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Topics: Communications Management, Construction, Risk Management
Extension Of Time and Liquidated Damages
Normally EOT and LD does not go hand in hand.Has anyone come across an extra ordinary situation on a construction contract where both the provisions were applied simultaneously under the contract ? Please share your experience.
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This might occur In the case that the contractor might be eligible to have EOT in the specific events but such EOT are not sufficient to complete the project.

For example:
Original completion date : March 10, 2016
Time to extension : 180 days
Revised completion date : September 06, 2016
Substantial completion date : December 05, 2016

Therefore, 90 days of LD might be applicable.

However most of time in my case, LD might be avoidable when the contractor gives up some cost reimbursement from the client due to EOT and additional time to competition can be obtained from the client.
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1 reply by Chandrashekhar Thatte
Feb 23, 2017 2:26 AM
Chandrashekhar Thatte
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Sungjoon,if EOT is granted and the new timelines are set in ,it is expected that the Contractor has to perform within the new timelines.If the project gets delayed on account of the Contractor,LD becomes applicable.Your example shows that the Contractor was unable to complete the project within revised completion date .However,there exists an option,if mutually acceptable,to escape from LD if the Contractor parts with a portion of the prolongation cost received along with EOT to gain sometime to complete the project.This is a win-win situation for both the parties to the contract.
Feb 22, 2017 8:50 AM
Replying to Sungjoon Park
...
This might occur In the case that the contractor might be eligible to have EOT in the specific events but such EOT are not sufficient to complete the project.

For example:
Original completion date : March 10, 2016
Time to extension : 180 days
Revised completion date : September 06, 2016
Substantial completion date : December 05, 2016

Therefore, 90 days of LD might be applicable.

However most of time in my case, LD might be avoidable when the contractor gives up some cost reimbursement from the client due to EOT and additional time to competition can be obtained from the client.
Sungjoon,if EOT is granted and the new timelines are set in ,it is expected that the Contractor has to perform within the new timelines.If the project gets delayed on account of the Contractor,LD becomes applicable.Your example shows that the Contractor was unable to complete the project within revised completion date .However,there exists an option,if mutually acceptable,to escape from LD if the Contractor parts with a portion of the prolongation cost received along with EOT to gain sometime to complete the project.This is a win-win situation for both the parties to the contract.

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