What is this extension of time or EOT
The contractor is always eligible for an EOT (extension of time) whenever unexpected causes delays the project works. If the contractor is requesting an EOT, He should request it based on the reasonable terms. The contractor cannot ask an extension due to delays caused by himself.
even though there are a ton of reasons for the delays in construction, those delays can be categorized into three main categories.
- Delays prompted by the contractor
- Delays prompted by the client or his consultants
- External delays which not expected and uncontrollable
Contractor’s delays (Always not eligible for Extension of time)
Mainly the contractor’s faults such as lack of workforce, poor productivity, mismanagement in the works and weak material procurement process can lead the project to a delay. But the contractor cannot ask an extension based on any of the delays caused by them. The contractor should manage and avoid these delays in the first place. If not, The client can penalise the contractor (Also, the client has the right to terminate the contractor for severe delays).
Client’s delays (Eligible for Extension of time)
Client’s faults such as payment delays, approval delays and instruction delays may cause delays in the work to be carried out by the contractor. The contractor has the right to request an extension of time in such cases. Apart from that, the contractor can claim an EOT claim(prolongation claim) for the costs incurred due to the added time frame.
Uncontrollable external delays (Eligible for EOT)
External causes such as adverse weather conditions, riots, civil wars, approval delays by authorities etc. can lead the project into delays. These causes which cannot manage or avoid by the contractor or client is called as ‘shared risk events’ or ‘natural events’ in the construction industry. Also on these occasions, The contractor is entitled to an extension of time as well as the prolongation claim.
- Along with the EOT claim, The contractor may entitle for a loss of profits claim in above eligible cases.
- The client should always follow the correct procedure to deduct liquidated damages. (Please check this case between Octoesse LLP v Trak Special Projects Limited  for more insight)
As a Quantity Surveyor it is important to focus on every incident that can be affected the project program.
How to prepare an EOT claim
Mostly, Preparation of Extension of time claims is a usual responsibility of a Quantity surveyor. Below, we give you a quick guide about the preparation of EOT claims. In contrast, EOT claims consists below mentioned vital components, Read more…………….