Guidance on Extension of Time in Construction Contracts

Guidance on Extension of Time in Construction Contracts

Shubham Singh1, Chitesh Thakre2, Amit Kumar3

1Contracts and Claims, Larsen and Toubro Limited, Faridabad, 121003, India (ACIArb, YIAG-LCIA, YSIAC, YAAF-ICC)

2 Contracts Dept., G R Infraprojects Limited, Gurugram, 122015, India.

3 Contracts Dept., G R Infraprojects Limited, Gurugram, 122015, India.

Abstract : This paper provides an introduction to the concept of extension of time in construction contracts and explores the ideal way to formulate extension of time proposals. Construction projects often face unforeseen delays and disruptions, which may lead to the need for additional time to complete the project. Extension of time provisions in construction contracts provide a mechanism for the parties to adjust the contract completion date to account for these delays. Mostly, the disputes (like compensation for extended stay, LDs, price variation, escalation etc.) start after the Contractor’s proposal for EOT. This paper examines the key principles of extension of time provisions, including the types of events that may entitle the contractor to an extension of time, the procedural requirements for making a claim, and the standard of proof required to establish entitlement. The paper also discusses the factors that should be considered when formulating an extension of time proposal, including the scope of the delay, the impact on other project activities, and the potential cost implications. By following a structured and systematic approach to formulating extension of time proposals, the parties can avoid disputes and ensure that the project is completed on time and within budget.

Keywords Extension of time (EOT), Construction Contracts, Contract, Contractor, Delay analysis, Claim, Dispute.