It comes from the prevention principle. An owner cannot hold a contractor to a date that the owner's own act made impossible.
How it flows
When time is at large, the owner loses the right to liquidated damages for late completion. A court or arbitrator decides what a reasonable time was.
It is rare in Australia. Most contracts have an extension of time clause that covers owner delay. The clause moves the date for owner delay, so the contractor still has a date to meet.
Treat time at large as a last argument. The strong path is the extension of time clause. Give notice on time and claim the days.
Time at large means the completion date no longer binds the contractor. The owner caused a delay and the contract gave no way to extend time for it. The contractor must then finish within a reasonable time.
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