Extension of time clauses in building contracts

If you're building or renovating, or working in the building and construction industry, it's important that you know about extension of time clauses. An extension of time clause allows a party to a building contract to extend the time for completion of the building works beyond the original date of completion.

Extension of time clauses allow parties to continue project execution without financial penalties. In general, an extension of time is granted when the cause of the delay is beyond the parties' control and interferes with the path to practical completion.

The validity of a claim for an extension of time under a construction contract depends on whether or not the construction contract contemplates the reason given for the extension. It is equally important to know the circumstances in which you are not entitled to claim an extension of time.