How to submit an extension of time claim under the General Conditions of Contract for Construction
works (GCC)
By Mashadi Motsogi (Legal Practice Manager)
In construction, an Extension of Time (EOT) claim relates to extra time added to the initial construction
period. The contractor generally presents an EOT claim to request additional time due to variations to the
works made by clients, or where there is an event that causes a delay that could not have been reasonably
foreseen at the time of signing of the contract.
In terms of the General Conditions of Contract for Construction Works third edition (GCC 2015), the
contractor may submit an EOT claim when one of the events – as described in the contract that entitles
him to an extension of time – happens and delays the achievement of practical completion beyond the
due completion date.
This article will explore the way in which to submit an EOT claim in terms of the GCC.
Practical completion and due completion
Due completion date is defined in clause 1.1.1.14 of the GCC as ‘the date of expiry of the time stated in
the contract data for achieving practical completion of the works, calculated from commencement date
(the date the agreement comes into place) and as adjusted by such extensions of time or acceleration as
may be allowed in terms of the contract’.
Whereas practical completion in terms of clause 1.1.1.24 means, the whole or portion of the works has
reached a state of readiness, fit for the intended purpose, and occupation without danger or undue
inconvenience to the employer, even though some work may be outstanding.
The contractor must achieve practical completion on or before expiry of the due completion date
otherwise the contractor will have to pay penalties to the client.
Submission of an extension of time claim
EOT claims in construction are usually due to client variation orders, unforeseen events and conditions,
and force majure events referred to as ‘excepted risks’ in the GCC:
• Client variation orders are issued for new, changed or additional work that has not been included
in the original contract scope of works.
• Unforeseen events and conditions, which are unknown conditions at the time of signing of the
contract that may affect the time for completion, the contract price or both.
• Excepted risks relate to uncontrollable events (such as war, labour stoppages, extreme weather
or pandemic) that are not the fault of either party, however, the risk for delay and additional cost
caused by such an event is carried by the client.
Thus, the contractor must show that the delays have taken place and have affected the schedule of works
and the date of completion of the project – that is, the delay has affected the critical path of the project.
According to clause 5.12 of the GCC, if the contractor considers himself entitled to an extension of time
for circumstances of any kind that may occur that will actually extend practical completion of the works
beyond the due completion date, the contractor shall claim in accordance with clause 10.1 such extension
of time as is appropriate.
The circumstances referred in clause 5.12.2 that give rise to an EOT claim include:
i. The amount and nature of additional work.
ii. Abnormal climatic conditions.
iii. Any condition in the contract that allows for an EOT.
iv. Any disruption, which is entirely beyond the contractor’s control.
The other conditions of contract, contemplated by clause 5.12.2 iii, include:
o Adverse physical conditions – clause 2.2(4).
o Circumstances differing from technical data supplied – clause 2.3.
o Fossil encounters – clause 4.7(1).
o Providing facilities for others – clause 4.8(2)(2).
o Delay with regards to handing over of site possession – clause 5.4(3).
o Delay with regards to the delivery of instructions and drawings – clause 5.9(6).
o Delay with regards to valuation of variation order – clause 6.4(3).
o Delay by employer’s agent in attending to testing or inspection – clause 7.5(3).
o Delay by employer taking delivery of plant – clause 7.5(4).
The contractor has 28 days from the date when the contractor should have reasonably become aware of
a circumstance that entitles him to an EOT claim, to submit his claim with details. The contractor will be
time barred from making a claim should he not be able to keep to the time frame.
Clause 10.1.1.3 states that should the events or circumstances relating to the claim be ongoing in nature,
in addition to the contractor delivering the said notice (within 28 days), he shall on a monthly basis submit
in writing to the employer agent particulars required in terms of clause 10.1.1.1, and then deliver his final
claim within 28 days after the end of those events or circumstances.
Upon receipt of a claim in terms of clause 10.1 the employer’s agent is required to consult with the parties
in an attempt to reach an agreement between the parties regarding the EOT claim. Only if the parties fail
to reach an agreement, the employer’s agent is required to make a decision in terms of the contract.
Conclusion
The GCC 2015 provides for the extension of time when practical completion will be extended past the due
completion date by the circumstances listed in the contract, that entitles the contractor to make an EOT
claim. The contractor has 28 days from the date he should have reasonably become aware of
circumstances that entitle him to an EOT claim to submit his EOT claim to the employer’s agent. Should
the contractor not be able to submit the full details of the claim within 28 days, same should be submitted
as soon as practically possible otherwise he will be time barred from making a claim. The employer’s agent
has 28 days to reply to an EOT claim.
