An Extension of Time (EOT) is a contractual provision that permits the adjustment of a construction project’s completion date under specific circumstances. These circumstances, often referred to as “relevant events,” vary depending on the contract but may include factors such as design variations, exceptionally adverse weather, work undertaken by statutory authorities, the employer’s failure to provide site access, compliance with issued instructions, or acts of prevention by the employer.
EOT provisions serve to protect contractors from being penalised for delays beyond their control. By granting an extension, contractors are afforded additional time to complete their work without incurring liquidated damages or other contractual penalties.
Why Is an EOT Important?
Beyond financial implications, EOTs play a crucial role in ensuring project efficiency and integrity. Granting a reasonable extension enables contractors to carry out their work without the burden of unrealistic deadlines, thereby safeguarding construction quality and safety. Furthermore, well-managed EOT claims enhance transparency and accountability, minimising the risk of disputes.
How DRS Can Assist
- Contract Review: We analyse construction contracts to ensure that EOT provisions are well-defined and offer adequate protection for your interests.
- Claim Preparation: Our team assists in preparing comprehensive and well-substantiated EOT claims, improving the chances of a favourable outcome.
- Dispute Resolution: If disagreements arise concerning EOT claims, we facilitate negotiations and adjudication where required.
- Legal Advice Services: We offer ongoing legal guidance to help clients navigate complex construction law issues and manage EOT claims effectively.
Effectively handling EOT claims is a fundamental aspect of construction contract management, ensuring that unavoidable delays do not result in unfair penalties. Proper claim management supports efficiency, fairness, and legal compliance for all parties involved.
Relevant Case Law
- Carillion Construction Ltd v Emcor Engineering Services Ltd [2017] EWCA Civ 65 (Carillion v Woods Bagot at first instance): The court ruled against the argument that an extension of time should commence from the date of the delay event rather than the project’s completion date. However, the enforceability of such a claim depends on the specific wording of the contract, as seen in the DOM/2 sub-contract in this case.
- Steria Ltd v Sigma Wireless Communications Ltd [2007] EWHC 3454 (TCC) and City Inn Ltd v Shepherd Construction Ltd [2010]: These rulings established that if a contractor fails to meet the preconditions outlined in a construction contract, an extension of time will not be granted, provided the contract terms are explicitly stated and the employer (or their agent) has not waived or suspended compliance with those terms.
Need Expert Support with EOT Claims?
Effectively managing Extension of Time (EOT) claims is essential to avoiding unfair penalties and ensuring project success. Whether you need contract reviews, claim preparation, or dispute resolution, our expert team at Dispute Resolution Services is here to help.
📩 Get in touch today to discuss how we can support your project.