Extension of Time Claims
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GET A FREE CONSULTATION TODAYWhat is an extension of time claim?
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
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 an Extension of Time Claim
An extension of time (EOT) claim is a formal request made by a contractor or sub-contractor to extend the period for completing a construction project due to delays not caused by them. If successful, it adjusts the completion date, helping them avoid damages including liquidated damages.
Without a valid EOT, a contractor or sub-contractor may be held liable for project delays – even if the delay was beyond their control. A successful claim can:
- Avoid delay damages (e.g., LADs or LDs)
- Protect the contractor’s reputation and cash flow
- Assist with claiming for loss and expense caused by the delay
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.
The reason must usually be a ‘relevant event’ as defined in the contract. Examples include:
- Variations to the scope of works
- Late instructions from the employer
- Delays in the release of design information
- Adverse weather conditions (depending on contract terms)
- Force majeure events
These are terms used in JCT contracts.
- A relevant event may justify an extension of time (adjusting the completion date).
- A relevant matter may entitle the contractor to loss and expense (financial compensation).
Some delays may qualify for both, depending on the contract.
It depends on the contract, but often as soon as possible. Many contracts include strict deadlines and conditions precedent – meaning that failure to notify a delay on time and in the required format can result in losing the right to an EOT or financial compensation, even if the delay wasn’t your fault.
Conditions precedent are contractual requirements that must be fulfilled before a right (like an EOT or payment) can be enforced. For example, a contract might state that a delay notice must:
- Be submitted within a certain number of days
- Contain specific information
- Be delivered to a named individual via a specific method
Failure to meet these conditions may invalidate the claim.
No. Different contracts – such as JCT, NEC, or FIDIC – have different procedures for delay claims. For example:
- JCT requires a formal notice of delay
- NEC requires early warning notices and compensation events
- Bespoke contracts may have tailored procedures
Understanding and complying with the specific contract requirements is critical.
Strong documentation is vital. Useful records include:
- Daily/weekly site diaries
- Timesheets and resource allocations
- Progress reports
- Meeting minutes
- Requests for information (RFIs)
- Records of instructions and drawing approvals
- Updated programmes and schedules
- Correspondence and formal delay notices
- Payment applications and valuations
All evidence should be accurate, timely, and well-organised.
Contractors and sub-contractors can mitigate risks by maintaining detailed records, adhering strictly to contractual procedures for notifications and claims, and proactively communicating potential delays to all relevant parties.
If a claim is disputed, the parties may engage in negotiation, mediation, adjudication, or arbitration or go to court to resolve the issue, depending on the dispute resolution mechanisms outlined in the contract.
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