Qs 004 Module 4 Compilation
Qs 004 Module 4 Compilation
0 Intended Learning Outcomes (ILO's) : QS 004-CE41S1C - Contract Practice and Administration including Cost Reporting
Proprietary Clause
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12/8/22, 3:02 PM 4.1 Claims - Extension of Time: QS 004-CE41S1C - Contract Practice and Administration including Cost Reporting
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Claims - Extension of Time
Introduction to the Topic:
Delays happen on almost every construction project. Contractors lose time and money
waiting on project owners or dealing with events out of their control. If the cause of the
delay is out of the contractor’s control, they can make a claim to extend the contract
time. This is called an extension of time claim, or EOT claim. Most of the time
contractors will only receive an extension of the schedule, and won’t be reimbursed for
additional costs, but each situation is different.
A request for a change in the scheduled completion date due to a delay that is not the
contractor’s fault. The delay could be caused by natural events, owner delays, or other
unexpected occurrences.
The process for filing an EOT claim is often outlined in the contract between the owner
and general contractor. Subcontractors are bound by the terms of their contract with
the GC. Most often these terms require a written notice of delay and an official claim
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12/8/22, 3:02 PM 4.1 Claims - Extension of Time: QS 004-CE41S1C - Contract Practice and Administration including Cost Reporting
with backup documentation, which is reviewed by the owner or GC. If the extension is
approved, a change order is issued.
EOT claims must establish the cause and liability for additional costs or schedule
delays, along with the extent of the damages or disruption.
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12/8/22, 3:02 PM 4.1 Claims - Extension of Time: QS 004-CE41S1C - Contract Practice and Administration including Cost Reporting
1. Weather delays
Most significant weather events will be covered under an EOT claim. However, if an
event could have been foreseen, such as during hurricane season, contractors may be
required to take some measures to protect themselves from a delay before making a
claim.
Any natural event (or “Act of God”) that causes a delay — like the effects of an
earthquake — may be covered by an EOT claim.
Force majeure specifcally occurs “when superior external forces such as a storm or a
natural disaster affect a project participant’s ability to successfully complete their
responsibilities in full or in a timely manner on a construction project.”
3. Pandemics
During 2020 and early 2021, many construction sites were forced to deal with
shutdowns and stay-at-home orders. In most cases, the pandemic was interpreted as
a force majeure, and EOT claims covered these delays.
4. Terrorist attacks
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If a terrorist attack affects the job site or access to the job site, you may be able to file
an EOT claim for the delay.
Any delay directly caused by the project owner is covered by EOT claim.
The answer is: It depends. Compensation for delays will depend on the terms of the
contract.
In “no damages for delay” clauses, and may or may not be enforceable depending on
state statute. They generally state that contractors cannot be paid for any additional
expenses tied to a delay, they only get a contract extension.
In cases where the force majeure clause applies, contractors may not be eligible for
added costs. This is based on the idea that everyone is paying for the delay in some
way, so it’s not fair to compensate one party over another.
In cases where a delay is compensable — like when the owner has caused the delay
— contractors can only recover costs directly tied to the delay.
It’s especially important that you read and understand the contract and know the terms
that govern extension of time claims.
There are generally two notices that need to be sent for an EOT claim: a notice of
delay and the extension of time claim itself.
A notice of delay is fairly simple. It can be sent in the form of a letter or email, and it
explains the event that has occurred and how long of a delay is expected. The
extension claim is sent once all costs have been determined and includes evidence of
the event and its effect on the project.
If the EOT claim is not sent within the required timeline, the contractor may give up the
right for further extension claims or damages related to the event.
3. Document everything
Submitting an EOT claim requires documentation of the cause of the delay, its effect
on the project, and any costs related to it.
Keeping track of the project schedule allows you to show the effects of a delay on the
critical path of the project. This evidence is important when submitting an EOT claim.
Once the extent of the delay and damages are known, submit a change order request
to the GC or owner that documents the cause of the delay and the costs associated.
This can be submitted with the EOT claim, and helps ensure that it gets addressed in
a timely fashion.
In the course of a long delay, more than one EOT claim may need to be submitted. If
that’s the case, it’s important to continue communication with the owner or GC and let
them know of the effects of the delay and whether further claims will be filed.
End of Discussion.
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Reference:
Uniform General Conditions of Contract for Private Construction – CIAP DOC 102
Proprietary Clause
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Contract Practice and Administration
including Cost Reporting
(QS 004)
Claims – Extension of Time
Module 4
Intended Learning Outcomes
• Weather delays
• Acts of God and Force majeure
• Pandemics
• Terrorist attacks
• Delays caused by the project owner
Does a contractor get paid for an EOT
claim?
Does a contractor get paid for an EOT claim?
Document everything
Tips for a successful EOT Claim