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A contract extension is a method of adding more time to an existing legal document. Its sometimes referred to as an addendum or extension clause, depending on the circumstances and industry. In addition to lengthening the time frame, you can also use an extension when small changes need to be made to the document.
A contract extension is an agreement between the original contracting parties to extend the terms of their existing contract for a further period of time. The period for which the extension is granted is set out in the renewal agreement.
Definition: The date that the parties agree will be the starting date for the contracts requirements. Usually, this is the same as the date signed but may be different.
Extension of time (EOT) clauses are an essential element of infrastructure contracts. Legally an EOT regime is required to preserve the ability of the Principal to claim liquidated damages. In some contracts, the entitlement to an EOT for delays caused by the Principals acts of prevention is not specified.
An extension of time is usually only given if the contractor proves that the delay to the completion date is not down to his action or inaction. Common reasons for an extension of time would include adverse weather, variations to the works from the employer or difficulties encountered on site.
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The Time of Performance clause specifies the deadline or schedule by which contracted responsibilities or tasks must be completed. It ensures that all parties involved are aware of the time frame for delivery and performance, thereby minimizing potential delays and disputes.
An extension is useful when youre satisfied with the current agreement, but you need additional time. In real estate, for instance, extension addendums are used when the initially agreed-upon closing date is too soon for all the parties involved to complete their requirements.

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