An extension of time in construction gives contractors more time to finish a project. Learn how it works, when to claim it, and what rules you need to follow.
Download this FREE Extension of Time Template to formally request additional time on a project—includes sections for cause of delay, impacted activities, and proposed new completion date.
Delays happen on every construction project. Maybe it’s the weather. Maybe it’s a last-minute change. Whatever the cause, one thing is clear: if the timeline shifts and it’s not the contractor’s fault, the contract needs a way to handle that fairly. That’s where an Extension of Time (EOT) comes in.
Whether you're a project manager, contractor, or client, understanding EOTs is essential for keeping your project on track and your relationships intact. Let's talk about EOT, why it matters, and how to handle it like a pro.
An extension of time is a provision in construction contracts allowing the project completion date to be adjusted due to legitimate delays. But, this only applies if the delay meets the conditions set out in the contract.
EOTs protect contractors from delays they didn’t cause. These could include bad weather, late approvals, or client changes. It helps keep things fair by adjusting deadlines when needed, without turning every critical delay into a dispute. Without an extension of time, they could face liquidated damages, even though the delay wasn't their fault.
An extension of time isn’t a free pass. The contractor must follow the contract’s process, give notice on time, and show how the delay affected the schedule. That's the balance that the EOT meaning strikes: protecting contractors while ensuring accountability.
The general contractor is the primary party who can claim an extension of time. They must identify the delay, assess its impact, and submit the claim according to the contract.
Subcontractors don’t submit an extension of time claims themselves. If a subcontractor causes or is affected by a delay, the main contractor includes it in their own claim.
The construction superintendent, engineer, or contract administrator reviews the extension of time claim. They decide if the delay qualifies and whether the extension should be granted. Their role is to apply the contract fairly and make an informed decision based on evidence.
Delays in construction projects happen for many reasons, and when they do, contractors often need to request an Extension of Time. Here's a closer look at the main causes of EOT claims:
Sometimes, problems at the construction site aren't discovered until work has already started. For example, there might be unexpected underground pipes, contaminated soil, or other hidden issues. These surprises slow down progress and may require additional time to resolve.
Severe weather, like heavy rain or strong winds, can make working on-site unsafe or impossible. While normal weather conditions are usually planned for, unexpected extremes often qualify for a time extension.
If a client decides to change the design or add new features mid-project, this often requires more work and time. For instance, adding an extra floor to a building would naturally extend the construction timeline.
Sometimes, events like natural disasters, labour strikes, or even pandemics (such as COVID-19) can cause potential delays. These events, often called force majeure, are beyond anyone's control and justify extra time.
Construction projects often need approvals or permits from government agencies. If these are delayed, the whole project may be held up, even if everything else is ready to move forward.
By understanding these common causes, contractors and project teams can better prepare for project delays and handle them more smoothly when they occur.
Delays in construction are grouped into standard categories in most contracts. Each type affects whether an Extension of Time can be claimed and who bears the risk. Understanding these qualifying causes of delay helps project teams handle claims correctly and avoid disputes.
These are delays outside the contractor’s control. Common causes include inclement weather, site access issues, changes in law, or force majeure events like flooding or bushfires. In capital works, this might include flood damage on a transport upgrade site.
These are delays caused by the contractor’s own actions or failure to perform. They don’t qualify for EOTs or compensation and may result in liquidated damages. These delays fall entirely on the contractor’s risk.
Examples:
Compensable delays are caused by the principal (or their consultants). These may entitle the contractor to both an extension of time and additional costs.
Examples:
Contractors must show both the cause and the impact on the project’s critical path.
Concurrent delays happen when both the contractor and principal contribute to a delay during the same timeframe. They are complex and often disputed.
Examples:
Most contracts have rules for how concurrent delays affect time and cost entitlements. Some allow time but no costs. Others reduce or split entitlement based on fault and impact.
Construction contracts set out strict rules for how and when an Extension of Time (EOT) can be claimed. These rules exist to manage delay risk, allocate responsibility, and prevent disputes. Contractors must follow them closely. Failure to comply can result in lost entitlements, even if the delay isn’t their fault.
Most standard form contracts, such as AS 4000, AS 2124, FIDIC, or GC21, contain clauses that outline the qualifying causes of delay, often called relevant events or delay events. These may include latent conditions, client variations, inclement weather, industrial action, or force majeure.
It also stipulates the notification process, which usually requires:
The contract also outlines the need for supporting evidences, such as site records, photos, correspondence, and schedule analysis (e.g., delay to critical path activities).
In some capital works contracts, like public infrastructure frameworks, failure to lodge a proper claim on time may automatically bar the contractor from any extension or related compensation.
Timing is one of the most enforceable aspects of extension of time provisions. Most contracts include a time bar, which sets a hard deadline for the contractor to submit a notice and claim.
For example, under AS 4000, a contractor must give a written claim within 28 calendar days of when the delay became known, or risk losing the right to an extension of time entirely.
If the contractor misses that deadline, even by one day, they may become liable for liquidated damages or breach the contract. Courts generally enforce these clauses strictly, even if the delay was outside the contractor’s control.
Contracts may approach timing in two ways:
1. Time is of the essence: Deadlines are contractually critical. Any failure to meet the completion date without a valid extension of time can lead to serious consequences, typically liquidated damages or termination. For instance, a contractor on a high-rise commercial project is expected to deliver by a fixed date due to tenant move-in deadlines. A one-week delay without a granted extension of time triggers $10,000/day in liquidated damages.
2. Reasonable time: The contract doesn’t treat deadlines as absolute but expects the contractor to complete works within a reasonable period. This often applies when an EOT clause is loosely drafted or silent. While “reasonable time” offers flexibility, it also introduces uncertainty. Disputes often arise over what is considered “reasonable” under the circumstances.
Time becomes "at large" when the contract no longer contains an enforceable date for completion. This usually happens when:
Once time is at large, the contractor is no longer bound to the original completion date. Instead, they must complete the works in a reasonable time. This sounds favorable, but it’s risky. It removes certainty from both parties and often leads to disputes over performance, liability, and whether further damages apply.
For example, on a major road duplication project, if the authority delays site possession but doesn’t process the contractor’s extension of time claim, the contract may shift to time at large. The contractor could argue they now have a reasonable but undefined time to finish.
When an Extension of Time is granted, it directly shifts the project’s contractual timeline. That change affects other parts of the contract, including liability for delays, payment schedules, and the handling of defects. If an extension of time isn’t granted when one is due, the contractor may be unfairly penalized or pushed into a dispute.
EOTs protect the contractor from construction liquidated damages. If the completion date is extended, the principal can’t apply daily penalties during the approved extension period. But if no extension of time is granted, even for delays outside the contractor’s control, liquidated damages may still apply. This can lead to claims and disputes.
The extension of time shifts the official date for practical completion. This matters because many other contractual obligations tie back to this date. A new completion date means a new reference point for determining delays, certifications, and when possession returns to the client.
An extension of time can push out time-based payment milestones. This affects when the contractor can submit progress claims or trigger stage payments. In lump sum contracts or schedule-of-rates contracts, cash flow planning depends on these milestones being adjusted in line with the revised timeline.
Both retentions and the start of the defect liability period usually relate to the date of practical completion. When an extension of time shifts that date, it delays the release of retentions and the beginning of the defect period. This impacts both contractor cash flow and the client’s ability to close out the project.
An extension of time doesn’t automatically entitle the contractor to cost recovery. Many contracts separate time and cost. The contractor may need to submit a separate claim for prolongation costs, such as site overheads or extended preliminaries. Cost recovery is usually only possible for compensable delays caused by the client or principal.
An approved extension of time can affect the client’s downstream plans. Delayed completion may impact tenant move-ins, funding drawdowns, or public launch dates. It can also increase holding costs or consultant fees. Clients must assess how time shifts affect project risk, budget, and stakeholder expectations.
Filing an extension of time claim is a structured process designed to adjust the project's completion date when delays occur due to valid reasons. Here's a step-by-step guide to help you navigate it effectively:
The first step in filing an extension of time claim is to review your contract thoroughly. Most construction contracts clearly outline the conditions under which an extension of time claim can be made. This commonly includes the documentation required and the submission deadlines.
For instance, your contract may specify that you must submit a notice of delay within seven days of the delay occurring. Missing this deadline can invalidate your claim, so it's essential to understand the terms upfront.
💡Pro tip: Use a simple Extension of Time Register Template to log delays, deadlines, and notices all in one place.
Next, determine the specific reason for the delay. Is it due to adverse weather, latent conditions like hidden underground utilities, or changes requested by the client? The cause of the delay must align with the scenarios covered by the contract.
For example, if heavy rain prevented excavation work for several days, you need to explain how this affected the project timeline. A clear connection between the cause and the delay's impact is critical.
Once you identify the cause, notify stakeholders without delay. A formal notice of delay should include the date, the reason, and the anticipated impact on the project schedule.
For example, you might write, "Heavy rainfall from November 10th to 12th caused a delay in excavation activities, leading to a projected two-day shift in the project's critical path."
If you're unsure how to structure a proper notice, check out this helpful guide on How to Write an Extension of Time Claim.
After issuing the notice, analyze the delay's effect on the overall project schedule. Focus on the critical path to determine how much additional time is required to complete the project.
Use Gantt charts, construction project management software, or delay analysis techniques to illustrate these impacts. If the delay requires specialized analysis, consider consulting scheduling experts to support your findings with professional input.
With your analysis in hand, prepare a detailed claim document. This should include an explanation of the delay, evidence such as photos, weather reports, or correspondence, and an updated project schedule reflecting the adjusted timelines.
For instance, if regulatory approvals were delayed by ten days, you must demonstrate how this delay affected subsequent activities and milestones. A well-organized, fact-based claim increases your chances of a favourable outcome.
Ensure your claim is submitted within the timeframe specified in the contract. Missing this deadline, even for a valid claim, can result in rejection. Double-check the submission requirements and attach all necessary documentation before submitting.
Even valid delays can be rejected if the extension of time claim doesn’t follow contract rules. Many claims fail because of simple but critical site-level errors.
To support an Extension of Time (EOT) claim, contractors must demonstrate how a delay impacted the project’s critical path. This often requires using structured delay analysis techniques. These methods help quantify the effect of delay events and are widely recognized in dispute resolution, contract administration, and expert evidence.
This method compares the original baseline program (as-planned) against the actual schedule performance (as-built). It maps out the sequence and duration of activities and highlights where actual progress deviated from expectations.
It's often used in simple projects or early-stage disputes. However, it does not always consider logic changes, out-of-sequence work, or re-sequencing that may have occurred during execution. It also struggles to separate a concurrent delay or isolate causation when multiple events overlap.
💡 Use case: Suitable for straightforward projects with minimal changes or when limited scheduling data is available.
Time Impact Analysis models the insertion of a delay event into an accepted baseline or updated program. The contractor introduces the event as a new activity or logic change and measures its effect on the project’s remaining duration, typically using critical path method (CPM) scheduling software like Primavera P6 or MS Project.
It is often used prospectively while the project is still underway but can also be applied retrospectively. TIA is one of the most contractually accepted methods under AS 4000, AS 4902, and FIDIC forms, especially when the contract requires demonstrating delay impact at the time of the event.
💡 Use case: Best suited for real-time analysis of ongoing delays, particularly when timely notice and program updates are part of the contract.
Windows analysis (also known as “periodic update” or “contemporaneous period” analysis) divides the project timeline into “windows” or time periods, which are often monthly or linked to program updates. Within each window, analysts assess actual progress, delays, and changes to the critical path.
It requires a detailed project record and a well-maintained baseline and update history. This method accounts for shifting critical paths and allows for an in-depth breakdown of delay responsibility between parties over time. It is highly regarded in expert reports and formal dispute processes.
💡 Use case: Ideal for large-scale infrastructure or capital works projects with complex phasing, multiple delay events, and high-quality scheduling records.
This method involves taking the original baseline schedule and inserting known delay events into it to forecast their likely impact on completion. It does not rely on actual progress data, which makes it a hypothetical or modeled approach.
While simpler than TIA, it can be seen as one-sided if not balanced with as-built data. It assumes the project would have progressed exactly as planned, which is rarely the case. As a result, tribunals and adjudicators may view it with caution unless supported by strong contemporaneous evidence.
💡 Use case: Often used early in claims preparation or on projects with limited progress, where a full as-built record is not yet available.
If a superintendent or contract administrator denies an extension of time claim, the contractor may face liquidated damages or be seen as in breach of contract. In some cases, disputes escalate into formal resolution processes.
Managing Extension of Time claims manually increases the risk of missed deadlines and incomplete records. Digital tools help streamline the process, reduce errors, and keep projects on track.
💡 Pro tip: Mastt helps project teams stay ahead of EOT risks with real-time tracking, delay insights, and automated claim workflows, so you can focus on delivery, not paperwork.
Delays are a fact of life in construction, but they don't have to derail your project. Understanding how an extension of time works, keeping clear communication, and using the right tools can help you handle delays and keep the project on track.
Remember, the key to EOT success is preparation, documentation, and collaboration. So, next time a delay looms, you'll be ready to navigate it confidently and maybe even finish ahead of your newly adjusted schedule!
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