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Time bars & EOT

What is a time bar in a subcontract — and when does it kill the claim?

A time bar is a clause requiring you to give notice of a claim — an extension of time, a variation, a delay cost — within a fixed window, commonly 5 business days. The critical distinction is what happens when you miss it: a notice-style clause delays or complicates the claim, while an absolute bar extinguishes it entirely. Absolute bars are the single most expensive clause type in Australian subcontracts.

Live data · 25 Australian subcontracts analysed
100%have time bars that extinguish the claim entirely (19 of 19 contracts where this was identifiable)
From the Australian Subcontract Index — live aggregates, updated with every scan →

The two species of time bar

Read the consequence, not the deadline. "The Subcontractor must notify within 5 business days" is a notice requirement. "The Subcontractor shall have no entitlement unless notice is given within 5 business days" is an absolute bar — the entitlement itself dies with the deadline. The same five days, radically different risk.

Absolute bars do their damage quietly. On a busy job, notices slip — a delay gets discussed on site instead of in writing, a variation gets done on a handshake. Under an absolute bar, each of those ordinary moments is a claim worth real money, extinguished.

Where the market sits

Five business days is aggressive but common; anything under five is high risk on its own. The negotiating asks that matter: a workable window (10 business days is a reasonable target), notice as a requirement rather than a bar, and a carve-out where the builder was aware of the event anyway.

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Common questions

Are absolute time bars enforceable in Australia?

Courts have generally been willing to hold parties to clear time-bar drafting in commercial contracts, which is exactly why the clause is dangerous — don't sign expecting it to be softened later. Negotiate it before signing; that's when you have the leverage.

What's the fastest way to protect myself on site?

Make written notice a reflex, not a decision: a short email the day anything changes — delay, direction, latent condition, extra work — beats a perfect letter sent a week later. Under an absolute bar, the habit is worth more than the wording.

Keep reading

General information for Australian subcontractors, not legal advice — statutory deadlines and details vary by state and change over time; verify them before relying on them. Written by Mat Kennedy at The Construction Contracts Co.