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Table of Contents

A. B. C. D. E. F. G. H. J. K.

Introduction Objective Reasons for Evaluating Extension of Time Claims Definition of Terms Planning Requirements Minimum Documents Required Guiding Principles Evaluation Checklist Potential Sources of Claims Different Cases and Methods for Determining Extension of Time 11 11 3 3 3 5 5 6

Case 1 -Late Site Possession (whole or in part) Case 2a Delay event occurring within contract duration and related to the original scope Case 2b Delay event occurring within contract duration but not related to the original scope. Case 3a Delay event occurring beyond contract duration and related to the original scope Case 3b Delay event occurring beyond contract duration but not related to the original scope Case 3c The Contractor in Delay (Behind Schedule) but the SI for Additional Work issued during the Contractor Delay Period Case 4 The Contractor in Progress (Ahead of Schedule) L. Template for Internal Evaluation Report 17

Appendix Form No. 1

I Tabulation of Delay Events i

A.

Introduction These guidelines were prepared as an answer to the need of providing a common basis in evaluating extension of time claims, submittals required and methods adopted in line with PWA practices and accepted standard principles such as the Society of Construction Laws Delay and Disruption Protocol (2002). Evaluating extension of time claims are both science and art; thus are subjective and contentious in nature, but a common basis can help reduce such confusion. However; in the absence of a protocol, requirements specifically mentioned in the contract shall prevail over these guidelines.

B.

Objective: To establish guidelines for evaluating Extension of Time (EOT) claims.

C. 1. 2. 3. 4. 5.

Reasons for Evaluating Extension of Time Claims: To prevent time becoming at large (ie; for the control of project duration) To establish the revised project completion date To determine concurrent delays, if any To relieve the Contractor from Penalty or Liquidated Damages (LD) for delays beyond his control To give back the Employers contractual right to apply Penalty or LD for delays due to Contractors fault beyond the revised project completion date

D. 1.

Definition of Terms: Additional Works refers to works that are not related to the original scope of work and outside the boundary of the project but later added to the original contract. 2. As-Built Programme refers to the Final Updated programme. It is a record of the history of the activities reflecting the dates, duration and sequence of work as-constructed (actuals) with no relationship. 3. Baseline Programme refers to the schedule or programme showing the duration and sequence in which the Contractor planned to carry out the works. This is the Clause 14 Programme of the General Conditions of Contract. 4. Concurrent delay is the occurrence of two or more delay events, one by the Employer and the other by the Contractor, which may neither occur at the same instance nor to the same activity path but the effect to the project completion date are contributing and felt at the same time. 5. 6. Contractors Delay Event refers to events which under the contract are the risk and responsibility of the Contractor. Critical Path refers to the sequence of activities through a project network diagram, the sum of whose durations determines the overall project duration. There may be more than one critical path depending on workflow logic. 7. Delay Event refers to risks or cause of delay preventing completion of the Works. It can be Employers Delay Event, Contractors Delay Event or beyond Both. 8. Employers Delay Event refers to events which are not attributable to the Contractor. They are causes of delays and risks in which the Employer is responsible under the Contract. 9. Extension of Time (EOT) refers to the additional time granted to the Contractor to provide an extended contractual time period or date by which work should be completed and to relieve it from liability for damages of delay. 10. Impacted Programme refers to the programme showing the time impact or effect of various delay events to the Contract Completion Date 11. 12. Prolongation costs refer to the actual loss and expenses incurred due to Employers Delay Events only. Updated Programme refers to the monthly updates from the approved Baseline programme and recording of the progress of work achieved as of the updating date

E. 1.

Planning requirements: Not more than Two (2) months from commencement of the project and/or as stated in the project brief, the Contractor should secure the Engineers approval of the Baseline Programme.

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2.

The Baseline Programme should be updated (i.e.; weekly or monthly) to record actual progress of work and predict progressively the time impacts of delay events as they occur. Once an Extension of Time is granted, the Contractor should immediately secure the Engineers approval for the Revised Baseline Programme incorporating the actual progress of work and re-define the sequence in which the remaining works are to be completed, considering best efforts in mitigating the delay impacts.

3.

F. 1. 2. 3. 4. 5.

Minimum documents required: The Contractors EOT Claim detailing the Employers Delay Events and its effect to contract completion date Approved Baseline Programme (print and soft copy) Monthly Updated Programme(s) up to the nearest time of the claim event Contractors Impacted Updated Programme Steps taken by the Contractor to mitigate the impact of the delay (ie; by re-sequencing and changing the workflow logic) 6. 7. 8. 9. As-Built Programme, if applicable Narrative of the Impact of Employers Delay Events against the Updated Programme Tabulation of Delay Events impacting the programme (see Appendix I Form No. 1) Documentary evidences (memo, minutes of the meeting, monthly reports, site instruction(s), shop drawings, etc , , ,) to substantiate the claim 10. 11. The Consultants evaluation report, assessment and recommendation The Engineers technical judgment on true/actual occurrences and their magnitude on the physical progress basically the Engineers point of view.

G. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Guiding Principles1 : At the outset, there should be a Contractors claim for review and recommendation. For EOT to be granted, it is not necessary for Employer risk event/s to have begun or ended. The project owns the float. The party who uses it in the first instance will get the benefit in a delay. The mere fact that the Employers risk events prevented the Contractor from completing earlier than the contractual completion date and thereby takes away the float, should not be regarded as giving rise to an extension. The extension of time should be granted to the extent that the Employers delay event affected the critical path, resulting in the full exhaustion of the total float. Once granted, EOT cannot be decreased subsequently. Whenever the net time impact due to omission of work results in a negative extension, then it shall be considered in the digital update for the next application for time extension. Engineers evaluation of the Contractors claim for Extension of Time should be dealt with as close in time as possible to the occurrence of the delay event. The Extension of Time should be granted to the extent that the Employers Delay Event is reasonably predicted to prevent the works from being completed at the present contract completion date. Where the full effect of Employers Delay Event cannot be predicted with certainty, incremental Extension of Time may be granted based on the minimum effect of predictable delays. Where Contractors Delay to completion occurs or has concurrent effect with Employers Delay, the concurrent delay should not reduce any Extension of Time due; meaning concurrent impacts are excusable for time extension. Neither party can recover cost damages from the other party for the period of concurrent delay. The Contractor should only recover compensation if the Contractor is able to identify the causes belonging to Employer and Contractor separately, assess their impact that prevailed concurrently and critically on scheduled

Acknowledgement to Society of Construction Law Delay and Disruption Protocol, October 2002, for quoting their core principles listed out in No 2, 3, 4, 5, 8, 9, 11, 13, 18 and 24. ___________________________________________________________________________________

completion, and thereby prove the additional cost caused by the Employer delay events from those caused by the Contractor delay events. 14. 15. 16. Delay in serving notice or a claim without notice is a matter for upfront denial, when expressly stated in the contract as condition precedent so that the Contractor loses his right to claim. Where the Engineer decides some of the works can be carried out during the period allocated for maintenance without any technical or contractual sacrifice, no EOT will be granted. The Engineer shall order the Contractor to expedite progress under clause 46 when he finds the progress is too slow to ensure completion in which case no time extension is granted unless the Contractor justifies his proposition otherwise. 17. 18. Time impact due to variations during extended period/s is added to the prevailing contract completion date except the delay behind the issue of variation is apparently because of delay in works on the part of the Contractor. Where a delay event for which the Contractor is liable occurs after the date contractually due for completion, and following a period of delay which would give rise to an extension, the effect is to wipe the slate clean and disentitle the Contractor from recovering an extension for the earlier period of delay. This means the Contractor can not be fully relieved from the early delays of his own. 19. 20. LD or Penalty is calculated for the remaining period till the actual completion at the amount per day or part of day as given in the contract and not in proportion to the value of works to be done against the contract sum. The Contractor on valid justifications as to their critical effects shall be entitled for time extension due to causes falling under following categories. a. Delay by the Engineer or Employer in discharge of their obligations b. Delay in possession and site access c. Due to change in law d. Exceptionally adverse weather conditions e. Delay by local government authority f. Excepted risks g. Suspension of Works h. Acts of other Contractors Local government authority delays are excusable delay events provided the Contractor has supplied all necessary information, submittals and samples in compliance with the Specifications for upfront approval without being rejected or repeated, placed all necessary orders and otherwise performed its obligations under the Contract in respect of such work as soon as reasonably practicable and so as not to delay or disrupt the approval process of the relevant Authority in relation to such work. 22. Prolongation costs are a reasonable compensation on actual loss and expense sustained due to Employer caused delays that shifted the scheduled completion. They are not guaranteed as long as the actual loss and expenses is proved on contemporary records in support, since each case is unique and evaluated on its own merit. 23. 24. 25. The premise of compensation is to recover loss that brings the Contractor back to the position the Contractor stood financially had there been no delay. The amount compensable would be for the period the Employer delay event effected in the program and not necessarily the period of extension at the end of the program. Depending on the quality of records available, as the last resort, the QS may decide whether to use time related preliminaries that were directly affected due to Employer delay events and ascertain the compensable amount on pro-rata basis for the period of extension (excluding the concurrent delay impact period). 26. 27. 28. 29. Prolongation costs shall exclude profit since compensation is a replacement cost. The amount so approved shall not exceed the amount claimed by the Contractor except in an arithmetical error. Disruption results in loss of productivity that delays the work being carried out and not necessarily the completion of the Works. The Contractor must establish that the actual progress of identified activities has been interrupted and the cause of the disruption was a cause directly attributable to the Employer.

21.

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30.

The Contractor must demonstrate disruption to actual progress and not planned progress. A work-as-executed program should therefore be the basis for any justification of reduced productivity. This involves comparing the actual cost with what the cost would have been was it not for the disruption.

31. 32. 33. 34. H. No.

Entitlement to an Extension of Time does not automatically lead to entitlement to prolongation cost. EOT review can be innovative in that Value Engineering proposals to accelerate or mitigate delays can be put forward for mutual consent. A reference shall be made to Contracts Department when the contract documents are in silence or dilemma or when the User Department is continuously in disagreement with the EBSD recommendation. Recommendation on one case does not establish precedence over the next case. Evaluation checklist: Particulars Yes No N/A

Submittals 1 2 3 4 5 6 7 Review 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Claim submitted timely Revised programme cross checked with Cl.14 Baseline programme Status close in time of the delay event/s reflected Causes of delay events identified Doubts clarified by the Engineer Issue/s discussed with the QS where required Employer risk events segregated Degree of culpability (extent of liability) determined Cause and effect linked and clearly shown Activities logically related Float of the remaining works considered New scope of work clarified Works omitted considered Works that can be shifted to maintenance period considered Revised method statement/s reflected in the programme Contractor claim received Consultants evaluation received Engineers comments/opinion received Approved Baseline programme received, both soft & hard copy Updated programme(s) received both soft and hard copy Outstanding details requested / received Claim supported with contemporary records

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16 17 18 No. 19

Durations assigned for new activities fair and confirmed Patently unrealistic logic or durations corrected Impact of the Employer risk event/s reasonably predicted Particulars Rotary, double shift, night and Friday work considered where possible Yes No N/A

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Engineers instruction if any to expedite progress received Steps to mitigate delays taken by Contractor acceptable All the effects of delays claimed in one submission where possible Milestones re-established where necessary Progress report/s checked Traffic management plan revisited where applicable Building permit submittals checked where applicable Kahramaa approval details revisited where applicable Alternative VE proposals received/made Concurrent effects considered Reasons behind VOs issued during/after extended period found to be the Employer's risk confirmed EOT has been digitally calculated ( no manual hard insertions) All observations made and interpreted contractually Final cross check done and outcome satisfied EOT granted / not granted with or without cost

Feedback 1 2 Memo sent with interpretation EOT details archived for record purpose

J. 1. 2. 3. 4.

Potential Sources of EOT claims Late Site Possession ( whole or in part ), refer to Clause 42(1) Additions and/or Changes to the Original Scope of Work Modification to Design and/or Specification during execution Delay in Shop Drawings and Materials Submittal Approvals

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5. 6. 7.

Suspension of work ( whole or in part ) Local Authority Approval delays Special Circumstances / Risks

K.

Different Cases and Methods for Determining Extension of Time:

Note: in all cases, the prolongation costs are not guaranteed as long as the actual loss and expenses is proved on contemporary records in support. Each case is unique and evaluated on its own merit. Case 1 a. b. c. Late Site Possession (whole or in part), refer to Clause 42(1) The Contractor will be granted an Extension of Time equal to the time lost in possession of the site after submitting documents (F.1), (F.4), (F.5), (F.9) and (F.10) above. For late partial possession, the time lost / EOT will be evaluated based on the area availability against the baseline programme and the actual progress of work. The time impact should show that the present contract completion date will be revised / adjusted equivalent to the amount of time lost.

Case 2a Delay event occurring within contract duration and related to the original scope. a. Determine the impact of delay event to the Updated Programme and investigate the effect to the original completion date before the occurrence of Employer Delay Event b. The Extension of Time period will be calculated as the difference between the Updated Programme Completion Date BEFORE and the resulting Completion Date AFTER incorporating the Employers delay events to the Programme. c. The EOT Period will be considered just after the original Contract Completion Date.

Note: The Employer delay event affects the completion of the original scope of work Case 2b a. Delay event occurring within contract duration but not related to the original scope. The Revised Completion date will be calculated as the net resultant time impact by adding the required duration to execute the Employer delay event starting from the Issue of additional work instruction against the original completion date b. Two separate milestones may be established

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or

Note: a. b. If the Revised completion date is not beyond the present completion date then, there is No Time Impact The Employer delay event or additional works are separate and independent from the original scope of work

Case 3a Delay event occurring beyond contract duration and related to the original scope

a.

Determine the time impact of delay event to the Updated Programme and investigate the effect to the original completion date before the occurrence of Employer Delay Event

b.

The Extension of Time Period will be calculated as the difference between the Updated Programme Completion Date BEFORE and the resulting Completion Date AFTER incorporating the Employers delay events to the Programme.

c.

The EOT Period will be considered just after the original Contract Completion Date.

Note: Case 3b Note: The Employer delay event or additional work affects the completion of the original scope of work Delay event occurring beyond contract duration but not related to the original scope The Engineer shall determine the choice. Considering Two Separate Milestones for the Works: the Original Contract Completion Date the Additional Works Completion Date

Milestone 1: Milestone 2:

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a.

Considering Revised Completion Date for the Whole project: The EOT period will be calculated by adding the required duration to execute the additional works to the gap duration between the Actual Completion Date and the Site Instruction Date. b. The Period of the EOT will be considered just after the original Contract Completion Date.

Case 3c

The Contractor in Delay (Behind Schedule) but the SI for Additional Work issued during the Contractor Delay Period: The EOT period will be calculated by adding the required duration to execute the Additional Works only. The Period of the EOT will be considered just after the original Contract Completion Date.

a. b.

Case 4

The Contractor in Progress (Ahead of Schedule):

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Considering TWO Separate Milestones for the Works: Milestone 1: the Original Contract Completion Date Milestone 2: the Additional Works Completion Date

Considering Revised Completion Date for the Whole project: a. The EOT period will be calculated by adding the required duration to execute the additional works to the gap duration between the Original Contract Completion Date and the Site Instruction Date. b. The Period of the EOT will be considered just after the original Contract Completion Date.

L. 1. 2. 3.

Template for Internal Evaluation Report Claim - with the title in short and to the point Project status using Fabis records Scenario This part will carry background information of the claim the history, previous references in date order, what is expected by the other and where we are standing at the moment. 4. Contractors position This part explains in short the Contractors main and subsidiary allegations against the Employer and Engineer. To be precise, why the Contractor asks for the time and/or cost? The basis of his approach and interpretation if any amounts. 5. Consultants position This part explains in short the consultants (say, Supervision Engineer and Quantity Surveyor) positions in terms of basis and method of calculation.

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6.

Engineers position This part explains in short the Engineers thinking, any technical judgments, commitments or silence.

7.

Others The report can have a space for Contracts Department if it had an involvement.

8.

EBSD position a. b. c. d. e. f. g. h. i. j. k. Findings (other than the above) Argument for and against the positions of the Contractor, Consultants, Engineer and the Others) Approach, basis, strategy, defense and interpretation Limitations - any restrictions to come up with steady and independent outcome. Hypothesis these are realistic assumptions to arrive at conclusion or to analyze the claim Eligibility contractual or otherwise, Quantum the amount excusable and/or compensable, Options available and their implications commercially, contractually, and in public interests Conclusion and/or Recommendation Appendix calculations, graphs, tables etc . . .

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