## REFERENCES FOR EX GRATIA PAYMENTS IN CONSTRUCTION CONTRACTS:

* **Designing Buildings Wiki:** This offers a brief explanation of ex gratia payments in construction, mentioning
scenarios where they might be used
[https://www.designingbuildings.co.uk/wiki/Ex_gratis_payment](https://www.designingbuildings.co.uk/wiki/Ex_gratis_p
ayment).

* **Simply Malaysia: Ex-Gratia Payments | Malaysian Construction and Contract Law:** This blog post dives deeper into
the concept, explaining how they function outside the formal claims process and the importance of documenting them
[https://simplymalaysia.wordpress.com/](https://simplymalaysia.wordpress.com/).

* **Letter Agreement for use with PW-CF6 - Construction Procurement:** This resource provides a practical example of
how ex gratia payments can be applied in the context of extending time due to unforeseen circumstances
[https://constructionprocurement.gov.ie/en/note-on-procurement-and-contractual-matters-associated-with-the-covid-1
9-response-measures/](https://constructionprocurement.gov.ie/en/note-on-procurement-and-contractual-matters-asso
ciated-with-the-covid-19-response-measures/).

## PRACTICAL EXAMPLES OF EX GRATIA PAYMENTS:

**Example 1: Unforeseen Ground Conditions**

* A construction project encounters significant rock formations during excavation that weren't identified in the initial site
survey.

* The cost and time required to remove the rock substantially increase the contractor's burden.

* While the contract might not explicitly cover such unforeseen conditions, the employer acknowledges the hardship
and offers an ex gratia payment to partially compensate for the additional costs.

**EXAMPLE 2: PROJECT DELAY DUE TO PERMITTING ISSUES**

* The permitting process for a crucial aspect of the project takes much longer than anticipated due to unforeseen
bureaucratic hurdles.

* This delay impacts the contractor's schedule and potentially increases their costs.

* The employer acknowledges the delay wasn't the contractor's fault and offers an ex gratia payment to help offset
some of the financial strain, even though they weren't contractually responsible for the permitting delays.

**Example 3: Maintaining Goodwill**

* A project experiences minor delays due to minor coordination issues between the contractor and subcontractors.

* The delays are resolved quickly, but the employer values the contractor's professionalism throughout the project.

* As a token of appreciation and to solidify a positive working relationship, the employer offers a small ex gratia payment
despite the delays being relatively minor.

**Remember:**

These are just a few examples, and the specific reasons for ex gratia payments will vary depending on the project and
the parties involved. It's crucial to **document any ex gratia agreements clearly** to avoid misunderstandings in the
future.