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What is an extension of time (EOT) in a subcontract?

An extension of time, or EOT, moves your completion date later for a delay your subcontract lists as grounds for more time.

Updated: . By Jack Butler-Kettle, Construction Claims Consultant.

The answer

Delay damages are then counted from the new date, not the original one. So an EOT is usually worth more to you than any argument about the charge. What people call an EOT claim is mostly paperwork, and the paperwork decides it. First, notify the delay once it becomes apparent, in the form and to the person your subcontract names. Then send particulars: the cause, the dates, the work affected and your estimate of the effect on your completion date. Update them as things change, and keep the records that prove each one. Some subcontracts make the notice a condition of any extension, so a late notice can lose the time altogether. An EOT gives you time, not money. The cost of the delay is claimed separately, as loss and expense or by whatever route your subcontract gives. Where your own delay runs alongside your main contractor's, you may get the time but not the money. How many days an event is worth is for a programming expert. Delay Damages Prevention sets up the notices and records that get the extension decided.

Example

Illustrative example. The scenario and figures are invented.

The facts

A mechanical subcontractor is held up by a late plant room handover. Its subcontract requires notice forthwith and particulars within 14 days, and sets damages at £3,500 a week.

What happens

  1. The notice goes out the day the late handover is confirmed, naming the plant room, the cause and the start date.
  2. Particulars follow on day 10, with the handover dates from the access log and the work the gang could not start.
  3. An update 2 weeks later puts the effect at 3 weeks, as the handover slips again.
  4. The main contractor grants a 3-week extension of time.

The outcome

The job finishes 3 weeks late, against a completion date moved by 3 weeks. No damages are charged, where 3 weeks at £3,500 would have cost £10,500.

To have every delay notified and every extension of time applied for in time, see our Delay Damages Prevention service.