Empirical Evidence of Extension of Time in Construction Projects

Abstract

Almost all construction projects face delays resulting in extension of time (EOT) or liquidated damages, depending upon which of the two parties absorbs the responsibility as per terms of the contract. A number of factors influence the realistic assessment of EOT claims, along with the level of awareness and technical support. The construction industry of Pakistan, which operates in a rather traditional and outdated style, has never been assessed on such critical contract management aspects. It has resulted into various disputes, court cases, and bad blood between stakeholders. To help facilitate the local practitioners, this study analyzed 29 EOT-influencing factors. Prevalent practices in the construction industry also were investigated. On the basis of an extensive survey, it was found that delayed payment to the contractor was the primary cause of EOT claims. Conclusions were drawn and recommendations are proposed to resolve EOT issues, float ownership, and prolongation cost.