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Time at Large Concept The term time at large refers to a situation where the contractual completion date is effectively nullified, usually due to the wrongful rejection or non-consideration of valid Extension of Time (EOT) applications by the employer or project engineer. Once time is at large, the contractor is entitled to a reasonable extension, and the original completion date no longer constrains performance.References:
CARLSON CONSTRUCTION SDN BHD vs AWP PROPERTIES SDN BHD & OTHER CASES - High Court Malaya Kuala Lumpur
,AMAN SELAMA vs KERAJAAN MALAYSIA - High Court Malaya Kuala Lumpur
,SAVELITE ENGINEERING SDN BHD vs ASKEY MEDIA TECHNOLOGY SDN BHD AND ANOTHER APPEAL - Court of Appeal Putrajaya
,ETEC E&C (M) SDN BHD vs DINDINGS POULTRY PROCESSING SDN BHD - High Court Malaya Kuala Lumpur
Legal and Contractual Basis Courts and arbitral tribunals have consistently held that if an employer or engineer improperly refuses or fails to process valid EOT requests, or if they wrongly reject such applications, the time for completing the works becomes at large. This was emphasized in cases where the employer's conduct, such as wrongful rejection of EOT applications or failure to respond, led to the absence of a fixed completion date.References:
AMAN SELAMA vs KERAJAAN MALAYSIA - High Court Malaya Kuala Lumpur
,ETEC E&C (M) SDN BHD vs DINDINGS POULTRY PROCESSING SDN BHD - High Court Malaya Kuala Lumpur
Implications of Time at Large When time is at large, the contractor is not bound by the original contractual deadlines, and delays are not attributable to the contractor. This can invalidate claims for liquidated damages (LAD) and affect the validity of contract termination. Courts have ruled that improper handling of EOT applications results in the time being at large, thus extending the contractor's permissible completion period.References:
AMAN SELAMA vs KERAJAAN MALAYSIA - High Court Malaya Kuala Lumpur
,ETEC E&C (M) SDN BHD vs DINDINGS POULTRY PROCESSING SDN BHD - High Court Malaya Kuala Lumpur
,FEDERAL FURNITURE INDUSTRIES SDN BHD vs IREKA ENGINEERING & CONSTRUCTION SDN BHD - High Court Malaya Kuala Lumpur
Disputes and Court Rulings Several cases illustrate disputes over whether time was at large. For example, if the employer or engineer fails to consider or wrongly rejects EOT applications, courts have found that the contractual time frame no longer applies. Conversely, if the employer correctly processes EOT requests, the time remains within the original contractual period.References:
CARLSON CONSTRUCTION SDN BHD vs AWP PROPERTIES SDN BHD & OTHER CASES - High Court Malaya Kuala Lumpur
,SAVELITE ENGINEERING SDN BHD vs ASKEY MEDIA TECHNOLOGY SDN BHD AND ANOTHER APPEAL - Court of Appeal Putrajaya
,FEDERAL FURNITURE INDUSTRIES SDN BHD vs IREKA ENGINEERING & CONSTRUCTION SDN BHD - High Court Malaya Kuala Lumpur
Key Principles
CARLSON CONSTRUCTION SDN BHD vs AWP PROPERTIES SDN BHD & OTHER CASES - High Court Malaya Kuala Lumpur
,ETEC E&C (M) SDN BHD vs DINDINGS POULTRY PROCESSING SDN BHD - High Court Malaya Kuala Lumpur
,FEDERAL FURNITURE INDUSTRIES SDN BHD vs IREKA ENGINEERING & CONSTRUCTION SDN BHD - High Court Malaya Kuala Lumpur
Time at large arises when a contractor's right to an extension is improperly denied or ignored, causing the contractual completion date to become unenforceable. This principle is well-established in Malaysian construction law, with courts emphasizing the importance of proper EOT procedures. When time is at large, contractors are entitled to a reasonable extension, and claims for LAD or contract termination based on the original schedule may be invalidated. Proper handling of EOT applications is crucial to maintain the contractual timeline and avoid disputes over time at large.
References:-
CARLSON CONSTRUCTION SDN BHD vs AWP PROPERTIES SDN BHD & OTHER CASES - High Court Malaya Kuala Lumpur
-MAJLIS BANDARAYA PULAU PINANG vs SAGAMUDA CIVIL SDN BHD - Court of Appeal Putrajaya
-SAVELITE ENGINEERING SDN BHD vs ASKEY MEDIA TECHNOLOGY SDN BHD & ANOTHER APPEAL - Court of Appeal Putrajaya
-SAVELITE ENGINEERING SDN BHD vs ASKEY MEDIA TECHNOLOGY SDN BHD AND ANOTHER APPEAL - Court of Appeal Putrajaya
-SIME DARBY ENERGY SOLUTIONS SDN BHD vs RZH SETIA JAYA SDN BHD (IN LIQUIDATION) & ANOTHER CASE - High Court Malaya Shah Alam
- 2023 0 Supreme(Del) 2754-AMAN SELAMA vs KERAJAAN MALAYSIA - High Court Malaya Kuala Lumpur
-ETEC E&C (M) SDN BHD vs DINDINGS POULTRY PROCESSING SDN BHD - High Court Malaya Kuala Lumpur
-FEDERAL FURNITURE INDUSTRIES SDN BHD vs IREKA ENGINEERING & CONSTRUCTION SDN BHD - High Court Malaya Kuala Lumpur
In the high-stakes world of construction projects, delays are common, but what happens when an employer or contract administrator improperly refuses a valid ? This is where the doctrine of comes into play—a critical concept in construction law that can nullify the original completion date and protect contractors from penalties. If you're dealing with Construction EOT issues, understanding this principle is essential to safeguard your rights.
This article breaks down the doctrine, supported by case law and legal principles, particularly in Malaysian construction contexts. We'll explore when it applies, its implications, and practical recommendations. Note: This is general information, not specific legal advice. Consult a qualified lawyer for your situation.
The concept of arises when the employer or contract administrator improperly refuses to grant an despite circumstances warranting one, leading to the contractual completion date becoming unenforceable and the project being effectively set at large
.
In simple terms, once time is set at large, the contractor is no longer bound by the original deadline. The timeline becomes flexible, and the contractor must only complete the works within a . This doctrine is rooted in fairness, preventing employers from benefiting from their own delays or failures
.
Key triggers include:- by the employer, such as delays in approvals or site access.- Failure to properly assess or grant a valid EOT application.- Unjustified rejection of EOT requests after the contractor complies with procedures
.
As noted in legal analysis, the term refers to a situation where the contractual completion date is effectively nullified, usually due to the wrongful rejection or non-consideration of valid applications by the employer or project engineer
- High Court Malaya Kuala Lumpur
- High Court Malaya Kuala Lumpur
.The doctrine is well-established in construction law. When the contractual mechanism for EOT is improperly applied or disregarded, the fixed completion date loses its enforceability
.
A landmark reference is , where Justice Lee Swee Seng held that if an architect or Superintending Officer (SO) improperly refuses to grant an EOT where one is warranted, the time for completion is set at large
. This draws from the 's , stating that time being set at large is not at all alien to construction disputes and occurs due to or failure to grant EOT properly
.
Principles from Hudson's Building and Engineering Contracts and Delay and Disruption in Construction Contracts further affirm that employer conduct preventing EOT leads to , nullifying the timeline
.
In Malaysian disputes, courts have ruled that if an employer or engineer improperly refuses or fails to process valid EOT requests, or if they wrongly reject such applications, the time for completing the works becomes at large
- High Court Malaya Kuala Lumpur
- High Court Malaya Kuala Lumpur
.The doctrine typically activates in these scenarios:- Improper denial of EOT: Employer refuses despite valid reasons, like delays in drawings or land acquisition
.- Failure to respond: No assessment of EOT applications, as seen in cases with numerous unresolved requests
.- : Employer-caused delays, e.g., revisions to flood risk levels (FRL) or late issuance of drawings 2018 0 Supreme(Del) 1073.
For instance, in one project, despite applying for 433 days EOT, only 100 days were granted, highlighting partial refusals that may trigger disputes
- High Court Malaya Kuala Lumpur
. Similarly, tribunals analyze correspondence on delays, EOT applications, and engineer's recommendations to determine if time was set at large 2018 0 Supreme(Del) 1073.Conversely, if the contractor causes delays or the employer properly processes EOT (e.g., granting till 2018 0 Supreme(Del) 1562), time remains enforceable
.
Once established, has significant effects:- No : Contractors cannot be penalized for post-event delays, as the original date is void
.- Reasonable completion time: Contractor must finish within what's reasonable, not the old deadline
- High Court Malaya Kuala Lumpur
.- Invalid termination: Notices based on original dates may fail, e.g., termination despite pending EOT 2022 0 Supreme(Del) 397.Courts emphasize: When time is at large, the contractor is not bound by the original contractual deadlines, and delays are not attributable to the contractor. This can invalidate claims for
- High Court Malaya Kuala Lumpur
- High Court Malaya Kuala Lumpur
. In one case, EOT was granted subject to LD, but extended delays led to further claims 2019 0 Supreme(Gau) 391.Not every delay triggers :- Contractor fault: Delays solely due to the contractor don't qualify
.- Proper exercise of discretion: Good faith denial with reasons keeps the contract intact
.- Amicable settlements: Parties may settle EOT separately without invoking the doctrine 2022 0 Supreme(Del) 1724.
Issuing a doesn't fix the timeline if EOT was wrongly rejected
- High Court Malaya Kuala Lumpur
.To avoid pitfalls:- For Contractors: - Strictly follow EOT procedures and document everything. - Apply promptly for extensions, e.g., for 433 days as in some cases
- High Court Malaya Kuala Lumpur
.- For Employers/SOs: - Assess EOT in good faith with clear reasons. - Avoid partial grants without justification to prevent disputes- High Court Malaya Kuala Lumpur
.- General Tips: - Monitor delays like land acquisition or drawing issuance 2018 0 Supreme(Del) 1073. - Seek amicable resolutions early 2022 0 Supreme(Del) 1724.In disputes, argue if EOT was unjustly denied, potentially invalidating LAD
- High Court Malaya Kuala Lumpur
.protects contractors from unfair penalties when EOT is mishandled, emphasizing proper procedures in construction contracts. Malaysian courts, via cases like Kerajaan Malaysia v. Veneer Coal, uphold this to ensure equity
.
Key Takeaways:- Wrongful EOT refusal sets time at large, nullifying deadlines
.- Document compliance to leverage the doctrine.- Proper handling prevents LAD invalidation and terminations.
Stay proactive in EOT management to keep projects on track. For tailored advice, consult legal experts.
References:-
,
,
- High Court Malaya Kuala Lumpur
,- High Court Malaya Kuala Lumpur
,- High Court Malaya Kuala Lumpur
,- High Court Malaya Kuala Lumpur
,- High Court Malaya Kuala Lumpur
, 2022 0 Supreme(Del) 397, 2022 0 Supreme(Del) 1724, 2019 0 Supreme(Gau) 391, 2018 0 Supreme(Del) 1562, 2018 0 Supreme(Del) 1073Word count: 1028. This post draws from legal documents for educational purposes.
#TimeAtLarge, #ConstructionEOT, #ConstructionLaw
EOT and thus time was at large. ... Just because the word 'time at large' was not raised expressly by CCSB in its Adjudication Claim and the Adjudication Reply does not mean that the Adjudicator could not have made a decision which led to his conclusion that 'time was at large' based on the facts and documents before him. ... This however does not mean that the Adjudica....
, and thus, time was therefore set at large. ... Issue 2: Whether The LJC Was Correct In His Finding That The Conditional Reinstatement Agreement Was An EOT, And Thus, Time Was Therefore Set At Large. Hence, The EOT Would Have Effectively Nullified/ Invalidated The Plaintiff's Claim For LAD. ... The LJC had certainly erred in finding that the Conditional Reinstatement Agreement was an #H....
Accordingly- (a) the time for the performance of the construction contract was at large in RC Asia Engineering and Infraprima Construction; and (b) the dicta by the Court in in RC Asia Engineering and Infraprima Construction regarding ... construction work within the stipulated time periods. ... Nor did the Defendant make any objection regarding the issuance of the CNC ....
Accordingly- (a) the time for the performance of the construction contract was at large in RC Asia Engineering and Infraprima Construction; and (b) the dicta by the Court in RC Asia Engineering and Infraprima Construction regarding the absence of ... from completing their construction work within the stipulated time periods. ... Nor did the Defendant make any objectio....
By her accepting the 1st EOT date she had been inconsistent. [16] SDES also submits that since the 1st EOT dated 14 June 2017 was accepted as the new completion date and since no other EOT request was considered subsequently, time has become at large. ... A retrospective approval given is against public policy as this would allow time at large as in this case when RZH f....
(v) of GCC) Is only by way of granting EOT is misplaced. I hold that Claimant has right to all justified Claims arising out of additional costs incurred during the period of EOT granted for reason not attributable to Claimant." ... 9.3 Respondent has argued that Contract provides under Clause 5.2(v) of GCC only for grant of EOT. ... Before I consider the challenge to the Award on merit, I shall remind myself of the limited scope of challen....
rejecting its EOT Application 3; (ii) as a consequence, the time for completion of the works under the Contract was at large; and (iii) with time for completion of the works being at large, the defendant's termination of the Contract was invalid. ... [27] When the SO improperly refused to grant an EOT in a situation that would warrant an EOT, then time#HL_END....
[14] Unfortunately, as is common in the construction industry, the parties became embroiled in disputes over the common issues of alleged delays in the Works, unfair rejection of applications for Extension of Time ('EoT') and wrongful demand for liquidated and ascertained damages ('LAD' ... (c) However, during the course of the works at FP, there were delay, which were due to various breaches and act of prevention by the Defendant and/or ....
By not addressing the EoT Application, time for completion of the subcontract works was at large and the Plaintiff has a reasonable time to complete the ID works. ... I would add that if the 4th EOT application was wrongly rejected, the same consequence would ensue such that time for completion becomes at large the Contractor would be allowed a reasonable time....
the construction of the STP. ... Despite D1 having applied for an extension of time for a period of 433 days in its Revised Application for EOT 1, D2 granted D1 an extension of time of 100 days only from 12 September 2014 to 20 December 2014 for the completion of Phase 1 of the Project in EOT 1. ... [5] EOT 1 and EOT 3 were extensions of time for Phas....
When all disputes were referred to arbitration the respondent issued a notice of termination to the claimant on 3rd March 2016. The respondents were also to issue Extension of Time (EOT). Despite that the respondents invoked the bank guarantee after appointment of arbitrator.
The concessionaire also claimed that he should be given EOT for construction period without levy of penalty as delay was attributable to both the parties. It was amicably settled that the issue of grant of EOT for construction period shall be dealt separately.
As such, the appellant (owner) had granted EoT subject, however, to the condition that Liquidated Damage (LD) @ 10% of the total contract value would be imposed on the final bill of the respondent/contractor. However, the respondent could complete the work only on 01/10/1996, i.e. after a delay of 553 days. M/s Engineers India Limited i.e. the Engineer-in-charge for the contract had recommended that extension of time be granted to the respondent. The respondent had, therefore, applie....
6. The respondent applied for extension of time (EOT) for completion of the works and AAI granted EOT till 19.09.2009.
The Tribunal further endeavored to critically analyze numerous correspondence on record relating to various delays such as all EOT applications and the Engineer's observations, analysis and recommendations on all such EOT applications, Engineer's MPRs from November 2001 to February 2008 except April 2002 (in 8 volumes) filed by the Respondent, contemporary communications on various delay events in the Rejoinder, delay in FRL revisions, delay in issuance of drawings, delay in land Acquisition, ....
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