Residential Building Contracts: Claiming EOTs

Wet weather and supply shortages are continuing to have an impact on the progress of building works and often an owner will not raise their entitlement to claim liquidated damages until the contract is nearing its end.

Members are reminded to:

• Where contracts are yet to be signed, factor these delays into your construction period and/or date for practical completion.
• Speak with your clients about the possible delays that may be experienced AND issue notices for extension of time where required.
• Where contracts need to be extended, ensure you comply with the contractual requirements to issue any notices for extension of time. Failure to do so could result in you being liable for liquidated (or unliquidated) damages.

An extension of time may be claimed by a party under a contract for a variety of reasons such as inclement weather, supply shortages, suspension of works due to non-payment, or where there is a delay outside of the control of the builder.

The ACT Lump Sum Residential Building Contract, at clause 13, provides the list of delays that a builder may claim an extension of time as well as the process for notifying the client of the extension of time being claimed and the entitlement for costs, where applicable. It is important that you make a claim in accordance with the process described in your contract, being within 20 Business Days of the delay occurring. This means you cannot claim EOTs outside of this period. If you are unsure whether a delay will amount to an extension of the construction period, we recommend claiming an EOT anyways.

If you need assistance or advice in how to extend your construction period, please contact the Member Services Team on (02) 6175 5900.