DELAYS, DISRUPTIONS AND EOT

August 02, 2013

UNDERSTANDING EOT, DELAYS, DISRUPTION AND CAUSE & EFFECT & NECESSARY DOCUMENTS/RECORDS FOR AN EXTENSION OF TIME, RECOVERY OF ADDITIONAL COSTS FOR DELAYS AND DISRUPTION
1. UNDERSTANDING DELAYS, EOT AND CAUSE AND EFFECT

Project Manager(s) must clear their understanding with respect to the Contractors entitlements to Delay, Concurrent Delays, Disruption, Extension of Time and Cause & Effect (planned vs actual). These are briefly highlighted as follows:
Programmes/Schedule and Records Entitlement to Extension of Time (EOT) Employer Risk Event Programme/Schedule should be updated regularly to record the actual progress and any extension of time granted. The Contractor will potentially be entitled to an EOT only for those events which qualify as the employer risk Event. If as a result of an Employer Delay, the Contractor is prevented from completing the work as per the Contractor's planned completion date, the Contractor shall in principle be entitled to be paid the costs directly caused by the Employer Delay. Concurrent Delays shall not reduce EOT for any Contractor's delays. Disruption is disturbance, hindrance, interruption to a Contractor's normal working methods resulting in lower efficiency. The Contractor is entitled to claim compensation from the Employer against such events. Details of planned works affected, planned sequence, duration and methodology, works status of planned vs actual, describing the change to that of planned as a consequence of the event.

Concurrent Delays Disruption

Cause and Effect

2.

IMPORTANCE OF KEEPING RECORDS

Project Managers must establish a proper system on Site for keeping records of events and their effects as they occur. The type of records that need to be kept will be combination of records that relate to specific problems as they occur; and those records that should be regularly kept on all the time.

PARAGON CONSTRUCTORS (PVT.) LTD.

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DELAYS, DISRUPTIONS AND EOT

a. Records that should always be kept:
i. ii. Manpower on Site, Work Progress and Interruptions;

August 02, 2013

Labour and Plant Allocation Sheet showing the labour and plant allocated to specific tasks on a daily basis including labour allocated to additional or disrupted works; Activities on Site, identifying the relevant Contractors/Subcontractors (including other Contractors engaged by the Employer); Productivity and Outputs, recorded against different locations and the relevant Contractor/subcontractor; Operating Plant and Equipment when they were delivered to and removed from Site; the number of hours worked, idle or down for repair; hire charges, setting up costs and running costs; Request for Information and approvals required and received. These should be kept on a pre-agreed format and not merely by way of correspondence; Daily Diary to include detailed Site progress, unusually site conditions, delay events and additional resources; Instructions and Orders given (written and oral). Whenever an instruction is issued by the engineer/employer or his agent verbally, it should be confirmed by the contractor in writing and kept in a separate file; Test and Inspections: when they took place and the results; Approvals and Inspections for materials, work methods & designs and the inspection of work and materials; Photograph for almost all delay and disruption cases duly dated and labeled; Drawing Register an up to date register for all drawings and subsequent revisions is essential; Delays encountered; Weather Conditions; Laws and Order Situation; and Minutes of Meetings for all internal/external meetings;

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The information can be recorded in a number of ways including regular progress reports, progress meeting minutes, correspondence and notices, regularly updated programs, progress photographs, site diaries, labour records and Invoices etc. Possibly the most important of these are the monthly progress reports and meeting minutes as they are

PARAGON CONSTRUCTORS (PVT.) LTD.

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DELAYS, DISRUPTIONS AND EOT

August 02, 2013

often taken to be reliable indication of what was happening at any time during the course of a period. The reality is that both the Contractors and the Employer looks for opportunities to reduce their exposure under any Contract. The Employers will be taking every opportunity to refuse claims for extensions of time, disruption of progress and additional costs. However if a contractor can substantiate its delay events or additional time and costs claims with proper records showing its entitlements, an employer will find it much harder to dismiss the claims out of hand. b. Records to be kept to justify a specific event or circumstances:

The important point about contemporary records is that they arise at the time of the Claim. The emphasis is very much upon the instantaneous keeping of records which documents the events and circumstances at that time. Some of the important task specific records are:
a. Record the event or circumstance; b. Record the effects of the event or circumstance on other activities duly supported with records, progress, photographs etc; c. Impact on the Schedule after attempting to mitigate the delays, if possible; d. The Contractor to issue Notice(s) to the Engineer with a copy to the Employer under the Conditions of Contract to record the event or circumstance giving rise to the Claim. The notice should be given as soon as practicable, and not later than 28 days, or as specified in the Contract, after the Contractor become aware of the event or circumstances. Notices shall be issued against all relevant clauses. The time-bar provisions are intended to be condition precedent to the Contractors Claim for an extension of time and additional money. e. The Contractor shall keep such contemporary records as may be necessary to substantiate any claim; f. Within 28 days or as specified in the Contract, after the Contractor become aware of the event or circumstance giving rise to the claim, the Contractor shall send to the Engineer a fully detailed claim which includes full supporting particulars of the basis of the claims. This may be supplemented subsequently at monthly intervals;

g. The Engineer is required to response within the period specified in the contract, with
approval or disapproval and detailed comments;

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PARAGON CONSTRUCTORS (PVT.) LTD.

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