Extension of Time (EOT) Claims: A Practical Guide for Contractors
In the world of construction and mega-projects, delays and disruptions are almost inevitable. Whether due to design changes, delayed approvals, or unforeseen conditions, contractors often find themselves needing additional time to complete their work. This is where the concept of an Extension of Time (EOT) comes into play.
An EOT can be either prospective (granted before the delay occurs) or retrospective (granted after the delay has already impacted the project). Preparing an EOT or delay/disruption claim is a complex and time-consuming process, especially in large-scale projects involving thousands of activities, multiple stakeholders, and intricate interfaces.
Common Risk Factors for Employers
Employers face several risks that may lead to valid claims for time extensions. Some of the most frequent causes include:
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Delayed transfer of the job site
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Use or occupation of permanent works by the employer before agreed timelines
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Differences between tender-stage information and actual site conditions
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Scope modifications after the first contract is signed
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Late engineering deliverables or frequent changes to them
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Delays in procurement or supply deliverables
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Approvals not granted within contractually agreed timelines
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Late or postponed payments
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Deliverables for engineering and procurement not aligned with schedule requirements
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Suspension or premature termination of work
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Unfavourable weather conditions
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Modifications to project requirements after commencement
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Force majeure events such as civil unrest, terrorism, or sabotage beyond the contractor’s control
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Undocumented underground utilities not reflected in as-built drawings provided during tender
Each of these factors can severely disrupt project timelines, making EOT claims essential for contractors to safeguard their rights and maintain project viability.
How to Submit an Effective EOT Claim
To successfully secure an Extension of Time, contractors must not only highlight valid delays but also provide evidence-backed documentation. Here are some best practices:
1. Review Your Contract Thoroughly
Every contract contains specific clauses related to EOTs. Contractors must carefully study these terms to understand the provisions, notice requirements, and time limits for submission. Missing a deadline could result in losing the right to claim.
2. Identify and Document Valid Reasons
Only certain reasons are recognized as valid grounds for an EOT claim (e.g., delayed site access, force majeure, design changes). Ensure your claim aligns with these provisions.
3. Maintain Proper Records
Accurate and detailed records are the backbone of a strong EOT claim. This includes daily site logs, correspondence, progress reports, procurement schedules, and approval timelines.
4. Quantify the Impact
It’s not enough to state that delays occurred. You must demonstrate the impact of the delays on the overall project schedule, ideally supported by a critical path method (CPM) analysis.
5. Provide Notice on Time
Most contracts require contractors to provide timely notice of any potential delays. Failing to do so may invalidate your claim, regardless of the merits.
6. Support Cost Claims with Evidence
If seeking compensation for additional costs alongside EOT, contractors must back these up with proper documentation, including invoices, timesheets, and disruption analyses.
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