UNIVERSITI TEKNOLOGI MARA

KAMPUS SERI ISKANDAR, PERAK

FACULTY OF ARCHITECTURE, PLANNING & SURVEYING

CONTRACT ADMINISTRATION (BGN342)

ASSIGNMENT TOPIC : EXTENSION OF TIME (EOT)

PREPARED BY:

NO. NAME MATRIC NO.

1. AMIRUL HAKIM BIN IDRUS 2020839334

2. FATIN NURSYAFIQAH BINTI MUHAMMAD FADZLI 2020619918

3. MURNI NADIRA BINTI ROSLI 2020880444

4. NURUL AINATASAHIRA BINTI RASIDI 2020882778

GROUP / CLASS :
AP116 / 6C

PREPARED FOR:
MADAM ANITH ATHIERAH BINTI AZIZ
 ACKNOWLEDGEMENT

Alhamdullillah, praise to Allah, the Most Merciful, the Most Graceful.

We would like to extend our heartfelt gratitude for the guidance, advice and help rendered
throughout the completion of this assignment. First and foremost, we would like to thank Madam
Anith Athierah Binti Aziz, our subject Lecturer, we value the time, effort, encouragement, and ideas
that have contributed by her towards the successful completion of our assignment and the valuable
knowledge that have been shared over the period of studies. Also to the site personnel in S.H.
Butterworth Engineering Sdn. Bhd, the contractor of the project for our case study entitled
‘Cadangan Membina Sebuah Kilang Yang Mengandungi Kilang 1 Tingkat Dan Pejabat 2 Tingkat,
1 Unit Pondok Pengawal 1 Tingkat dan 1 Unit Pencawang TNB 1 Tingkat Di Atas Lot P30, Lorong
PSPN 9, Penang Science Park North, Mukim 13, Seberang Perai Tengah, Pulau Pinang’, who have
extended their cooperation and help to further enhance our ability in understanding the procedures
in construction and site administration, tests procedures, site safety and best practices in the
industry. It is an honour for us to be given the opportunity to ‘work’ with all of you. We would
also like to extend our deepest appreciation to the group members, Amirul Hakim Bin Idrus, Fatin
Nursyafiqah Binti Muhammad Fadzli, Murni Nadira Binti Rosli and Nurul Ainatasahira Binti
Rasidi for the cooperation and support throughout preparing this assignment.

Last but not least, our special thanks to our beloved parents for their sacrifices over the years.
Thank you so much.

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 ABSTRACT

Extension of Time (EOT) is an important aspect of a project construction to elaborate, therefore

this report will discuss and introduce Procedures To Apply Extension Of Time (EOT) based on
PWD 203A AND PAM 2006 in a construction on a construction site that is going to be completed.
This report was conducted for the project of ‘Cadangan Membina Sebuah Kilang Yang
Mengandungi Kilang 1 Tingkat Dan Pejabat 2 Tingkat, 1 Unit Pondok Pengawal 1 Tingkat Dan 1
Unit Pencawang TNB 1 Tingkat Di Atas Lot P30, Lorong PSPN 9, Penang Science Park North,
Mukim 13, Seberang Perai Tengah, Pulau Pinang’. The objective of this report is to identify
procedures to apply Extension of Time (EOT), to ensure that this project can be completed within
a realistic and achievable timeframe, and to identify causes of Extension of Time (EOT) for this
project. This report will also provide comparison between procedures to apply Extension Of Time
(EOT) in PWD 203A AND PAM 2006. It will focus on the procedures to apply for Extension of
Time (EOT) starting from applying for the EOT to the Architect/SO with reasons and attached
documents required, approval from Architect/SO and receiving Certificate of Application of EOT.

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CONTENTS PAGE NO
Acknowledgement i
Abstract ii
Contents iii

CHAPTER 1.0 INTRODUCTION

1.1 Background of Study 1-2
1.2 Objectives 3
1.3 Scope of Study 4
1.4 Methods of Study 5
CHAPTER 2.0 BACKGROUND OF PROJECT/CASE STUDY
2.1 Introduction of Company 6-7
CHAPTER 3.0 CASE STUDY (PROCEDURES AND
SUMMARY OF APPLYING EXTENSION OF
TIME (EOT)
3.1 Procedure to Apply Extension of Time (EOT)
3.1.1 Extension of Time (EOT) PWD203A 8-9
3.1.2 Extension of Time (EOT) PAM 2006 10-11
3.2 Summary of Applying Extension of Time Based on 12-23
Case Study
CHAPTER 4.0 CONCLUSION
4.1 Conclusion 24
REFERENCES 25

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 CHAPTER 1.0

INTRODUCTION

1.1 Background of Study

The general rule of a construction contract is that the contractor has a strict duty to finish
the work on schedule unless the employer hinders or prevents him from doing so. The employer
may choose to extend the contractor's time for completion (EOT), which provides relief from the
strictness of the aforementioned rule (3 minutes read to understand what is Extension of time
(EOT) in construction contract, 2021, April 15). An employer cannot extend the completion date
due to their own delay for their own benefit unless there is an express provision made in the
contract regarding the same. Only when the contract expressly permits can the time for completion
of a construction contract be extended. A delay that could not have been reasonably anticipated at
the time of contract signing is known as an extension of time (EOT). The contractor is released
from responsibility for damages like liquidated damages from the original date of contract
completion for the duration of the claim upon the granting of an extension of time (Extension of
Time (EOT), n.d.). The Extension of Time (EOT) clause offers the client protections as well as a
mechanism for adjusting the completion date of a construction project (where necessary) (What's
The Extension Of Time (EoT) For Construction In Malaysia All About?, 2022, March 5).

Requests for time extensions are typically made because of the following reasons. First, requests
for Client Change Orders for New or Additional Work Not Described in the Initial Contract
Documentation. Second, latent Conditions. Situations that existed at the time of contract signing
but had no effect on how soon the contracted works would be delivered. Third, bad weather
conditions (Extension of Time (EOT), n.d.). Next, resourcing issues are just one of the many
difficulties that could prevent a project from being completed on time. Overruns on significant
construction components. Even the more severe Movement Control Order (MCO) resulting from
the COVID-19 outbreak can be taken into consideration (What's The Extension Of Time (EoT)
For Construction In Malaysia All About?, 2022, March 5). Sadly, there are many things in this
world that we have no control over. The Extension of Time provision is intended to guarantee that
a legal framework is in place to address such unanticipated delays.
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The contractor is required to provide evidence that the delay or delays have taken place and have
an impact on the construction schedule and project completion date (Extension of Time (EOT),
n.d.). That's how the delay manifested itself and affected the project's critical path. Successful
projects help Contractors keep track of their progress and put together EOT claims. Additionally,
in accordance with the contract clauses, we help the client-side with the review and assessment of
EOT Claims (3 minutes read to understand what is Extension of time (EOT) in construction
contract, 2021, April 15). The contractor cannot request EOT if the delay was brought on by an
occurrence that the contract does not specifically cover. But by extending the deadline, the
employer sets a new or revised completion date and, in doing so, preserves the contractor's duty to
finish the work under the contract by the said new deadline (3 minutes read to understand what is
Extension of time (EOT) in construction contract, 2021, April 15). Contractors who don't comply
risk the employer suing them for liquidated and ascertained damages (LAD). The length of time
required to complete a project within the constraints set forth by the client and in accordance with
accepted working practices is known as the construction duration (Extension of time EOT in
Construction Projects, 2022, July 7). However, time overruns on projects were common and called
for the use of contractual remedies like Extension of Time (EOT). There are delays on almost
every construction project. Contractors lose time and money waiting for project owners or dealing
with unforeseen events (Extension of time EOT in Construction Projects, 2022, July 7). If the
cause of the delay was out of their control, contractors may ask for an extension of the contract
time. In PWD203A, Clause 43 [a-j] and PAM2006, Clause 23.8 [a-x] is a clause for EOT.

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1.2 Objectives

To study the Extension of Time (EOT) of the project, the objectives of this report are:
1. To identify procedures to apply Extension of Time (EOT).
2. To ensure that this project can be completed within a realistic and achievable timeframe.
3. To identify causes of Extension of Time (EOT) for this project.

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1.3 Scope of Study

The study was carried out at Pulau Pinang. This case study focuses on identifying the
extension of time (EOT). The consultant of civil and structural engineering in this project is
Jurutera Perunding Fajar Sdn. Bhd. The contractor of this project is S.H. Butterworth Engineering
Sdn. Bhd. The title of project is ‘Cadangan Membina Sebuah Kilang Yang Mengandungi, Kilang
1 Tingkat Dan Pejabat 2 Tingkat, 1 Unit Pondok Pengawal 1 Tingkat Dan 1 Unit Pencawang TNB
1 Tingkat, Di Atas Lot P30, Lorong PSPN 9, Penang Science Park North, Mukim 13, Seberang
Perai Tengah, Pulau Pinang’. Interview session was conducted to get the information about causes
that need the EOT for this project. The contractor receives guidance on a specific action to take in
order to prove the delays and build a strong case for an extension of time. The suggested course of
action was based on both theoretical and practical experience. In the document review has stated
the proof like, daily weather record to check the weather on site every day. Next, the process for
filing an EOT claim is frequently laid out in the contract between the owner and general contractor.
The terms of the subcontractors' agreement with the GC must be followed. For these circumstances
to be met, a formal claim is usually required, along with supporting documentation that is
examined by the owner or GC and a written notice of delay. If the extension request is granted, a
modification order is sent.

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1.4 Methods of Study

1. Interviews

In order to obtain the necessary information for this study, the primary method used
is by having an informal interview with those involved with this project. This interview
involved the project manager where several questions are being asked. For example, the
background of the project, procedure to apply Extension of Time, and Cause of Extension
of Time. The project manager manages to give all the appropriate details of everything that
was asked. Short notes are taken while the interview takes place to extract all the important
details. This interview mostly happens at the site office.

2. Documents Review

To obtain additional information regarding this project, the secondary method of

study is employed which is through document research. Permission was given to study
several documents including weather report, EOT certificate, and project details.

3. Internet

The third method of study is by surfing several websites on the internet. This
method of study is employed to gain more knowledge and information regarding the topic
of the study.

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 CHAPTER 2.0

BACKGROUND OF PROJECT/CASE STUDY

2.1 Introduction of Company

The project title is ‘Cadangan Membina Sebuah Kilang Yang Mengandungi Kilang 1
Tingkat Dan Pejabat 2 Tingkat, 1 Unit Pondok Pengawal 1 Tingkat Dan 1 Unit Pencawang TNB
1 Tingkat Di Atas Lot P30, Lorong PSPN 9, Penang Science Park North, Mukim 13, Seberang
Perai Tengah, Pulau Pinang’. The employer is Ultimate Mechanical System Sdn. Bhd, the
consultants appointed are Jurutera Perunding Fajar Sdn. Bhd. and Perunding GD, while the
contractor is S.H. Butterworth Engineering Sdn. Bhd. Figure 2.1, Figure 2.2 and Figure 2.3 below
shows the Layout Plan, Ground Floor Plan and First Floor Plan and Section A-A, Section B-B, Front
Elevation, Rear Elevation, Right Elevation of the stated project. The date of completion estimated
for the project is 3 years. The project started in the mid of 2019, in the month of June. Site works
such as preparing piling, pile cap and concrete construction was done during that time but
because of the pandemic, all of the works onward were postponed for about one year and a half.
The project is estimated to be soon completed.

Figure 2.1 Layout Plan

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 Figure 2.2 Ground Floor Plan and First Floor Plan

Figure 2.3 Section A-A, Section B-B, Front Elevation, Rear Elevation, Right Elevation

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 CHAPTER 3.0

CASE STUDY (PROCEDURES AND SUMMARY OF APPLYING EXTENSION OF

TIME (EOT))

3.1 Procedure to Apply Extension of Time (EOT)

Although the claim process will vary from contract to contract, several aspects of the process will
be the same across all contracts (Extension of time claim - an understanding, July 2022).
Accordingly, Malaysia has two systems of Extension of Time (EOT) Claims which is PWD203A
and PAM 2006. Both EOT have similarities and differences. These differences are as below.

3.1.1 Extension of Time (EOT) PWD203A

Figure 3.1 Procedure to Apply Extension of Time (EOT) PWD203A

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 Based on Figure 3.1 above, EOT can be applied when there is a delay in work progress at
the site. Then, the contractor will apply EOT claims to the client of the project with a relevant
reason. If the reasons are deemed to be relevant by the Superintending Officer (SO) according to
Clause 43 a-j, then SO will proceed to determine if the delay will affect the whole work
programme. If it affects the whole project, then SO will evaluate the duration of EOT. If the cause
is not relevant or the delay not affecting the whole project, then, the SO may reject the EOT claims.
However, contractors may refer to Arbitration and the SO results can be reviewed.

Relevant Causes based on Clause 43

A. Force Majeure [kejadian luar kawalan dan kehendak manusia] as stipulated in Clause 58
e.g war, insurrection, rebellion, terrorism and so forth.
B. Exceptionally Inclement weather
C. Suspension of works
D. Directions given by the S.O., consequential upon disputes with neighboring owners
E. S.O.'s instructions issued under clause 5 encompasses; VO, discrepancy with contract,
workers termination
F. The Contractor not having receivedto the nomination of sub-contractors and/or suppliers
or instruction drawings, and so forth
G. Delay in giving Site Possession as provided under clause 38.4
H. Delay on the part of artists, tradesmen or others engaged by the Government
I. The Contractor's inability for reason beyond his control which not foreseen during the
tender stage e.g. material
J. Delay on the part of the Nominated Sub-contractors and/or Nominated Suppliers to
perform their works
However, there are three clauses entitle for the contractor to claim loss and expenses as stated
under clause 44 such as:
● Clause 43 (d)
● Clause 43 (f)
● Clause 43 (h)

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3.1.2 Extension of Time (EOT) PAM2006

Figure 3.2 Procedures to Apply Extension of Time (EOT) PAM2006

Figure 3.2 above shows the procedures to apply Extension of Time (EOT) PAM2006.
According to Clause 23.1, in a written notice, the contractor notifies the architect of his or her
intention to request an extension by estimating the required amount of time and providing any
pertinent information due to the delay. Within 28 days, the written notice must be delivered. The
contractor must inform the architect that the EOT application is complete within 28 days, along
with all necessary information for the architect to assess the contractor's eligibility for the EOT.
Clause 23.2 states that the contractor is required to provide the NSC with a copy of the written
notice of EOT. Clause 23.3 states that if the contractor provided incomplete information or
documentation for the EOT, the architect must give the contractor 28 days for submitting again
the application. Clause 23.4 states that within six weeks of the date the submission was finalised,

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the architect must issue the certificate of EOT following satisfaction with the Contractor's EOT
application. However, if the EOT application fails, the architect may give written notice of
disapproval to the contractor.

Under PAM2006, there are no particular steps to apply for EOT. However, the contractor is
required to prepare a number of documents for EOT Claims.
● Inclement weather (as example)
● Contractor need to prepare and submit the document as below:
● Daily weather record
● 10 years weather data [meteorology department]
● Estimate the average of rainfall
● Proof of site record
● Approved work programme for executed work
● Any relevant document

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3.2 Summary of Applying Extension of Time Based on Case Study

Based on the case study, by referring to the PAM 2006 Contract, S.H. Butterworth Engineering
Sdn. Bhd, the contractor, submitted a written notice, an Application for an Extension Of Time
(EOT) on 4th February 2021 such as shown in Figure 3.3 and Figure 3.4. They would like to apply
for EOT for the project until 1st March 202l as they could not complete the project on time dated
9th February 2021 due to several issues:
1. 6 Raining days
2. Juru earth supply closure
3. MCO at Kedah
In the application letter, the contractor attached a weather chart as shown in Figure 3.5, Figure 3.6
and Figure 3.7, the notice from supplier such as shown in Figure 3.8, and they informed that there
will be no earth supplier from 11th February until 17th February 2021, due to JPJ road closure for
neary traffic during Chinese New Year as shown in Figure 3.9. After that, an Approval Extension
of Time No. 1 letter was received on 10th February 2021 such as shown in Figure 3.10 and Figure
3.11. The EOT granted was for the period of 9th February 2021 until 1st March 2021 with the total
extension of time granted is 21 days. Based on Figure 3.12 and Figure 3.13, lastly, a Certificate of
Extension of Time (EOT) No. 01 has been issued to the contractor on 10th February 2021, pursuant
to PAM 2006 Contract 23.0 Extension of Time Clause 23.8(b) - exceptionally inclement weather
and 23.8 (x) - any other ground for extension of time expressly stated in the Contract, granted an
extension of 21 days to complete the works. To be revised, the original date of completion is 8th
February 2021, No. of Days Extended by this Certificate is 21 days and Revised Date for
Completion is 1st March 2021.

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Figure 3.3 Application for an Extension Of Time (EOT) letter

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Figure 3.4 Application for an Extension Of Time (EOT) letter continuation

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Figure 3.5 Weather Chart

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Figure 3.6 Weather Chart continuation

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Figure 3.7 Weather Chart continuation

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Figure 3.8 Notice from supplier on Earth Supply Issue

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Figure 3.9 Notice from supplier stated no earth supplier from 11th February until 17th February
2021

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Figure 3.10 Approval Extension of Time No. 1 letter

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Figure 3.11 Approval Extension of Time No. 1 letter continuation

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Figure 3.12 Certificate of Extension of Time (EOT) No. 01

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Figure 3.13 Certificate of Extension of Time (EOT) No. 01 continuation

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 CHAPTER 4.0

CONCLUSION

4.1 Conclusion

In conclusion, a formal request for a construction project's completion date to be extended

is made by a contractor to the project owner or client. When unforeseen conditions or
uncontrollable occurrences have created delays in the project timeline, it is sought after. By
securing an extension of time, the contractor can modify the project schedule in order to account
for unanticipated delays, simplifying project completion without sacrificing quality. Additionally,
it aids in avoiding or minimising any fines that might be imposed for delays that were beyond the
contractor's control. Additionally, obtaining an extension of time displays the contractor's
professionalism and dedication to completing great work, which helps to uphold their credibility
and favourable reputation in the construction sector. While an extension of time relieves the
contractor from liquidated damages and aids in project completion, it does not automatically entitle
the contractor to further payment for the additional period. Depending on the terms of the contract
and any relevant rules or regulations, any additional costs incurred as a result of the delay may
need to be addressed individually through discussion.

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REFERENCES

1. 3 minutes read to understand what is Extension of time (EOT) in construction contract

(2021, April 15). Gan and Zul Advocates & Solicitors.
https://ganzul.com.my/2021/04/15/3-minutes-read-to-understand-what-is-extension-of-
time-eot-in-construction-contract/
2. Extension of time EOT in Construction Projects (2022, July 7). Construction Placements.
https://www.constructionplacements.com/extension-of-time-eot-in-construction-projects/
3. Extension of Time (EOT). (n.d.). Successful Projects.
https://successfulprojects.com.au/construction-claims-and-dispute-resolution/extension-
of-time-eot-claim/#:~:text=Extension%20of%20Time%20(EOT)%20is
4. Extension of time claim - an understanding(July 2022).Kenzie Group. . Retrieved on 17
June 2023 https://www.kenziegroup.co.uk/news/extension-time-claim/
5. What's The Extension Of Time (EOT) For Construction In Malaysia All About? (5 March
2022). Property Guru Editorial Team. https://www.propertyguru.com.my/property-
guides/a-simple-guide-to-extension-of-time-for-construction-in-malaysia-25638.

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