The following Property guidance note provides comprehensive and up to date legal information covering:
Delay in completion of the developer’s works can be of far greater concern to a tenant than, eg whether the works are in accordance with the specification or the collateral warranties or contract assignments will be delivered as promised. Usually, the tenant's primary objective is to get into the premises and begin trading.
Therefore, set a target date for practical completion, which can only be extended for reasons which are allowed under the agreement (subject to a non-extendable (or drop dead) long stop date). Both parties must take care when negotiating when a permissible extension of time will arise. If the tenant is too generous, the works could drag on far longer than expected without an adequate remedy being available. On the other hand, if the landlord is guilty of delay which can't be excused by an extension of time, it may have to pay a substantial amount to the tenant in liquidated and ascertained damages (LADs) to cover losses attributable to each week or part thereof that the tenant is not able to trade from the premises. Even if there is no LADs provision in the agreement for lease, the developer may still be liable for common law damages if it fails to complete the works by the target date.
The developer’s starting position will be that it should be entitled to
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