A Delay Event is the occurrence of certain events which have a material and adverse effect on the Contractor's ability to complete the buildings by the agreed date. These fall into five categories:-
21.1 Board instructed variations to the Works;
21.2 Compensation Events:-
21.2.1 a breach of the Board's obligations - for example failing to give the Contractor access to the site;
21.2.2 interference from works carried out by the Board which do not form part of the Contract (e.g. - where a separate but related building on the same site is being built by the Board);
21.2.3 the Board using its rights of access to the site where such access is not justified or reasonable such as opening up of works which are not subsequently found to be defective; or
21.3 a Relief Event - for example fire, explosion, riot, earthquake, discovery of fossils etc,
21.4 event of Force Majeure - for example war, armed conflict and terrorism; or
21.5 Relevant Change of Law (see paragraph 18 and Appendix 1).
If the Contractor follows the procedure set out in the Contract and mitigates the effects of the Delay Events, the date originally set for completion of the works will be extended by a reasonable period. Importantly, the ultimate length of the Contract (which runs from the date on which it was signed) will not be altered by any Delay Event. Therefore, the actual period during which the Contractor provides services to and receives payment from the Board will be reduced. Whether the Contractor receives compensation for this loss of income depends on which category of Delay Event has occurred and this is summarised in paragraph 22.