Construction Lawyer & Building Solicitors Sydney | Contracts Specialist Law Firm

Extension of Time in Construction Contracts

Running out of time but there is so much construction work to do? If the delay is not your fault, you can request for an extension of time in your contract.

Consult with Contracts Specialist now to know more how.

First Consult is FREE.

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Extending Contract Time

Delays can always happen. There are a lot of factors that can happen during the construction phase that can lead to a delay. If the delay is not caused by the contractor, then an extension of time (EOT) can be applied.

This extension of time is a formal request for an additional time period that can make up for delay losses. This is permitted by the law for numerous valid reasons and depending on your contract’s time clause.

What is more important is that you must inform the other contracting parties about your time extension or you may be in a contract dispute.

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Reasonable Grounds for Extension of Time

Some of the acceptable reasons to request an extension of time would be:

  • Ongoing legal disputes;
  • Delays in the delivery of important goods;
  • The client has personally asked you to start work at a later time;
  • The client has requested variations in your scope of work;
  • You have been working in unexpectedly bad weather conditions and;
  • Other reasons deemed reasonable by the builder or head contractor.

You must be able to prove that you are performing well in your work as a contractor. You must be prepared to show sufficient evidence that the delay was caused by external factors and not your underperformance.

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Time Clauses in a Contract

Time clauses differ from contract to contract. The contract time clauses can refer to either the whole duration of the contract or in the duration of milestones.

But then, there are different types of contracts and they can have different time clauses. The common types are:

Lump Sum Contract

First, you would have to apply for litigation to the relevant court or tribunal that can tackle your case. The other party or the respondent should have a copy of your application or claim.

Cost Plus Contract

This a type of contract that is used for projects with costs that are unpredictable in advance. The client reimburses the expenses in the contract alongside an additional profit margin during the end of contract.

Small Jobs Contract

These are contracts for jobs with prices that ranges from $5,000 to $20,000. These can be paid as per milestones or in full.

Large Jobs Contract

These are home building contracts that costs above $20,000. These contracts require you to have insurance, an understanding of the Consumer Building Guide, and a clause dedicated for dealing with contract variations.

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Who can request an Extension of Time?

As a contractor, you can file a request of extension of time address to your head contractor. You must submit to the one responsible for contract administration, and let the builder and client decide.

If your reason is deemed valid, you can proceed with claiming the extended time period to make up for delays.

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How to Request for an Extension of Time?

Requesting for an extension of time starts through writing a letter of request attached with supporting documents. Your letter must contain the number of additional days you would need to complete work. It must include the details of the delay such as:

  • The time when the delay happened;
  • The notice where you previously informed of a possible delay;
  • The materials it costs;
  • The events that led to the delay;
  • The events affected by the delay;
  • What measures did you do to prevent the delay and;
  • Alternative solutions to make up for the delay.

Don’t forget to attach the respective documents that can support your reasons to extend your time and continue work. The client and the project manager has the final say whether to accept your request or not.

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Helping you with Construction Contracts

Contracts Specialist can help you communicate sudden changes or variations in your construction contract. Whether it is informing your builder with time or cost changes, you can only get expert legal advice.

We can help you understand and get through the legal process needed to enforce your rights properly. We can also give assistance on how to construct your extension of time request letter properly.

It will ensure that you will be given extra time to work on the building without going through a contract dispute.

Schedule a consultation now and enforce your rights. Your first consult is FREE.