Question

During the construction phase of a health-care project, delays not attributed to the

contractor were experienced, but the contractor was delayed in submitting all delay

information required by the contract until 7 days before the contractual completion date,

can the architect issue an extension of time prior to the completion date? Explain.

Answer 1

Extension of time EOT in construction contracts

Construction contracts generally allow the construction period to be extended where there is a delay that is not the contractor's fault. This is described as an extension of time (EOT).

When it becomes reasonably apparent that there is, or that there is likely to be, a delay that could merit an extension of time, the contractor gives written notice to the contract administrator identifying the relevant event that has caused the delay.

If the contract administrator accepts that the delay was caused by a relevant event, then they may grant an extension of time and the completion date is adjusted.

Relevant events may include:

• Variations.
• Exceptionally adverse weather.
• Civil commotion or terrorism.
• Failure to provide information.
• Delay on the part of a nominated sub-contractor.
• Statutory undertaker’s work.
• A delay in giving the contractor possession of the site.
• Force majeure (such as an epidemic or an 'act of God').
• Loss from a specified peril such as flood.
• The supply of materials and goods by the client.
• Strikes.
• Changes in statutory requirements.
• Delays in receiving permissions that the contractor has taken reasonable steps to avoid.

The contractor is required to prevent or mitigate the delay and any resulting loss, even where the fault is not their own.

Assessing claims for an extension of time can be complicated and controversial. There may be multiple or concurrent delays, some of which are the contractor's fault and some not. There are many occasions where contractors contribute to delay themselves by their performance during design periods, when producing drawings, mock ups and samples or in inter-facing with sub-contractors.

Crucial in assessing applications for extension of time is the quality of the information provided and records available

Construction contracts generally allow the construction period to be extended when there is a delay that is not the contractor's fault. This is described as an extension of time (EOT).

When it becomes reasonably apparent that there is, or that there is likely to be, a delay that could merit an extension of time, the contractor gives written notice to the contract administrator identifying the relevant event that has caused the delay.

It is typical for the contractor to notify the project manager when the schedule may be affected by an issue. A formal letter is addressed to the contract administrator requesting the extension of time, presenting the reasons, and referencing the contract clause that allows the request.

Sometimes, contracts may specify the submission of requests within a specific time frame, otherwise they will be rejected. This letter is then assessed by the contract administrator (perhaps with input from the consultant team) before approval or rejection. If it is approved, the letter is given a written answer, and a change order is issued.

Proving delay and/or disruption can be a complicated and time-consuming process, and the quality of the information provided and the records available are often the key to successful claims. The time-extension claim should adequately establish both causation and liability, as well as the extent of the damages/disruption experienced by the contractor as a direct result of the delay.

To be able to do this effectively, the contractor should produce an accurate baseline programme before work begins, for progress to be monitored. The programme should show the planned productivity rates for the different work activities and the various benchmarks. As construction projects are naturally dynamic and subject to change, the programme should be continually updated and revised to reflect the current project conditions.

This can enable the contractor to determine what effect a delay is likely to have on their ability to complete activities, making it easier to prepare their claim