A time bar is a term of a contract that requires a party (claiming party) to submit a notice, make a claim, or take other action within a specified time. If the claiming party fails to comply with these time requirements, the claiming party will lose its entitlement to make the claim and the claim will be “barred."
A time bar is a term of a contract that requires a party (claiming party) to submit a notice, make a claim, or take other action within a specified time. If the claiming party fails to comply with these time requirements, the claiming party will lose its entitlement to make the claim and the claim will be “barred."
Time bars prevent a party from exercising a right under a contract outside a prescribed timeframe. The general rule is that time bars are enforceable, although there can be exceptions. A typical construction contract will require the contractor to complete an agreed scope of works for an agreed price within an agreed period of time.
A time bar clause requires you, as the contractor, to
enforce certain contractual rights within the time specified. If you fail to enforce the contractual right within the specified period, you may be prevented from the entitlements you could have recovered had you provided notice per the contract.In its simplest form, a
time bar clause will bar (prevent) a party from recovering its entitlements under a contract where that party fails to give its contractual notices and/or claims within a timeframe stipulated under a contract.
A time bar clause provides for the time in which a party must give notice of a claim. Courts are generally cautious when interpreting time bars in commercial contracts because there is no conclusive authority on the meaning of a particular clause in a contract.