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We have been awarded an extension of time, now I want my money!

Some contractors that we work with assume that once an extension of time has been awarded for certain events, that they are then automatically entitled to be paid additional monies.

Sadly, this is almost entirely not the case and as always depends on the exact wording of your contract (surprise surprise!)

Most contracts include separate provisions for extensions of time and additional reimbursement. These provisions itemise individual “events” that give rise to an entitlement under the separate extension of time and cost provisions.

Although many events appear in both of the provisions, typically certain events do not. For example, events such as inclement weather or force majeure usually give rise to an extension of time, but not to being awarded additional cost.

So, as ever, look to your contract as this states “the rules of the game”.

Do your factual research, identify the delay events and see if these delay events give rise to an extension of time under the relevant provision in the contract. If they do, happy days. Next analyse the additional costs provision and see if that same event (i.e. the delay event) also gives you an entitlement to reimbursement of additional costs. If it does, all is good.

Simple? Not quite! From my experience identifying the delay events is the easy part – demonstrating their effect on the programme and costs is much more complex!

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