Extension of time and loss and expense

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Legal and contractual solutions · Loss and expense

Does an extension of time automatically entitle the contractor to loss and expense?

Separate contractual tests for time and money

No. An extension of time and financial compensation are separate entitlements unless the contract expressly combines them. The contractor must establish the contractual basis and evidential requirements for each remedy.

Quick answer

No. Time relief does not automatically establish an entitlement to payment

An extension protects the contractor from the consequences of culpable delay for the period awarded. Financial recovery requires a separate compensable event, compliance with any notice and particulars requirements, causation and proof of recoverable loss. Some events provide time only; others provide both time and money. A decision on one entitlement may be relevant evidence, but it does not decide the other without supporting contractual analysis.

IssuePosition
Extension of timeAdjusts the completion obligation
Loss and expenseRequires a separate payment entitlement
Time-only eventMay excuse delay without compensating cost
Time-and-money eventMust satisfy both contractual routes
QuantumRequires causal and contemporaneous proof

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