Construction
Extension of Time (EOT) Cost Claim
Accruing the additional prolongation costs associated with an extension of time granted by the client.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Claims Receivable (Prolongation) | Asset (+) | 95,000.00 | - |
| Contract Revenue (Prolongation Claim) | Revenue (+) | - | 95,000.00 |
💡 Accountant's Note
When a contractor is granted an EOT due to employer-risk events, they are entitled to prolongation costs (site overhead for the extended period). Revenue is recognized when it is highly probable of recovery.
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