EOT claims on QBCC domestic contracts: the 10 business day rule
When a Queensland tradie or builder can claim an extension of time on a domestic building contract, the 10 business day written notice rule in Schedule 1B of the QBCC Act, what to put in the claim, how the owner responds, and the records that back it up.
On a domestic job in Queensland, running late isn't just awkward. If the contract has a date for practical completion and you blow it without an approved extension of time (EOT), you can end up paying the owner liquidated damages for every day over. Schedule 1B of the Queensland Building and Construction Commission Act 1991 sets strict rules on when and how you can claim an EOT. Miss them and the extra time isn't yours to rely on.
Which contracts this applies to
Section 42 of Schedule 1B applies to regulated contracts, the Level 1 and Level 2 domestic building contracts. In practice that means domestic work priced over $3,300 (see our QBCC $3,300 guide). Commercial contracts and work under the threshold aren't covered by these rules, so check what your own contract says.
What counts as a delay you can claim for
Under section 42(1)(a), you can only claim an EOT if the delay was:
- not reasonably foreseeable and beyond your reasonable control, or
- caused by the building owner, or
- caused by a variation that complies with section 40 of Schedule 1B.
Wet weather: QBCC's contract guide points out that the law no longer makes you state your allowance for likely delays, like wet weather and non-working days, in the contract. You still have to allow for them when you set the completion date, because a claim fails if the delay was reasonably foreseeable. QBCC's own contracts still ask you to state the days allowed for each likely delay. Its Level 1 claim form asks whether the cause is one of those listed delays and, if it is, whether you've been delayed for longer than the allowance.
Variations: a variation only supports an EOT if it complies with section 40. That means it's in writing, and the owner gets a copy within 5 business days of agreeing to it, or before the variation work starts if that's sooner. QBCC's guide adds that if a variation is likely to delay completion, the variation document must include your reasonable estimate of the delay, and the owner must agree to the variation in writing before you start the work.
The notice deadline: 10 business days
Section 42(1) says the claim must be:
- made to the owner in writing, and
- given to the owner within 10 business days of you becoming aware of the cause and extent of the delay, or of when you reasonably ought to have become aware of them, and
- approved by the owner in writing.
Two points matter here. First, the clock runs on business days, so weekends and public holidays don't count. Second, it starts when you knew, or ought to have known, both the cause and how long the delay would be. Saying you didn't get around to working out the extent won't stretch the deadline. Section 42(4) also lets a regulation say when a series of similar delays can be treated as a single delay for the deadline.
Section 42(2) says you must not rely on an extension of time unless you claimed it in line with those rules. The maximum penalty is 20 penalty units. Once the owner approves, section 42(3) says you must give them a signed copy of the claim within 5 business days of the approval, again with a maximum penalty of 20 penalty units.
How to give the notice and what to put in it
The Act requires writing but doesn't prescribe a form. Your contract's general conditions will usually say how notices are served, for example in person, by post or by email. QBCC's Form 1, for its Level 1 renovation, extension and repair contract, is a good model of what a claim should contain:
- the owner's name and postal address, your details, and the site address
- a full description of the cause of the delay
- whether it's a listed likely delay, and if so, that it exceeded the allowance
- the date the delay arose
- the number of additional business days claimed
- the new date for practical completion
- your signature and the date.
The form tells contractors to attach supporting information, giving as an example the dates when rain, or its effects, stopped work on site.
How the owner responds
Under the Act, the claim only works if the owner approves it in writing. Without written approval you don't have a valid EOT under section 42. The note to owners on QBCC's Form 1 tells them to accept, reject or partly reject the claim in writing, and to give reasons for any rejection, as soon as possible but within 10 business days of receiving it. That timeframe comes from the QBCC contract's conditions, so check your own contract for its response period and what happens if the owner says nothing. If you can't agree, QBCC's guide says to raise concerns in writing first, then QBCC's dispute resolution service may help.
Record-keeping that wins EOT claims
- Keep a daily site diary: weather and rainfall, whether the site was workable, who was on site, work done, deliveries, inspections and instructions from the owner.
- Write down the day you became aware of each delay and when its extent became clear. That's when your 10 business days start.
- Count the deadline in business days, skipping weekends and Queensland public holidays, and send the claim well before it.
- Keep proof of sending, such as the email or a posting record, and the owner's written response.
- Give the signed copy within 5 business days of approval, and keep your own.
- Keep a running revised completion date that adds approved EOT days, because that's the date any liquidated damages are measured from.
Sources
- Queensland Legislation – Queensland Building and Construction Commission Act 1991, Schedule 1B (ss 40 and 42)
- QBCC – Domestic building contracts: general information for owners and contractors (March 2021, PDF)
- QBCC – Form 1: Extension of time claim and owner's response (Level 1 Renovation, Extension and Repair Contract, PDF)
Related guides
- QBCC licence, the $3,300 threshold, contracts and deposits
- How to quote a job with GST (Australia)
- SWMS for high risk construction work, explained
- TPAR for tradies: paying subbies and the 28 August report
General information only, summarised from the official sources above as at the review date. It isn't legal, tax, WHS or engineering advice. Rules change and your situation may differ, so check the source or ask a professional.