It is a frequent misunderstanding among contractors and employers alike that the grant of an extension of time automatically entitles the contractor to additional payment. Core Principle 12 of the SCL Delay and Disruption Protocol corrects this misconception: entitlement to time and entitlement to money are separate contractual questions, governed by separate provisions and supported by separate evidence.
Many delay events that entitle the contractor to an EOT do not entitle the contractor to compensation. Exceptionally adverse climatic conditions, for example, are typically a 'time but no money' event under FIDIC. Force majeure events, certain neutral acts of prevention and changes in legislation may also fall into this category, depending on the contractual provisions.
Conversely, certain delay events entitle the contractor to both time and money — typically variations, late access, suspension by the employer and breach of contract by the employer. Even in these cases, however, the contractor must separately prove the cost incurred as a result of the delay, applying the principles of causation and quantification that govern damages claims.
In the Middle East, the FIDIC suite of contracts is the dominant template, and Sub-Clause 8.4/8.5 (EOT) and Sub-Clause 1.9, 2.1, 7.4, 8.9 (cost) are the typical engines of entitlement. A delay and disruption expert witness will analyse each delay event by reference to the specific contractual provision relied upon, and a quantum expert will then assess the cost recoverable for the periods of compensable delay.
The practical implication for contractors is that successful claims management requires two parallel workstreams: a delay analysis that identifies the cause and impact of each event, and a quantum analysis that values the additional cost incurred. Combining the two prematurely — or assuming that an EOT carries automatic compensation — produces weak claims that tribunals are likely to reject.
For employers, the recognition that EOT and compensation are separate provides a useful negotiating framework. An employer may be willing to grant time without money in appropriate cases, and the SCL Protocol's structured approach makes such outcomes both possible and defensible.