Everyone in construction knows that delays happen. It’s part of the landscape: weather, design changes, late access, supply chain disruptions. But in contractual terms, a delay can carry serious consequences if it isn’t handled properly.

The JCT Design and Build Contract 2024 (JCT DB 2024) contains a built-in mechanism to deal with certain types of delay: the Extension of Time, or EOT. (This article is based on the JCT Design and Build Contract 2024, which replaces the 2016 edition. If you’re working under a 2016 contract, the principles remain broadly similar, but there are some important updates, especially around notice requirements.

This article is intended to give a straightforward explanation of how the EOT mechanism works under JCT DB 2024. The aim is to set the scene for the more detailed topics to follow in the rest of this series, conceptual rather than technical.

What is an Extension of Time?

Put simply, an Extension of Time is a formal adjustment to the Completion Date when certain events beyond the contractor’s control cause delay.

In JCT contracts, those events are called Relevant Events. If one of those occurs and it’s likely to delay completion, the contractor may be entitled to have the Completion Date pushed back. This protects them from liability for liquidated damages.

It’s worth being clear: an Extension of Time isn’t a way to just “ask for more time.” It’s a contractual process triggered by specific events defined in the contract. And it only deals with time, not money. We’ll come back to that distinction.

Why does it matter?

It matters for two reasons.

First, from a contractor’s point of view, if you’re delayed by something outside your control, and you don’t get an Extension of Time, then technically, you’re late. That can trigger liquidated damages, delay notices, and (at the more extreme end) disputes and possibly termination rights.

Second, from the employer’s perspective, the EOT mechanism protects the integrity of the contract. Without it, delays caused by the employer could lead to what’s called time at large: where there’s no enforceable Completion Date, and the contractor is only required to complete within a “reasonable time.” That makes it impossible to enforce delay damages.

So, the EOT mechanism protects both parties. It ensures contractors aren’t unfairly penalised for delays not of their making, and it gives employers confidence that delay remedies (like LADs) can still be applied if the contractor does overrun.

The split between time and money

A common misconception is that if a contractor is granted an EOT, they’re also entitled to be paid for the delay. That’s not necessarily true.

The contract separates time and money. An EOT gives you more time, pushing the Completion Date back and avoiding LADs, but it doesn’t automatically give you compensation for the cost of the delay.

That’s where loss and expense come in. Under JCT contracts, a contractor may be entitled to recover loss and expense (i.e. money) if the delay was caused by a Relevant Matter. Some events are both Relevant Events and Relevant Matters, like an instruction to change the works, which means they may give rise to both time and money. But others, like adverse weather or force majeure, are Relevant Events only. You might be granted an EOT, but you won’t be paid for the extra cost.

So, it’s essential to understand that distinction. EOT = time relief. Loss and expense = financial recovery. They are connected, but not interchangeable.

How does the process work?

Clause 2.24 of JCT DB 2024 sets out the basic process.

If the contractor reasonably believes that a Relevant Event is likely to delay completion, he must give notice to the Employer as soon as it becomes apparent. That notice must include details of the event, its likely impact on completion, and any other relevant information. The contractor must also keep the Employer updated as things progress.

Under JCT DB 2024, this notice is now an express condition precedent. If the contractor fails to give it, they lose the right to claim an extension of time, even if the delay was genuine.

The Employer then reviews the matter and, under clause 2.25, decides whether an Extension of Time should be granted and, if so, how much.

A few practical points to note:

  • Notice matters. Under the 2024 form, the requirement to notify is no longer optional or procedural. It’s a contractual gateway to entitlement. No notice, no EOT.
  • Keep it factual. You don’t need a delay analysis straight away. What the contract requires is a prompt heads-up with reasonable information. You can refine the details later.
  • Update as you go. The 2024 contract reinforces the expectation that contractors keep the Employer informed as delays evolve. Updated estimates, revised assessments, and new information are all part of the process.

Why notice is worth doing properly

We’ve seen many contractors fall into the trap of treating notice provisions as box-ticking. But they serve two vital functions.

First, they preserve entitlements. If you don’t notify, your claim fails. It really is that simple now.

Second, they facilitate discussion. An early notice allows the Employer or their agent to take steps to reduce the impact of the delay, or at least to plan around it. It also allows the parties to deal with the issue in real time, rather than months later in a dispute.

So even if you’re not sure how serious the delay will be, it’s nearly always better to flag it early and update it later than to wait until the situation is clear.

Final thoughts

The Extension of Time clause in JCT DB 2024 is a practical tool that, when used correctly, helps avoid disputes, preserve entitlements, and maintain clarity on project deadlines. But like many parts of the contract, it only works if both parties follow the process.

Contracting parties should familiarise themselves with the EOT provisions and make sure their personnel understand the importance of notices and record-keeping. Maintaining evidence of delays and causes of delays is an important part of contract management and a way to limit the risk of conflict.

In future articles, we’ll take a closer look at which events entitle a contractor to claim an EOT, what good notice looks like, and how the Employer should respond to requests. For now, the key message is this: know your contract, and act quickly when delays arise.

Need help?

If you’re dealing with a delay and want to know where you stand, or if you just want to make sure your contracts are set up to handle EOTs properly, we’re here to help. At Berwick Law, we work with contractors, developers and consultants to make sure the contract mechanisms are understood, managed and used effectively.

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As with all our blogs, these are intended to share general information. If you have any specific contractual issues, you should take specific legal advice.

 

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