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How Do Extension of Time Claims Work in London Construction?

Extension of Time (EoT) claims allow contractor additional time for completion when delay is caused by client, force majeure, statutory issues, or other 'relevant events' specified in contract. Contractor must notify within contract timeframe (typically 14 days); submit detailed cause-effect analysis; CA assesses and certifies extension. Successful EoT: removes liability for Liquidated Damages (LADs). Common London causes: planning condition delays, party wall awards, archaeological discoveries, statutory connection delays.

01

What is Extension of Time

EoT is contractual mechanism allowing contractor additional time to complete works when delay is not contractor's responsibility. Without EoT, contractor liable for Liquidated Ascertained Damages (LADs) — pre-agreed daily sum payable to client for late completion (typically £150–£950/day on London residential). EoT extends completion date by agreed period; LADs not payable for extended period. Critical for both parties: contractor avoids LADs liability; client retains LADs entitlement for genuine contractor delay. Contract specifies 'relevant events' that justify EoT — typically: client-caused delays (variations, late information), force majeure (extreme weather, fire, flood), statutory delays (planning conditions imposed late, statutory connection delays), unforeseen ground conditions (provisional sums covering some, others triggering EoT), strikes affecting industry-wide. JCT contracts have detailed relevant events list; bespoke contracts vary.

02

Common London EoT causes

(1) Planning condition delays: planning approval received late or with onerous conditions requiring re-design. Common when application is delayed by overstretched LPA or amended during consideration. (2) Party Wall Award delays: party wall surveyor process can extend 6–14 weeks beyond client-anticipated. Notices served late, neighbour disputes, schedule of condition surveys. (3) Statutory connection delays: water, gas, electricity, drainage connections by utility companies — typical 8–16 week lead times; sometimes 6+ months in central London. (4) Archaeological discoveries: in conservation areas or sensitive sites, foundation excavation can reveal archaeological remains triggering statutory archaeological recording (1–8 weeks). (5) Listed Building Consent issues: LBC conditions imposed late, conservation officer changes during build, materials approval delays. (6) Asbestos discoveries: typically dealt with under provisional sums, but extensive asbestos found can extend programme by 4–10 weeks. (7) Adverse weather: extreme rain, frost, snow preventing concrete pouring or external works.

03

EoT claim process

Contractor process: (1) Notify CA immediately on event occurrence (typically within 14 days under JCT). (2) Submit detailed claim — cause-effect analysis showing programme impact; supported by programme records, photographs, correspondence. (3) Update programme reflecting extended completion. (4) CA assesses claim — verifies cause is 'relevant event'; assesses programme impact; consults engineer or QS. (5) CA issues extension certificate or rejection. (6) Disputes: refer to JCT adjudication if unresolved. Best practice for contractor: maintain detailed programme records (daily site diary, photographs, weather data); raise EoT immediately not retrospectively; quantify impact clearly. Best practice for client/CA: monitor programme during build; respond to EoT claims promptly; document basis for any rejection clearly. Late EoT claims (raised at final account) typically fail — programme records absent, cause hard to establish.

04

Implications and LADs interaction

Successful EoT extends completion date by certified period. LADs not payable during extension period. Costs during extended period (preliminaries, supervision): typically contractor cost unless EoT specifically grants loss and expense claim (separate from EoT). Example: 8-week EoT granted; contractor avoids 8 weeks × £450/day LADs = £25,200. Contractor's own preliminaries cost during extension £18,000 — borne by contractor (unless loss and expense claim approved). Loss and expense claims: contractor recovery for client-caused delay costs — separate from EoT, requires detailed substantiation. Less common in domestic contracts. LADs cap: many contracts cap LADs at 5–10% of contract sum to avoid disproportionate penalty. Client cannot increase LADs above contract figure without further agreement. LADs serve as liquidated damages, not unliquidated — actual loss not relevant once LADs paid.

More questions

Related questions answered.

What happens if my builder is late?

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Without EoT: contractor liable for LADs at contracted daily rate from completion date until actual completion. CA certifies amount payable. Client can withhold from final payment up to LADs limit. With EoT: completion date extended; LADs not payable during extension; remaining late period after extension still LADs-applicable. Verify CA has properly assessed EoT before applying LADs.

Can I claim my own delays as EoT?

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Client-caused delays: yes, contractor entitled to EoT for client late information, design changes, late variations. Client must release contractor from LADs liability for client-caused delay. Common conflict: client claims contractor caused delay; contractor claims client. Resolution: contract administrator independent assessment; documentation; if unresolved, adjudication.

What's the LADs rate?

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Negotiated at contract signing — typical London residential £150–£950 per calendar day. Higher for: time-critical projects (sale or move-in deadline), commercial loss caused by delay, premium properties. Cap typically 5–10% of contract sum. Negotiate at contract: client wants higher LADs; contractor wants lower. LADs must be 'genuine pre-estimate of loss' — penalty clauses unenforceable in court.

What if planning conditions cause delay?

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Late planning conditions are 'relevant event' under most contracts — contractor entitled to EoT. Process: contractor demonstrates planning approval received later than expected; CA assesses programme impact; EoT certified. Liability for additional costs (re-design fees, material changes) typically client's unless specifically allocated otherwise. Best practice: confirm planning conditions at earliest opportunity; avoid late changes.

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