When managing a contract it is important to know what is an Extension of Time Claim? In Project Management, having the right to claim an Extension of Time (EOT) can become key to the future of the project. The EoT Claim will help to successfully complete your project. In this post, you will learn what is an Extension of Time Claim in a contract, when you are entitled to claim an extension of time within your project, what is the purpose of an EOT Claim, and some more things that we do not want to reveal to you so soon. Are you ready?
What is an Extension of Time Claim in a contract?
An Extension of Time Claim is a claim for an extension of time due to delay that could not reasonably be foreseen at the time the contract was signed. Granting an extension of time releases the contractor from liability for damages such as liquidated damages from the original contract completion date for the claim period. In other words, an EOT Claim is a document that allows us to justify, claim and obtain a change in the time frame in which our project fits.
When do we have the right to claim an EoT in a contract?
During the execution of a project, as long as it is specified in the contract, we will have the right to claim an Extension of Time when there is a delay in the completion of our project due to a cause beyond our control. It is at this time that we must notify our client or the contract administrator, clearly identifying the event that caused said delay, its nature, as well as the negative impact on the final milestone of project completion that has been agreed in the contractual baseline of the draft.
It will depend on each project, but in general, a first letter is sent to the client notifying that a delay has been incurred due to an element foreign to us. After sending this first notification, the EoT Claim itself is sent, with all the information that is necessary to be able to extend the project execution period in time.
What is the purpose of an Extension of Time Claim?
The purpose of an EOT Claim is to have a contractual tool that allows us to request a change in the contractual duration of our project. Thanks to the Extension of Time Claim we will establish a relationship of events whose cause-effect will directly impact the execution of the project.
How to be successful with Extension of Time Claims?
From our point of view, the most important element to be successful with Extension of Time Claims in a contract is to have a very good and detailed project baseline before starting any activity. Once the project baseline has been defined, including resources, work performance, etc. we must be constant in the updating phase of it. In this way, we will be able to identify as soon as possible the different events that impact the contractual date of completion of work on our project.
IN PROJECT 2080 WE WOULD LIKE YOU TO REMEMBER
The Extension of Time Claim is one of the most important tools when requesting an extension of time in our projects. It will be of great importance to save all the events that impact the completion of our project by creating a Delay Events register. Among all of them, there will be some that are attributed to our client. These are the ones that will give us the right to claim an extension of the time frame of our project. Finally, thanks to the delay analysis technique that we use, we will be able to calculate the delay of the project and how much of it can be attributed to the different parties (client, contractor, etc.).