Managing Extension of Time (EOT) Claims Under Contracting Agreements in Bahrain
In Bahrain’s contracting industry, delays can occur for many reasons — design changes, late approvals, adverse weather, supply chain disruptions, or unforeseen site conditions. When these delays are beyond a contractor’s control, the right to an Extension of Time (EOT) can prevent unfair penalties and protect contractual entitlements.
However, EOT claims are one of the most contested issues in contracting disputes. Poorly managed claims can lead to rejected requests, liquidated damages, or costly arbitration. This blog explains the legal framework, best practices, and common pitfalls for managing EOT claims under contracting agreements in Bahrain.
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What Is an Extension of Time (EOT)?
An Extension of Time is a contractual mechanism that allows the project completion date to be moved forward without imposing delay penalties, when the delay is caused by events outside the contractor’s control.
Common valid grounds include:
- Variations or design changes ordered by the employer
- Delays in approvals, permits, or inspections
- Force majeure events (e.g., extreme weather, natural disasters)
- Unforeseen site conditions (e.g., underground utilities, soil instability)
- Delays by nominated subcontractors or suppliers
Legal Requirements for EOT Claims in Bahrain
- Contractual Basis
- The right to claim an EOT must be explicitly stated in the contract.
- FIDIC-based contracts, widely used in Bahrain, have detailed EOT provisions.
- Notice Requirements
- Contractors must notify the employer of the delay within the specified time frame, often 14–28 days.
- Late notices can result in losing the right to an EOT.
- Evidence and Records
- Maintain detailed site records, progress reports, correspondence, and photographs.
- Link each delay to its cause with documented proof.
- Critical Path Analysis
- Demonstrate how the delay impacts the project’s critical path, not just isolated tasks.
- Without this analysis, employers may reject the claim.
- Mitigation Efforts
- Show that reasonable steps were taken to reduce the impact of the delay.
- Failure to mitigate can weaken the claim.
Common Mistakes in EOT Claims
- Submitting vague or incomplete notices.
- Failing to prove the direct link between the delay cause and project completion date.
- Not updating the program or schedule to reflect delays.
- Waiting until the end of the project to lodge all claims at once.
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Example:
A contractor was building a large logistics facility under a FIDIC-based contract. Midway through, the employer instructed significant changes to the structural design. These changes required additional procurement and re-engineering, which delayed the critical path activities by three months.
The contractor submitted an EOT claim but failed to include a formal critical path analysis or evidence of mitigation measures. The employer rejected the claim and imposed liquidated damages.
A lawyer reviewing the case found that, although the contractor was entitled to an EOT, the lack of technical evidence and late submission weakened the claim’s enforceability. This scenario highlights how even valid claims can fail without proper documentation and procedural compliance.
Best Practices
For Contractors:
- Issue EOT notices promptly and in the required format.
- Keep accurate and contemporaneous records of all project events.
- Include a detailed delay analysis and proof of mitigation in the claim submission.
For Employers:
- Respond to EOT claims within contractual timeframes.
- Engage independent experts to verify delay analyses.
- Maintain transparent communication to avoid disputes escalating.