Will Contractor be automatically entitled to compensation due to prolongation when EOT is granted to him?

Question

Alex Al Yazouri · Answer

NO. Entitlement to an EOT does not automatically lead to entitlement to compensation and vise versa. Contractor will only be entitled to compensation if EOT is granted because of the delay is caused by the Employer.

The Contractor will not be entitled to compensation if the EOT is granted due to force majeure, as per the conditions of contract. There may be other reasons which the Contractor can be granted EOT but not for monetary compensation which will be stated in the conditions of contract.

Khalid Mahmood · Answer

Again, it all depends how the contract has been negotiated and agreed to, however in a standard contract condition of delay or disruption cost, it relates to the delay cause and hence you do not get delay cost automatically!

Daulat Hussain · Answer

In General yes but depend on condition of granted EOT with the valuable client and the contractor.

Mohammed Eid · Answer

I agree with Alex statement.

Dear Abdul Wahab

you can refer to the "Society of Construction Law - Delay and Disruption Protocol". it is clearly stated on Clause 1.6.2 Page18 and further explanation on Clause1.8 page20

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Will Contractor be automatically entitled to compensation due to prolongation when EOT is granted to him?

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