glossary Glossary 3 min read

Delay event

A delay event is a contract-listed cause that lets the builder claim an extension of time. Compensable vs non-compensable, and common categories.

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A delay event is a cause of programme delay that the building contract expressly lists as giving the builder the right to claim an extension of time. It is a contract concept, not a statute concept: if the cause is not in the contract’s delay-event list, no entitlement arises, even if the delay was outside the builder’s control.

Two layers distinguish delay events:

  • Excusable vs inexcusable. Excusable delays are listed in the contract; the builder can claim time. Inexcusable delays (slow procurement, undermanned crew, builder-side rework) expose the builder to liquidated damages.
  • Compensable vs non-compensable. Some excusable events also give the builder a right to recover delay costs (preliminaries, extended site overheads). Others extend time only. Rule of thumb in residential contracts: principal-caused delays (variations, late PC items, late information) are compensable; neutral delays (weather, force majeure) are time-only.

Common contractual categories across HIA, MBA, and ABIC suites:

  • Inclement weather above the contract threshold.
  • Variations instructed by the principal.
  • Latent conditions (rock, contamination, undocumented services).
  • Late PC or PS items supplied by the principal.
  • Authority delays beyond reasonable processing time for CC, OC, inspections.
  • Force majeure (declared emergency, industry-wide shortage).
  • Suspension by the principal or lawful direction.

Why it matters. A delay event is the precondition for a valid EOT notice. Without a listed event in the contract, the notice is invalid and the liquidated damages clock keeps running. The site diary should record the date the cause arose, the contract clause it falls under, and the impact on the critical path.

Also known as: qualifying delay, excusable delay, delay item.

Category: Contracts / programme / claims.

See also


Last updated: 2026-05-14. Verified: 2026-05-14.