Extension of time clause: what it means, a typical example, and what to ask for
An extension of time (EOT) clause sets out when you get more time to finish because of a delay you didn't cause, and how you must claim it. It is your main protection against liquidated damages, so the notice window and what happens if you miss it decide whether it protects you at all.
A typical builder version
If the Subcontractor is or will be delayed in reaching Practical Completion by a cause beyond its control, the Subcontractor may claim an extension of time by giving written notice to the Contractor within 2 business days of the commencement of the delay, setting out the cause, the effect on the Subcontract Program and the extension claimed. Compliance with this clause is a condition precedent to any entitlement to an extension of time.
Illustrative wording of the kind found in builder-authored subcontracts, not taken from any one contract.
What it means for you
You have two business days from when the delay starts to send a complete, detailed claim. Miss that window and you lose the extension entirely, which leaves you exposed to liquidated damages for a delay you didn't cause.
- A notice window of five business days or less.
- "Condition precedent": a late or incomplete notice kills the claim, not just delays it.
- Requiring the full detail (cause, program effect, days claimed) in the first notice.
What market looks like
A short initial notice once you become aware of a delay, with the detailed claim to follow within a further period (commonly 10 to 20 business days), and late notice reducing the claim only to the extent the builder was actually prejudiced, rather than barring it.
What to ask for
"The Subcontractor must give written notice within 10 business days of becoming aware of a delay, and a detailed claim within a further 15 business days. A failure to give notice on time reduces the extension only to the extent the Contractor proves it was prejudiced by the delay in notice."
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Common questions
What happens if I miss the EOT notice deadline?
If the clause makes notice a condition precedent, the extension is usually lost and the builder can apply liquidated damages for that delay. That is why the window and the consequence matter more than the paperwork.
Should I claim an EOT even if I think it will be rejected?
Yes. A claim made on time preserves the entitlement and the record. A claim never made is gone.
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General information, not legal advice. Example wording is illustrative. Check any clause you rely on against your full contract and your state's Security of Payment Act. Written by Mat Kennedy, The Construction Contracts Co.