12/8/22, 3:01 PM 4.

0 Intended Learning Outcomes (ILO's) : QS 004-CE41S1C - Contract Practice and Administration including Cost Reporting

4.0 Intended Learning Outcomes (ILO's)

Intended Learning Outcomes:

At the end of the session the students should be able to:

1. Understand the Extension of Time

2. Identify the valid reason for an extension of time claim

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12/8/22, 3:02 PM 4.1 Claims - Extension of Time: QS 004-CE41S1C - Contract Practice and Administration including Cost Reporting

4.1 Claims - Extension of Time

c
Claims - Extension of Time
Introduction to the Topic:

Delays happen on almost every construction project. Contractors lose time and money
waiting on project owners or dealing with events out of their control. If the cause of the
delay is out of the contractor’s control, they can make a claim to extend the contract
time. This is called an extension of time claim, or EOT claim. Most of the time
contractors will only receive an extension of the schedule, and won’t be reimbursed for
additional costs, but each situation is different.
 

EXTENSION OF TIME (EOT)

A request for a change in the scheduled completion date due to a delay that is not the
contractor’s fault. The delay could be caused by natural events, owner delays, or other
unexpected occurrences.

The process for filing an EOT claim is often outlined in the contract between the owner
and general contractor. Subcontractors are bound by the terms of their contract with
the GC. Most often these terms require a written notice of delay and an official claim

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12/8/22, 3:02 PM 4.1 Claims - Extension of Time: QS 004-CE41S1C - Contract Practice and Administration including Cost Reporting

with backup documentation, which is reviewed by the owner or GC. If the extension is
approved, a change order is issued.

EOT claims must establish the cause and liability for additional costs or schedule
delays, along with the extent of the damages or disruption.

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12/8/22, 3:02 PM 4.1 Claims - Extension of Time: QS 004-CE41S1C - Contract Practice and Administration including Cost Reporting

Valid reasons for an extension of time claim

1. Weather delays

Most significant weather events will be covered under an EOT claim. However, if an
event could have been foreseen, such as during hurricane season, contractors may be
required to take some measures to protect themselves from a delay before making a
claim.

2. Acts of God and Force majeure

Any natural event (or “Act of God”) that causes a delay — like the effects of an
earthquake — may be covered by an EOT claim.

Force majeure specifcally occurs “when superior external forces such as a storm or a
natural disaster affect a project participant’s ability to successfully complete their
responsibilities in full or in a timely manner on a construction project.”

3. Pandemics

During 2020 and early 2021, many construction sites were forced to deal with
shutdowns and stay-at-home orders. In most cases, the pandemic was interpreted as
a force majeure, and EOT claims covered these delays.

4. Terrorist attacks

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12/8/22, 3:02 PM 4.1 Claims - Extension of Time: QS 004-CE41S1C - Contract Practice and Administration including Cost Reporting

If a terrorist attack affects the job site or access to the job site, you may be able to file
an EOT claim for the delay.

5. Delays caused by the project owner

Any delay directly caused by the project owner is covered by EOT claim.

Does a contractor get paid for an EOT claim?

The answer is: It depends. Compensation for delays will depend on the terms of the
contract.

In “no damages for delay” clauses, and may or may not be enforceable depending on
state statute. They generally state that contractors cannot be paid for any additional
expenses tied to a delay, they only get a contract extension.

In cases where the force majeure clause applies, contractors may not be eligible for
added costs. This is based on the idea that everyone is paying for the delay in some
way, so it’s not fair to compensate one party over another.

In cases where a delay is compensable — like when the owner has caused the delay
— contractors can only recover costs directly tied to the delay.

These costs may include things like:

Project management time

Supervision time
Overhead costs
Loss of use, rents, or profits
Insurance costs
Construction loan interest

Contractors will have to provide documentation to substantiate any additional costs

they are requesting compensation for.

Tips for a successful EOT Claim

1. Read your contract

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12/8/22, 3:02 PM 4.1 Claims - Extension of Time: QS 004-CE41S1C - Contract Practice and Administration including Cost Reporting

It’s especially important that you read and understand the contract and know the terms
that govern extension of time claims.

2. Send notices on time

There are generally two notices that need to be sent for an EOT claim: a notice of
delay and the extension of time claim itself.

A notice of delay is fairly simple. It can be sent in the form of a letter or email, and it
explains the event that has occurred and how long of a delay is expected. The
extension claim is sent once all costs have been determined and includes evidence of
the event and its effect on the project.

If the EOT claim is not sent within the required timeline, the contractor may give up the
right for further extension claims or damages related to the event.

3. Document everything

Submitting an EOT claim requires documentation of the cause of the delay, its effect
on the project, and any costs related to it.

4. Keep an up-to-date schedule

Keeping track of the project schedule allows you to show the effects of a delay on the
critical path of the project. This evidence is important when submitting an EOT claim.

5. Submit a change order

Once the extent of the delay and damages are known, submit a change order request
to the GC or owner that documents the cause of the delay and the costs associated.
This can be submitted with the EOT claim, and helps ensure that it gets addressed in
a timely fashion.

6. Follow up on a long delay

In the course of a long delay, more than one EOT claim may need to be submitted. If
that’s the case, it’s important to continue communication with the owner or GC and let
them know of the effects of the delay and whether further claims will be filed.
 

End of Discussion.

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Reference:

Uniform General Conditions of Contract for Private Construction – CIAP DOC 102

The International Federation of Consulting Engineers; Fédération Internationale des

Ingénieurs – Conseils) Suite of Contracts

RICS.Cost Reporting: Royal Institution of Chartered Surveyors (RICS)

 

For more references, kindly check TIP Online Resources

TIP Library (https://www.tip.edu.ph/library.html)

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Property of the Technological Institute of the Philippines (T.I.P.). No part of the

materials made and uploaded in this learning management system by T.I.P. may
be copied, photographed, printed, reproduced, shared, transmitted, translated
or reduced to any electronic medium or machine-readable form, in whole or in
part, without prior consent of T.I.P.

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Contract Practice and Administration
including Cost Reporting
(QS 004)
Claims – Extension of Time

Module 4
Intended Learning Outcomes

By the end of this module, the students should be able to:

• Understand the Extension of Time

• Identify the valid reason for an extension of time claim
Extension of Time (EOT)
Extension of Time (EOT)

A request for a change in the scheduled completion date due to a

delay that is not the contractor’s fault. The delay could be caused
by natural events, owner delays, or other unexpected occurrences.

The process for filing an EOT claim is often outlined in the

contract between the owner and general contractor.
Subcontractors are bound by the terms of their contract with the
General Contractor. Most often these terms require a written
notice of delay and an official claim with backup documentation,
which is reviewed by the owner or General Contractor. If the
extension is approved, a change order is issued.
Valid reasons for an extension of time
claim
Valid reasons for an extension of time claim

• Weather delays
• Acts of God and Force majeure
• Pandemics
• Terrorist attacks
• Delays caused by the project owner
Does a contractor get paid for an EOT
claim?
Does a contractor get paid for an EOT claim?

It depends. Compensation for delays will depend on the terms of

the contract.
In “no damages for delay” clauses, and may or may not be
enforceable depending on state statute. They generally state that
contractors cannot be paid for any additional expenses tied to a
delay, they only get a contract extension.
Tips for a successful EOT Claim
Tips for a successful EOT Claim

Read your contract

Tips for a successful EOT Claim

Send notices on time

Tips for a successful EOT Claim

Document everything
Tips for a successful EOT Claim

Keep an up-to-date schedule

Tips for a successful EOT Claim

Submit a change order

Tips for a successful EOT Claim

Follow up on a long delay