Extension of Time Contracts

October 28, 2020

Behind schedule but there is so much construction work to do? If the delay is not your fault, you can request an extension of time in accordance with your construction contract.

Consult with our Construction Lawyer in Melbourne now to learn more how. First Consult is FREE.

Extending Contract Time in Construction

Delays and other unforeseen circumstances can always happen in the construction site. There are a lot of factors that can happen during construction that can lead to delay. For these instances, you could request an extension of time in your contracts.

Making a formal request for an extension of time is a way to have an additional time period to make up for losses due to the delay. Respective construction laws permit such requests for numerous valid reasons. The process for requesting extension of time also depends on your contract’s clauses regarding time frames.

The important thing is, you must inform the other contracting parties about your time extension request. Otherwise, this could be grounds for a contract dispute.

Acceptable Grounds for Extension of Time

Some acceptable grounds for requesting an extension of time would be:

Ongoing building disputes;
Delays in the delivery of goods and services;
The client has personally asked you and you agreed to start work at a later time;
The client has requested variations in your work and would take additional time;
The construction site has experienced bad weather conditions ;and
Any other reasons deemed reasonable by the builder or head contractor.

You must be able to prove that you have been carrying out work diligently as a contractor of the project. You must be prepared to show sufficient documents and other evidence that the delay was caused by external factors.

Time Clauses in a Construction Contract

Time clauses in construction contracts differ from contract to contract. The contract time clauses can refer to either the whole duration of the contract or in the duration of each project milestone.

Different types of contracts have different time clauses which include:

Fixed-Price Contract

Also known as a fixed-price lump sum contract, this is a type of contract with a fixed contract price and time. While the details of the contract should be fixed even before construction, you can still add variations to it.

Cost Plus Contract

This is a type of contract that is used for projects with anticipated costs but can’t be foreseen at the start of the project. The client reimburses the expenses in the contract along with an additional profit margin during the end of the contract.

Major Domestic Building Contract

If there are contract terms in your projects that could benefit from a custom-made contract such as bespoke projects, it is better to talk it through your construction lawyer first to make it suit your best interest.

Customized Construction Contracts

If there are contract terms in your projects that could benefit from a custom-made contract such as bespoke projects, it is better to talk it through your construction lawyer first to make it suit your best interest.

Who can request an EOT Contract?

You can file a request of extension of time addressed to your head contractor. You must submit this request to your contract administrator, and let the builder and client decide.

If they deem your reason valid, you can proceed on working on this extended time period and make up for delays.

How to Request for an Extension of Time?

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

The notice where you previously informed of a possible delay;
The time when the delay happened;
The events that led to the delay;
The works that are affected by the delay;
The increase or decrease to the cost of materials due to the delay;
What preventive measures you did;and
Proposed solutions to make up for the delay.

Don’t forget to attach the supporting documents that can strengthen your request to extend the time and continue work. Your client and the project manager have the decision of whether to accept your request or not.

Helping you with EOT and Construction Contracts

Contracts Specialist’s construction lawyers in Melbourne can help you communicate sudden turn of events or other changes in your construction contract. Whether it is informing your builder with time or money changes, you can only get expert legal advice on your EOT and contracts.

We can help you get through the legal process needed to enforce your rights properly. We can also give assistance on how to draft your extension of time request letter properly so you will be given extra time to work on the project without going through a contract dispute.

Download Sample Extension of Time Template.

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

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