Time is Money
Every contract has a "Date for Practical Completion". If you finish after this date, you are liable for Liquidated Damages (LDs)—a pre-agreed dollar amount per day/week payable to the client for the delay.
To avoid LDs, you must claim an Extension of Time (EOT) when a delay occurs that is not your fault.
Qualifying Causes of Delay
You can't claim an EOT for your own inefficiency. Valid causes usually include:
- Inclement Weather: Rain or excessive heat (must be evidenced by BOM records).
- Variations: Extra work takes extra time.
- Latent Conditions: Unexpected ground issues.
- Industrial Action: Strikes (if not limited to your own workforce).
- Force Majeure: Acts of God, pandemics, war.
The Critical Path
To win an EOT claim, you must demonstrate that the delay impacted the Critical Path. If the tiler is delayed by rain, but the critical path is currently waiting for the window manufacturer, you might not be entitled to an EOT because the project finish date hasn't actually moved.
Advanced Concepts
- Float Ownership: Contracts differ on whether float is for the project or a party; clarify at tender.
- Concurrent Delay: When both parties contribute to delay, apportionment can be complex—document causation and sequence carefully.
- Weather Methodology: Define rain-day thresholds and rely on BOM station data nearest the site.
- Evidence: Program snapshots, site diaries, photos, and subcontractor confirmations underpin successful claims.