Extension of time clause: Overview, definition and example
What is an extension of time clause?
An extension of time clause in a contract allows one party to extend the deadline for completing a task or responsibilities under certain conditions. This clause is commonly included in construction contracts or service agreements to account for delays that are out of the party’s control, like bad weather or unexpected disruptions.
For example, a construction company might be given extra time to finish a project if bad weather delays the work.
Why is an extension of time clause important?
An extension of time clause is important because it protects the party doing the work from penalties for delays that are beyond their control. It ensures fairness by acknowledging that sometimes delays are unavoidable and that extra time may be necessary to complete the work properly.
Without this clause, the party could face penalties or be in breach of contract for reasons that are outside their control.
Understanding the extension of time clause through an example
Imagine a contractor is hired to build a new office. The contract includes an extension of time clause that allows the contractor to request additional time if unexpected issues arise, like delays in receiving materials. If a delivery delay occurs, the contractor can formally request more time to complete the project without facing penalties.
Without this clause, the contractor would be obligated to finish the project by the original deadline, regardless of external factors.
An example of an extension of time clause
Here’s how an extension of time clause might look in a contract:
"If the Contractor is delayed in completing the work due to reasons outside of their control, including but not limited to weather or material delays, the completion date shall be extended by a reasonable amount of time as agreed by both parties."
Conclusion
An extension of time clause helps manage delays in contracts by allowing extra time for completion under specific circumstances. It provides flexibility and fairness, ensuring that one party isn’t penalized for delays that are unavoidable. Including this clause in contracts is a useful way to handle potential delays while protecting both parties' interests.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.