What is an extension of time (EOT) in a construction contract?
An extension of time is the contractor's right, set out in the contract, to a later completion date when delay is caused by something the contract treats as the client's risk, such as late drawings or instructed changes.
Also called EOT, EOT claim, time extension.
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Extension of time in plain words
The contractor notifies the client of the cause, within the window the contract gives, and applies for the days it lost. If the client grants the extension, the completion date moves and delay damages cannot be charged for those days.
Why does extension of time matter?
A granted extension stops delay damages from running on the extended days. A missed one leaves the contractor paying for a delay it did not cause.
Where does extension of time mislead?
Notice windows and the list of qualifying causes differ by contract, and a late notice can lose the claim. An extension of time gives more time, and does not by itself give more money, which is a separate cost claim under the contract.
What do people get wrong about extension of time?
- Notifying after the window
- Many contracts treat late notice as a bar to the claim. The date that matters is when the cause arose, not when the delay finished.
- Assuming time brings money
- The extra days and the extra cost are claimed separately. A granted extension with no cost claim leaves the contractor carrying the overhead.
How does Crestline measure extension of time?
Crestline measures an extension claim from the date the cause arose and shows its status next to the delay damages it would offset.
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