Extension of time (EOT) clauses are common in construction contracts. They allow the parties to agree that the contractor will not be held liable for certain delays by allowing the contractor to request an extension to the completion date if it is delayed due to a specified cause.
Requirements for an extension of time
Contractual agreements between the parties create EOT regimes. As a result, their terms will differ between contracts. However, in most construction contracts, the contractor must meet three broad requirements in order to be eligible for an EOT:
1. Qualifying cause of delay
The causes of delay for which the contractor is entitled to an EOT are typically listed in construction contracts. They are generally classified as follows:
- events caused by or under the control of the principal (such as variations, suspension of works, or delays caused by the principal’s personnel’s acts or omissions); and
- events beyond either party’s control and for which the contractor cannot commercially assume the risk (such as inclement weather or force majeure style events).
2. Effect of qualifying cause of delay
Typically, the mere occurrence of a qualifying cause of delay does not entitle the contractor to an EOT. In addition, the contractor must generally demonstrate that the qualifying cause of delay has actually delayed completion (it is not unusual that the contractor must also demonstrate that delay was on the critical path).
3. Procedural Requirements
In order to claim an EOT, the contractor must usually follow a formal notification procedure.
In general, the contractor must notify the principal of the event that caused the delay (along with other prescribed details regarding the contractor’s claim) as soon as practicable or within a specified number of days after becoming aware (or should reasonably have become aware) of the delay.
This EOT Claim Includes
- This EOT Claim Analysis built using As-Built TIA Method.
- This EOT Claim Analysis will help you in creating an EOT Claim.
- This EOT Claim Analysis contains XER File & Excel Sheet for Delay Analysis presentation (You can edit it for your project).