Extension of Time (EOT)

An extension of time — or EOT — is the contractor's mechanism for getting more time when things outside their control delay the project. Rain that exceeds historical averages, design changes directed by the principal, late access to the site, even global pandemics — these can all be qualifying causes for an EOT.

Why does this matter to a developer? Because the contract completion date isn't just a target — it's a legally binding obligation with financial consequences. If the contractor finishes late without an approved EOT, they owe you liquidated damages (LDs). But if they have a valid EOT that you failed to assess properly, those LDs are unenforceable.

The EOT process is time-sensitive. Most contracts require the contractor to give notice within a set number of days of the delay occurring. The superintendent then has to assess the claim and either approve days, reject the claim, or approve a different number of days. Every step needs to be documented.

For developers, EOTs also have cash flow implications. A longer construction period means extended holding costs — interest on your development finance, extended prelims, and potentially delayed settlement income. Even a two-week extension can cost tens of thousands on a leveraged project.