In many construction contracts, the official start of works is tied to the “possession of site”. This is the point at which the builder gains the right to occupy and commence construction. But what happens when that handover doesn’t happen on time?
Builders often plan, mobilise, and commit resources based on an agreed start date, only to discover that the site isn’t actually ready. The reasons can vary, but the result is usually the same: the clock starts ticking on costs before the builder can even begin work.
Typical causes of delayed possession include:
• Incomplete demolition, remediation, or handover from a previous contractor
• Pending authority or planning approvals
• Access restrictions, contamination, or unresolved land ownership issues
• Client delays in meeting pre-start conditions
Without clear contractual protection, these delays can quickly turn into unrecoverable costs. Site establishment, preliminaries, and staff overheads don’t pause just because the gate is locked. If the contract doesn’t allow extensions of time (EOT) and delay cost entitlements for late possession, the builder can end up paying for someone else’s delay.
Key Steps to Protect Against the Risk
- Include a specific clause for late possession. Make sure the contract entitles the builder to both time and cost relief if possession is delayed beyond the stated date.
- Define “possession” clearly. Partial or conditional possession often creates confusion, clarify what constitutes full, unimpeded access.
- Confirm access before mobilising. Delay mobilisation of site facilities and labour until possession is confirmed in writing by the client or superintendent.
- Document all dependencies. Note any preconditions to possession, such as permits or demolition completion, so responsibility is transparent from the outset.
Possession of site isn’t just a contractual milestone; it’s a critical risk transfer event. Once the builder takes possession, the risk of delay, damage, and cost escalation typically shifts to them. Treat that moment with caution and make sure your contract ensures that when the clock starts, you’re actually able to build.