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Last edited 20 Feb 2020
Extension of time EOT in construction contracts
When it becomes reasonably apparent that there is, or that there is likely to be, a delay that could merit an extension of time, the contractor gives written notice to the contract administrator identifying the relevant event that has caused the delay.
Relevant events may include:
- Exceptionally adverse weather.
- Civil commotion or terrorism.
- Failure to provide information.
- Delay on the part of a nominated sub-contractor.
- Statutory undertaker’s work.
- A delay in giving the contractor possession of the site.
- Force majeure (such as an epidemic or an 'act of God').
- Loss from a specified peril such as flood.
- The supply of materials and goods by the client.
- Changes in statutory requirements.
- Delays in receiving permissions that the contractor has taken reasonable steps to avoid.
Assessing claims for an extension of time can be complicated and controversial. There may be multiple or concurrent delays, some of which are the contractor's fault and some not. There are many occasions where contractors contribute to delay themselves by their performance during design periods, when producing drawings, mock ups and samples or in inter-facing with sub-contractors.
For more information, see How to prepare a claim for an extension of time.
Mechanisms allowing extensions of time are not simply for the contractor's benefit. If there was no such mechanism and a delay occurred which was not the contractor’s fault, then the contractor would no longer be required to complete the works by the completion date and would only then have to complete the works in a 'reasonable' time. The client would lose any right to liquidated damages.
It is very important when deducting liquidated damages to ensure that the correct contractual procedures are adhered to. In the case of Octoesse LLP v Trak Special Projects Ltd , Justice Jefford held that Octoesse was not entitled to deduct liquidated damages as they had agreed to an extension of time after a certificate of non completion had been issued. The JCT Intermediate Building Contract is constructed such that:
'If the Contractor fails to complete the Works or a Section by the relevant Completion Date, the Architect/Contract administrator shall issue a certificate to that effect. If an extension of time is made after the issue of such certificate, the extension shall cancel that certificate and the Architect/Contract Administrator shall where necessary issue a further certificate.'
To find out more, see Octoesse LLP v Trak Special Projects Ltd.
 Related articles on Designing Buildings Wiki
- How to prepare a claim for an extension of time
- Variations in construction contracts
- Extension of time - approval letter example
- Liquidated damages in construction contracts
- Loss and expense
- Reasonable objection.
- Relevant event
- Adverse weather during construction
- Certificate of non completion
- Concurrent delay
- Common refusals of extensions of time
- Delays on construction projects
- Reasonable time.
- Relevant events v relevant matters
- Acceleration of construction works
- Contractor delay.
- Force majeure in construction
- Contract administrator for construction contracts
- Octoesse LLP v Trak Special Projects Ltd
- Completion date in construction contracts
- Nominated sub-contractor
- Relevant matters in construction contracts
- Contract claims in construction
- Prolongation in construction contracts
- Time at large
- Practical completion
- Defects in construction
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