In construction, excellent management of schedules and timelines is crucial to a project’s success. However, excellent management does not mean that there will be no unforeseen delays. It simply means that when such delays occur, proper measures must be taken to mitigate their impact.
An Extension of Time (EOT) represents a formal modification to the contract’s completion date, authorised by the principal or their designated representative—typically the Superintendent of the contractor. This adjustment considers delays that are beyond the Contractor’s control and not necessarily anyone’s fault. It allows for a revised project timeline without penalising the contractor for these delays.
In this blog post, we will get into the specific key aspects and considerations related to EOTs, as well as a simple template to follow.
For those newly venturing into construction, understanding the nuances of these roles is not only beneficial but crucial for the success of your project. In this blog post, we shed light on the value each role will bring to your overall vision.
Note: In this post, the terms “Contractor”, “Builder”, and “Construction company” are used interchangeably, as they often are in the industry.
What are Common Delays That Might Allow Extension of Time?
Common reasons for granting an Extension of Time (EOT) include:
- Changes in the scope of work (also known as variations): If there are changes to the original scope of work, this can cause delays in the project. These changes may be initiated by the client or due to unforeseen circumstances.
- Inclement weather conditions: Weather is a major factor in construction projects and can frequently lead to delays. Severe weather events, such as heavy rain and storms can make it unsafe to continue working on-site.
- Supply shortages: Unforeseen delays in receiving essential materials or equipment can significantly impact on the project’s timeline.
- Permit and approval delays: Delays can occur due to problems with permits and approvals. If the necessary permits and approvals are not secured on time, construction work may be held up.
- Design Issues: If there are design flaws, construction may need to pause until it is fixed.
- Labour shortages: The project could take longer to complete if there are not enough workers to finish the job on time.
- Acts of God: Natural disasters such as earthquakes or floods can cause significant delays in a construction project.
It is important to note that each contract may have different provisions for granting an EOT. It is crucial to review the specific terms of the agreement and understand what factors are considered valid reasons for an extension.
How To Request for an Extension of Time?
The Contractor or their Superintendent must formally request an Extension of Time (EOT) by submitting all necessary documentation alongside comprehensive evidence detailing the delays, their effects on the current project schedule, and the rationale behind the contractor’s belief in their entitlement to an EOT. This thorough documentation is essential for the proper evaluation of the request, ensuring a well-informed decision-making process.
The Superintendent or the Principal’s Representative reviews the EOT request according to the contract’s terms and the reasons for the delay. This review includes checking whether the request is valid and whether the contractor mitigated the delay.
How To Write An Extension Of Time?
First, place your construction business logo in your letter’s upper left or upper right corner. This imparts a sense of formality.
Start with the following information:
- Project/Business Name: [Insert Project Name]
- Registered Business Address: [Insert Address]
- Contact Details: [Insert Number or Email]
- Name of Owner/Client: [Insert Client Name]
- Name of Contractor: [Insert Contractor Name]
- Date Issued: [Insert Date]
Start with a summary or heading that outlines the letter’s purpose and include a reference after the greeting. You can cite the specific clause in the Contract that relates to services and the preparation of extension of time requests.
- EOT Reference Number: [Insert EOT Number]
- Contract Reference: [Insert Relevant Contract Clause(s)]
- Previous Adjustments: [Insert Number of Previous Adjustments (if any)]
- Current Adjustment Requested: [Insert Number of Days/Duration]
- Add all necessary details of the EOT.
- Original Date for Practical Completion: [Insert Original Completion Date]
- Previous Adjustments of Time: [Insert Previous Adjustment Days]
- Current Adjustment of Time: [Insert Requested Adjustment Days]
- Total Adjusted Time to Date: [Insert Total Adjusted Time]
- New Date for Practical Completion: [Insert New Completion Date]
- Add the signatures for approval and certification.
- Assessment Status: [Approved/Under Review/Denied]
- Sum Recoverable for Adjustment Costs: [Indicate any costs recoverable (if applicable)]
- Signature (Contractor): _________________________
- Signature (Client/Owner/Architect): _________________________
- Date of Approval: [Insert Date]
What If There Is No Superintendent Present?
In cases where there is no Superintendent present, it is crucial to establish a clear protocol for how the Client or Project Owner can evaluate and respond to requests. By fostering an environment of transparency and collaboration, the Client can confidently agree to, modify, or decline requests, ensuring that decisions are aligned with their overall objectives and standards.
If there is a disagreement about an EOT request, the contract’s dispute resolution procedures can be used to sort it out, including options like negotiation, mediation, and arbitration.
Why Work with a Client-Side Project Manager When You Need An EOT?
EOTs are a valuable tool in construction contracts for handling delays and their effects on projects. They create a clear process for recognising and addressing delays, ensuring fairness for Contractors while keeping the project’s integrity and timelines intact.
As a Project Owner, hiring a Client-Side Project Manager (not to be mistaken for the Contractor’s Project Manager or representative) is crucial in the effective management of Extensions of Time (EOTs) within any construction project. Their role serves as a pivotal link between you, the contractor and all other parties involved. By having a dedicated Client-Side Project Manager, clients can mitigate the risk of disputes arising from misunderstandings or misinformation related to EOT requests.
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