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A Concise Guide To Understanding The EOT Subcontractor Claims Process - Kenzie Group
A Concise Guide To Understanding The EOT Subcontractor Claims Process - Kenzie Group
(https://www.kenziegroup.co.uk/)
NEWS
While most smaller projects, such as those involving the construction of a single
(https://www.kenziegroup.co.uk/construction-
residence or a small commercial building, can be completed within the terms set
claim-calculator/)
forth in the contract, larger building projects are often riddled with delays because of
the sheer number of subcontractors working on their portion of the project. For
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example, a general contractor may subcontract work out to electricians, plumbers, / DSU or BI Claim – it’s all about Cause and
welders, roofers, and other licensed professionals who are each responsible for the Effect! (https://www.kenziegroup.co.uk/dsu-or-
jobs they are contracted to undertake. bi-claim-cause-and-effect/)
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Sometimes, through no fault of a subcontractor, their work is delayed. What happens THE LATEST ENGLAND AND WALES
when they are unable to begin or complete their portion of the job timely and within CONSTRUCTION CLAIM DECISIONS IN
cost due to outside forces preventing them from working on schedule? At this point, 2018
that subcontractor will almost certainly want to file what is referred to as an Extension
(HTTP://WWW.BAILII.ORG/EW/CASES/EWHC/T
of Time (EOT) construction claims (https://www.kenziegroup.co.uk/services/expert-
construction-claims-consultants/), which needs to follow a very precise format. / Bombardier Transportation UK Ltd v
Following is a concise guide to understanding and filing this type of claim with the Merseytravel (No. 3: Costs) (Rev 1) [2018] EWHC
general contractor. 41 (TCC) (17 January 2018)
(http://www.bailii.org/ew/cases/EWHC/TCC/2018/41.html)
ACCEPTABLE REASONS FOR FILING AN EOT / Connect Plus (M25) Ltd v Highways England
Before filing for an Extension of Time, a subcontractor should refer to the guidelines Company Ltd [2018] EWHC 140 (TCC) (31
established by FIDIC, the International Federation of Consulting Engineers. This January 2018)
professional body establishes the rules and regulations to abide by which includes, (http://www.bailii.org/ew/cases/EWHC/TCC/2018/140.htm
but is not limited to, reasons and procedures for filing EOT claims. As per their / Contact (Print And Packaging) Ltd v
guidelines, a subcontractor can’t file for an Extension of Time if they were remiss in Travelers Insurance Co Ltd [2018] EWHC 83
carrying out their duties timely and within budget. That’s on them and they cannot (TCC) (23 January 2018)
expect to recover any losses which were incurred by their own dereliction of duties. (http://www.bailii.org/ew/cases/EWHC/TCC/2018/83.html
However, consider for a moment the domino effect. Since most jobs on a construction / Crown House Technologies Ltd v Cardiff
site are dependent on work that went on before their portion of the job commenced, Commissioning Ltd & Anor [2018] EWHC 54
an Extension of Time claim (https://www.kenziegroup.co.uk/extenstion-time-claim/) (TCC) (18 January 2018)
(http://www.bailii.org/ew/cases/EWHC/TCC/2018/54.html
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might be agreed if the subcontractor/s before them failed to meet time and cost / Fluor v Shanghai Zhenhua Heavy Industry
constraints. In the Building Service Subcontractor Claim, specific allowances are Co, Ltd [2018] EWHC 1 (TCC) (11 January 2018)
made for those times when delays resulted from such things as: (http://www.bailii.org/ew/cases/EWHC/TCC/2018/1.html)
Statutory and case contract law stipulates which documents are to be used as proof
of a requested Extension of Time (EOT) and any costs incurred due to the EOT
Construction claim (https://www.kenziegroup.co.uk/services/expert-construction-
claims-consultants/) in question. In order to be granted an Extension of Time and be
compensated for any financial losses, a direct line of contributory events must be well
documented. For this reason, it would behove subcontractors to always be diligent in
maintaining complete and accurate records as a job progresses.
Also, there is a standard procedure to be followed when submitting an EOT claim and
at that time, a subcontractor filing the claim should have any pertinent calculations at
hand. FIDIC guidelines state that best practices dictate that the subcontractor
seeking a compensatory measure should have very specific calculations on monetary
losses as well as the amount of time by which they were delayed. It can’t be said
enough that the contract as laid out by FIDIC in no way sets out to determine liability
but rather works as a set of guidelines to be followed when seeking extra time to
complete a job or compensation for losses incurred through no fault of their own.
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6/9/2021 A Concise Guide to Understanding the EOT Subcontractor Claims Process - Kenzie Group
In addition to the very basic reasons for filing an EOT claim mentioned above, the
prescribed format should also include exact documentation of the following:
Taking all of the above into consideration, it should be stated at this point that when a
new date of completion is agreed, it is assumed that the subcontractor filing the EOT
claim will not suffer any further delays. It is thus up to the general contractor to ensure
that everything is in line and completed prior to a continuance of work by the
subcontractor filing the claim.
This is where litigation often enters into the claims process. If the subcontractor feels
that the general contractor did not make a fair determination of the claim for
compensation as per stipulations in their subcontractor contract, the claim can (and
often does) end up in claims court. Sometimes being held up on one job prevents a
subcontractor from moving on to the next job they have contracted, causing losses
they are unable to prevent.
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Parties agreeing to the contract, i.e. general contractor, subcontractor, client, etc.
General conditions.
Specific conditions.
The scope of work to be completed.
Time constraints/duration of the project with a completion
All documents are to be signed and dated by all parties agreeing to the terms and
conditions. Any revisions and amendments must likewise be agreed by all parties to
the contract, signed and dated.
Think of this as a domino effect. One subcontractor sustains losses and files for an EOT
along with compensation for losses incurred. As a result of this subcontractor’s delay,
other subcontractors experience similar delays in time and costs, which continues
down the line. It can be a complex chain of events only determinable in a court of law.
For this reason, it is again reiterated just how important it is for the contractor and any
subcontractors to keep accurate documentation as the job progresses. Ultimate,
liability may depend on being able to pinpoint the exact point in time when the
delays began.
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