The construction industry in Malaysia, particularly under the jurisdiction of the Public Works Department (PWD), frequently encounters time extensions due to various factors impacting project schedules. This study provides an analytical approach to understanding the implications of these time extensions on PWD contracts. By examining the underlying causes, including unforeseen circumstances, design changes, contractor delays, client-induced delays, and third-party interferences, the research highlights the multifaceted nature of project delays. The legal and contractual frameworks governing time extensions are scrutinized to comprehend the procedures and conditions for granting extensions. Additionally, the cost implications are assessed, encompassing direct, indirect, and opportunity costs associated with extended project timelines. This paper also explores the role of effective project management practices in mitigating the negative impacts of time extensions. The findings aim to offer insights into improving contract administration and project delivery within the Malaysian construction sector, thereby enhancing efficiency and stakeholder satisfaction.