Extension of Time Claims and Loss and Expense Claims

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Construction projects often suffer from delays which result in extension of time claims and loss and expense claims. Construction contracts generally allow the time period to be extended if the delay is not the contractor’s fault. This is an extension of time (EOT).

It is important to identify any ‘relevant event’ that has caused the delay and gives entitlement to extension of time. There may also be an associated ‘relevant matter’ which gives entitlement to loss and expense.

Relevant events and relevant matters should be defined in the construction contract. They could include variations in construction contracts or delays due to late instructions from your client.

How we can help with extension of time claims and loss and expense claims

We can help you make reasonable and successful extension of time claims and calculate construction delay costs.

A successful extension of time claim can make can mean that rather than paying out liquidated damages or other delay damages, you are entitled to loss and expense for the period of delay. This turns a negative figure in the final account into a positive.

Typically disputes about extension of time are not just about the extension of time itself. They might also be about when practical completion of the work should have taken place, when it actually took place, liability for liquidated damages (LAD’s) or common law damages, and loss and expense.

Take action

To maximise your success in dealing with claims for delay and extension of time it is vital that action is taken as soon as possible.

Construction contracts often contain strict ‘conditions precedent’ clauses. These require that notice of delay must be given within a certain period, must contain certain information, and even must be given to specific persons or by specific methods.

If such notice is not given strictly in accordance with the contract terms and a condition precedent is not complied with, then entitlements to extension of time and additional payment can be lost. This is the case even where the delay was caused by the other party.

Follow the procedures

Different contracts contain different procedures for claiming extension of time and loss and expense.

A notice of delay and request for extension of time that complies with the JCT contract will not necessarily be in a format that satisfies other contracts. For example, the provisions of the NEC contract require early warning notices and compensation events.

Bespoke amendments to the standard forms of contract must be understood and complied with.

Records

Hand in hand with submitting the correct notices at the correct times, you must ensure that your position is evidenced and documented with relevant supporting information.

Ideally systems will be in place so that records are carefully and accurately completed and kept, and contain the information that is required to evidence a party’s position. All of the relevant information needs to be logically collated and organised. This might include:

  • Daily or weekly site diaries or other site progress records.
  • Timesheets and resource allocation returns.
  • Progress reports.
  • Meeting minutes.
  • Requests for information (RFI’s).
  • Schedules recording the release of design information and progress of drawings and the design approval process.
  • Instructions.
  • Programmes.
  • Correspondence.
  • Notices of delay and extension of time (whether formally given or otherwise).
  • Payment applications and valuations.

Free initial enquiry

We can advise you on and assist you with the contractual processes that need to be followed, making delay claims, and dealing with disputed claims for extension of time. We can also provide assistance where the relevant contractual provisions have not been followed.

Our assistance includes contractual processes, making claims for delays in your construction project, and dealing with disputed claims. We can also advise what it is best to do where relevant contractual procedures have not been followed.

We offer a one hour free initial consultation to new clients. Please contact us by phone, email or using our contact form for a free initial consultation to discuss how we can help you, whether you have made your claims already or not, and even if the time period for doing so has passed.

Contact us about a Extension of Time Claim or Loss and Expense Claim





This is entirely dependent upon what the contract says. Contracts tend to have their own procedures for claiming extensions of time and often they must be followed strictly or you will lose your rights. Most of those procedures require you to give notice to the person who can grant you an extension of time as soon as you are aware you are delayed or are likely to be delayed. Notices are often required to set out the cause of the delay, whether that cause is a relevant contract event, how long you have been or are likely to be delayed and you will usually be required to provide evidence of the delay. If you do not give notices to the right persons at the right time and containing the right detail, you may lose the right to extension of time.

Again this is entirely dependent upon what the contract says. Contracts tend to have their own procedures for claiming loss and expense (if they have one at all) and often they must be followed strictly or you will lose your rights. Most of those procedures require you to give notice to the person who can grant you loss and expense as soon as you are aware you have incurred or are likely to incur loss and expense. That notice should set out: the cause of the loss and expense, whether that cause is a relevant matter, and you will usually be required to give details of the amount of loss and expense claimed and provide evidence of the loss and expense. Loss and expense should also be claimed in your applications for payment. If you do not give notices to the right persons at the right time and containing the right detail, you may lose the right to loss and expense.

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