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Home Real Estate

Understanding the EOT in construction projects’ contracts

Solomon Kimani by Solomon Kimani
November 29, 2024
in Real Estate
Reading Time: 2 mins read

In contracts management, EOT or extension of time is fundamental in providing extra time to a contractor for completion of a project due to some unforeseen factors. It helps prevent undue sanctions for delay caused and promotes favourable terms for execution of the contract. Two standard contract provisions that are relatively common in Kenya, are the FIDIC (International Federation of Consulting Engineers) and JBC (Joint Building Council of Kenya) and both of them cover EOT provisions satisfactorily.

According to the FIDIC Red Book, the contractor is entitled to an EOT on the account of occurrence of unforeseeable events which causes a productive delay like physical conditions which could not be foreseen, delay on the side of the employer, or occurrences of force majeure. The Clause refers to the procedural block regarding the Contracting Authority.

It is Clause 20.1 of the contract where the contractor has to inform the engineer about the occurrence of a delay-causing event within 28 days. The addressing of specifics and circumstances is lifted as follows. An engineer is designated an EOT by providing supporting evidence. It aims to protect the contractor against liquidated damages yet permit reasonable delays to be incorporated into the project timelines.

The JBC (Joint Building Construction) contracts which are normal practice in Kenya, under Clause 23, provides a provision for the EOT as well. These are the provisions that are most affected by the actions of the employer, bad weather, and non-compliance with the laws.

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A delay on the part of the contractor must be notified in written form, supported by facts about the effect the delay has had on the critical path of the work plan. If the cause of delay is reasonable, and the project architect agrees, the EOT will be awarded to the Contractor.

The architect, or the contract administrator can decline to give the contractor the EOT if the cause or the reason for the delay is not reasonable and could have been avoided, he may request the contractor to find a way to catch up with the program of works. The contractor needs to go back to the drawing board to strategize and find ways to catch up with the lost time.

In conclusion, EOT gives a path for the contractor to be compensated for the lost time and be given a chance to complete his project obligations fairly. Delaying the project may have dire consequences to all the project stakeholders. The contractor must notify the contract administrator on time, communicate clearly and reasonable for the contract administrator to consider their request

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