What are the consequences for an employer who does not impose due diligence obligations on the contractor?
•    If the contract is silent, is the contractor still obliged at law to proceed with his works with due diligence?
•    How can a contractor prevent the implication of due diligence obligations?
•    How can an aggrieved employer prove the lack of due diligence by the contractor and what remedies might an employer pursue?

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