Who Carries the Risk? Understanding Weather Impacts on Construction Contracts
Weather can be one of the most unpredictable and disruptive factors in construction projects. While minor delays due to rain or wind might seem trivial, more severe weather events can have significant implications on project timelines, costs, and responsibilities. Understanding who carries the risk is essential for contractors, developers, and project managers alike.
In construction contracts, the allocation of weather-related risk is rarely left to chance. Standard forms of contract, such as the NEC (New Engineering Contract) or JCT (Joint Contracts Tribunal), clearly outline how delays due to weather should be handled. However, the nuances between different contracts and the distinction between “normal” and “exceptional” weather events can cause confusion.
Normal Seasonal Weather vs. Exceptional Events
One of the first points to clarify is the difference between normal seasonal weather and exceptionally adverse events. Contractors are generally expected to account for normal weather patterns in their project programmes and pricing. For example, in many parts of the UK, rainfall, frost, or wind during certain months is considered foreseeable and therefore falls under the contractor’s responsibility.
Exceptional weather events, on the other hand, are rare and unforeseeable occurrences that go beyond the usual seasonal conditions. Examples might include unusually heavy snowfalls, storms, or flooding. These events may significantly disrupt progress and can trigger contractual mechanisms to protect the parties affected.
Contractual Risk Allocation
The form of contract chosen plays a pivotal role in determining who bears the risk. Let’s explore how this works under common contracts:
NEC Contracts
Under NEC contracts, weather is often treated as a “Relevant Event,” but only when it is exceptionally adverse. This designation allows the contractor to claim an Extension of Time (EOT) for delays caused by such weather.
NEC contracts are known for their proactive approach, requiring regular programme updates and collaborative management between the project manager and contractor. By doing so, delays from adverse weather can be assessed accurately, and mitigation strategies can be applied promptly.
JCT Contracts
JCT contracts, widely used in the UK, also differentiate between normal and exceptional weather. Contractors are expected to manage the impact of ordinary seasonal conditions, while employers may bear responsibility for unforeseeable extreme events.
Under a JCT contract, the contractor must maintain a realistic programme that accounts for typical weather disruptions. If exceptionally adverse weather occurs, the contractor can request an extension to the completion date, provided they can demonstrate that the event was beyond normal expectations.
Practical Implications for Contractors
Contractors need to be diligent in several areas to manage weather-related risks effectively:
- Programme Planning: Project schedules should incorporate allowances for normal weather disruptions. Historical weather data can guide these allowances, helping to avoid unexpected delays.
- Record Keeping: Accurate daily records of weather conditions, site activity, and labour hours are critical. These records provide evidence if an extension of time is claimed.
- Communication: Regular updates with the project manager or employer ensure transparency. Prompt notification of delays caused by exceptional weather is usually required under standard contracts.
- Risk Mitigation: Implementing practical measures, such as weatherproofing materials, adjusting work sequences, or using temporary shelters, can reduce the impact of both normal and severe weather conditions.
Employer Responsibilities
While contractors typically bear the risk of normal seasonal weather, employers may take on risk for exceptional events. This allocation ensures fairness: contractors are not penalised for delays caused by unforeseeable circumstances beyond their control.
Employers should also consider the financial implications. Extensions of time can lead to additional costs, including prolonged site management, labour, and equipment hire. Clear contract terms regarding compensation and extensions are essential to avoid disputes.
Dispute Avoidance
Weather-related claims are a common source of disputes in construction projects. Understanding the contract and maintaining comprehensive records can help prevent disagreements. Key steps include:
- Understanding the Contract: Know the definitions of “normal” and “exceptional” weather events, as well as the process for claiming extensions of time.
- Documenting Delays: Keep detailed logs of weather conditions, site progress, and any mitigation measures taken.
- Engaging Early: Notify the project manager or employer promptly if delays are anticipated. Early engagement often prevents escalation into formal disputes.
- Professional Advice: Consulting a quantity surveyor or contract specialist can clarify responsibilities and ensure claims are appropriately substantiated.
Key Takeaways
- Contract Form Matters: NEC and JCT contracts handle weather differently. Understanding the specific provisions of your contract is critical.
- Contractors Bear Normal Weather Risk: Normal seasonal disruptions should be accounted for in programme planning and pricing.
- Employers May Bear Exceptional Weather Risk: Unforeseeable severe events can entitle contractors to extensions of time and, in some cases, additional costs.
- Record-Keeping is Essential: Accurate, timely documentation supports any claims and protects both parties.
- Proactive Communication Prevents Disputes: Early notice and collaboration can help manage the impact of weather effectively.
Weather will always be a variable in construction, but contracts and proper planning help allocate risk fairly. Contractors should anticipate normal seasonal conditions, maintain robust records, and communicate delays promptly. Employers, meanwhile, must recognise the impact of exceptional events and provide mechanisms for time extensions and cost adjustments.
At Gray Quantity Surveyors, we understand the importance of contractual clarity and proactive project management. From tender through to completion, we help clients navigate risks, including those posed by weather, ensuring projects remain on track and disputes are minimised.
For construction teams, understanding who carries the risk of weather is not just a contractual formality—it’s a key component of successful project delivery.