Commencement of Arbitration and Time Bar Clauses

This article considers how English courts construe time-bar clauses and whether there is an advantage in having an arbitration clause in a contract where there is a time-bar clause. It is now common to find time-bar provisions in many of the major forms of construction contracts. They appear in NEC 3, in the FIDIC suite of contracts and the ICE forms. Sub clause 20.1 of the FIDIC forms of contract, for example, creates a time-bar that gives a Contractor just a mere 28 days to put in a notice of a claim for additional cost or an extension of time. Given that the effect of a failure to issue a 28-day notice is an apparent bar on any claim, it is unsurprising that time-bar clauses have been the subject of much consideration and review. Recent decisions in the courts show that these clauses are being construed strictly. This has led one leading English lawyer, in a paper on the FIDIC forms of contract, to comment that quite possibly there are no ways round a sub-cl.20.1 notice.