First Draft 013 June 08 - Final

Polus Investments (Seychelles) Limited
Shangri-La Resort at Long Island

Seychelles
First Interim Request for

Extension of Time for Completion and
Additional Payment
Island Construction (Pty) Ltd
June 2008
Island Construction (Pty) Ltd Shangri-La Resort Development
Interim Request for Extension of Time and Additional Payment
Table of Contents
page
1. Introduction..........................................................................................................5
1.1. Background..................................................................................................5
1.2. Purpose of this Document..........................................................................6
1.3. Scope of this Document..............................................................................7
2. The Structure of the Contract............................................................................8
2.1. The Contract Existing..................................................................................8
2.1.1. Lump Sum Contract Price vis-à-vis Scope of Works..............................8
2.1.2. Provisional Sums..................................................................................12
2.1.2.1. Tender Provisions..........................................................................12
2.1.2.2. Contract Provisions.......................................................................13
2.1.2.3. Current Situation............................................................................15
2.1.2.4. Conclusions...................................................................................16
2.2. Relevant Contract Provisions...................................................................17
2.2.1. Sub-clause 1.9 – Delayed Drawings or Instructions.............................17
2.2.2. Sub-clause 3.3 – Instructions of the Project Manager..........................18
2.2.3. Sub-clause 4.7 – Setting Out................................................................19
2.2.4. Sub-clause 4.12 – Unforeseeable Physical Conditions........................19
2.2.5. Sub-clause 8.3 – Programme...............................................................20
2.2.6. Sub-clause 8.4 – Extension of Time for Completion............................22
2.2.7. Sub-clause 8.8 – Suspension of Works................................................22
2.2.8. Sub-clause 8.9 – Consequences of Suspension..................................23
2.2.9. Sub-clause 12.1 – Works to be Measured...........................................23
2.2.10. Sub-clause 12.3 – Evaluation...........................................................24
2.2.11. Sub-clause 13.1 – Right to Vary.......................................................25
2.2.12. Sub-clause 13.3 – Variation Procedure............................................26
2.2.13. Sub-clause 20.1 – Contractor’s Claims.............................................27
2.3. Original Planning and Cash-flow..............................................................29
2.3.1. The Clause 8 Programme.....................................................................29
2.3.2. Planned versus Actual Turnover...........................................................30
2.4. First Revised Programme of Works.........................................................32
2.5. Second Revised Programme of Works....................................................32
2.6. Actual Progress..........................................................................................34
3. Valuation of Variations.....................................................................................35
3.1. Explanation of Heads of Claim.................................................................35
3.2. Specific Heads of Claim............................................................................35
3.3. Methods of Valuation of the Variations...................................................36
3.3.1. Use of Costs as Basis...........................................................................36
3.3.2. Addition for Profit..................................................................................36
3.3.3. Profit as Part of the Value of Variations................................................36
3.3.3.1. Three Types of Variations.............................................................36
3.3.3.2. Changes in Design of the Works...................................................37
page 2
3.3.3.2.1. Technical Variations..................................................................37

3.3.3.2.2. Changes to Specified Sequence and Timing............................38
3.3.3.3. Summary.......................................................................................38
3.3.4. The Effects on Unvaried Work..............................................................39
3.3.5. For Uneconomic Working.....................................................................39
3.3.5.1. Loss of Anticipated Income...........................................................40
3.3.5.2. Wasted Monthly Costs...................................................................40
3.3.5.3. Financing Wasted Monthly Costs..................................................41
3.3.6. Profit as Part of ‘Costs’.........................................................................41
3.3.6.1. Authorities on the Basis of ‘Costs’.................................................41
3.3.6.1.1. Powell-Smith’s ‘Some Building Contract Problems’..................42
3.3.6.1.2. Hudson and Minter v. WHTSO..................................................42
3.3.6.1.3. Hudson on the Scope of ‘Costs’................................................43
3.3.6.1.4. The First Part of the Rule in Hadley v. Baxendale....................44
3.3.6.1.5. The Basic Measure of Damages...............................................45
3.3.6.2. Authorities on the Recovery of Profit.............................................46
3.3.6.2.1. General Principle as to Claims..................................................46
3.3.6.2.2. Wraight v. PH&T (Holdings) Ltd................................................46
3.3.6.2.3. Powell-Smith and Sims on Building Contract Claims...............47
3.3.6.3. Summary.......................................................................................48
3.4. The Contractor’s Summary.......................................................................48
4. Circumstances Giving Rise to Claim..............................................................49
4.1. Contractual Basis – Notification of Changes..........................................49
4.2. Late and Inaccurate Survey Data.............................................................65
4.3. Late Receipt of Final Design Information................................................66
4.4. Additional and Varied Work......................................................................66
4.4.1. Excavation in Hard Rock......................................................................66
4.4.1.1. Change in Sequence and Increased Cost.....................................67
4.4.1.2. Increased Quantity........................................................................67
4.4.2. Increased Quantity in Reinforced Concrete..........................................70
4.4.2.1. Villa Type A3 (Example)................................................................70
4.4.2.2. Villa Type B2 (Example)................................................................71
4.4.3. Suspension of Works............................................................................71
4.4.4. Variations to Design..............................................................................72
4.5. Material Procurement Programme...........................................................72
4.6. Conclusion of Effects of Variations.........................................................74
5. Time Analysis....................................................................................................75
5.1. Method of Analysis....................................................................................75
5.1.1. Mitigation by Contractor........................................................................76
5.1.2. Time for Completion..............................................................................76
5.1.3. Impact on Time - Analyses...................................................................77
5.1.4. The Events that Impacted Progress.....................................................77
5.1.4.1. Event No 1 – Setting Out...............................................................79
5.1.4.2. Event No 2 – Unforeseen Ground Conditions...............................82
5.1.4.3. Event No 3 – Later Receipt of Design Information........................91
5.1.4.4. Event No 4 – Increased Scope of Works....................................101
5.1.4.5. Event No 5 – Partial Suspension of Works.................................114
5.1.4.6. Event No 6 – Design Variations (Stainless Steel Items).............119
page 3
5.2. Conclusion................................................................................................121
6. Financial Analysis...........................................................................................122
6.1. Consequences..........................................................................................122
6.1.1. Direct Cost..........................................................................................123
6.1.2. Indirect Cost........................................................................................123
6.1.3. Consequential Cost.............................................................................123
6.2. Costs in Extended Contract Period........................................................123
6.2.1. Nature of Loss and Expense..............................................................123
6.2.2. Contractor’s Entitlement to Reimbursement.......................................124
6.3. Finance Cost.............................................................................................124
6.4. Conclusions..............................................................................................125
7. Extension of Time Entitlement.......................................................................126
8. Additional Payment.........................................................................................127
8.1. Introduction..............................................................................................127
8.2. Evaluation of the Financial Consequences...........................................127
8.2.1. Wasted Costs Arising from Delay and Disruption..............................128
8.2.1.1. Staff and Labour..........................................................................128
8.2.1.2. Equipment....................................................................................129
8.2.1.3. Site and Head Office...................................................................130
8.2.1.4. Summary of Wasted Costs..........................................................132
8.2.2. Additional Costs Arising from Acceleration.........................................132
8.2.3. Additional Costs in Extended Contract Period...................................133
8.2.4. Other Costs.........................................................................................134
8.2.4.1. Procurement of Permanent Materials..........................................134
8.2.4.2. Temporary Materials including Equipment..................................135
8.2.5. Finance Costs.....................................................................................135
8.2.6. Grand Summary..................................................................................136
9. Statement of Claim..........................................................................................138
10. Appendices...................................................................................................139
10.1. Wasted Costs........................................................................................139
10.1.1. Record of Resources – Staff and Labour........................................139
10.1.2. Record of Resources – Equipment.................................................139
10.1.3. Direct and Indirect Costs.................................................................139
10.2. RFI and RFA..........................................................................................140
10.3. Correspondence.....................................................................................141
page 4
1. Introduction
1.1. Background
A Contract for Building and Engineering Works Designed by the
Employer was entered into on 27 April 2007 between the Polus
Investments (Seychelles) Limited (hereinafter called “the
Employer”) and Island Construction (PTY) Limited (hereinafter
called “the Contractor”).
During the course of both the Employer’s design and the

construction phases of the Contract to date, a number of events
and factors have affected progress of both the design and
construction processes. The Contractor’s view is that the delays
were not his fault. Consequently, the Contractor believes he
should be allowed an Extension of Time and Additional Payment
to complete the work which is the subject of the Contract. He
seeks reimbursement of his additional costs incurred otherwise
not allowed in his tendered rates and prices.
For the Contractor, this is an important matter. He needs the

Project Manager’s agreement to an extension of time requested
and to an interim determination of his additional costs, in order
to allow earliest compensation and to off-set increasing finance
costs.
The Contractor’s further view is that Site conditions are in

variance to that anticipated as the positions of buildings and the
significant increase in hard rock excavation. In addition the
Project Manager suspended progress of the Works and he has
received much of the design phase late. This design when
received shows a significant increase in the quantities of work to
be performed. These facts entitle him to an extension of time. It
would also entitle him to additional payment for the delay and
disruption caused to date.
As will be seen from the sections following this introduction, the

Employer and/or the Project Manager also required the
Contractor to carry out Construction work to a varied timing and
sequence, as opposed to that anticipated by his programme of
works. This was as a result of unforeseen ground conditions.
The issues became clear from the very start of the construction
process. Once the setting out delays was over-come the
Contractor encountered hard rock in excavation at almost all
building locations. This unforeseen circumstance caused a
varied order of construction to that planned together with
numerous late instructions as design evolved.
page 5
All of these factors have caused the Contractor to have to carry

out work in a disrupted and disordered manner, and over a
longer period, than he contracted to do. The Employer’s/the
Project Manager’s errors have caused the Contractor to incur
significant higher costs of construction and in addition,
significant costs arising from delay and disruption.
As will be seen from the following sections of this claim, almost

all areas of the site fell behind programme. In addition, it is of
worthy note that the Contract Price awarded was inclusive of
30% allowance for Provisional Sums. That means the Project
Manager must introduce these works as a Variation to the
Contract. The design and construction work are both now a long
way behind programme.
The Contractor has given notice that he will have to make claims
to achieve the relief and payment to which he believes he is
entitled.
1.2. Purpose of this Document

During the course of the work, the Contractor has suffered delay
and disruption through a number of causes. The consequences
of these causes are the contractual responsibility of the
Employer.
The Contractor has made a number of notice submissions to the

Project Manager with regard to these causes. The Contractor
has thereafter, impacted the programme of works to reflect the
effect of these events and changed circumstances.
We acknowledge receipt of the Employer’s letter dated

19 May 2008 and to the Project Managers letters dated
2, 9 and 12 May 2008 referenced E19-02.05.08, E20-
09.05.08 and E21-12.05.08 respectively.
In summary we disagree entirely with all interpretations,

conclusions and what appears to be a determination
made prior to receipt of the Contractor’s detailed
particulars. In such a situation you are making a
prediction on changed events and circumstances and
their consequences without benefit of the position one
Party to the Contract. This is contrary to the duties and
obligations stated at sub-clause 3.1 and 3.5 of the
General Conditions of Contract.
page 6
In our letter of 14 April 2008 we indicated a time to

complete the detailed particulars. However, with
consideration to your position now outlined in these
letters, we require more time to complete this exercise.
As such, we will make our full and detailed submission of
claims on Monday 9 June 2008.
The purpose of this document is, therefore, to provide the

Project Manager with an initial analysis so that he may make an
evaluation of the additional payment based on:
 The delays and disruption experienced to May 2008 and

arising additional costs in the form of Wasted Costs, and
 The extensions time for completion requested by the

Contractor in respect of the cause’s notified and
consequent recovery of arising prolongation costs.
for which the Employer is contractually liable.
1.3. Scope of this Document

This document describes the:
1. Causes of delay and disruption to the Works;
2. Impact of these causes on contract completion;
3. Contractual position regarding the Contractor’s

entitlement to extension of time and additional payment,
and
4. Consequences of delay and disruption in terms of the

additional time and additional payment due to the
Contractor.
The scope of this claim submission is limited to known events to

May 2008. As many of the changed events and circumstances
that have given rise to extensions of time and additional cost
continue, the Contractor will be updating this detailed
submission.
page 7
2. The Structure of the Contract
2.1. The Contract Existing

2.1.1.Lump Sum Contract Price vis-à-vis Scope of Works
The Letter of Acceptance dated 7 March 2007 referenced
SHAN/zk/ZK/LOA.01 states at paragraph 3.0:
“As per our agreement the lump sum contract price shall
not be amended unless specifically agreed with the
Employer and the Quantity Surveyor. No additional work
(beyond the scope of the lump sum Contract Price) may
be commenced prior to reaching agreement on the price
thereof.”
In practice this is inoperable and this soon became evident at

early stages of the Contract
In a letter dated 24 October 2007 the Contractor gave notice:
Two important matters require your confirmation:
First, we draw your attention to the changes and

variations that are regularly being instructed as works
proceed. Although they are acceptable to the Contractor
we also wish to record that these changes and variations
are made prior to reaching agreement on the price. This
is as you are aware, contrary to the terms and conditions
of the Contract. In the circumstances, because of this
continuing departure from the Contract, it is understood
that the price and consequent additional cost will be
added to the Contract Price.
Secondly, we have reviewed the estimated quantities in

the Bills of Quantity against actual work depicted on the
drawings issued for construction. It is apparent significant
disparity exists between the measure and provision made
in the Contract. As a result, either the scope must be
adjusted in order to retain the Contract Price or, we
require your agreement to perform these works at the
price contained in the contract which additional cost will
be added to the Contract Price. If you require detail of the
variations discussed here, please have your quantity
surveyor consult with ours as quickly as possible.
In conclusion, we require the Employer’s agreement to

payment of these variations as a matter of urgency.
page 8
In a further letter dated 23 November 2007 the Contractor

recorded:
This Contract contains specific conditions in regard to

Variations that would increase or decrease the Lump
Sum Contract Price. We wrote on this matter on 24
October 2007 to which a reply has not been received.
In particular it states that “the lump sum contract price

shall not be amended unless specifically agreed with the
Employer and the Quantity Surveyor. No additional work
(beyond the scope of the lump sum Contract Price) may
be commenced prior to reaching agreement on the price
thereof.”
It further states that “Any changes in the design, which

affect the lump sum Contract Price, must be specifically
agreed by the Employer.”
Essentially this means a new or varied price or rate for all

Variations must first receive agreement of the Employer
together with, if relevant, a revised Contract Price prior to
the issue of an instruction because they:
 Introduce a design change;
 Introduce additional works, and
 Introduce an increase in the scope of work beyond

the quantity stated in the Bills of Quantities.
As such, the purpose of this letter is to record several

and significant Variations introduced since
commencement where value and consequent Contract
Price adjustment are not agreed despite the issue of an
instruction. Consequently, we wish to schedule a
“Variation Meeting” to discuss and agree a procedure
that will ensure such increases in value are properly
reported, valued and paid.
At this juncture we have identified the following Claims

and Variations which have caused the Contract Price to
increase:
1. Additional costs associated with delay and

disruption not the responsibility of the
Contractor;
2. Additional costs associated with the Project

Manager’s instruction to accelerate the Works by
working additional hours;
page 9
3. Additional costs arising from delays caused by

late design information;
4. Additional costs in excavation of hard rock and

removal to spoil;
5. Additional costs that arise due to the

construction of “mock-up” villas in a sequence
that is in variance to original planning;
6. The increase in size of structural timber to roof

structures where new rates need to be agreed
prior to procurement;
7. Door timber type and finishing specifications

have changed and new rates need to be agreed
8. Window timber type and finishing specifications

have changed and new rates need to be agreed
9. Ironmongery specifications have changed and

new rates need to be agreed prior to
procurement;
10. Structural galvanised steel plates have changed

to stainless steel and new rates need to be
agreed prior to procurement.
11. Increased costs arising from additional site work

described in Section B of the Principles of
Measurement for Works of Construction.
This meeting must also acknowledge and agree the

additional work being executed is in accordance with
instructions and design details issued and that they are
beyond the scope of the lump sum Contract Price. This
presently includes:
 Excavation in common material;
 Excavation in rock;
 Concrete in foundations to suit varied

ground conditions; and
 Reinforced concrete in columns, ring beams

and suspended slabs.
In addition, all lump sums for works for which detailed

bills of quantities do not exist need to be prepared and
page 10
valued using detailed design drawings received in

September 2007.
Please confirm as soon as possible when a meeting can

be convened as these Claims and Variations must be
recorded and valued as a matter of priority.
The last letter with regards Variations and increased scope of

Works was dated 6 December 2007 and recorded:
We acknowledge receipt of your letter dated 4 December

2007 referenced E-09-04-12-07 and wish to confirm our
position by the following extract from the Contract:

SHAN/zk/ZK/LOA.01 states at paragraph 3.0: “the lump
sum contract price shall not be amended unless
specifically agreed with the Employer and the Quantity
Surveyor. No additional work (beyond the scope of the
lump sum Contract Price) may be commenced prior to
reaching agreement on the price thereof.”

The Contract Agreement dated 27 April 2007 lists the

documents forming the Agreement and the Letter of
Acceptance takes priority over the Conditions of
Contract.
Consequently, your reference to sub-clause 12.3 and

13.1 of the Conditions of Contract, although interesting, is
not relevant in the introduction of Variations on this
project, particularly as sub-clause 3.1 has been amended
by the quoted specific conditions above.
We would point out that although the amendment is

impractical it is a significant revision to both Clause 12
and 13 of the Conditions of Contract. In practise it means
that no Variation arising from additional work or by design
change can commence prior to receiving the agreement
of the Employer.
In conclusion, the purpose of our letter dated 23

November 2007 on this subject matter was to bring these
special circumstances to your attention.
A further existing condition of the Contract relates to Provisional

Sums and their inclusion in the Contract as Variations.
page 11
2.1.2.Provisional Sums
Clause 13 empowers the Project Manager to issue instructions
to the Contractor directing him how provisional sums are to be
expended. Provisional sums are included in this Contract where
the precise cost or extent of work is not known at time of tender.
The purpose is to have the sum of money to cover the cost.
When the instruction is issued, the sum inserted is omitted and
the variation is then valued in accordance with the principles of
Clause 12 and 13.
The “Building Contract Dictionary” written by Vincent Powell-

Smith and David Chappell, explains the term provisional sum:
A term used to denote a sum of money included in the

contract by the employer, normally as an amount in the
bills of quantities. It is provided to cover the cost of
something which cannot be foreseen or detailed
accurately at the time tenders are invited. (Contractor’s
profit is not added to this sum.) It may be expended as
the architect instructs…
It is important that the Contractor receives proper valuation of

variations measured in accordance with the provisions stated for
Provisional Sums. In particular, all on-costs and overheads
described and allowed in the existing Bill 1 will be equally
relevant to any measured Variations valued under Clause 12
and 13 of the Contract conditions.
It is of worthy note that a very large percentage of the Contract

Works and therefore, the Contract Price, had not been
sufficiently designed at tender stage. The consequences of this
situation will allow the Contractor to measure and value these
works as an addition, within the provisions of Clause 12 and 13.
As such, the value of items listed in Bill no 1 must be increased
to include works falling under Variations. This would then allow
the Contractor to be paid for the work performed.
2.1.2.1. Tender Provisions
At tender stage the value shown for Measured Work was (Bills 1
to 34 inclusive) SCR20,677,661.15, and the value of the
Preliminaries (Bill 1) has been derived from this figure.
However, a value for Preliminary items is clearly not included as

part of the Provisional Sum amount declared by the Employer at
tender stage. The value of Provisional Sums included, amounts
to SCR22,539,454.00, a figure which is greater than the value of
the original Measured Works forming the Contract.
page 12
2.1.2.2. Contract Provisions
The contract provides as follows:
Under Clause 13.5, Provisional Sums; Each provisional sum

shall only be used in whole or in part in accordance with the
Project Managers instruction and that the contract sum shall be
adjusted accordingly. It further provides that when the Project
Manager instructs work to be provided by the contractor such
work shall be valued under Clause 13.3 (Variation Procedure).
Under Clause 13.3, Variation Procedure: Each variation will be

valued in accordance with Clause 12. This has been amended
in the Particular Conditions where the measure and value is
made in accordance with the RICS Principles of Measurement
for Works of Construction. Consequently, the full wording of
Clause 12 is:
Under Clause 12.3, Evaluation: a new rate or price shall be

appropriate for an Item of Work if:
(a)
the measured quantity of the item is changed

by more than 10% from the quantity of this
item in the Bill of Quantities or other
Schedule,
this change in quantity multiplied by such

specified rate for this item exceeds 0.01% of
the Accepted Contract Amount,
this change in quantity directly changes the

Cost per unit quantity of this item by more
than 1%, and
this item is not specified in the Contract as a

“fixed rate item";
or (b)
i. the work is instructed under Clause 13

[Variations and Adjustments],
ii. no rate or price is specified in the Contract

for this item, and
iii. no specified rate or price is appropriate

because the item of work is not of similar
page 13
character, or is not executed under similar

conditions, as any item in the Contract.
Each new rate or price shall be derived from any relevant

rates or prices in the Contract, with reasonable
adjustments to take account of the matters described in
sub-paragraph (a) and/or (b), as applicable. If no rates or
prices are relevant for the derivation of a new rate or
price, it shall be derived from the reasonable Cost of
executing the work, together with profit, taking account of
any other relevant matters.
With regard to which part of sub-clause 12.3 above is relevant, it

is obvious the measured quantity of the Works originally
included as a value under Provisional Sums complies with those
conditions stated in paragraph (a). As such, all rates and prices
from which the varied works are valued to date, for those Works
not forming part of the original Measured Works, must be
appropriately adjusted.
The procedure in the Contract for the valuation of a variation is

described under sub-clause 13.3 and states:
If the Project Manager requests a proposal, prior to

instructing a Variation, the Contractor shall respond in
writing as soon as practicable, either by giving reasons
why he cannot comply (if this is the case) or by
submitting:
a. a description of the proposed work to be

performed and a programme for its
execution,
b. the Contractor’s proposal for any necessary

modifications to the programme according
to Sub-Clause 8.3 [Programme] and to the
Time for Completion, and
c. the Contractor’s proposal for evaluation of

the Variation.
The Project Manager shall, as soon as practicable after

receiving such proposal (under Sub-Clause 13.2 [Value
Engineering] or otherwise), respond with approval,
disapproval or comments. The Contractor shall not delay
any work whilst awaiting a response.
Each instruction to execute a Variation, with any

requirements for the recording of Costs, shall be issued
by the Project Manager to the Contractor, who shall
acknowledge receipt.
page 14
Each Variation shall be evaluated in accordance with

Clause 12 [Measurement and Evaluation], unless the
Project Manager instructs or approves otherwise in
accordance with this Clause.
The procedure adopted by the Project Manager would appear to

be a submission of a “Drawing for Construction”. Therefore, the
three stage process described and allowed above has not been
observed. Nonetheless, it is apparent as a consequence of
these variations, that the value of the Works flowing from the
Provisional Sums has not been determined at time of tender.
2.1.2.3. Current Situation
The Preliminaries had originally been calculated based on the

value of Measured Works identified at tender. A breakdown of
the Preliminaries shown below demonstrates that though certain
items and their related cost therein, is considered fixed, the
majority are of a variable nature. Consequently, the
Preliminaries and their value are directly proportional to the
value of Measured Works to be executed.
Item Nature of Cost Fixed Variable
1 Insurance 250,000.00
2 Foreign Staff, Labour Repatriation 450,000.00
3 Facilities for Staff and Labour 170,000.00
4 Measures against Insect and Pect Nuisance 60,000.00
5 Supply of Foodstuffs 660,000.00
6 Supply of Water 80,318.00
7 Shop Drawings 10,000.00
8 As-Built Documents 5,600.00
9 Temporary Site Office for Employers Consultants 65,250.00
10 Site Signboard 3,275.00
11 Access to Site 35,000.00
12 Site to be Tidy 12,727.00
13 Co-ordination 14,727.00
14 Site Records 3,275.00
15 Site Records 29,913.00
16 Safety Procedures 5,700.00
17 Security at Site 13,426.00
18 Contractors Site Operations 7,485.00
19 Site Radio Communication 11,725.00
20 Environmental Impact Assessment 5,000.00
21 Taking Delivery from NS 50,000.00
22 Contractors Temporary Accommodation 35,000.00
23 Superintendence 15,000.00
24 Transport of People 125,475.00
25 Contractors Equipment 365,000.00
26 Scaffolding 105,000.00
Total 85,250.00 2,503,646.00
page 15
It is important to define the difference between a “fixed” and a

“variable” item;
 Fixed items are to cover elements of a cost of work or

their value, which are not to be considered as
proportional to the quantities of the Permanent Works;
whereas
 Variable items are to cover for elements of a cost of work

which are considered proportional to the quantities of
Permanent Work performed.
The distinction is clear and as example, Shop Drawings and Site

Records is a typical Variable item which scope will increase on
introduction of the Variations brought by expenditure of the
provisional sums.
These variable preliminaries items amount to about 12% of the

value of Measured Works. As a result the current situation is:
 The original value of known Measured Works has varied

in quantity and therefore, value, considerably;
 The instructed varied works (which is the value provision

at tender and known as “Provisional Sums”) has or will
considerably increase the value of Measured Works; and
 As a result of a) and b) above, there is a significant

under-recovery of costs on measured works that should
naturally flow from items contained in the Preliminary Bill.
2.1.2.4. Conclusions
The table below shows the various value elements making up

the Contract Price. The known scope of work had been priced
and valued at SR20,677,661.15.
However, the value of Preliminaries is SR2,537,894.00 of which

SR2,503,646.00 is the value of Variable Costs. Therefore,
SR2,503,646.00 as a percentage of the known measured works
at time of tender was 12%. It is this percentage, 12% that must
be added to the value of Variations introduced under Clause 12
and 13.
This means the value adjustment on the original Provisional

Sum amount of SCR22,539,454.00 equates to
SCR2,729,071.00 or such other sum valued in accordance with
the Contract. This sum is to be paid in addition to the Contract
Price.
page 16
This signifies that all the Works measured to date are under-
valued. Accordingly, the Conditions of the Contract dictate the
following actions:
Notwithstanding delay and disruption costs caused by events

notified to the Project Manager, further additional costs must be
captured because:
 The Contractor has entitlement to a varied rate for all

unvaried Works,
 The Contractor has entitlement to new rates and prices

for all Works introduced as a Variation in accordance with
sub-clause 12.3, and
 the contractor has entitlement to the addition of 12% to all

his measured work to cover his Preliminary and general
items.
Consequently, the Contractor intends to add 12% to the value of

measured works arising from Instructed Variations. The
Contractor asks the Project Manager to certify payment
applications in accordance with the Contract Conditions and for
the reasons stated in the foregoing.
2.2. Relevant Contract Provisions

2.2.1.Sub-clause 1.9 – Delayed Drawings or Instructions
The Contractor shall give notice to the Project Manager
whenever the works are likely to be delayed or disrupted
if any necessary drawing or instruction is not issued to
the Contractor within a particular time, which shall be
reasonable. The notice shall include details of the
necessary drawing or instruction, details of why and by
when it should be issued, and details of the nature and
amount of the delay or disruption likely to be suffered if it
is late.
If the Contractor suffers delay and/or incurs Cost as a

result of a failure of the Project Manager to issue the
notified drawing or instruction within a time which is
reasonable and is specified in the notice with supporting
details, the Contractor shall give a further notice to the
Project Manager and shall be entitled subject to Sub-
Clause 20.1 [Contractor's Claims] to:
page 17
(a) an extension of time for any such delay, if completion

is or will be delayed, under Sub-Clause 8.4 [Extension of
Time for Completion], and
(a) payment of any such Cost plus profit, which shall be

included in the Contract Price.
After receiving this further notice, the Project Manager

shall proceed in accordance with Sub-Clause 3.5
[Determinations] to agree or determine these matters.
However, if and to the extent that the Project Manager's

failure was caused by any error or delay by the
Contractor, including an error in, or delay in the
submission of, any of the Contractor's Documents, the
Contractor shall not be entitled to such extension of time,
Cost or profit.
2.2.2.Sub-clause 3.3 – Instructions of the Project

Manager
The Project Manager may issue to the Contractor (at any
time) instructions and additional or modified Drawings
which may be necessary for the execution of the Works
and the remedying of any defects, all in accordance with
the Contract. The Contractor shall only take instructions
from the Project Manager, or from an assistant to whom
the appropriate authority has been delegated under this
Clause. If an instruction constitutes a Variation, Clause
13 [Variations and Adjustments] shall apply.
The Contractor shall comply with the instructions given

by the Project Manager or delegated assistant, on any
matter related to the Contract. Whenever practicable,
their instructions shall be given in writing. If the Project
Manager or a delegated assistant:
(a) gives an oral instruction,
(b) receives a written confirmation of the instruction,

from (or on behalf of) the Contractor, within two
working days after giving the instruction, and
(c) does not reply by issuing a written rejection and/or

instruction within two working days after receiving
the confirmation,
page 18
then the confirmation shall constitute the written

instruction of the Project Manager or delegated assistant
(as the case may be).
2.2.3.Sub-clause 4.7 – Setting Out

The Contractor shall set out the Works in relation to
original points, lines and levels of reference specified in
the Contract or notified by the Project Manager. The
Contractor shall be responsible for the correct positioning
of all parts of the Works, and shall rectify any error in the
positions, levels, dimensions or alignment of the Works.
The Employer shall be responsible for any errors in these

specified or notified items of reference, but the Contractor
shall use reasonable efforts to verify their accuracy
before they are used.
If the Contractor suffers delay and/or incurs Cost from

executing work which was necessitated by an error in
these items of reference, and an experienced contractor
could not reasonably have discovered such error and
avoided this delay and/or Cost, the Contractor shall give
notice to the Project Manager and shall be entitled
subject to Sub-Clause 20.1 [Contractor's Claims] to:
(a) an extension of time for any such delay, if

completion is or will be delayed,
under Sub-Clause 8.4 [Extension of Time for
Completion], and
(b) payment of any such Cost plus profit, which shall

be included in the Contract Price.
After receiving this notice, the Project Manager shall

proceed in accordance with Sub-Clause 3.5
[Determinations] to agree or determine (i) whether and (if
so) to what extent the error could not reasonably have
been discovered, and (ii) the matters described in sub-
paragraphs (a) and (b) above related to this extent.
2.2.4.Sub-clause 4.12 – Unforeseeable Physical

Conditions
In this sub-clause, “physical conditions” means natural
physical conditions and man-made and other physical
obstructions and pollutants, which the Contractor
page 19
encounters at the Site when executing the Works,

including sub-surface and hydrological conditions but
excluding climatic conditions.
If the Contractor encounters adverse physical conditions

which he considers to have Unforeseeable, the
Contractor shall give notice to the Project Manager as
soon as practicable.
This notice shall describe the physical conditions, so that

they can be inspected by the Project Manager, and shall
set out the reasons why the Contractor considers them to
be Unforeseeable. The Contractor shall continue
executing the Works, using such proper and reasonable
measures as are appropriate for the physical conditions,
and shall comply with any instructions which the Project
Manager may give. If an instruction constitutes a
Variation, Clause 13 [Variations and Adjustments] shall
apply.
If and to the extent that the Contractor encounters

physical conditions which are Unforeseeable, gives such
a notice, and suffers delay and/or incurs Cost due to
these conditions, the Contractor shall be entitled subject
to Sub-Clause 20.1 [Contractor's Claims] to:
(a) an extension of time for any such delay, if

completion is or will be delayed, under Sub-Clause
8.4 [Extension of Time for Completion], and
(b) payment of any such Cost, which shall be included

in the Contract Price.
After receiving such notice and inspecting and/or

investigating these physical conditions, the Project
Manager shall proceed in accordance with Sub-Clause
3.5 [Determinations] to agree or determine (i) whether
and (if so) to what extent these physical conditions were
Unforeseeable, and (ii) the matters described in sub-
paragraphs (a) and (b) above related to this extent.
2.2.5.Sub-clause 8.3 – Programme

The Contractor shall submit a detailed time programme
to the Project Manager within 28 days after receiving the
notice under Sub-Clause 8.1 [Commencement of Works].
The Contractor shall also submit a revised programme
whenever the previous programme is inconsistent with
page 20
actual progress or with the Contractor's obligations. Each

programme shall include:
(a) the order in which the Contractor intends to carry

out the Works, including the anticipated timing of
each stage of design (if any), Contractor's
Documents, procurement, manufacture of Plant,
delivery to Site, construction, erection and testing,
(b) each of these stages for work by each nominated

Subcontractor (as defined in Clause 5 [Nominated
Subcontractors]
(c) the sequence and timing of inspections and tests

specified in the Contract, and
(d) a supporting report which includes:
(i) a general description of the methods which the

Contractor intends to adopt, and of the major
stages, in the execution of the Works, and
(ii) details showing the Contractor's reasonable

estimate of the number of each class of
Contractor's Personnel and of each type of
Contractor's Equipment, required on the Site for
each major stage.
Unless the Project Manager, within 21 days after

receiving a programme, gives notice to the Contractor
stating the extent to which it does not comply with the
Contract, the Contractor shall proceed in accordance with
the programme, subject to his other obligations under the
Contract. The Employer's Personnel shall be entitled to
rely upon the programme when planning their activities.
The Contractor shall promptly give notice to the Project

Manager of specific probable future events or
circumstances which may adversely affect the work,
increase the Contract Price or delay the execution of the
Works. The Project Manager may require the Contractor
to submit an estimate of the anticipated effect of the
future event or circumstances, and/or a proposal under
Sub-Clause 13.3 [Variation Procedure].
If, at any time, the Project Manager gives notice to the

Contractor that a programme fails (to the extent stated) to
comply with the Contract or to be consistent with actual
progress and the Contractor's stated intentions, the
Contractor shall submit a revised programme to the
Project Manager in accordance with this Sub-Clause.
page 21
2.2.6.Sub-clause 8.4 – Extension of Time for Completion

The Contractor shall be entitled subject to Sub-clause
20.1 [Contractor’s Claims] to an extension of the Time for
Completion if and to the extent that completion for the
purposes of Sub-Clause 10.1 [Taking-Over of the Works
and Sections] is or will be delayed by any of the following
causes:
(a) a Variation (unless an adjustment to the Time for

Completion has been agreed under Sub-Clause
13.3 [Variation Procedure]) or other substantial
change in the quantity of an item of work included
in the Contract,
(b) a cause of delay giving an entitlement to extension

of time under a Sub-Clause of these Conditions,
(c) exceptionally adverse climatic conditions,
(d) Unforeseeable shortages in the availability of

personnel or Goods caused by epidemic or
governmental actions, or
(e) any delay, impediment or prevention caused by or

attributable to the Employer, the Employer's
Personnel, or the Employer's other contractors.
If the Contractor considers himself to be entitled to an

extension of the Time for Completion, the Contractor
shall give notice to the Project Manager in accordance
with Sub-Clause 20.1 [Contractor's Claims]. When
determining each extension of time under Sub-Clause
20.1, the Project Manager shall review previous
determinations and may increase, but shall not decrease,
the total extension of time.
2.2.7.Sub-clause 8.8 – Suspension of Works

The Engineer may at any time instruct the Contractor to
suspend progress of part or all of the Works. During such
suspension, the Contractor shall protect, store andsecure
such part or the Works against any deterioration, loss or
damage.
The Engineer may also notify the cause for the

suspension. If and to the extent that the cause is notified
page 22
and is the responsibility of the Contractor, the following

Sub-Clauses 8.9, 8.10 and 8.11 shall not apply.
2.2.8.Sub-clause 8.9 – Consequences of Suspension

If the Contractor suffers delay and/or incurs Cost from
complying with the Engineer’s instructions under Sub-
Clause 8.8 [Suspension of Work] and/or from resuming the
work, the Contractor shall give notice to the Engineer and
shall be entitled subject to Sub-Clause 20.1 [Contractor’s
Claims] to:
(a) an extension of time for any such delay, if completion

is or will be delayed, under Sub-Clause 8.4 [Extension of
Time for Completion], and
(b) payment of any such Cost, which shall be included in

the Contract Price.
After receiving this notice, the Engineer shall proceed in

accordance with Sub-Clause 3.5 [Determinations] to agree
or determine these matters.
The Contractor shall not be entitled to an extension of

time for, or to payment of the Cost incurred in, making
good the consequences of the Contractor’s faulty design,
workmanship or materials, or of the Contractor’s failure to
protect, store or secure in accordance with Sub-Clause
8.8 [Suspension of Work].
2.2.9.Sub-clause 12.1 – Works to be Measured

The Works shall be measured, and valued for payment,
in accordance with this Clause.
Whenever the Project Manager requires any part of the

Works to be measured, reasonable notice shall be given
to the Contractor's Representative, who shall:
(a) promptly either attend or send another qualified

representative to assist the Project Manager in
making the measurement, and
(b) supply any particulars requested by the Project

Manager.
page 23
If the Contractor fails to attend or send a representative,

the measurement made by (or on behalf of) the Project
Manager shall be accepted as accurate.
Except as otherwise stated in the Contract, wherever any

Permanent Works are to be measured from records,
these shall be prepared by the Project Manager. The
Contractor shall, as and when requested, attend to
examine and agree the records with the Project Manager,
and shall sign the same when agreed. If the Contractor
does not attend, the records shall be accepted as
accurate.
If the Contractor examines and disagrees the records,

and/or does not sign them as agreed, then the Contractor
shall give notice to the Project Manager of the respects in
which the records are asserted to be inaccurate. After
receiving this notice, the Project Manager shall review
the records and either confirm or vary them. If the
Contractor does not so give notice to the Project
Manager within 14 days after being requested to examine
the records, they shall be accepted as accurate.
2.2.10. Sub-clause 12.3 – Evaluation

Except as otherwise stated in the Contract, the Project
Manager shall proceed in accordance with Sub-Clause
3.5 [Determinations] to agree or determine the Contract
Price by evaluating each item of work, applying the
measurement agreed or determined in accordance with
the above Sub-Clauses 12.1 and 12.2 and the
appropriate rate or price for the item.
For each item of work, the appropriate rate or price for

the item shall be the rate or price specified for such item
in the Contract or, if there is no such item, specified for
similar work.
For each item of work included in the Bill of Quantities for

which no rate or price was specified shall be considered
as included in other rates and prices in the Bill of
Quantities and will not be paid for separately. However, a
new rate or price shall be appropriate for an item of work
if:
(a) (i) the measured quantity of the item is changed by

more than 25% from the quantity of this item in the Bill of
Quantities or other Schedule,
page 24
(ii) this change in quantity multiplied by such specified

rate for this item exceeds 0.25% of the Accepted
Contract Amount,
(iii) this change in quantity directly changes the Cost per

unit quantity of this item by more than 1 %, and
(iv) this item is not specified in the Contract as a "fixed

rate item";
Or
(b)(i) the work is instructed under Clause 13 [Variations

and Adjustments],
(ii) no rate or price is specified in the Contract for this

item, and
(iii) no specified rate or price is appropriate because the

item of work is not of similar character, or is not executed
under similar conditions, as any item in the Contract.

Until such time as an appropriate rate or price is agreed

or determined, the Project Manager shall determine a
provisional rate or price for the purposes of Interim
Payment Certificates.
2.2.11. Sub-clause 13.1 – Right to Vary

Variations may be initiated by the Project Manager at any
time prior to the issuing the Taking-Over Certificate for
the Works, either by an instruction or by a request for the
Contractor to submit a proposal.
Contractor shall execute and be bound by each Variation,

unless the Contractor ptly gives notice to the Project
Manager stating (with supporting particulars) that the
Contractor cannot readily obtain the Goods required for
the Variation. Upon receiving notice, the Project Manager
shall cancel, confirm or vary the instruction.
page 25
Each Variation may include:
(a) changes to the quantities of any item of work

included in the Contract (however, such changes
do not necessarily constitute a Variation),
(b) changes to the quality and other characteristics of

any item of work,
(c) changes to the levels, positions and/or dimensions

of any part of the Works,
(d) omission of any work unless it is to be carried out

by others,
(e) any additional work, Plant, Materials or services

necessary for the Permanent Works, including any
associated Tests on Completion, boreholes and
other testing and exploratory work, or
(f) changes to the sequence or timing of the

execution of the Works.
The Contractor shall not make any alteration and/or

modification of the Permanent Works, unless and until
the Project Manager instructs or approves a Variation.
2.2.12. Sub-clause 13.3 – Variation Procedure

If the Project Manager requests a proposal, prior to
instructing a Variation, the Contractor shall respond in
writing as soon as practicable, either by giving reasons
why he cannot comply (if this is the case) or by
submitting:
(a) a description of the proposed work to be

performed and a programme for its execution,
(b) he Contractor's proposal for any necessary

modifications to the programme according to Sub-
Clause 8.3 [Programme] and to the Time for
Completion, and
(c) the Contractor's proposal for evaluation of the

Variation.
The Project Manager shall, as soon as practicable after

receiving such proposal (under Sub-Clause 13.2 [Value
Engineering] or otherwise), respond with approval,
page 26
disapproval or comments. The Contractor shall not delay

any work whilst awaiting a response.
Each instruction to execute a Variation, with any

requirements for the recording of Costs, shall be issued
by the Project Manager to the Contractor, who shall
acknowledge receipt.
Each Variation shall be evaluated in accordance with

Clause 12 [Measurement and Evaluation], unless the
Project Manager instructs or approves otherwise in
accordance with this Clause.
2.2.13. Sub-clause 20.1 – Contractor’s Claims

If the Contractor considers himself to be entitled to any
extension of time for Completion and/or any additional
payment, under any Clause of these Conditions or
otherwise in connection with the Contract, the Contractor
shall give notice to the Project Manager, describing the
event or circumstance giving rise to the claim. The notice
shall be given as soon as practicable, and not later than
28 days after the Contractor became aware, or should
have become aware, of the event or circumstance.
If the Contractor fails to give notice of a claim within such

period of 28 days, the Time for Completion shall not be
extended, the Contractor shall not be entitled to
additional payment, and the Employer shall be
discharged from all liability in connection with the claim.
Otherwise, the following provisions of this Sub-Clause
shall apply.
The Contractor shall also submit any other notices which

are required by the Contract, and supporting particulars
for the claim, all as relevant to such event or
circumstance.
The Contractor shall keep such contemporary records as

may be necessary to substantiate any claim, either on
the Site or at another location acceptable to the Project
Manager. Without admitting the Employer's liability, the
Project Manager may, after receiving any notice under
this Sub-Clause, monitor the record-keeping and/or
instruct the Contractor to keep further contemporary
records. The Contractor shall permit the Project Manager
to inspect all these records, and shall (if instructed)
submit copies to the Project Manager.
page 27
Within 42 days after the Contractor became aware (or

should have become aware) of the event or circumstance
giving rise to the claim, or within such other period as
may be proposed by the Contractor and approved by the
Project Manager, the Contractor shall send to the Project
Manager a fully detailed claim which includes full
supporting particulars of the basis of the claim and of the
extension of time and/or additional payment claimed. If
the event or circumstance giving rise to the claim has a
continuing effect:
(a) this fully detailed claim shall be considered as

interim;
(b) the Contractor shall send further interim claims at

monthly intervals, giving the accumulated delay
and/or amount claimed, and such further
particulars as the Project Manager may
reasonably require; and
(c) the Contractor shall send a final claim within 28

days after the end of the effects resulting from the
event or circumstance, or within such other period
as may be proposed by the Contractor and
approved by the Project Manager.
Within 42 days after receiving a claim or any further

particulars supporting a previous claim, or within such
other period as may be proposed by the Project Manager
and approved by the Contractor, the Project Manager
shall respond with approval, or with disapproval and
detailed comments. He may also request any necessary
further particulars, but shall nevertheless give his
response on the principles of the claim within such time.
Each Payment Certificate shall include such amounts for

any claim as have been reasonably substantiated as due
under the relevant provision of the Contract. Unless and
until the particulars supplied are sufficient to substantiate
the whole of the claim, the Contractor shall only be
entitled to payment for such part of the claim as he has
been able to substantiate.
The Project Manager shall proceed in accordance with

Sub-Clause 3.5 [Determinations] to agree or determine (i)
the extension (if any) of the Time for Completion (before
or after its expiry) in accordance with Sub-Clause 8.4
[Extension of Time for Completion], and/or (ii) the
additional payment (if any) to which the Contractor is
entitled under the Contract.
page 28
The requirements of this Sub-Clause are in addition to

those of any other Sub-Clause which may apply to a
claim. If the Contractor fails to comply with this or another
Sub-Clause in relation to any claim, any extension of time
and/or additional payment shall take account of the
extent (if any) to which the failure has prevented or
prejudiced proper investigation of the claim, unless the
claim is excluded under the second paragraph of this
Sub-Clause.
2.3. Original Planning and Cash-flow

2.3.1.The Clause 8 Programme
The programme of works that appears below is summary task
format was issued and approved for construction in XX 2007.
This programme of works considers the original scope of works

depicted in the bills of quantities, including time provision for
provisional sums. The provisional sum value included in the
Contract allowed for inclusion by Variation all works not defined
at time of tender. The Contractor’s original cash-flow was
produced using this data.
page 29
ID Task Name
2007 2008
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
1 SHANGRI-LA , Long Island Resort Seychelles 0%
2 General Conditions and Preliminaries 0%
17 Site establishment 0%
41 Material/equipment procurement 0%
182 Lot 1 0%
183 A3 Villas ( 6 nos) 0%
453 C311 Executive Villas ( 1 nos) 0%
497 GM Villa ( subject to receipt of GFW drawings) 0%
537 Employees Facilities ( subject to receipt of GFW drawings) 0%
581 Laundry F& B service office ( subject to receipt of GFW drawings) 0%
625 Health Club/ Medical Centre( subject to receipt of GFW drawings) 0%
666 Administration Block ( subject to receipt of GFW drawings) 0%
707 1 bedroom Villa ( Excom, 6 units)( subject to receipt of GFW drawings) 0%
750 Main Lobby ( subject to receipt of GFW drawings) 0%
791 Tennis Courts ( subject to receipt of GFW drawings) 0%
807 External works ( subject to receipt of GFW drawings) 0%
816 Drainage works ( subject to receipt of EME details) 0%
819 Fuel Farm ( subject to receipt of EME details) 0%
823 Sea water Storage Tank & Water Tanks( subject to receipt of EME details) 0%
827 Desalination plant( subject to receipt of EME details) 0%
831 MLV Panel( subject to receipt of EME details) 0%
835 Step Up Transformer( subject to receipt of EME details) 0%
839 Incinerator/ Garbage room( subject to receipt of EME details) 0%
843 Sewer treatement plant( subject to receipt of EME details) 0%
847 Lot 2 0%
848 A3 Villas (17 nos) 0%
1614 B223 Villas ( 7 nos) 0%
1965 B4 Villa (2 nos.) 0%
2056 Retail 1( subject to receipt of GFW drawings) 0%
2170 Seafood resort( subject to receipt of GFW drawings) 0%
2211 Greeting Pavillion( subject to receipt of GFW drawings) 0%
2262 Lot 3 0%
2263 A3 Villas ( 9 nos) 0%
2664 B223 Villas ( 3 nos) 0%
2808 B4 Standard Villas ( 2 nos) 0%
2899 BC311 Executive Villa 0%
3115 P3 Presidential suites ( 3 nos) 0%
3245 Hilltop sunset deck( subject to receipt of GFW drawings) 0%
3292 Lot 4 0%
3293 Couple treatment room( subject to receipt of GFW drawings) 0%
3334 Single treatment room( subject to receipt of GFW drawings) 0%
3375 Dive Centre( subject to receipt of GFW drawings) 0%
3413 Kid's club( subject to receipt of GFW drawings) 0%
3452 Recreation House( subject to receipt of GFW drawings) 0%
3491 Watersports rental( subject to receipt of GFW drawings) 0%
3529 3 Meals restaurant( subject to receipt of GFW drawings) 0%
3570 Beach Pool Bar( subject to receipt of GFW drawings) 0%
3611 Signature Pool area( subject to receipt of GFW drawings) 0%
3650 Wedding Chapel( subject to receipt of GFW drawings) 0%
3685 BOH/Admin Building( subject to receipt of GFW drawings) 0%
3726 Chi Sanctum( subject to receipt of GFW drawings) 0%
3767 Yoga Pavillion( subject to receipt of GFW drawings) 0%
3817 M&E Installations- External 0%
3828 Sundries 0%
3829 Site cleaning & demobilisation 0%
3830 Project Commissioning 0%
2.3.2.Planned versus Actual Turnover

The chart below provides a comparison between planned cash-
flow, based on the programme of works, and actual income.
It can be seen the period through to XX, the first X-months of the
construction programme, both planned and actual cash-flow
remain reasonably constant. This is to be expected.
However, thereafter the gap widens because:
 Excavations took longer because of hard rock;
 Sub-structure work took longer due to greater scope of

work;
 Work slowed down waiting information and detailed

design, and
 Works were suspended
page 30
PlanCumm ActualCumm
30,000,000.00
25,000,000.00
20,000,000.00
15,000,000.00
10,000,000.00
5,000,000.00
0.00
Feb-07
Mar-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
Apr-08
May-08
-5,000,000.00
The following table provides the value of payment applications

certified to end of May 2008.
Month Planned PlanCumm Actual ActualCumm

Feb-07 3,100,000.00 3,100,000.00 0.00 0.00
Mar-07 601,658.62 3,701,658.62 0.00 0.00
Apr-07 1,352,295.74 5,053,954.37 0.00 0.00
May-07 1,852,720.48 6,906,674.85 3,100,000.00 3,100,000.00
Jun-07 2,236,090.71 9,142,765.56 0.00 3,100,000.00
Jul-07 2,684,335.78 11,827,101.34 682,032.85 3,782,032.85
Aug-07 2,189,910.64 14,017,011.97 351,989.15 4,134,022.00
Sep-07 2,236,090.71 16,253,102.68 145,803.63 4,279,825.63
Oct-07 2,258,038.74 18,511,141.42 357,556.62 4,637,382.25
Nov-07 2,258,038.74 20,769,180.15 478,924.03 5,116,306.28
Dec-07 1,754,288.50 22,523,468.65 0.00 5,116,306.28
Jan-08 1,289,372.84 23,812,841.49 0.00 5,116,306.28
Feb-08 1,040,280.70 24,853,122.19 274,355.16 5,390,661.44
Mar-08 500,424.74 25,353,546.93 1,086,667.96 6,477,329.40
Apr-08 2,575,212.46 27,928,759.39 0.00 6,477,329.40
May-08 0.00 27,928,759.39 0.00 6,477,329.40
It can be seen in the cumulative column how the gap widens as

of almost the outset of the contract and has increased
progressively in the period to date, May 2008. It is also of worthy
note the “flatness” of the line showing cumulative income which
results from:
 A reduced income caused by the delays notified;
 The fixed nature of the Advance repayment;
page 31
 The value retained in retention.
The Contractor notified the financial imbalance being caused by

the Advance repayment in his letters dated 19 November 2007:
Please refer to the Cash Flow Forecast dated 10

February 2007 included in the Contract Document
Volume 1. As you are aware, this cash flow was
preliminary and assumed payment of the Advance would
occur in February 2007.
However, as payment of the Advance is the trigger to

commencement of repayment, it is now necessary to
amend this preliminary cash flow to reflect the actual date
of receipt, which we record, was in May 2007.
Accordingly, please find attached the amended Cash

Flow forecast adjusted to reflect the month the Advance
was received and consequent 10-month repayment
drawn-down against Interim Payments.
A further notice was issued on 21 November 2007:
Please refer to the amended Cash Flow Forecast

submitted under cover of letter dated 19 November 2007.
As you are aware, this cash flow was preliminary and
assumed repayment of the Advance against projected
income derived from the original programme of works.
However, the progress of works has been delayed and

disrupted for reasons provided in separate notifications
and as a result, income is significantly lower in the period
to date.
Accordingly, please find attached an amended Cash

Flow forecast adjusted to reflect a 15-month repayment
drawn-down against Interim Payments consequent to the
extended contract period shown on the revised
programme of works.
2.4. First Revised Programme of Works

The Programme of Works above was issued under cover of
letter dated 19 November 2007 in accordance with Clause 8 of
the Contract Conditions.
In accordance with your request please find attached our

revised programme reflecting actual progress achieved at
6 November 2007. This programme of works takes
page 32
consideration of events and changed circumstances

since commencement that caused original planned timing
and sequence to vary.
Unless notice is received stating the extent to which it

does not comply with the Contract, we shall proceed in
accordance with this programme and will rely upon this
programme when planning our activities.
Therefore, the Contractor’s timing, sequence are clearly

explained in support of this programme. This programme of
works indicated a revised completion date.
2.5. Second Revised Programme of Works

At the request of the Project Manager a second revised
programme of works was issued on 14 March 2008.
In accordance with your recent request in the weekly

progress meetings, please find attached revised
programme of works for your consent.
The revised programme takes into consideration the

various events and changed circumstances since
commencement up to 29 February 2008.
These events and changed circumstances, as separately

notified to you and further illustrated in our situation
report dated 29 February 2009, have caused the original
planned timing and sequence of works to vary. They
include the following;
 Unforeseen hard rock excavation including

spoiling;
 Suspension of works, except for the mock up

villas, for two months and associated acceleration
measures;
 Instructed design variations, e.g. exchange of

galvanised steel with stainless steel components
for installation in the roof resulting into delays in
procurement;
 Late Instructions, e.g. several changes to the

location, position and orientation of buildings by
revision in the setting out details have delayed and
disrupted the works;
page 33
 Late Design Information resulting into delays in

procurement thus preventing timely arrival of
materials at site;
 Increased scope of works occasioned by

unforeseen site conditions and instructed
additional works;
 Inclement weather condition; unexpected high

amounts of rainfall currently being experienced at
site is slowing down progress of works.
The overall effect of all the above has been to delay the
completion date for the works up to 24 March 2009 as
indicated in the attached revised programme.
We therefore request extension of time to completion of

the works.
As stated in the last paragraph of this notice, an extension of

time had been requested.
2.6. Actual Progress

Since the outset of the Contract the Contractor suffered delay
due to four major reasons;
 Late and inaccurate survey data;
 Unforeseen ground conditions;
 Project Manager’s instruction to suspend Works (partial);
 Late receipt of final design information, and
 Additional and varied works.
As a result of Works did not commence as planned.
page 34
3. Valuation of Variations
3.1. Explanation of Heads of Claim

In his various notifications the Contractor has made reference to
at least three types of variations. One type is the changes to the
scope of work, a second is the late receipt of design and the
third is the changes to the sequence and timing of work. All of
these have been sufficiently described and defined in these
notifications.
During the currency of work, the first two types of change

occurred simultaneously, as well as following consecutively. For
example, design drawings which have been issued late, to allow
the commencement of certain works, showed changes to the
Contract drawings. Further these changes occurred when the
Contractor encountered unforeseen ground conditions at most
of the respective sites. That is simultaneous occurrence.
There were many instances of consecutive occurrence. For

example, where drawings were revised a number of times over
a period of several months and even over more than a year,
those were consecutive.
3.2. Specific Heads of Claim

Where variations are the cause of delay, the costs associated
with the delay have to be taken into account in the valuation of
the variations. There are two types of cost to be taken into
account. One is the cost of prolongation of work on site. This is
the cost of (1) maintaining the site establishment and (2) off-site
overheads.
The second type of cost is that of the uneconomic way of

working, which results from incorporating the varied work into
the Works. This includes the direct cost of the disrupted nature
of work on site, and the loss of anticipated income at the times
envisaged in the original cash-flow predictions.
page 35
3.3. Methods of Valuation of the Variations

3.3.1.Use of Costs as Basis
In submitting these particulars of prolongation costs and
particulars of slowdown Costs, the Contractor is providing what
he is obliged to do by the Contract, which is to make use of
contemporary records of costs. The costs were to be used as
basis for valuing the variations.
3.3.2.Addition for Profit

It is evident that there are two generic types of claim. One is for
‘costs’ and the other is for value. Therefore, it is necessary to
look at profit as a part of both value and cost. The Contractor’s
entitlement to have profit added to his cost, to the extent that the
costs claimed are included in variation valuations, profit must be
added to those costs for inclusion in such valuations. It is noted
that Clause 13 clearly indicates that all variations referred to
shall be valued in accordance with Clause 12.
In compliance with this requirement of the Contract, the

proposition that where the time related costs are indicative of
loss of efficiency due to the variation in the timing and sequence
of events and are used to formulate a new rate for a particular
bill item, then they should include all expenditure, whether on or
off the Site. Clause 12 states that the
a new rate or price shall be derived from the reasonable

Cost of executing the work, together with reasonable
profit
This clarifies that a valuation under Clause 12 must include

profit on time related costs. Profit addition on this contract is
15%.
3.3.3.Profit as Part of the Value of Variations

3.3.3.1. Three Types of Variations
The three types of variation included in this submission:
1. Changes in design of parts of the Works,
2. Additional and Varied works, and
3. Changes in the timing and sequence
page 36
As noted above, all such variations fall to be valued under

Clause 13, with the possibility that Clause 12 can be invoked in
respect of the effects of variations on unvaried work.
The Contractor confirms that costs claimed are the indirect costs
of the delays to the Works, whilst the direct costs include the
direct costs of performing the works. In other words, the
Contractor’s claim is for the time-related costs to be rolled into
the Clause 12 variation valuations.
It is helpful now to give some consideration to each type of

variation in turn, so that the Employer can see how profit is
included in the valuation of each.
3.3.3.2. Changes in Design of the Works
The first of those two speaks for itself. The claim is for the time-
related costs of the variations to be included in the variation
valuations. It is unnecessary to argue the point that any such
valuation must include profit, under the valuation rules. All
valuation rules, in Clauses 12, are founded in rates and prices. It
is implicit that they already include profit. It follows that any new
rate or price will also include profit.
Of the complaints notified, the first variation event relates to

delayed setting out, the second to unforeseen ground
conditions, the third to delayed and incomplete design drawings
and the fourth to additional and varied Works. Those variations
comprised:
1. The changes in the position of buildings, foundation design

(partly arising from excavation in rock), unforeseen ground
conditions, suspension of Works, late design information,
and
2. The change to the specified sequence and timing of the

Works
Again, it is helpful to consider each type separately.
3.3.3.2.1. Technical Variations
As example, the changes in design of the Works referred to

immediately above; there can be no doubt that a valuation of
this type of variation to the foundation works will have to include
profit in any event. Similarly, changes in ground conditions must
equally include profit.
page 37
3.3.3.2.2. Changes to Specified Sequence and

Timing
Clause 13.1 (f), Conditions of Contract Part I, confirms any

change to the specified sequence or timing of construction of
any part of the Works instructed by the Project Manager,
constitutes a Variation.
In order to establish a Variation to sequence and time, it is

therefore necessary to establish the specified sequence and
timing of the Works. Clause 8.3, Conditions of Contract Part I,
requires the Contractor to submit to the Project Manager for his
approval, a program which illustrates the sequence and timing
the Contractor intends on performing his Works.
Project Manager’s approval of the Contractor’s Clause 8.3

Program was received in XX 2007. Consequently, the Clause
8.3 Program approved by the Project Manager represents the
specified sequence and timing of the Works and any change to
this sequence and timing instructed by the Project Manager in
writing represents a Variation in accordance with Clause 12.3
(b) (iii).
The Employer will agree that the late receipt of design

information is a specified sequence or timing of work as
envisaged by Clause 13.1(f) of the General Conditions of
Contract. Similarly, the suspension of the works must be treated
in the same manner.
Consequently, the Employer will agree that the Project Manager

has changed those sequences or timings, and that the
Contractor is entitled to have the change treated as variation
within the meaning of the said Clause.
The Contractor’s claim to have the changes of sequence and

timing brought within Clause 13.1(f) means that those changes
also fall to be valued under Clause 12.3. As with the previous
types of variation valuation, it must include profit.
3.3.3.3. Summary
When considering profit as part of the valuation of variations, the

matters affected are:
1. Changes in the Design of the Works
page 38
2. Variations to foundations, which splits into two further sub-

divisions, namely (1) technical variations and (2) changes to
the sequence and timing of work.
It is evident from the foregoing that all of the valuations of the

variations referred to must include profit. Therefore, to the extent
that the costs claimed are included in variation valuations, profit
must be added to those costs.
Clearly, as the foundation work was one of the earliest site

operations, the amount of costs, to which profit must be added,
is considerable.
3.3.4.The Effects on Unvaried Work

As can be seen from the claims referred in this submission,
numerous variations have either been issued or arisen as a
consequence of unforeseen ground conditions. In addition,
design drawings have generally been received much later than
required as depicted on the programme of works. The extent of
the variations is such that the original scope of the work included
in the Contract has been changed considerably.
So profound have the effects of the changes to both the scope

of work and to the sequence and timing of work been, that the
relatively few areas of work, which were not varied, have been
affected by those variations. The effects fall into the basic
categories of (1) prolongation and (2) disruption of the unvaried
work.
Clause 12.3 provides the mechanism for including the effects of

prolongation and disruption of the unvaried work:
No rate or price is appropriate because the item of work

is not of similar character, or is not executed under
similar conditions, as any item in the Contract.
This term of the Contract provides an indemnity to the

Contractor for all costs reasonably incurred in carrying out
variations.
3.3.5.For Uneconomic Working

From the foregoing discussion and analysis, it is evident that a
claim for uneconomic working comes within the ambit of Sub-
clause 12.3, when the costs are caused directly by performing
variations under Clause 13.1, when costs arise from carrying out
page 39
the work described in the Contract. In practice, it is not possible

to separate uneconomic working from the effects on unvaried
working, due to the close proximity of site operations, and the
continual interchange of resources between varied and unvaried
work.
The types of costs of uneconomic working are:
1. The loss of anticipated income, by way of financing.
2. Wasted monthly costs.
3. Financing wasted monthly costs.
Each of those heads of claim is dealt with in turn.
3.3.5.1. Loss of Anticipated Income
This is the cost to the Contractor of financing the shortfall

between the income he reasonably expected to receive, and
what he actually received, in Interim Payment Certificates.
As to the suspension or slowdown costs, the Contractor claims

in respect of lost income for the period from commencement in
March 2007 to May 2008. That is because the Particulars
included in this submission also relate to the delays in that
period.
3.3.5.2. Wasted Monthly Costs
This is a measure of the waste of resources, caused by the

disruption, dislocation and re-sequencing of work.
In this document the Contractor describes the cause which

resulted in suspension or slowdown of the works. At this section
he describes the effect of the cause that is what he means by
wasted monthly costs:
One of the types of damage incurred by the Contractor would be

the idle time, and/or reduced output, of resources. It is not
possible to sever the damage incurred by reason of the delayed
setting out of sites, unforeseen ground conditions, changes in
scope of works, from that incurred by reason of the delayed
design drawings.
The schedules showing the monthly labour and plant levels are
evidence that the Contractor not only mobilised, but also
maintained, levels of each, which should have ensured outputs
page 40
at the level of anticipated monthly income referred to above. The

schedules showing the amounts certified for each month are
evidence that, notwithstanding the level of resources on site, the
Contractor’s turnover was far less than he reasonably
anticipated.
In order to arrive at a measure of the cost of idle time, and the

reduced output, the Contractor has calculated the percentage,
which the loss of income represents for each month, of the
anticipated income. The Contractor has then applied the same
percentage to the monthly cost of labour, equipment, both site
and head office overheads, to arrive at the cost on which he has
had no return.
The Contractor believes this is the most sensible way of

approaching this head of claim. It uses evidence, as opposed to
estimates, or supposition.
3.3.5.3. Financing Wasted Monthly Costs
This should be self-explanatory. However, a few words of

explanation will help. The Contractor’s entitlement relies on the
following:
The Employer should agree that the Contractor is entitled to

either the financing charges for the wasted monthly costs if
either these are agreed, in the form of interest on late payment
in accordance with Clause 14.8 of the conditions of contract or
finance charges incurred, whichever is the greater.
The application of finance charges as compensation for the

Contractor being kept out of his money replaces interest on late
payments. Accordingly, the Contractor claims to be entitled to
financing charges on the wasted costs included in the valuation
of the Variations.
3.3.6.Profit as Part of ‘Costs’

To the extent that profit on costs could become an issue, the
Contractor’s contentions are as follows.
3.3.6.1. Authorities on the Basis of ‘Costs’
In order to appreciate what should be included in a

determination of costs, it is necessary to grasp the concept of
page 41
the expression as used in the contract claims machinery. There

are a number of helpful authorities, which explain this.
3.3.6.1.1. Powell-Smith’s ‘Some Building Contract

Problems’
The following passage from ‘Some Building Contract Problems’

(page 141), by the late Dr Vincent Powell-Smith, who was a
well-known international lecturer, commentator and author,
illustrates the purpose of what some construction contracts call
‘direct loss and/or expense’. The parallel in the Contract is
‘costs’:
The purpose of the contract claims machinery is to put

the contractor back into the position he would have been
but for the delay or disruption, and various cases
establish that the term ‘direct loss and/or expense’
means in effect that what is recoverable is substantially
the same as the damages recoverable at common law
under the first rule in the old case of Hadley v. Baxendale
(1854)
This fits directly with the criterion used in the Robinson v.

Harman case (see below).
3.3.6.1.2. Hudson and Minter v. WHTSO
In the extract from Hudson’s Building and Project Managering

Contracts, Eleventh Edition, Volume 1, on page 1020, there is a
summary of the ruling in the case of F G Minter v. Welsh Health
Technical Services Organisation (1980) 13BLR1:
By Clauses 11(6) and 24(1) respectively of the 1963

RIBA/JCT forms of contract, the contractor was entitled to
be paid ‘direct loss and expense’ not reimbursable under
the preceding variation valuation rules, in the one case,
or as a result of disturbance of progress due to late
receipt of drawings and information from the architect on
the other. The contractor claimed financing charges on
the additional expenditure in each case as sums due and
to be certified by the architect under the two clauses.
Held, by the Court of Appeal, on preceding judicial

authority the words ‘direct loss and expense’ meant such
damages as would be recoverable as naturally flowing
from a breach of contract under the first branch of the
rule in Hadley v. Baxendale.
page 42
Again, although the extract refers to the expression ‘loss and/or

expense’, it is the equivalent of the ‘costs’ suffered by the
Contractor under the Contract.
The discussion of the judgment following the passage quoted

from it in Hudson is at the heart of this issue in this Claim. In
paragraph 8-096, the learned author says:
The wider importance of the Minter and Rees and Kirby

cases in the Construction field cannot be ignored. The
reasoning of the Court of Appeal in the Minter case was
that previous authority showed that the contractual “direct
loss and expense” expression meant the same as the
measure of damage “arising naturally in the usual course
of things” under the first branch of the Hadley v.
Baxendale rule. The contract therefore expressly applied
that test to both the Clause 11(6) basis of claim
(variations and not, therefore, a breach of contract) and
to the Clause 24(1)(a) basis (late information and,
therefore, a breach of contract). [Author’s emphasis.]
The author’s discussion draws attention to the importance of the

comparison of direct loss and expense, or, as in the Contract,
‘cost’, with damages envisaged by Hadley v. Baxendale. The
costs referred to have been incurred as a result of denial of
possession of parts of the site, and of late and varied
information.
3.3.6.1.3. Hudson on the Scope of ‘Costs’
From the two foregoing authorities, it is evident that the more

widely used expression ‘loss and expense’ is a direct parallel to
the word ‘costs’ as used in the instant Contract. Underpinning
this is the breadth of coverage given to the expression ‘loss and
expense’. This is illustrated by the following extract from page
1096 of Hudson, paragraphs 8.213 to 8.216. In paragraph
8.213, the author draws attention to the coverage of ‘loss and
expense’:
a. ‘Direct’ or ‘consequential’ damage provisions
… In this context, ‘consequential’ damage will sometimes

be contrasted with ‘direct’ damage as the subject of
exclusion, or sometimes used on its own to indicate an
intended class of compensation. Thus, since 1963 the
English standard forms, and in particular the RIBA/JCT
forms, have employed the expression ‘direct loss and
expense’ in the context of positive provisions for
page 43
additional payment expressly permitted by these

contracts. …
He then draws the parallel with Hadley v. Baxendale for the type
of damage to be included in loss and expense, and what he
calls ‘wording of this kind’, in paragraph 8.215:
These strict interpretations in the case of exclusions

clauses have been paralleled by a correspondingly
generous interpretation of ‘direct loss and expense’.
Wording when used positively in compensation
provisions. It has already been seen that interest in the
form of financing charges has been held to be
recoverable by contractors under this wording under
Clauses 11(6) and 24 of the 1963 RIBA/JCT forms.
Wording of this kind will include any damage recoverable
under the first branch of the Hadley v. Baxendale rule,
which it has been seen will include a wide range of heads
of damage which might otherwise in a loose sense be
described as ‘consequential’ or ‘indirect’.
It should be noted that, on page 1098 of the extract, in the

reference to the second case, Wraight v. PH&T (Holdings) Ltd
(1968), it says that it was held that a contractor was entitled to
his loss of profit. This case is referred to specifically below.
This extract is included as Appendix 4.
3.3.6.1.4. The First Part of the Rule in Hadley v.

Baxendale
The case of Hadley v. Baxendale is at the very heart of

damages for breach of contract, and need not be quoted at
length. Having established that a contractor’s claim for loss and
expense, or cost, or indeed for anything covered by ‘wording of
this kind’, it is helpful to refer to the judgment in Hadley v.
Baxendale, to see exactly what the first part of the rule allows.
The Contractor reproduces here an extract from ‘Contract Cases

and Materials’ by Hugh Beale, William Bishop and the very well-
known and respected Prof Michael Furmston, who is also the
author of the classic work on contract law, ‘Furmston, Cheshire
and Fifoot’. The extract is in fact part of the judgment in the
case, at page 395:
We think that there ought to be a new trial in this case;

but, in so doing, we deem it to be expedient and
necessary to state explicitly the rule which the Judge, at
page 44
the next trial, ought, in our opinion, to direct the jury to be

governed by when they estimate the damages. …
Now we think the proper rule in such a case as the

present is this: - Where two parties have made a
contract, which one of them has broken, the damages
which the other party ought to receive in respect of such
breach of contract should be such as may fairly and
reasonably be considered either arising naturally, i.e.
according to the usual course of things, from such breach
of contract itself, or such as may reasonably be
supposed to have been in the contemplation of both
parties, at the time they made the contract, as the
probable result of the breach of it.
Thus, the first part of the rule is that:
… the damages which the other party ought to receive …

should be such as may fairly and reasonably be
considered … arising naturally, i.e. according to the usual
course of things, from such breach of contract itself …
In the case of the matters claimed, the Contractor is therefore

entitled to reimbursement of costs, which include costs, which
arose naturally from the breach.
3.3.6.1.5. The Basic Measure of Damages
Having established that the Contractor is entitled to have his

costs determined on the basis of what flowed naturally from the
breach, it is necessary to alight upon the correct measure of
damage. There is precise authority for this in the case of
Robinson v. Harman (1848) 1Exch850, 855. The relevant
passage is as follows:
The rule of the common law is, that where a party

sustains loss by reason of a breach of contract, he is, so
far as money can do it, to be placed in the same
situation, with respect to damages, as if the contract had
been performed.
The quoted passage is taken from page 11 of Beale, Bishop and

Furmston’s book.
This the truly prescriptive rule for what should be in the

determination of costs. It has been shown by logical steps that
‘costs’ in their generic sense equate to common law damages.
From that, it is the common law rule that damages must put the
page 45
offended party back in the same position he would have been in,
but for the events complained of.
It follows from this that a contractor, who suffers as a result of an

act or omission of the employer or his agents, is entitled to
recover his profit.
3.3.6.2. Authorities on the Recovery of Profit
Now that the basic premise for using the criterion applicable to
common law damages for breach of contract has been
presented, the Contractor will show that the recovery of profit
comes within that criterion.
3.3.6.2.1. General Principle as to Claims
The general rule that claims for loss and expense or costs are to
be treated as claims for damages at common law is expounded
by Dr Powell-Smith on page 143 of ‘Some building Contract
Problems’:
Claims under clause 26 can be equated with claims for

damages at common law, and are governed by the same
principles. On that basis, the consequences of the late
instruction must have been within the reasonable
contemplation of the contracting parties at the time the
contract was made. The additional cost arises as a direct
and natural result of the architect’s default and is thus
claimable under the contract terms: see Hadley v.
Baxendale (1854)
3.3.6.2.2. Wraight v. PH&T (Holdings) Ltd
In the case of Wraight v. PH&T (Holdings) Ltd (1968), a

contractor pursued a claim for loss of profit, as a result of his
own determination of his employment under a building contract.
The contractor in the case put his argument as summarised in

the judgment on page 284, near the bottom:
It is said here on behalf of the [contractors] that quite

plainly the loss of profit to the [contractors] was, in any
ordinary sense of the word, a direct consequence of the
determination of the contract. If the contract had not been
determined, they would have gone on and done the work,
continued their legal obligations thereunder and would
page 46
have had their legal right to obtain their full contractual

remuneration at the end of it, and therefore they have, by
this determination, lost the right to receive that sum of
money which they would have received if the contract
had not been determined: what can be more direct than
that?
Obviously, the event complained of in the case is determination

of the contractor’s employment. However, that is not of
importance. It is a type of event, which entitles the offended
contractor to reclaim his losses, just as the denial of possession
and late information in the Contract do.
The important thing is that the contractor in the case was looking
to recover the sum of money he would have recovered, but for
the event complained of. It is natural that such sum of money
included profit.
The judge concluded, on page 285:
In my judgment, there are no grounds for giving to the

words ‘direct loss and/or damage caused to the
contractor by the determination’ any other meaning than
that which they have, for example, in a case of breach of
contract or other question of the relationship of a fault to
damage in a legal context. Therefore it follows … that the
[contractors] are, as a matter of law entitled to recover
that which they would have obtained if this contract had
been fulfilled in terms of the picture visualised in advance
but which they have not obtained.
It was held (page 284) that:
The words direct loss and/or damage in clause 26 must

be given the same meaning as they would have in the
case of a breach of contract. The loss of profit was the
direct and natural consequence of the determination of
the contract, and the contractors were entitled to
succeed.
3.3.6.2.3. Powell-Smith and Sims on Building

Contract Claims
The authors of ‘Building Contract Claims’, Vincent Powell-Smith

and John Sims, state unequivocally on page 110 of their book
that:
Loss of profit, which the contractor would otherwise have

earned but for the delay or disruption, is an allowable
page 47
head of claim. It is recoverable under the rule in Hadley

v. Baxendale (1854).
Pages 110 to 113 of the book are included in Appendix 9.
It is worth noting that the authors refer to the Wraight case on

page 111, and that they make a distinction between the profit
normally to be expected, and exceptionally high profit. The
Contractor is only claiming here the level of profit allowed for in
his tender.
The extract also mentions the possibility of claiming for profit lost
on other contracts. The Contractor is not claiming for that. He is
only claiming for his profit on the Contract, which is much more
direct than that lost on other projects.
3.3.6.3. Summary
There are plenty of authorities to show that:
1. A claim for payment of ‘costs’ is to be treated as a claim for

common law damages.
2. Such damages should put the complaining party back into

the position he would have been in, but for the event
complained of.
3. Profit is an allowable head of claim under common law

damages.
The Contractor’s claim is only for profit on the Contract work, not
for other work, so it is within the first rule in Hadley v.
Baxendale, and should be allowed.
3.4. The Contractor’s Summary

For all of the foregoing reasons, the Contractor contends that
the profit claimed by him is allowable. It should be treated in the
same way as damage within the meaning of the first rule in
Hadley v. Baxendale, and fulfil the criterion in Robinson v.
Harman.
There is no prohibition of it as a head of claim. If the Project

Manager were to have the power to deprive the Contractor of
profit on any claim he chose to treat as one for ‘costs’, then all
contractors could be placed in the unacceptable position of
doing a large proportion of work at cost. This is clearly not what
page 48
the Contract stipulates, nor could it have been the intention of

the parties.
page 49
4. Circumstances Giving Rise to Claim

Performance of the construction activities required the
availability of final setting out details and foundation design
information (arising from unforeseen ground conditions) to
permit execution of the Works. Records show that setting out
was delayed and information with respect to rock excavation
was neither evident from records available. These two initial
events seriously impacted progress and caused significant
delays. It was further and seriously compounded by the Project
Manager’s instructions to suspend the Works which lasted 2
months.
Furthermore, it is a fundamental requirement of the Contract that

detailed design information is made available in the times
consistent with the Contractor’s programme of works. In the
event, such information was late, and aggravated by incomplete
and inconsistent design details that naturally caused a change in
the planned methods of working. This is particularly evident at
the two “Mock-up” villas that underwent numerous changes as
works proceeded.
In addition to the above, payment for varied work performed was

not fully received by the Contractor in accordance with the
procedures and time stated in the contract.
4.1. Contractual Basis – Notification of Changes

The Contractual basis of the heads of claim is described in
subsequent sections of this document. That is, the Contractor
gave notice of the difficulties existing at the Site arising from
delays and disruptions.
The Contractor issued notice of the following issues on
We acknowledge receipt of your letter dated 4 December

2007 referenced E-09-04-12-07 and wish to confirm our
position by the following extract from the Contract:

SHAN/zk/ZK/LOA.01 states at paragraph 3.0: “the lump
sum contract price shall not be amended unless
specifically agreed with the Employer and the Quantity
Surveyor. No additional work (beyond the scope of the
lump sum Contract Price) may be commenced prior to
reaching agreement on the price thereof.”
page 50

The Contract Agreement dated 27 April 2007 lists the

documents forming the Agreement and the Letter of
Acceptance takes priority over the Conditions of
Contract.
Consequently, your reference to sub-clause 12.3 and

13.1 of the Conditions of Contract, although interesting, is
not relevant in the introduction of Variations on this
project, particularly as sub-clause 3.1 has been amended
by the quoted specific conditions above.
We would point out that although the amendment is

impractical it is a significant revision to both Clause 12
and 13 of the Conditions of Contract. In practise it means
that no Variation arising from additional work or by design
change can commence prior to receiving the agreement
of the Employer.
In conclusion, the purpose of our letter dated 23

November 2007 on this subject matter was to bring these
special circumstances to your attention.
A further notice was issued on XX relating to the instruction to

suspend the works:
Please refer to your letter dated 23 November 2007

referenced E-01-23.11.07 to which we wish to clarify this
situation with regards to the cause for suspension of
works.
First, the suspension of the Works, other than the two

Mock-up villas occurred between 29 August 2007 and 29
November 2007. The reason for your suspension relies
on work covered prior to inspection, but not with our site
organisation. We have covered this aspect in our
previous letter and pointed out remedies in the Contract
available to the Engineer in these situations.
Secondly, although it was suggested in our email dated

28 August 2007 that concrete work would stop, in reality
it did not and work continued until your instruction to
suspend Works on 29 August 2007. This is all a matter of
record and should be common ground.
Consequently, we disagree with contentions raised in

your letter and reiterate our entitlement to extensions of
page 51
time and additional payment arising from your

instructions.
A notice was issued in regards to several of the delaying events

on XX
We acknowledge receipt of your letter dated 23

November 2007 referenced E-07-23.11.07 regarding
records of meeting No. 27 held on 9 November 2007. We
disagree with your position on the 3 points for the
following reasons:
Point 3 – minute 6.2: It is impossible for the Project

Manager to have knowledge of the Contractor’s
management and manpower with respect to their ability
to handle the complete site. This is complete conjecture
and only the Contractor can have that knowledge. In any
event, it is not a contractual provision to suspend work
based upon the Project Manager’s perceived knowledge
of the Contractor’s planning and operations. Even if this
is your reason for suspension the provisions of sub-
clause 8.9 remain relevant.
The facts are recorded in our letter dated 29 October

2007 where reasons for suspension were indeed
because work was covered up prior to inspection and
approval. Once again, if this is your remedy in these
circumstances, then the same provisions at sub-clause
8.9 are relevant.
Point 4 – minute 6.2: We have recorded severally

delays caused by setting-out, increased scope of work for
normal excavation, rock excavation and fixing steel
reinforcement, shuttering and volume of concrete. The
combination of these issues had caused a delay to
progress at the time of this meeting (which is in the same
period the works were suspended) by at least 3 weeks.
Normally, the Project Manager would give notice to the

Contractor in accordance with sub-clause 8.3 which last
paragraph, states:
If, at any time, the Engineer gives notice to the Contractor that
a programme fails (to the extent stated) to comply with the
Contract or to be consistent with actual progress and the
Contractor’s stated intentions, the Contractor shall submit a
revised programme to the Engineer in accordance with this
Sub-Clause.
This revised programme is issued in accordance with the

provisions of sub-clause 8.6, which states:
page 52
If, at any time:
(a) actual progress is too slow to complete within the Time for
Completion, and/or
(b) progress has fallen (or will fall) behind the current
programme under Sub-Clause8.3 [Programme],other than as
a result of a cause listed in Sub-Clause 8.4 [Extension of Time
for Completion], then the Engineer may instruct the Contractor
to submit, under Sub-Clause 8.3 [Programme], a revised
programme and supporting report describing the revised
methods which the Contractor proposes to adopt in order to
expedite progress and complete within the Time for
Completion. (Emphasis added)
Unless the Engineer notifies otherwise, the Contractor shall

adopt these revised methods, which may require increases in
the working hours and/or in the numbers of Contractor’s
Personnel and/or Goods, at the risk and cost of the Contractor.
If these revised methods cause the Employer to incur
additional costs, the Contractor shall subject to Sub-Clause 2.5
[Employer’s Claims] pay these costs to the Employer, in
addition to delay damages (if any) under Sub-Clause 8.7
below.
Please confirm if you intend to give a notice in

accordance with this sub-clause? If that does remain
your intention, then we must draw your attention to sub-
clause 8.4, to paragraphs (a) and (b).
In the alternative, we confirm having issued a compliant

notice in accordance with sub-clause 8.4 and provision of
claims under sub-clause 20.1.
In conclusion, as we are not responsible for the delay

and disruption to date, and the extended time to
completion at 8 December 2007, we will not adopt any
acceleration measures to recover earlier delays unless
and until instructed.
At the request of the Project Manager a second revised

programme of works was issued on 14 March 2008. In this
notice the Contractor clearly indicated the various delays
effecting impacting progress:
In accordance with your recent request in the weekly

progress meetings, please find attached revised
programme of works for your consent.
page 53
The revised programme takes into consideration the

various events and changed circumstances since
commencement up to 29 February 2008.
These events and changed circumstances, as separately

notified to you and further illustrated in our situation
report dated 29 February 2009, have caused the original
planned timing and sequence of works to vary. They
include the following;
 Unforeseen hard rock excavation including

spoiling;
 Suspension of works, except for the mock up

villas, for two months and associated acceleration
measures;
 Instructed design variations, e.g. exchange of

galvanised steel with stainless steel components
for installation in the roof resulting into delays in
procurement;
 Late Instructions, e.g. several changes to the

location, position and orientation of buildings by
revision in the setting out details have delayed and
disrupted the works;
 Late Design Information resulting into delays in

procurement thus preventing timely arrival of
materials at site;
 Increased scope of works occasioned by

unforeseen site conditions and instructed
additional works;
 Inclement weather condition; unexpected high

amounts of rainfall currently being experienced at
site is slowing down progress of works.
The overall effect of all the above has been to delay the
completion date for the works up to 24 March 2009 as
indicated in the attached revised programme.
We therefore request extension of time to completion of the

works.
The Contractor wrote again on 21 April 2008 with a notice

stating the events that delayed progress:
page 54
Reference is made to your letter dated 7 April 2008, E17-

07.04.2008 to which this letter relates.
The purpose of this letter is to seek approval to

accelerate progress to Completion in solution to recovery
of earlier delays experienced which is made without
prejudice to our current contractual position.
Progress To Date and Causes of Delay
We have written on several occasions about various

events that caused delay and disruption to the regular
progress of the work since the outset of this Contract.
Some of these events and changed circumstances are
described below and are significant by either their impact
on time to completion or cost or both:
Late Design Information
Both survey data and final construction design are being

issued late and this has naturally caused delay. As
example, drawings for construction are required at
commencement in order to allow procurement; however,
drawings are still being issued or remain outstanding 12
months after commencement. The lateness of such
information prevents rapid conclusion and timely arrival
of materials at Site.
The Contractor also records he has not received any

structural drawings that must in the first instant, be
approved by the Ministry of National Development.
A further complication arises from having two structural

engineers engaged to design different parts of the
Contract. This has led to disruption in the design process.
Provisional Sums
Almost 30% of the Contract Price is derived from lump

sum provisions for works not sufficiently detailed or
identified at time of tender. The subsequent introduction
of these works requires an instruction in accordance with
the conditions stated in the Contract. As such, they are
not works necessarily envisaged as forming part of the
Works until and unless the Project Manager issues an
instruction.
A further complication is that for these particular works

neither detailed bill of quantities exists nor design
drawings, although almost 12-months of the Contract
period have elapse. In practise the Quantity Surveyor
page 55
should have prepared these Bills for submission to the

Contractor to enable pricing and material procurement.
As a result, their value is not defined and detailed
programming is not possible and that indicates the
Contract Price and the time of Completion must change.
Material Procurement
In the absence of complete design information

procurement has not proceeded as planned. Delays in
procurement will undoubtedly cause delay to completion.
In addition, prices quoted at tender stage cannot be
secured because orders are confirmed much later than
planned.
Suspension of work
The Works were suspended in the period from 29 August

2007 through to 29 October 2007 as recorded in minutes
of monthly meeting No 27 held 9 November 2007. The
reason for this suspension by the Project Manager relies
on work covered-up before inspection (at one villa
column base).
The Conditions of Contract contain provisions for

breaking out and exposing work and this would have
been the sensible solution, not suspension. As to
progress, it is evident from the photographs taken of the
site at that date excellent progress was being made at
several locations. The impact of 2 months suspension
has had on progress was significant.
Re-measurement Contract vis-à-vis Fixed Lump Sum
The Conditions of Contract adopted on this project is a

standard form and allows re-measurement however, all
Clauses that allow Variations have not been revised or
amended as one would expect in order to suit a Fixed
Lump Sum Contract.
In addition, the Letter of Acceptance states that:
“the lump sum contract price shall not be amended

unless specifically agreed with the Employer and the
Quantity Surveyor. No additional work (beyond the
scope of the lump sum Contract Price) may be
commenced prior to reaching agreement on the price
thereof.” [Emphasis added]
It further states that:
page 56
“Any changes in the design, which affect the lump sum

Contract Price, must be specifically agreed by the
Employer.”
Clearly, any alteration to the scope of work, introduction

of additional work or design change, is very likely to
influence a change in the Contract Price and the time to
Completion. On this contract three areas of change will
cause the Contract Price to vary and the time to
Completion to extend, namely:
Variations to Scope of Works
Changes in the scope of work do arise by virtue of

drawings issued for construction that automatically
increase quantities shown in the Bills of Quantities. This
is for two reasons; a) the correlation between
substructure design and actual ground conditions are at
variance, and b) a general enhancement of the reinforced
concrete structure designed.
Flowing from variations generally introduced by final

design drawings or drawings issued for construction, the
scope of work has increased considerably, as example:
 A significant increase in excavation of hard rock

for which a small provision was made in the
Contract;
 A significant increase in the quantity of normal

excavation to that indicated in the Contract, which
is dictated by the topographic site conditions;
 A significant increase in volume of reinforced

concrete placed to that indicated in the Contract;
 A significant increase in associated temporary

works such as shuttering to that indicated in the
Contract; and
 A significant increase in steel reinforcement to that

indicated in the Contract.
All these changes are not within the control of the

Contractor, they are instructed Variations and naturally
have time and cost considerations.
Instructed Design Variations
Mainly changes brought by a) interior design

requirements, and b) because of superstructure
variations. Once again, these variations are not within the
page 57
control of the Contractor, they are instructed Variations.

One example of a design change relates to the exchange
of galvanised steel with stainless steel components for
installation in the roof. Notwithstanding the delay in
making procurement of this specialist item, the additional
cost is significant.
Lump Sums
The values of many of the structures included in the

Contract Price are based on a square-metre rate in the
absence of a detailed bill of quantity. As design drawings
are now issued (September 2007) these works need to
be measured and valued. The outcome of this evaluation
will undoubtedly cause the Contract Price to vary. In
addition, the time required to complete these structures
can only be evaluated once detailed design drawings are
made available. At that juncture, the details of these
structures can be introduced in the programme of works.
Other Factors Impacting Progress
Although the following issues were known and

considered at time of tender and therefore, allowed in our
programme of works, they clearly have an influence on
progress. They are mentioned here because with the
prevailing delays described in Points 1 and 2 above, their
very existence compounds a situation that is already
impacting progress.
Tidal Movement
Each and every day/month typical low-tide conditions

exist that prevent movement of vessels delivering
material to Long Island. This is not a situation that can
change and such time considerations are incorporated in
the programme of works. The situation is compounded as
the immediate area to Long Island is a protected Marine
Park.
Transport of Materials to Long Island
All materials are brought by sea via one large barge in

deep water which off-loads to two small barges at
shallower water. At times it is not uncommon for a barge
to suffer mechanical failure and there is possibility of
disruption in the material supply. There are no other
methods available that allows bulk supply of materials to
the island, so although these difficulties are present all
efforts are made to ensure these operations are limited.
page 58
Procurement of Local Raw Materials
The level of construction in the Seychelles is quite

substantial and demands for natural quarry materials
places a considerable strain on the local supplier. The
supply of quarry materials in the Seychelles are a
monopoly and alternate sources are not available.
Occasionally, a quarry product is in short supply, usually
because of demand, and this will cause disruption in
placement of concrete at site.
Wet Weather Conditions
The weather patterns are fairly regular and wet seasons

can cause considerable difficulty at site, particularly prior
to establishment of all-weather access roads. Once
again, this is not a situation that can change and such
time considerations are incorporated in the programme of
works.
Suspension of Quarry Operations
In parallel with wet weather seasons all quarry operations

do not function, particularly when rainfall is persistent
over several days. As a consequence quarry products
such as dust and aggregates and composite items as
concrete blocks are not produced which interrupts the
regular supply to Site.
Financial Considerations
The events and changed circumstances described in the

foregoing have directly impacted the Contractor’s income
which, together with Advance repayments has caused a
negative cash flow.
Reduced Income
Regular progress of the works has been reduced

significantly because of the delays occasioned by
Variations, additional works and suspension of the whole
Site (except the two mock-up villas). As a consequence,
the value of work performed is significantly lower than
anticipated and as indicated on the original cash flow
chart. Therefore, costs are constantly greater than
income derived for work performed.
Also, during these periods of delay and disruption direct

and indirect costs are not fully recovered because
planned progress has not been achieved. In addition, and
as a result of a continuous shortfall in income, the value
page 59
of the Advance to the Contractor has diminished at a rate

greater than anticipated as it’s been consumed in loss
and expense.
Repayment of Advance Loan
The repayment of the Advance is directly linked to

projected income which is derived from the programme of
works. However, because progress has not been
achieved income is considerably lower and the time for
completion has extended. As a result, the monthly value
of repayment has to be adjusted in light of the change in
income flowing from an extended time to completion.
Proposed Remedy
The revised programme of works issued under cover of

our letter dated 14 March 2008 shows a revised
completion date of 24 March 2009. This is the date
substantial completion can be achieved and is based on
two important criteria; a) an adjustment to the value and
period of the initial Advance repayment and, b) the
payment of a second Advance.
The programme considers delays experienced to date,

which principally is the setting out, excavation in hard
rock, delays in receipt of detailed design drawings and
delayed arrival of major material components to site.
It is anticipated that with the measures to recover earlier

delays explained below, this continuing delays will be
halted and in some respects, time will be recovered.
For reasons provided in the foregoing, this situation with

respect to cash flow is not sustainable. In order to rapidly
and affectively halt escalation of this situation the
Contractor proposes the following solutions:
Adjusting Repayment of Advance
The cash flow estimate has been adjusted once to date

to meet changed circumstances on site and this must be
done again. The monthly value and period of repayment
will need to be aligned with the revised durations shown
on the programme of works. A proposed revised recovery
on this Advance is shown in the table below:
page 60
Cert. No. Month AdvancePayment Certified AdvanceRepayment
Advance May-07 3,100,000.00

1 Jun-07 682,032.85
2 Jul-07 351,989.15 200,000.00
3 Aug-07 145,803.63 200,000.00
4 Sep-07 357,556.62 200,000.00
Oct-07 0.00 357,142.86
5 Nov-07 478,926.03 214,285.71
6 Dec-07 0.00 214,285.71
Jan-08 0.00 214,285.71
7 Feb-08 1,276,534.91 100,000.00
8 Mar-08 1,276,534.91 100,000.00
9 Apr-08 1,276,534.91 100,000.00
10 May-08 1,276,534.91 100,000.00
11 Jun-08 1,276,534.91 100,000.00
12 Jul-08 1,276,534.91 100,000.00
13 Aug-08 1,276,534.91 100,000.00
14 Sep-08 1,276,534.91 100,000.00
15 Oct-08 1,276,534.91 100,000.00
16 Nov-08 1,276,534.91 100,000.00
17 Dec-08 1,276,534.91 100,000.00
18 Jan-09 1,276,534.91 100,000.00
13 Feb-09 1,276,534.91 100,000.00
14 Mar-09 1,276,534.91 100,000.00
15 Apr-09 1,276,534.91 100,000.01
16 May-09 1,276,534.91
17 Jun-09 1,276,534.91
18 Jul-09 1,276,534.91
17 Aug-09 1,276,534.91
18 Sep-09 1,276,534.91
13 Oct-09 1,276,534.91
14 Nov-09 1,276,534.91
Total 3,100,000.00 30,100,076.26 3,100,000.00
Measures to Recover Earlier Delays
To facilitate measures to accelerate progress the

Contractor will enhance existing resources. This will
involve bringing to site additional equipment and staff and
labour resource over and above that planned at tender.
The table below lists planned additional staff and labour

and equipment that will be deployed at Site. It also
includes the delay and disruption costs arising during the
2-month period of suspension.
page 61
ID Designation Value UD$ Amount
Staff and Labour
1 Senior Project Manager 168,630.00

2 Quality Assurance Manager 168,630.00
3 Senior Quantity Surveyor 107,250.00
4 Assistant Quantity Surveyor 99,000.00
5 Expatriate Workers 880,000.00 1,423,510.00
Equipment
1 Potain tower crane (2Nr) 131,400.00

3 Merlo Car-Mix 62,500.00
4 JCB 70,000.00
5 Concrete Paver 45,000.00
6 Rock Breaker 32,000.00
7 Mini Excavator (15 Tonne) 88,500.00 535,191.00
Delay and Disruption Costs 565,714.29
Total additonal resources 2,524,415.29
In recognition of the additional cost flowing from

deploying additional resources and loss and expense
suffered during periods of delay and disruption, the
Contractor requests reimbursement of a portion of these
direct costs. These have been established in the above
table and amounts to US$2,524,415.29. The Contractor
asks payment in nine (9) equal interim Certificates
starting from April 200 with the last in December 2008.
Second Secured Advance Payment
The major and immediate expense typically flows from

material and equipment procurement. A subsidiary of that
is increased staff and labour over and above that
originally planned.
The first component, materials, is the critical element to

achieving sustained progress and once 80% has been
secured and delivered at Site, a major obstacle is
overcome. This is particularly significant with respect to
the geographic location of the Seychelles and the
difficulties this presents for material procurement.
Material not ordered is either because design details

have not been availed or that Bills of Quantities and
respective designs flowing from Provisional Sums is still
in abeyance.
page 62
The second component, equipment, dictates the methods

and pace at which the works proceed. In other words, by
increasing the number of certain pieces of equipment and
by changing methods, progress can be improved
significantly.
The last element considered is staff and labour, the major

change will be deployment of two European Site Agents
well experienced in this type of work. In addition, we will
deploy further expatriates of all trades in order to meet
the demands of a revised programme of works, which we
will submit shortly.
As shown in the impacted programme issued 14 March

2008, because of earlier delays many operations have
been delayed, therefore, commencement of most
buildings have been compressed on the original
programme of works. This means that site operations are
not working sequentially but simultaneously and this is a
major planning problem existing today. Consequently, all
these resources will allow expansion of operations to
many areas of site allowing work to proceed
simultaneously and therefore achieve earliest completion.
To meet additional and immediate costs in this recovery

program and to meet the changed circumstances, the
Contractor requires a minimum Advance payment
amounting to US$3,500,000.00. The proposed recovery
on this Advance is shown in the table below:
Month Value Repaid
May-08 250,000.00
Jun-08 250,000.00
Jul-08 250,000.00
Aug-08 300,000.00
Sep-08 300,000.00
Oct-08 350,000.00
Nov-08 400,000.00
Dec-08 550,000.00
Jan-09 400,000.00
Feb-09 450,000.00
Total 3,500,000.00
The next table is the projected combined recovery on

both Advance payments:
page 63
Month FirstAdvance SecondAdvance Combined
May-07 0.00 0.00

Jun-07 0.00 0.00
Jul-07 200,000.00 0.00 200,000.00
Aug-07 200,000.00 0.00 200,000.00
Sep-07 200,000.00 0.00 200,000.00
Oct-07 357,142.86 0.00 357,142.86
Nov-07 214,285.71 0.00 214,285.71
Dec-07 214,285.71 0.00 214,285.71
Jan-08 214,285.71 0.00 214,285.71
Feb-08 100,000.00 0.00 100,000.00
Mar-08 100,000.00 0.00 100,000.00
Apr-08 100,000.00 0.00 100,000.00
May-08 100,000.00 250,000.00 350,000.00
Jun-08 100,000.00 250,000.00 350,000.00
Jul-08 100,000.00 250,000.00 350,000.00
Aug-08 100,000.00 300,000.00 400,000.00
Sep-08 100,000.00 300,000.00 400,000.00
Oct-08 100,000.00 350,000.00 450,000.00
Nov-08 100,000.00 400,000.00 500,000.00
Dec-08 100,000.00 550,000.00 650,000.00
Jan-09 100,000.00 400,000.00 500,000.00
Feb-09 100,000.00 450,000.00 550,000.00
Mar-09 100,000.00 100,000.00
Apr-09 100,000.01 100,000.01
Total 3,100,000.00 3,500,000.00 6,600,000.00
The revised Organisation Chart is attached to which has

been added the additional management staff. Evidence
of projected expenditure for staff, labour and materials is
provided in the table below and is likely to exceed US$5
million.
page 64
Staff and Labour (one month)

5 Expatriate Workers 80,000.00 129,410.00
Equipment

4 JCB 70,000.00
Materials
1 Balau timber (special size) 1,764,705.88

2 Stainless steel roof components 2,559,900.00
3 Shingles 333,600.00 4,658,205.88
Total Second Advance 5,322,806.88
Conclusion
It is evident from the foregoing the considerable

difficulties encountered on this project since the outset
are not the responsibility of the Contractor.
The majority of changes and consequent difficulties exist

because a significant portion of design was not
developed at tender. Of worthy note, after expiry of
almost 12 months of the Contract period close to 30% of
the scope of works has not been identified through
detailed Bills of Quantities; an essential requirement
outwith prevents material procurement and disrupts
planning.
Recent suggestions to engage other contractors to

perform portions of the scope of works will have little
effect because constraints imposed by operational
logistics and design development are unlikely to diminish.
Consequently, with the valuable knowledge and

experience gained it is our considered opinion drastic
measures must be implemented by both the Contractor
and Employer’s design teams. The respective
responsibility of each party is important and the
page 65
Contractor has in this letter, set-out under paragraph 5

above, what he feels is required to bring this project to
earliest completion.
First, the Contractor looks forward to receiving proposals

from the Employer’s design team indicating what
measures will be taken to address outstanding design
issues. Secondly, the scope of works must be defined in
order to establish the revised Contract Price outwith the
Contract Completion date will remain at large.
Finally, payment of the Contractor’s acceleration costs

and the Second Secured Advance is of paramount
importance in the measures required to conclude this
Contract thus allowing a reduction of the Contractor’s
extended costs and indeed, the Employer’s losses.
We look forward to receiving approval in principle of the

foregoing and subsequent instructions.
Accordingly, the Contractor is entitled to receive, under Sub-

Clause 20.1, extensions of time and additional payment as
described under Sub-Clause 8.4, 1.9 and 2.1 of the Contract
Conditions.
4.2. Late and Inaccurate Survey Data

The completeness, accuracy and timely issue of survey
information remain the responsibility of the Project Manager.
Sub-clause 4.7 of the Contract Conditions is clear on this
subject and it should be common ground as to the
consequences of the Contractor being provided information
inconsistent with design and site conditions.
The table below provides dates when setting-out was performed

and reasons why for many the exercise was repeated. In most
instances it was because the position and orientation were
varied to suit site conditions.
Baseline Programme Setting Delays due to Changes in Setting Out Details &
Villa Out Finish date Initial Setting Out Revised Setting Out Orientation (days)
A3/30 29-Mar-07 25-Apr-07 26-Jun-07 62.00

A3/20 13-Apr-07 25-Apr-07 20-Jul-07 86.00
A3/11 10-Apr-07 25-Apr-07 03-Jun-07 39.00
A3/07 03-Apr-07 25-Apr-07 04-Jun-07 40.00
It can be seen in the table above critical delays occurred at four

villas of between 40 and 86 calendar days. These delays are
considered and included in the extension of time request.
page 66
4.3. Late Receipt of Final Design Information

In addition to receiving design information late, the Contractor
has had the inconvenience and time-consuming problem of
dealing with design drawings issued that are either late or are
revised.
Structure/Villa Baseline Programme Drawing Receipt Schedule
Drwgs Required 120 days
Commencement Completion prior POW Start Date Structural Architectural Delay (Days)
A3 Pool Villa 02-Apr-07 15-Mar-08 28-Feb-07 14-Mar-07 09-Mar-07 14.00

B223 Standard Villa 28-May-07 15-Mar-08 28-Feb-07 14-Mar-07 09-Mar-07 14.00
B4 Standard Villa with Pool 16-Apr-07 15-Mar-08 28-Feb-07 14-Mar-07 09-Mar-07 14.00
C311 Executive Villas 12-Apr-07 15-Mar-08 28-Feb-07 14-Mar-07 09-Mar-07 14.00
P3 Presidential Villas 20-Jun-07 20-Mar-08 28-Feb-07 19-Oct-07 09-Mar-07 233.00
Sunset Deck 23-Jul-07 14-Mar-08 25-Mar-07 09-Apr-08 22-Aug-07 381.00
Employees Facilities Complex 14-Jun-07 19-Mar-08 28-Feb-07 31-Aug-07 22-Aug-07 92.00
Excom Villa 14-Jun-07 17-Mar-08 28-Feb-07 19-Oct-07 22-Aug-07 233.00
GM Villa 14-Jun-07 15-Mar-08 28-Feb-07 19-Oct-07 22-Aug-07 233.00
Health club 14-Jun-07 15-Mar-08 28-Feb-07 11-Jun-07 28-May-07 103.00
Single Treatment room 02-Jul-07 17-Mar-08 04-Mar-07 10-Jun-07 28-May-07 98.00
Couple treatment room 02-Jul-07 19-Mar-08 04-Mar-07 25-Jun-07 28-May-07 113.00
Sanctum 02-Jul-07 15-Mar-08 04-Mar-07 19-Oct-07 28-May-07 229.00
Yoga Pavilion 02-Jul-07 14-Mar-08 04-Mar-07 19-Oct-07 28-May-07 229.00
BOH Building 02-Jul-07 17-Mar-08 04-Mar-07 19-Oct-07 28-May-07 229.00
Wedding chapel 02-Jul-07 14-Mar-08 04-Mar-07 09-Apr-08 28-May-07 402.00
Seafood Resort 18-Jun-07 19-Mar-08 28-Feb-07 11-Jun-07 28-May-07 103.00
Retail Pavilion 18-Jun-07 14-Mar-08 28-Feb-07 11/06/2007 28-May-07 103.00
Kid's club 02-Jul-07 14-Mar-08 04-Mar-07 20-Dec-07 08-Jan-08 291.00
Recreation House 02-Jul-07 14-Mar-08 04-Mar-07 20-Dec-07 08-Jan-08 291.00
Water sport Rental 02-Jul-07 14-Mar-08 04-Mar-07 20-Dec-07 08-Jan-08 291.00
Dive Center 02-Jul-07 14-Mar-08 04-Mar-07 20-Dec-07 08-Jan-08 291.00
Mechanical Area 22-Oct-07 09-Apr-08 24-Jun-07 Not Received Yet 08-Jan-08 326.00
3 Meal Restaurant 02-Jul-07 26-Mar-08 04-Mar-07 Not Received Yet 08-Jan-08 438.00
Signature Pool 02-Jul-07 15-Mar-08 04-Mar-07 Not Received Yet 08-Jan-08 438.00
Beach Pool Bar 02-Jul-07 17-Mar-08 04-Mar-07 Not Received Yet 08-Jan-08 438.00
The table above shows the timing of receipt of design drawings

and is evidence of continuing delays. In some instances
structural drawings are still outstanding where in others they
have been issued late by between 14 and 438 calendar days.
Due to the lateness in receipt of design drawings, not only

construction delayed but also procurement. Delays in
procurement cause the Contractor to incur greater costs
because prices secured at tender either expired or prices in the
period increased.
4.4. Additional and Varied Work

4.4.1.Excavation in Hard Rock
Due to the nature of the ground and the topography of the Site,
it was important to adhere to the Contractor’s original planning in
terms of construction sequence.
Furthermore, the scope of this work was restricted to a) the

numbers of buildings identified at tender stage and, b) the
position of the buildings. Obviously, with a major part of the
page 67
Contract Price falling under Provisional Sums, both these factors

had to change and, with that change (Variation), brought a
number of unforeseen difficulties.
One such consequent change involved significant increase in

excavation in hard rock. Furthermore, the change in timing and
sequence exacerbated the difficulty in extraction and the method
in which the work could be performed.
4.4.1.1. Change in Sequence and Increased Cost
Although the sequence change was caused by survey work,

rock excavation and more specifically the suspension of Works,
work at each site then became in variance to the contractor’s
original planning, the conversion and expenditure of Provisional
sums exacerbated its impact.
4.4.1.2. Increased Quantity
In addition to the complications of performing controlled blasting,

the quantity of rock excavated to date has increased between
20% and over 300% to that anticipated. In these conditions the
Contractor has entitlement to the additional time to perform
these varied works.
The following tables are recorded evidence of the significant

increased volume of rock excavation found at almost every villa
site. The tender provision was clearly too low and that has been
reflected in the Contractor’s planning.
As example, the first table below illustrates the quantities of rock

excavated using blasting methods otherwise not foreseen. At
villa B2/01 the volume of hard rock excavated has already
reached close to 240m3 whereas the allowance in the Contract
was zero. The time taken to remove this rock to date, as it is not
finished, is already close to 200 calendar days. Consequently,
the duration taken for this activity at this villa is already 200
calendar days and delay is considered critical.
The following table lists volume of rock excavated at each villa

which, as stated above, is all unforeseen. As such at each villa
the delay caused in performing this activity is critical and
prevents commenced of subsequent dependant activities.
page 68
Villa Rock Blasting (m3) Increase
A3/02 95.00 100%

A3/03 97.85 100%
A3/04 23.00 100%
A3/05 1.14 100%
A3/06 12.69 100%
A3/08 11.41 100%
A3/09 54.50 100%
A3/10 171.68 100%
A3/11 139.00 100%
A3/19 47.97 100%
A3/20 65.10 100%
A3/21 42.13 100%
A3/28 4.17 100%
A3/29 4.18 100%
A3/31 2.31 100%
B2/01 239.14 100%
B2/04 147.55 100%
B2/05 13.87 100%
B2/06 48.40 100%
B2/07 7.73 100%
B2/08 5.04 100%
B2/09 28.50 100%
B2/10 52.50 100%
The next table provides a summary of volumes of hard rock

excavated at the various sites. Once again it is apparent that the
tender provision represents only between 8% and 55% of the
actual quantity excavated. Once again with such a significant
change it is obvious removing over 60m3 of rock takes
significantly longer than 5m3.
Villa Rock Exc without blasting BOQ quantity Change
A3/01 9.05 5.00 81%

A3/03 8.75 5.00 75%
A3/04 18.75 5.00 275%
A3/05 22.50 5.00 350%
A3/06 19.50 5.00 290%
A3/08 25.88 5.00 418%
B2/01 60.62 5.00 1112%
B2/02 64.28 5.00 1186%
B2/04 60.45 5.00 1109%
B2/07 4.74 5.00 -5%
The next table summarises excavated material volumes in

common material. It can be seen volumes have increased
significantly
page 69
Villa Exc other than rock BOQ quantity Change
A3/04 124.54 38.00 228%

A3/05 141.12 38.00 271%
A3/09 37.81 38.00 0%
A3/30 112.02 38.00 195%
A3/31 122.80 38.00 223%
A3/32 75.82 38.00 100%
B2/01 191.68 70.00 174%
B2/02 345.02 70.00 393%
B2/03 383.36 70.00 448%
B2/04 230.02 70.00 229%
B2/05 191.68 70.00 174%
B2/06 191.68 70.00 174%
B2/07 345.02 70.00 393%
B2/08 191.68 70.00 174%
The next table consolidates all the changed quantities of all

materials excavated at each villa. Comparing anticipated
durations based on bills of quantities and actual, it can be seen
in the extreme right hand column the significant variance in time.
The durations shown which range from 26 to 354 calendar days

are considered critical, as all subsequent activities that follow
excavation are equally delayed.
Rock Excavation without Excavation, other than Duration Taken To Baseline Duration based on
Villa Rock Blasting (m3) Blasting (m3) rock (m3) Actual excavation schedule Date (Days) BQ quantities (Days) Critical Delay
Commencement Completion
A3/01 9.05 15 October 2007 25 December 2007 71.00 3.00 68.00
A3/02 95.00 20 December 2007 on progress 90% 147.00 3.00 144.00
A3/03 97.85 8.75 11 September 2007 on progress 95% 247.00 3.58 243.42
A3/04 23.00 18.75 124.54 04 June 2007 22 July 2007 48.00 2.00 46.00
A3/05 1.14 22.50 141.12 07 June 2007 25 July 2007 48.00 2.63 45.38
A3/06 12.69 19.50 09 June 2007 18 December 2007 192.00 2.08 189.92
A3/08 11.41 25.88 05 May 2007 16 January 2008 256.00 1.04 254.96
A3/09 54.50 37.81 01 January 2008 on progress 90% 135.00 1.04 133.96
A3/10 171.68 16 April 2007 15 August 2007 121.00 1.04 119.96
A3/11 139.00 14 June 2007 on progress 40% 336.00 1.04 334.96
A3/20 65.10 19 November 2007 on progress 45% 178.00 1.04 176.96
A3/26 120.00 18 April 2007 05 March 2008 322.00 322.00
A3/27 125.00 27 August 2007 28 November 2007 93.00 93.00
A3/28 4.17 25 June 2007 22 November 2007 150.00 2.08 147.92
A3/29 4.18 23 June 2007 10 August 2007 48.00 2.08 45.92
A3/30 112.02 04 June 2007 23 July 2007 49.00 2.00 47.00
A3/31 2.31 122.80 09 June 2007 24 July 2007 45.00 2.08 42.92
A3/32 75.82 04 June 2007 02 July 2007 28.00 2.00 26.00
B2/01 239.14 60.62 191.68 20 October 2007 on progress 50% 208.00 1.04 206.96
B2/02 64.28 345.02 09 July 2007 18 November 2007 132.00 1.04 130.96
B2/03 383.36 11 June 2007 24 July 2007 43.00 1.00 42.00
B2/04 147.55 60.45 230.02 11 May 2007 06 March 2008 300.00 1.04 298.96
B2/05 13.87 191.68 25 May 2007 on progress 95% 356.00 1.04 354.96
B2/06 48.40 191.68 03 December 2007 on progress 65% 164.00 1.04 162.96
B2/07 7.73 4.74 345.02 27 May 2007 20 November 2007 177.00 1.04 175.96
B2/08 5.04 191.68 24 December 2007 on progress 65% 143.00 1.04 141.96
B2/09 28.50 21 November 2007 on progress 75% 176.00 1.04 174.96
B2/10 52.50 15 November 2007 on progress 75% 182.00 1.04 180.96
Note: it has not been possible to separate the delays resulting

from blasting and those arising out of increased quantities of
other excavated materials. The works are executed at the same
time. The table above therefore shows the combined delays
arising from the above 3 changed events.
page 70
4.4.2.Increased Quantity in Reinforced Concrete

The two examples below show changes in scope to standard
villa, A3 and B2. The increase in quantities indicated relate to
these two villas only. However, the Contract includes a further
32 number of type A and 10 number of Type B and the same
change in scope is applicable to all villas. As a consequence, an
equal or similar additional time will be required to perform the
changed scope of work.
4.4.2.1. Villa Type A3 (Example)
Steel reinforcement, shuttering and the concrete volume has

increased considerably and the example below is for one villa
only. As detailed in the table, the duration to perform these
works has extended from 12 calendar days as planned to 45
calendar days. Once again, the additional time is critical and has
delayed dependant and subsequent activities shown on the
programme of works.
Villa Type Item Unit Tender Quantity Design Quantities

A3 Frame
Reinforcement kg 3,040.00 5,130.00
Concrete m3 32.00 43.00
Formwork m2 305.85 351.00
Baseline duration for Tender Quantity 12 Days

Actual Duration due to increased quantity 45 Days
The following table compares the planned and actual durations

for completing various other concrete components of the
building structure.
A3 Type Frame Baseline Duration Revised Duration
set kickers 1.00 2.00

Conc. Columns & shear walls 2.00 11.00
Conc. G. F Beams 2.00 6.00
Conc. Plantroom 2.00 5.00
Conc. Floor slab & swimming pool base 2.00 10.00
Blockwork 2.00 9.00
Conc. Swimming pool sides & overflow channels 3.00 7.00
Conc. Ring & tie beams 2.00 7.00
page 71
4.4.2.2. Villa Type B2 (Example)
Villa Type Item Unit Tender Quantity Design Quantities

B2 Frame
Reinforcement kg 5,826.00 9,645.00
Concrete m3 84.00 102.00
Formwork m2 727.00 730.00
Baseline duration based on Tender Quantity 70 Days

Actual Duration due to increased quantity 80 Days
B2 Type Frame Baseline Duration Revised Duration
set kickers 1.00 2.00

Conc. Columns & shear walls to GF 8.00 6.00
Conc. Plantrooms 6.00 8.00
Conc. GF slab and beams 4.00 10.00
Blockwork up to FF slab 7.00 6.00
set kickers on GF 1.00 2.00
Conc. Columns & shear walls to FF 8.00 8.00
Conc. FF slab & beams 8.00 10.00
Blockwork up to roof 7.00 6.00
set kickers on FF 1.00 2.00
Conc. Columns & shear walls to roof 8.00 8.00
Conc. Ring & tie beams 7.00 7.00
In the circumstances, these variations dictate significant

divergence from original designs. Therefore, in order to comply
with these variations the Contractor’s construction duration for
this activity has increased significantly, from an estimated 17
days (substructure) to 37 days for column construction, an
increase of 22 working days for each villa.
4.4.3.Suspension of Works
The Contractor was instructed to suspend the works, which
suspension lasted 61 days and directly effected progress of the
villas listed. This period of suspension is considered a critical
delay.
The following table summarises the delay at each villa in

progress at the time of the instruction to suspend. However, it
should be noted that the effect of this instruction is to delay all
the Works on the whole project (except mock-up villas for this
particular event).
page 72
Villa Works Suspended From To Delay (Days)

A3/03 Excavation 29-Aug-07 29-Oct-07 61.00
A3/04 Concrete foundation 29-Aug-07 29-Oct-07 61.00
A3/05 Concrete foundation 29-Aug-07 29-Oct-07 61.00
A3/10 Concrete casting for foundation 29-Aug-07 29-Oct-07 61.00
A3/29 Concrete works 29-Aug-07 29-Oct-07 61.00
A3/30 Blinding 29-Aug-07 29-Oct-07 61.00
A3/31 Blinding 29-Aug-07 29-Oct-07 61.00
B2/02 Excavation 29-Aug-07 29-Oct-07 61.00
4.4.4.Variations to Design
The design drawings issued for construction show all steel roof
members as stainless steel although the bill of quantities, as
priced at tender, show galvanised steel. As a result the sourcing
and procurement time consumed an additional 81 calendar
days. This delayed roof construction at the 2 Mock-up Villas and
is considered a critical delay.
Description Commenced Completion Delay (Days)

Procurement, Fabrication & Installation of Stainless
Steel Plates to complete roof structure 26-Nov-07 15-Feb-08 81
4.5. Material Procurement Programme

A critical feature of this project is timely supply of materials to
site as most are being sourced off-shore. The timely arrival of
materials is an integral part of his planning and any delay in the
design and procurement process will automatically have a
detrimental impact on his programme of works.
The current situation relative major material procurement is

shown in the table below:
page 73
Q uantity
Des c ription of Materials Ordered Date O rdered Amount rec eived B alanc e C omments
F OR AL L 55 VIL L AS
50K G bags P ortland C ement 2,800.00 04/04/07 300.00 2,500.00 B alance on order s ubject to payment to s upplier
P lywood for S huttering/R oofing 6,000.00 14/11/07 1,800.00 4,200.00 B alance on order s ubject to payment to s upplier
C rus her D us t 6,000.00 23/06/07 1,565.13 4,434.87 B alance on order s ubject to payment to s upplier
Aggregate 8,000.00 25/06/07 1,222.64 6,777.36 B alance on order s ubject to payment to s upplier
P las tering S and 1,000.00 16/07/07 80.00 920.00 B alance on order s ubject to payment to s upplier
150mm S oild concrete B locks 125,000.00 05/07/07 31,975.00 93,025.00 B alance on order s ubject to payment to s upplier
100mm Hollow concrete B locks 15,000.00 15/07/07 2,340.00 12,660.00 B alance on order s ubject to payment to s upplier
A252 W eld Mes h (R oadworks ) 912.00 14/05/07 162.00 750.00 B alance on order s ubject to payment to s upplier
High tens ile s teel-8,10,12,16,25mm (tons ) 500.00 14/01/07 158.00 342.00 B alance on order s ubject to payment to s upplier
C edar S hingles (s qm) 12,757.64 03/05/07 3,712.00 9,045.64 B alance on order s ubject to payment to s upplier
Iroko timber (external cladding) L M 54,198.00 07/05/07 1,548.00 52,650.00 B alance on order s ubject to payment to s upplier
12mm G yps um boards (S H E E T S ) 5,600.00 03/02/07 5,600.00 0.00 Awaiting for other building from I.D
S tainles s s teel threaded rods 12,16mm 16,300.00 09/11/07 8,110.00 8,190.00 B alance on order s ubject to payment to s upplier (Not B .O .Q item)
S tainles s s teel gus s et plates (variation) 450.00 09/11/07 50.00 400.00 B alance on order s ubject to payment to s upplier (Not B .O .Q item)
B alau T imber (L M) 169,074.50 08/06/07 6,148.16 162,926.34 B alance on order s ubject to payment to s upplier
T reated P ine T imber (L M) 94,148.50 20/04/07 43,225.50 50,923.00 B alance on order s ubject to payment to s upplier
The following table summarises the dates drawings have been

received. It is clear many drawings were not issued at
commencement and therefore, complete procurement of all
major materials was not possible.
It is also clear that drawings have been issued progressively

throughout the Contract period; again this is contrary to planning
expectations. Finally, it is also clear the majority of Interior
Design drawings have yet to be issued.
Item Structure/Villa Drawing Receipt Register

Structural Architectural Interior Design
1 A3 Pool Villa 14-Mar-07 09-Mar-07 09-Apr-07

2 B223 Standard Villa 14-Mar-07 09-Mar-07 09-Apr-07
3 B4 Standard Villa with Pool 14-Mar-07 09-Mar-07 09-Apr-07
4 C311 Executive Villas 14-Mar-07 09-Mar-07 09-Apr-07
5 P3 Presidential Villas 19-Oct-07 09-Mar-07 09-Apr-07
6 Sunset Deck 09-Apr-08 22-Aug-07 Not received
7 Employees Facilities Complex 31-Aug-07 22-Aug-07 "
8 Excom Villa 19-Oct-07 22-Aug-07 "
9 GM Villa 19-Oct-07 22-Aug-07 "
10 Health club 11-Jun-07 28-May-07 "
11 Single Treatment room 10-Jun-07 28-May-07 "
12 Couple treatment room 25-Jun-07 28-May-07 "
13 Sanctum 19-Oct-07 28-May-07 "
14 Yoga Pavilion 19-Oct-07 28-May-07 "
15 BOH Building 19-Oct-07 28-May-07 "
16 Wedding chapel 09-Apr-08 28-May-07 "
17 Seafood Resort 11-Jun-07 28-May-07 "
18 Retail Pavilion 11-Jun-07 28-May-07 "
19 Kid's club 20-Dec-07 08-Jan-08 "
20 Recreation House 20-Dec-07 08-Jan-08 "
21 Water sport Rental 20-Dec-07 08-Jan-08 "
22 Dive Center 20-Dec-07 08-Jan-08 "
23 Mechanical Area Not Received Yet 08-Jan-08 "
24 3 Meal Restaurant Not Received Yet 08-Jan-08 "
25 Signature Pool Not Received Yet 08-Jan-08 "
26 Beach Pool Bar Not Received Yet 08-Jan-08 "
page 74
For all the foregoing reasons stated above, the Contractor could
not have progressed major material procurement because he
was constrained by two issues:
1. Cash flow prevented completion of

orders to allow shipment, and
2. Design drawings were not available

at the times consistent with his
programme of works.
4.6. Conclusion of Effects of Variations

Additional work is, under the Contract provisions, is also caused
by Provisional Sums converted to Variations under Clause 13,
by comparison with the value of work envisaged at tender.
Nevertheless, additional work executed to date is certain to
affect progress because the scope of such variations has only
been defined post tender.
The degree of change reflects the changed requirements of the

Employer after the award of the project. Although the Contractor
received instructions throughout the project to include work
anticipated under the Provisional Sums, this has been
compounded by the delaying events described even for known
works defined at award.
With so many variations, it is not possible to make an attribution

of the overall delay to each item. It is true to say that the earlier
variations were critical to the Contractor’s progress, and that any
delays caused by them are subsumed into the latter period.
However, the delays caused by the changes to the setting out

and rock excavation together with suspension of Works, and to
other areas of the Works as all the design information, as listed
in the tables above, are evident and the primary cause for
remaining on site longer.
All the issues described above generally run consecutively,

despite late information relative design is continuing
simultaneously together with rock excavation. The factual matrix
of variation instructions and late information is one of interwoven
facts and events. It is not possible to disconnect them. However,
the latest programme of works is evidence that work to most of
the buildings and villas is in progress at the time of compiling
this claim.
page 75
5. Time Analysis
5.1. Method of Analysis

As some of the effects of unforeseen events are concurrent, not
all of them will carry an automatic extension of time entitlement.
The purpose of the form of analysis described below is to
demonstrate which events have contributed to the project over-
run and the precise amount of time attributable to each event. At
time of preparing this document a Second Request for an
Extension of Time has been submitted.
Furthermore, additional costs have arisen as a result of various

notified delay and disruption events. The loss and expense are
recoverable as:
 direct costs in the period when resources suffered delay

and disruption, and
 indirect costs that will arise in the extended period of the

Contract.
The time analysis has been carried out in three stages for each
claimable event:
1. At the date immediately prior to the event, the progress

status of the project has been established from the
progress records. The Programme of Works has been
updated with this information, to give a project completion
date that was likely to have been achieved if the delay
had not occurred. This element of the analysis takes into
account and eliminates any delays that might have
occurred before the point in time in question, for which
the Contractor might be responsible.
2. Next, the effect of the claimable event on the scheduled

activities has been calculated. These effects have been
inserted into the time scheduled and the network re-
analysed. This gives a revised project completion date,
assuming that the work proceeds in the same sequence
and with the same resources as were originally planned.
The difference between this completion date and the
progress completion date is the extension of time for the
event if it is not reasonably possible to achieve any
mitigation of its delaying impact.
3. Finally, there is an obligation on a contractor to attempt to

mitigate the effects of any delaying event, if it is
reasonably feasible. Accordingly, such opportunities for
page 76
mitigation have been considered in the evaluation of

extension of time entitlement.
Any mitigation measures that the Contractor took, such

as additional resources, re-sequencing of work etc., has
been detailed and inserted into the schedule. The re-
analysis of this programme gives the final assessment of
additional time that the Contractor is entitled to claim for
the cause under consideration.
These three stages have been repeated for each of the events
in turn and the results are reflected in the Contractor’s two
requests made to date for an extension of time.
5.1.1.Mitigation by Contractor
The Contractor mitigated the effects of the late supply of design
information by starting work on a particular activity without
waiting for the whole of the design needed for a particular piece
of work. This was particularly noticeable at the Mock-up villas
where architectural details were constantly revised as works
progressed. The success in taking this phase-advanced
approach to work has not produced the results anticipated.
These mitigation measures will be shown in the Programme of

Works analysis by changing the logic links between design
activities and construction activities.
5.1.2.Time for Completion

It is shown in the subsequent sections of this submission the
impact of the changed events and circumstances of the various
parts of the Site has caused to the planned progress. In
addition, the failure by the Project Manager to provide the
necessary design details in due time and the subsequent
alterations in mode and manner of execution has also caused
the Contractor, because of these events, to be delayed to such
an extent that completion of the Contract Works has been
unavoidably prolonged and will extend the date set for its
completion.
Accordingly, the Contractor is entitled to treat the date for

completion as no longer being fixed. That is to say, he is entitled
to be allowed such additional time for completion as is
reasonably necessary for him to accommodate and deal with the
page 77
Project Manager’s and Employer’s fault to discharge the

remainder of his obligations.
5.1.3.Impact on Time - Analyses

The purpose of this exercise is to determine the overall delay to
the contractual completion date as indicated in the approved
base programme of works. The impacted programme of works
will establish the contractor’s entitlement to a delayed
completion date for the project. This can then be used to
evaluate the financial loss incurred by the contractor and the
amount of acceleration required in the event that the client
requires the project to be completed earlier.
Events are impacted on the programme according to

chronological order to determine the effect in the sequence that
the delays took place. When the Event is impacted correctly only
the activity is affected and those which are dependent on its
completion are delayed. If this activity falls in the critical path of
the project then the completion date of the project is also
delayed. The critical path of a project may change due to delay
in a particular set of activities.
5.1.4.The Events that Impacted Progress

There has been initial delay in receipt of final setting out details
for various parts of the project without which it was not possible
for the contractor to start construction of that relevant section of
the works. Additionally it will be seen that unforeseen ground
conditions, the partial suspension of Works caused severe
disruption to the contractors planned sequence of execution of
the works. Initial events impacted will show the effect that these
delays had on the execution of the works.
Furthermore there has been a substantial change to the scope

of works as originally anticipated as shown on drawings and
what the Contractor encountered on site. A significant variance
is attributed to unknown site conditions, as for example, quantity
of rock excavated required achieving foundation depth.
The rest of the changes will be attributed to changes in original

design other than depicted on tender drawings such as the
increased quantities of reinforced concrete. Needless to say the
extra volume requires more time to secure placement of steel
reinforcement, timber shuttering and concrete placement to
columns and slabs, hence more time being required to
page 78
completion of activity and an overall delay experienced on this

section.
The overall effect of these delays and disruptions can be

evidenced by a reduced cash flow, and by his current position
on site with regards completion of the works. It can be clearly
evidenced that not only has the contractor taken steps to
mitigate the delays experienced he has also in his eagerness to
recover lost time already taken acceleration measures into
account and deployed extra resources over and above his
planned and contractually required resources.
This exercise serves to establish the contractor’s entitlement to

additional time for completion of the project and the cause and
effect on his progress to date.
The order of the impacted charts that follow are in the sequence
each event occurred at Site.
page 79
5.1.4.1. Event No 1 – Setting Out

ID Task Name
2007 2008
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
182 Lot 1 0%
184 Villa A3/01 0%
228 Villa A3/02 0%
273 Villa A3/03 0%
318 Villa A3/04 0%
363 Villa A3/05 0%
408 Villa A3/06 0%
454 Villa C3/01 0%
847 Lot 2 0%
849 Villa A3/07 0%
850 substructure 0%
851 set out 0%
852 Excavate 0%
853 Conc. Foundation 0%
854 Backfill 0%
855 termite treatment 0%
856 DPC (where applicable) 0%
857 M&E inlet/outlet works - first fix 0%
858 frame 0%
859 set kickers 0%
860 Conc. Columns & shear walls 0%
861 Conc. G. F Beams 0%
862 M&E first fix 0%
863 Conc. Plantroom 0%
864 Conc. Floor slab & swimming pool base 0%
865 Blockwork 0%
866 Conc. Swimming pool sides & overflow channels 0%
867 Conc. Ring & tie beams 0%
868 Roof & Ceiling 0%
869 Fix wall plate & truss 0%
870 Fix purlins and rafters 0%
871 Fix shingles ( subject to receipt of timber) 0%
872 Fix ceiing battens & joists 0%
873 Fix ceiling boards 0%
875 Finishes 0%
876 Wall plaster (internal & External) 0%
877 M&E 1st fix 0%
878 Floor finishes 0%
879 Fix windows & doors 0%
880 Swimming pool finishes 0%
881 M&E final fix 0%
882 Fix fittings and Fixtures 0%
883 M&E Installations 0%
884 Cable Tray, Conduit and Wiring 0%
885 Electrical boards and connections 0%
886 Electrical accessories 0%
887 Light fittings and ceiling fans 0%
888 Hot and cold water 0%
889 Waste and sewage incl. biobox 0%
890 Electric water heater 0%
891 Swimming pool 0%
892 Split unit installation 0%
893 Toilet ventilation, grilles 0%
894 Villa A3/08 0%
939 Villa A3/09 0%
984 Villa A3/10( mock up) 0%
1029 Villa A3/11 0%
1030 substructure 0%
1031 set out 0%
1032 Excavate 0%
1034 Backfill 0%
1038 frame 0%
1039 set kickers 0%
1045 Blockwork 0%
page 80
ID Task Name
2007 2008 20
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
1055 Finishes 0%
1057 M&E 1st fix 0%
1074 Villa A3/12 0%
1119 Villa A3/13 0%
1164 Villa A3/18 0%
1209 Villa A3/19 0%
1254 Villa A3/20 0%
1256 set out 0%
1257 Excavate 0%
1259 Backfill 0%
1263 frame 0%
1264 set kickers 0%
1270 Blockwork 0%
1280 Finishes 0%
1282 M&E 1st fix 0%
1299 Villa A3/21 0%
1344 Villa A3/22 0%
1389 Villa A3/23 0%
1434 Villa A3/24 0%
1479 Villa A3/25 0%
1524 Villa A3/26 0%
1569 Villa A3/27 0%
1614 B223 Villas ( 7 nos) 0%
1615 Villa B2/01 0%
1665 Villa B2/02 0%
1715 Villa B2/04 (mock up villa) 0%
1765 Villa B2/05 0%
1815 Villa B2/06 0%
1865 Villa B2/07 0%
1915 Villa B2/08 0%
1965 B4 Villa (2 nos.) 0%
1966 Villa B4/01 0%
2011 Villa B4/02 0%
2262 Lot 3 0%
2263 A3 Villas ( 9 nos) 0%
2264 Villa A3/14 0%
2309 Villa A3/15 0%
2354 Villa A3/16 0%
2399 Villa A3/17 0%
2444 Villa A3/28 0%
2489 Villa A3/29 0%
2534 Villa A3/30 0%
2536 set out 0%
2537 Excavate 0%
2539 Backfill 0%
page 81
ID Task Name
2007 2008 2009
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
2543 frame 0%
2544 set kickers 0%
2550 Blockwork 0%
2560 Finishes 0%
2562 M&E 1st fix 0%
2579 Villa A3/31 0%
2624 Villa A3/32 0%
2664 B223 Villas ( 3 nos) 0%
2665 Villa B2/03 0%
2708 Villa B2/09 0%
2758 Villa B2/10 0%
2809 Villa B4/03 0%
2854 Villa B4/04 0%
2900 Villa C3/02 0%
2943 Villa C3/03 0%
2986 Villa C3/04 0%
3029 Villa C3/05 0%
3072 Villa C3/06 0%
3116 Villa P3/01 0%
3159 Villa P3/02 0%
3202 Villa P3/03 0%
3292 Lot 4 0%
3828 Sundries 0%
The following table provides a summary of the delay caused by

late setting out at each of the buildings.
Impacted Programme Baseline Programme
Villa commencement completion commencement completion Baseline duration Revised Duration
A3/07 25-Apr-07 07-Jan-08 02-Apr-07 12-Nov-07 224.08 257.08
A3/11 09-Apr-07 02-Jun-08 09-Apr-07 15-Mar-08 341.13 420.08
A3/20 25-Apr-07 23-Jun-08 12-Apr-07 15-Mar-08 338.13 425.08
A3/30 25-Apr-07 29-Mar-08 28-May-07 15-Mar-08 292.13 339.13
As a result of this delaying event the time for completion has

been extended from 16 May 2008 to 9 August 2008, a period of
85 calendar days.
page 82
5.1.4.2. Event No 2 – Unforeseen Ground Conditions

ID Task Name
2007 2008 2009
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
182 Lot 1 0%
184 Villa A3/01 0%
185 Substructure 0%
186 set out 0%
187 Excavate 0%
189 Backfill 0%
193 Frame 0%
210 Finishes 0%
228 Villa A3/02 0%
229 substructure 0%
230 set out 0%
231 Excavate 0%
233 Backfill 0%
237 frame 0%
254 Finishes 0%
273 Villa A3/03 0%
274 substructure 0%
275 set out 0%
276 Excavate 0%
278 Backfill 0%
282 frame 0%
299 Finishes 0%
318 Villa A3/04 0%
363 Villa A3/05 0%
408 Villa A3/06 0%
409 substructure 0%
410 set out 0%
411 Excavate 0%
413 Backfill 0%
417 frame 0%
434 Finishes 0%
847 Lot 2 0%
849 Villa A3/07 0%
894 Villa A3/08 0%
895 substructure 0%
896 set out 0%
897 Excavate 0%
899 Backfill 0%
903 frame 0%
920 Finishes 0%
939 Villa A3/09 0%
940 substructure 0%
941 set out 0%
942 Excavate 0%
944 Backfill 0%
948 frame 0%
965 Finishes 0%
page 83
ID Task Name
2007 2008 2009 2010
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
984 Villa A3/10 0%
985 substructure 0%
986 set out 0%
987 Excavate 0%
989 Backfill 0%
993 frame 0%
1010 Finishes 0%
1029 Villa A3/11 0%
1031 set out 0%
1032 Excavate 0%
1034 Backfill 0%
1038 frame 0%
1055 Finishes 0%
1074 Villa A3/12 0%
1119 Villa A3/13 0%
1164 Villa A3/18 0%
1209 Villa A3/19 0%
1211 set out 0%
1212 Excavate 0%
1214 Backfill 0%
1218 frame 0%
1235 Finishes 0%
1254 Villa A3/20 0%
1256 set out 0%
1257 Excavate 0%
1259 Backfill 0%
1263 frame 0%
1280 Finishes 0%
1299 Villa A3/21 0%
1301 set out 0%
1302 Excavate 0%
1304 Backfill 0%
1308 frame 0%
1325 Finishes 0%
1344 Villa A3/22 0%
1389 Villa A3/23 0%
1434 Villa A3/24 0%
1479 Villa A3/25 0%
1524 Villa A3/26 0%
1526 set out 0%
1527 Excavate 0%
1529 Backfill 0%
1533 frame 0%
1550 Finishes 0%
1569 Villa A3/27 0%
1571 set out 0%
1572 Excavate 0%
1574 Backfill 0%
1578 frame 0%
1595 Finishes 0%
1614 B223 Villas ( 7 nos) 0%
1615 Villa B2/01 0%
1617 set out 0%
1618 Excavate 0%
1620 Backfill 0%
1624 frame 0%
1647 Finishes 0%
page 84
ID Task Name
2007 2008 2009 2010
1665 Villa B2/02 0%
1667 set out 0%
1668 Excavate 0%
1670 Backfill 0%
1674 frame 0%
1697 Finishes 0%
1715 Villa B2/04 0%
1717 set out 0%
1718 Excavate 0%
1720 Backfill 0%
1724 frame 0%
1747 Finishes 0%
1765 Villa B2/05 0%
1767 set out 0%
1768 Excavate 0%
1770 Backfill 0%
1774 frame 0%
1797 Finishes 0%
1815 Villa B2/06 0%
1817 set out 0%
1818 Excavate 0%
1820 Backfill 0%
1824 frame 0%
1847 Finishes 0%
1865 Villa B2/07 0%
1867 set out 0%
1868 Excavate 0%
1870 Backfill 0%
1874 frame 0%
1897 Finishes 0%
1915 Villa B2/08 0%
1917 set out 0%
1918 Excavate 0%
1920 Backfill 0%
1924 frame 0%
1947 Finishes 0%
1965 B4 Villa (2 nos.) 0%
1966 Villa B4/01 0%
1968 set out 0%
1969 Excavate 0%
1971 Backfill 0%
1975 frame 0%
1976 set kickers 0%
1982 Blockwork 0%
1992 Finishes 0%
1994 M&E 1st fix 0%
page 85
ID Task Name
2007 2008 2009 2010
2011 Villa B4/02 0%
2013 set out 0%
2014 Excavate 0%
2016 Backfill 0%
2020 frame 0%
2021 set kickers 0%
2027 Blockwork 0%
2037 Finishes 0%
2039 M&E 1st fix 0%
2058 set out 0%
2059 Excavate (Drill in rock to anchor steel rods) 0%
2061 Backfill ( where applicable ) 0%
2064 M&E inlet/outlet works 0%
2065 frame 0%
2066 set kickers 0%
2070 Conc. Floor slab 0%
2071 Blockwork 0%
2079 Finishes 0%
2081 M&E 1st fix 0%
2093 Fan coil unit 0%
2096 set out 0%
2103 frame 0%
2104 set kickers 0%
2109 Blockwork 0%
page 86
ID Task Name
2008 2009 2010 2011
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2117 Finishes 0%
2119 M&E 1st fix 0%
2134 set out 0%
2141 frame 0%
2142 set kickers 0%
2147 Blockwork 0%
2155 Finishes 0%
2157 M&E 1st fix 0%
2172 set out 0%
2179 frame 0%
2180 set kickers 0%
2185 Blockwork 0%
2193 Finishes 0%
2195 M&E 1st fix 0%
2207 Kitchen extraction duct 0%
2208 Chilled water piping 0%
2213 set out 0%
2220 frame 0%
2221 set kickers 0%
2226 Blockwork 0%
page 87
ID Task Name
2007 2008 2009 2010
2234 Finishes 0%
2236 M&E 1st fix 0%
2251 Infrastructures 0%
2252 Set out road (cabbies), vehicular 0%
2253 Set out Pedestrian walkways 0%
2254 Set out main water pipe alignment 0%
2255 Set out main electricity network 0%
2256 landscaping 0%
2257 Villas milieu 0%
2258 Main access road milieu 0%
2260 Set out/implement main sewerage network 0%
2261 Set out/implement main rain water drainage alignment 0%
2262 Lot 3 0%
2263 A3 Villas ( 9 nos) 0%
2264 Villa A3/14 0%
2309 Villa A3/15 0%
2354 Villa A3/16 0%
2399 Villa A3/17 0%
2444 Villa A3/28 0%
2446 set out 0%
2447 Excavate 0%
2449 Backfill 0%
2453 frame 0%
2470 Finishes 0%
2489 Villa A3/29 0%
2491 set out 0%
2492 Excavate 0%
2494 Backfill 0%
2498 frame 0%
2515 Finishes 0%
2534 Villa A3/30 0%
2536 set out 0%
2537 Excavate 0%
2539 Backfill 0%
2543 frame 0%
2560 Finishes 0%
2579 Villa A3/31 0%
2624 Villa A3/32 0%
2626 set out 0%
2627 Excavate 0%
2629 Backfill 0%
2632 frame 0%
2647 Finishes 0%
2664 B223 Villas ( 3 nos) 0%
2665 Villa B2/03 0%
2667 set out 0%
2668 Excavate 0%
2670 Backfill 0%
2673 frame 0%
2692 Finishes 0%
2708 Villa B2/09 0%
2710 set out 0%
2711 Excavate 0%
2713 Backfill 0%
2717 frame 0%
page 88
ID Task Name
2007 2008 2009 2010
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
2740 Finishes 0%
2758 Villa B2/10 0%
2760 set out 0%
2761 Excavate 0%
2763 Backfill 0%
2767 frame 0%
2790 Finishes 0%
2809 Villa B4/03 0%
2811 set out 0%
2812 Excavate 0%
2814 Backfill 0%
2818 frame 0%
2819 set kickers 0%
2825 Blockwork 0%
2835 Finishes 0%
2837 M&E 1st fix 0%
2854 Villa B4/04 0%
2856 set out 0%
2857 Excavate 0%
2859 Backfill 0%
2863 frame 0%
2864 set kickers 0%
2870 Blockwork 0%
2880 Finishes 0%
2882 M&E 1st fix 0%
2900 Villa C3/02 0%
2943 Villa C3/03 0%
2986 Villa C3/04 0%
3029 Villa C3/05 0%
3072 Villa C3/06 0%
page 89
ID Task Name
2008 2009 2010 2011
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
3116 Villa P3/01 0%
3159 Villa P3/02 0%
3202 Villa P3/03 0%
3290 Set out/implement main sewerage network 0%
3291 Set out/implement main rain water drainage alignment 0%
3292 Lot 4 0%
3828 Sundries 0%
The following table provides summary of the current delay

caused by unforeseen ground conditions at each of the
buildings. This change involved significant delay and difficulty
excavating hard rock.
Villa commencement completion commencement completion Baseline duration Revised Duration
A3/01 28-Feb-07 09-Jul-08 23-Jul-07 15-Mar-08 236.13 497.13
A3/02 12-Apr-07 09-Dec-08 23-Jul-07 15-Mar-08 236.13 607.08
A3/03 12-Apr-07 30-Dec-08 23-Jul-07 15-Mar-08 236.13 628.08
A3/06 09-Apr-07 02-Jul-08 23-Jul-07 15-Mar-08 236.13 450.13
A3/08 02-Apr-07 22-Dec-08 02-Apr-07 15-Mar-08 348.13 630.08
A3/09 02-Apr-07 06-May-09 02-Apr-07 15-Mar-08 348.13 765.08
A3/10 09-Apr-07 02-Jul-08 09-Apr-07 15-Mar-08 341.13 450.13
A3/11 09-Apr-07 18-May-09 09-Apr-07 15-Mar-08 341.13 770.08
A3/19 12-Apr-07 13-Jun-09 12-Apr-07 15-Mar-08 338.13 793.13
A3/20 25-Apr-07 29-May-09 12-Apr-07 15-Mar-08 338.13 765.13
A3/21 12-Apr-07 29-May-09 12-Apr-07 15-Mar-08 338.13 778.13
A3/26 16-Apr-07 06-Jan-09 16-Apr-07 15-Mar-08 334.13 631.08
A3/27 16-Apr-07 29-Sep-08 16-Apr-07 15-Mar-08 334.13 532.08
A3/28 28-May-07 06-Aug-08 28-May-07 15-Mar-08 292.13 436.08
A3/29 28-May-07 23-Apr-08 28-May-07 15-Mar-08 292.13 331.13
A3/30 25-Apr-07 15-May-08 28-May-07 15-Mar-08 292.13 386.13
A3/32 28-May-07 16-Nov-07 28-May-07 16-Nov-07 172.04 172.04
B2/01 16-Apr-07 04-Feb-09 03-Jul-07 15-Mar-08 256.13 660.08
B2/02 16-Apr-07 24-Jun-08 03-Jul-07 15-Mar-08 256.13 435.08
B2/03 28-May-07 25-Dec-07 28-May-07 04-Dec-07 190.17 211.13
B2/04 16-Apr-07 10-Oct-08 03-Jul-07 15-Mar-08 256.13 543.13
B2/05 16-Apr-07 08-Jan-09 03-Jul-07 15-Mar-08 256.13 633.13
B2/06 23-Apr-07 16-Jan-09 03-Jul-07 15-Mar-08 256.13 634.13
B2/07 23-Apr-07 07-Jun-08 03-Jul-07 15-Mar-08 256.13 411.13
B2/08 23-Apr-07 16-Jan-09 03-Jul-07 15-Mar-08 256.13 634.13
B2/09 28-May-07 12-Mar-09 28-May-07 15-Mar-08 292.13 654.13
B2/10 28-May-07 18-Mar-09 28-May-07 15-Mar-08 292.13 660.13
The next table records the delays to other buildings as a

consequence of the delays to the current to preceding tasks. In
retaining the original planned sequence depicted on the original
programme of works, the completion date is extended to 9
September 2009.
page 90

Villa commencement completion commencement completion Delay
P3 Presidential Villas 21-Jun-08 23-Mar-09 20-Jun-07 20-Mar-08 367.00
Sunset Deck 24-Jul-08 17-Mar-09 23-Jul-07 14-Mar-08 367.00
Employees Facilities Complex 30-Mar-08 03-Jan-09 14-Jun-07 19-Mar-08 290.00
Excom Villa 30-Mar-08 01-Jan-09 14-Jun-07 17-Mar-08 290.00
GM Villa 30-Mar-08 31-Dec-08 14-Jun-07 15-Mar-08 290.00
Health club 30-Mar-08 31-Dec-08 14-Jun-07 15-Mar-08 290.00
Single Treatment room 03-Jul-08 19-Mar-09 02-Jul-07 17-Mar-08 367.00
Couple treatment room 03-Jul-08 21-Mar-09 02-Jul-07 19-Mar-08 367.00
Sanctum 03-Jul-08 18-Mar-09 02-Jul-07 15-Mar-08 367.00
Yoga Pavilion 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 367.00
BOH Building 03-Jul-08 19-Mar-09 02-Jul-07 17-Mar-08 367.00
Wedding chapel 08-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 372.00
Seafood Resort 31-Aug-08 02-Jun-09 18-Jun-07 19-Mar-08 440.00
Retail Pavilion 31-Aug-08 28-May-09 18-Jun-07 14-Mar-08 440.00
Kid's club 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 367.00
Recreation House 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 367.00
Water sport Rental 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 367.00
Dive Center 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 367.00
It should be noted that rock excavation is continuing at various

sites where excavation activities is yet to start. Consequently,
the delay attributed to this event is continuing.
As a result of the current delay caused by this event the time for
completion has been further extended from 9 August 2008 to 9
September 2009, a period of 396 calendar days.
However, in recognition of more rock excavation at other areas

of the Site it is anticipated further delays will be experienced.
Accordingly, the Contractor gives notice of further delays likely
at the remaining areas of the site where buildings will be
positioned.
The revised completion date is now 9 September 2009.
page 91
5.1.4.3. Event No 3 – Later Receipt of Design

Information
ID Task Name
2007 2008 2009
182 Lot 1 0%
498 substructure 0%
499 set out ( subject to receipt of GFW dwg by Mid June 07) 0%
500 Excavate (Drill in rock to anchor steel rods as required) 0%
506 frame 0%
507 set kickers 0%
508 Conc. Columns & shear walls upto roof 0%
510 Conc. Floor slab GF 0%
511 Blockwork upto roof 0%
519 Finishes 0%
521 M&E 1st fix 0%
538 substructure 0%
539 set out 0%
540 Excavate 0%
546 frame 0%
547 set kickers 0%
548 Conc. Columns & shear walls upto GF floor level 0%
550 Conc. G.F Floor slab 0%
551 Conc. Columns & shear walls upto FF level 0%
552 Blockwork upto FF level 0%
553 Conc. F. Floor slab 0%
554 Conc. Columns & shear walls upto roof level 0%
563 Finishes 0%
565 M&E 1st fix 0%
577 Boiler 0%
578 Chiller 0%
626 substructure 0%
627 set out 0%
634 frame 0%
635 set kickers 0%
638 Conc. substructure 0%
640 Blockwork 0%
page 92
ID Task Name
2007 2008 2009 2010
648 Finishes 0%
650 M&E 1st fix 0%
662 Boiler 0%
663 Chiller 0%
708 substructure 0%
709 set out 0%
710 Excavate 0%
716 frame 0%
717 set kickers 0%
718 Conc. Columns & shear walls upto GF floor level 0%
720 Conc. G.F Floor slab 0%
721 Conc. Columns & shear walls upto FF level 0%
722 Blockwork upto FF level 0%
723 Conc. F. Floor slab 0%
724 Conc. Columns & shear walls upto roof level 0%
733 Finishes 0%
735 M&E 1st fix 0%
847 Lot 2 0%
1614 B223 Villas ( 7 nos) 0%
1965 B4 Villa (2 nos.) 0%
2058 set out 0%
2065 frame 0%
2066 set kickers 0%
2071 Blockwork 0%
2079 Finishes 0%
2081 M&E 1st fix 0%
page 93
ID Task Name
2008 2009 2010 2011
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2096 set out 0%
2103 frame 0%
2104 set kickers 0%
2109 Blockwork 0%
2117 Finishes 0%
2119 M&E 1st fix 0%
2134 set out 0%
2141 frame 0%
2142 set kickers 0%
2147 Blockwork 0%
2155 Finishes 0%
2157 M&E 1st fix 0%
2172 set out 0%
2179 frame 0%
2180 set kickers 0%
2185 Blockwork 0%
2193 Finishes 0%
2195 M&E 1st fix 0%
page 94
ID Task Name
2007 2008 2009 2010
2207 Kitchen extraction duct 0%
2208 Chilled water piping 0%
2262 Lot 3 0%
2263 A3 Villas ( 9 nos) 0%
2664 B223 Villas ( 3 nos) 0%
3116 Villa P3/01 0%
3118 set out 0%
3119 Excavate 0%
3125 frame 0%
3126 set kickers 0%
3131 Blockwork 0%
3140 Finishes 0%
3142 M&E 1st fix 0%
3159 Villa P3/02 0%
3161 set out 0%
3162 Excavate 0%
3168 frame 0%
3169 set kickers 0%
3174 Blockwork 0%
3183 Finishes 0%
3185 M&E 1st fix 0%
3202 Villa P3/03 0%
3204 set out 0%
3205 Excavate 0%
page 95
ID Task Name
2008 2009 2010 2011
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
3211 frame 0%
3226 Finishes 0%
3247 set out 0%
3248 Excavate 0%
3254 frame 0%
3255 set kickers 0%
3260 Blockwork 0%
3268 Finishes 0%
3270 M&E 1st fix 0%
3292 Lot 4 0%
3295 set out 0%
3296 Excavate 0%
3302 frame 0%
3303 set kickers 0%
3308 Blockwork 0%
3316 Finishes 0%
3318 M&E 1st fix 0%
3331 Water feature 0%
3336 set out 0%
3337 Excavate 0%
3343 frame 0%
3344 set kickers 0%
3349 Blockwork 0%
page 96
ID Task Name
2008 2009 2010 2011
3357 Finishes 0%
3359 M&E 1st fix 0%
3372 Water feature 0%
3377 set out 0%
3378 Excavate 0%
3384 frame 0%
3385 set kickers 0%
3390 Blockwork 0%
3398 Finishes 0%
3400 M&E 1st fix 0%
3415 set out 0%
3416 Excavate 0%
3422 frame 0%
3423 set kickers 0%
3428 Blockwork 0%
3436 Finishes 0%
3438 M&E 1st fix 0%
3454 set out 0%
3455 Excavate 0%
3461 frame 0%
3462 set kickers 0%
3467 Blockwork 0%
page 97
ID Task Name
2008 2009 2010 2011
3475 Finishes 0%
3477 M&E 1st fix 0%
3493 set out 0%
3494 Excavate 0%
3500 frame 0%
3501 set kickers 0%
3506 Blockwork 0%
3514 Finishes 0%
3516 M&E 1st fix 0%
3531 set out 0%
3532 Excavate 0%
3538 frame 0%
3539 set kickers 0%
3544 Blockwork 0%
3552 Finishes 0%
3554 M&E 1st fix 0%
3566 Boiler 0%
3567 Chiller 0%
3569 Ducting and fans 0%
3572 set out 0%
3573 Excavate 0%
3579 frame 0%
3580 set kickers 0%
3585 Blockwork 0%
page 98
ID Task Name
2008 2009 2010 2011
3593 Finishes 0%
3595 M&E 1st fix 0%
3608 Beach Pool 0%
3613 set out 0%
3614 Excavate 0%
3620 frame 0%
3621 set kickers 0%
3626 Blockwork 0%
3634 Finishes 0%
3636 M&E 1st fix 0%
3649 Signature Pool 0%
3652 set out 0%
3653 Excavate 0%
3659 frame 0%
3660 set kickers 0%
3665 Blockwork 0%
3673 Finishes 0%
3675 M&E 1st fix 0%
3687 set out 0%
3688 Excavate 0%
3694 frame 0%
3695 set kickers 0%
3700 Blockwork 0%
page 99
ID Task Name
2008 2009 2010 2011
3708 Finishes 0%
3710 M&E 1st fix 0%
3723 Pond 0%
3728 set out 0%
3729 Excavate 0%
3735 frame 0%
3736 set kickers 0%
3741 Blockwork 0%
3749 Finishes 0%
3751 M&E 1st fix 0%
3764 Pond 0%
3769 set out 0%
3770 Excavate 0%
3776 frame 0%
3777 set kickers 0%
3782 Blockwork 0%
3790 Finishes 0%
3792 M&E 1st fix 0%
3828 Sundries 0%
page 100
The following table summarises the timing of receipt of design

drawings and information. It has been shown that although
these drawings are significantly late, it has not affected progress
at site.
The reason for this is the earlier delays caused by setting out
and unforeseen ground conditions extended and revised the
original start dates of many activities. Consequently, as the
buildings revised schedule start date is much later than originally
planned drawings issued for construction had no impact.
However, as a consequence of the lateness in receipt of

detailed drawings, procurement of materials could not proceed
as originally planned.
Item Building commencement completion commencement completion
1 P3 Presidential Villas 21-Jun-08 23-Mar-09 20-Jun-07 20-Mar-08
2 Sunset Deck 24-Jul-08 17-Mar-09 23-Jul-07 14-Mar-08
3 Employees Facilities Complex 30-Mar-08 03-Jan-09 14-Jun-07 19-Mar-08
4 Excom Villa 30-Mar-08 01-Jan-09 14-Jun-07 17-Mar-08
5 GM Villa 30-Mar-08 31-Dec-08 14-Jun-07 15-Mar-08
6 Health club 30-Mar-08 31-Dec-08 14-Jun-07 15-Mar-08
7 Single Treatment room 03-Jul-08 19-Mar-09 02-Jul-07 17-Mar-08
8 Couple treatment room 03-Jul-08 21-Mar-09 02-Jul-07 19-Mar-08
9 Sanctum 03-Jul-08 18-Mar-09 02-Jul-07 15-Mar-08
10 Yoga Pavilion 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08
11 BOH Building 03-Jul-08 19-Mar-09 02-Jul-07 17-Mar-08
12 Wedding chapel 08-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08
13 Seafood Resort 31-Aug-08 02-Jun-09 18-Jun-07 19-Mar-08
14 Retail Pavilion 31-Aug-08 28-May-09 18-Jun-07 14-Mar-08
15 Kid's club 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08
16 Recreation House 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08
17 Water sport Rental 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08
18 Dive Center 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08
19 Mechanical Area 24-Oct-08 09-Jan-09 22-Oct-07 19-Feb-08
20 3 Meal Restaurant 04-Sep-08 28-Mar-09 02-Jul-07 26-Mar-08
21 Signature Pool 04-Sep-08 18-Mar-09 02-Jul-07 15-Mar-08
22 Beach Pool Bar 04-Sep-08 19-Mar-09 02-Jul-07 17-Mar-08
Delays’ resulting from hard rock excavation is a parallel delay to

design drawings.
Items 1 - 18 relates to critical delays caused by hard rock

excavation for preceding structures. Items 19 – 22 relates to
delay arising from late design drawings, which is critical. More
delays will be encountered once excavation works proceed at
remaining locations.
As a result of the current delay caused by this event the time for
completion has not extended the current revised date of 9
September 2009.
Consequently, the revised completion date remains at 9

September 2009.
page 101
5.1.4.4. Event No 4 – Increased Scope of Works

ID Task Name
2007 2008 2009
182 Lot 1 0%
184 Villa A3/01 0%
185 Substructure 0%
193 Frame 0%
194 set kickers 0%
200 Blockwork 0%
210 Finishes 0%
228 Villa A3/02 0%
229 substructure 0%
237 frame 0%
238 set kickers 0%
244 Blockwork 0%
254 Finishes 0%
273 Villa A3/03 0%
274 substructure 0%
282 frame 0%
283 set kickers 0%
289 Blockwork 0%
299 Finishes 0%
318 Villa A3/04 0%
319 substructure 0%
320 set out 0%
321 Excavate 0%
323 Backfill 0%
327 frame 0%
328 set kickers 0%
334 Blockwork 0%
344 Finishes 0%
346 M&E 1st fix 0%
363 Villa A3/05 0%
364 substructure 0%
365 set out 0%
366 Excavate 0%
368 Backfill 0%
372 frame 0%
373 set kickers 0%
page 102
ID Task Name
2007 2008 2009 2010
379 Blockwork 0%
389 Finishes 0%
391 M&E 1st fix 0%
408 Villa A3/06 0%
409 substructure 0%
410 set out 0%
411 Excavate 0%
413 Backfill 0%
417 frame 0%
418 set kickers 0%
424 Blockwork 0%
434 Finishes 0%
847 Lot 2 0%
849 Villa A3/07 0%
850 substructure 0%
851 set out 0%
852 Excavate 0%
854 Backfill 0%
858 frame 0%
859 set kickers 0%
865 Blockwork 0%
875 Finishes 0%
877 M&E 1st fix 0%
page 103
ID Task Name
2007 2008 2009 2010
894 Villa A3/08 0%
895 substructure 0%
896 set out 0%
897 Excavate 0%
899 Backfill 0%
903 frame 0%
904 set kickers 0%
910 Blockwork 0%
920 Finishes 0%
939 Villa A3/09 0%
940 substructure 0%
941 set out 0%
942 Excavate 0%
944 Backfill 0%
948 frame 0%
949 set kickers 0%
955 Blockwork 0%
965 Finishes 0%
984 Villa A3/10 0%
985 substructure 0%
986 set out 0%
987 Excavate 0%
989 Backfill 0%
993 frame 0%
994 set kickers 0%
1000 Blockwork 0%
1010 Finishes 0%
1029 Villa A3/11 0%
1031 set out 0%
1032 Excavate 0%
1034 Backfill 0%
1038 frame 0%
1039 set kickers 0%
1045 Blockwork 0%
1055 Finishes 0%
1074 Villa A3/12 0%
1076 set out 0%
1077 Excavate 0%
1079 Backfill 0%
1083 frame 0%
1084 set kickers 0%
1090 Blockwork 0%
page 104
ID Task Name
2007 2008 2009 2010
1100 Finishes 0%
1102 M&E 1st fix 0%
1119 Villa A3/13 0%
1121 set out 0%
1122 Excavate 0%
1124 Backfill 0%
1128 frame 0%
1129 set kickers 0%
1135 Blockwork 0%
1145 Finishes 0%
1147 M&E 1st fix 0%
1164 Villa A3/18 0%
1166 set out 0%
1167 Excavate 0%
1169 Backfill 0%
1173 frame 0%
1174 set kickers 0%
1180 Blockwork 0%
1190 Finishes 0%
1192 M&E 1st fix 0%
1209 Villa A3/19 0%
1211 set out 0%
page 105
ID Task Name
2007 2008 2009 2010
1212 Excavate 0%
1214 Backfill 0%
1218 frame 0%
1219 set kickers 0%
1225 Blockwork 0%
1235 Finishes 0%
1254 Villa A3/20 0%
1256 set out 0%
1257 Excavate 0%
1259 Backfill 0%
1263 frame 0%
1264 set kickers 0%
1270 Blockwork 0%
1280 Finishes 0%
1299 Villa A3/21 0%
1301 set out 0%
1302 Excavate 0%
1304 Backfill 0%
1308 frame 0%
1309 set kickers 0%
1315 Blockwork 0%
1325 Finishes 0%
1344 Villa A3/22 0%
1346 set out 0%
1347 Excavate 0%
1349 Backfill 0%
1353 frame 0%
1354 set kickers 0%
1360 Blockwork 0%
1370 Finishes 0%
1372 M&E 1st fix 0%
1389 Villa A3/23 0%
1391 set out 0%
1392 Excavate 0%
1394 Backfill 0%
page 106
ID Task Name
2007 2008 2009 2010
1398 frame 0%
1399 set kickers 0%
1405 Blockwork 0%
1415 Finishes 0%
1417 M&E 1st fix 0%
1434 Villa A3/24 0%
1436 set out 0%
1437 Excavate 0%
1439 Backfill 0%
1443 frame 0%
1444 set kickers 0%
1450 Blockwork 0%
1460 Finishes 0%
1462 M&E 1st fix 0%
1479 Villa A3/25 0%
1481 set out 0%
1482 Excavate 0%
1484 Backfill 0%
1488 frame 0%
1489 set kickers 0%
1495 Blockwork 0%
1505 Finishes 0%
1507 M&E 1st fix 0%
page 107
ID Task Name
2007 2008 2009 2010
1524 Villa A3/26 0%
1526 set out 0%
1527 Excavate 0%
1529 Backfill 0%
1533 frame 0%
1534 set kickers 0%
1540 Blockwork 0%
1550 Finishes 0%
1569 Villa A3/27 0%
1571 set out 0%
1572 Excavate 0%
1574 Backfill 0%
1578 frame 0%
1579 set kickers 0%
1585 Blockwork 0%
1595 Finishes 0%
1614 B223 Villas ( 7 nos) 0%
1615 Villa B2/01 0%
1617 set out 0%
1618 Excavate 0%
1620 Backfill 0%
1624 frame 0%
1625 set kickers 0%
1626 Conc. Columns & shear walls to GF 0%
1627 Conc. Plantrooms 0%
1628 M&E first fix GF 0%
1629 Conc. GF slab and beams 0%
1630 Blockwork up to FF slab 0%
1631 set kickers on GF 0%
1632 Conc. Columns & shear walls to FF 0%
1633 M&E first fix FF 0%
1634 Conc. FF slab & beams 0%
1635 Blockwork up to roof 0%
1636 set kickers on FF 0%
1637 Conc. Columns & shear walls to roof 0%
1638 M&E first fix roof 0%
1647 Finishes 0%
1665 Villa B2/02 0%
1667 set out 0%
1668 Excavate 0%
1670 Backfill 0%
1674 frame 0%
1675 set kickers 0%
1697 Finishes 0%
1715 Villa B2/04 0%
1717 set out 0%
1718 Excavate 0%
page 108
ID Task Name
2007 2008 2009 2010
1720 Backfill 0%
1724 frame 0%
1725 set kickers 0%
1747 Finishes 0%
1765 Villa B2/05 0%
1767 set out 0%
1768 Excavate 0%
1770 Backfill 0%
1774 frame 0%
1775 set kickers 0%
1797 Finishes 0%
1815 Villa B2/06 0%
1817 set out 0%
1818 Excavate 0%
1820 Backfill 0%
1824 frame 0%
1825 set kickers 0%
1847 Finishes 0%
1865 Villa B2/07 0%
1867 set out 0%
1868 Excavate 0%
1870 Backfill 0%
1874 frame 0%
1875 set kickers 0%
1897 Finishes 0%
1915 Villa B2/08 0%
1917 set out 0%
1918 Excavate 0%
page 109
ID Task Name
2007 2008 2009 2010
1920 Backfill 0%
1924 frame 0%
1925 set kickers 0%
1947 Finishes 0%
1965 B4 Villa (2 nos.) 0%
2262 Lot 3 0%
2263 A3 Villas ( 9 nos) 0%
2264 Villa A3/14 0%
2265 Substructure 0%
2266 set out 0%
2267 Excavate 0%
2269 Backfill 0%
2273 Frame 0%
2274 set kickers 0%
2280 Blockwork 0%
2290 Finishes 0%
2292 M&E 1st fix 0%
2309 Villa A3/15 0%
2311 set out 0%
2312 Excavate 0%
2314 Backfill 0%
2318 frame 0%
2319 set kickers 0%
2325 Blockwork 0%
2335 Finishes 0%
2337 M&E 1st fix 0%
page 110
ID Task Name
2007 2008 2009 2010
2354 Villa A3/16 0%
2356 set out 0%
2357 Excavate 0%
2359 Backfill 0%
2363 frame 0%
2364 set kickers 0%
2370 Blockwork 0%
2380 Finishes 0%
2382 M&E 1st fix 0%
2399 Villa A3/17 0%
2401 set out 0%
2402 Excavate 0%
2404 Backfill 0%
2408 frame 0%
2409 set kickers 0%
2415 Blockwork 0%
2425 Finishes 0%
2427 M&E 1st fix 0%
2444 Villa A3/28 0%
2446 set out 0%
2447 Excavate 0%
2449 Backfill 0%
2453 frame 0%
2454 set kickers 0%
page 111
ID Task Name
2007 2008 2009 2010
2460 Blockwork 0%
2470 Finishes 0%
2489 Villa A3/29 0%
2491 set out 0%
2492 Excavate 0%
2494 Backfill 0%
2498 frame 0%
2499 set kickers 0%
2505 Blockwork 0%
2515 Finishes 0%
2534 Villa A3/30 0%
2536 set out 0%
2537 Excavate 0%
2539 Backfill 0%
2543 frame 0%
2544 set kickers 0%
2550 Blockwork 0%
2560 Finishes 0%
2579 Villa A3/31 0%
2624 Villa A3/32 0%
2626 set out 0%
2627 Excavate 0%
2629 Backfill 0%
2632 frame 0%
2633 set kickers 0%
2635 Conc. Ground Beams 0%
2638 Blockwork 0%
2647 Finishes 0%
2664 B223 Villas ( 3 nos) 0%
2665 Villa B2/03 0%
2667 set out 0%
2668 Excavate 0%
2670 Backfill 0%
2673 frame 0%
2674 set kickers 0%
2692 Finishes 0%
2708 Villa B2/09 0%
2710 set out 0%
2711 Excavate 0%
2713 Backfill 0%
2717 frame 0%
2718 set kickers 0%
page 112
ID Task Name
2007 2008 2009 2010
2740 Finishes 0%
2758 Villa B2/10 0%
2760 set out 0%
2761 Excavate 0%
2763 Backfill 0%
2767 frame 0%
2768 set kickers 0%
2790 Finishes 0%
3292 Lot 4 0%
3828 Sundries 0%
The following table summarises the revised durations to perform

a significantly revised scope of work depicted on the design
drawings issued for construction. It should be noted the delay
indicated on the extreme right column also includes the earlier
delays caused by the setting out, unforeseen ground conditions
and design drawings.
Once again, the revised durations are not critical to completion

but activities typically take longer than planned.
page 113

Villa commencement completion commencement completion Baseline duration Revised Duration Delay
A3/01 28-Feb-07 09-Jul-08 23-Jul-07 15-Mar-08 236.13 497.13 261.00
A3/02 12-Apr-07 09-Dec-08 23-Jul-07 15-Mar-08 236.13 607.08 370.96
A3/03 12-Apr-07 30-Dec-08 23-Jul-07 15-Mar-08 236.13 628.08 391.96
A3/04 09-Apr-07 15-Mar-08 23-Jul-07 15-Mar-08 236.13 341.13 105.00
A3/05 09-Apr-07 15-Mar-08 23-Jul-07 15-Mar-08 236.13 341.13 105.00
A3/06 09-Apr-07 02-Jul-08 23-Jul-07 15-Mar-08 236.13 450.13 214.00
A3/07 25-Apr-07 07-Jan-08 02-Apr-07 12-Nov-07 224.08 257.08 33.00
A3/08 02-Apr-07 22-Dec-08 02-Apr-07 15-Mar-08 348.13 630.08 281.96
A3/09 02-Apr-07 06-May-09 02-Apr-07 15-Mar-08 348.13 765.08 416.96
A3/10 09-Apr-07 02-Jul-08 09-Apr-07 15-Mar-08 341.13 450.13 109.00
A3/11 09-Apr-07 18-May-09 09-Apr-07 15-Mar-08 341.13 770.08 428.96
A3/12 09-Apr-07 15-Mar-08 09-Apr-07 15-Mar-08 341.13 341.13 0.00
A3/13 09-Apr-07 15-Mar-08 09-Apr-07 15-Mar-08 341.13 341.13 0.00
A3/14 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00
A3/15 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00
A3/16 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00
A3/17 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00
A3/18 12-Apr-07 15-Mar-08 12-Apr-07 15-Mar-08 338.13 338.13 0.00
A3/19 12-Apr-07 13-Jun-09 12-Apr-07 15-Mar-08 338.13 793.13 455.00
A3/20 25-Apr-07 29-May-09 12-Apr-07 15-Mar-08 338.13 765.13 427.00
A3/21 12-Apr-07 29-May-09 12-Apr-07 15-Mar-08 338.13 778.13 440.00
A3/22 12-Apr-07 13-Sep-08 12-Apr-07 15-Mar-08 338.13 520.33 182.21
A3/23 16-Apr-07 16-Sep-08 16-Apr-07 15-Mar-08 334.13 519.38 185.25
A3/24 16-Apr-07 16-Sep-08 16-Apr-07 15-Mar-08 334.13 519.38 185.25
A3/25 16-Apr-07 16-Sep-08 16-Apr-07 15-Mar-08 334.13 519.38 185.25
A3/26 16-Apr-07 06-Jan-09 16-Apr-07 15-Mar-08 334.13 631.08 296.96
A3/27 16-Apr-07 29-Sep-08 16-Apr-07 15-Mar-08 334.13 532.08 197.96
A3/28 28-May-07 06-Aug-08 28-May-07 15-Mar-08 292.13 436.08 143.96
A3/29 28-May-07 23-Apr-08 28-May-07 15-Mar-08 292.13 331.13 39.00
A3/30 25-Apr-07 15-May-08 28-May-07 15-Mar-08 292.13 386.13 94.00
A3/31 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00
A3/32 28-May-07 10-Dec-07 28-May-07 16-Nov-07 172.04 196.38 24.33
B2/01 16-Apr-07 04-Feb-09 03-Jul-07 15-Mar-08 256.13 660.08 403.96
B2/02 16-Apr-07 24-Jun-08 03-Jul-07 15-Mar-08 256.13 435.08 178.96
B2/03 28-May-07 17-Jan-08 28-May-07 04-Dec-07 190.17 234.17 44.00
B2/04 16-Apr-07 10-Oct-08 03-Jul-07 15-Mar-08 256.13 543.13 287.00
B2/05 16-Apr-07 08-Jan-09 03-Jul-07 15-Mar-08 256.13 633.13 377.00
B2/06 23-Apr-07 16-Jan-09 03-Jul-07 15-Mar-08 256.13 634.13 378.00
B2/07 23-Apr-07 07-Jun-08 03-Jul-07 15-Mar-08 256.13 411.13 155.00
B2/08 23-Apr-07 16-Jan-09 03-Jul-07 15-Mar-08 256.13 634.13 378.00
B2/09 28-May-07 12-Mar-09 28-May-07 15-Mar-08 292.13 654.13 362.00
B2/10 28-May-07 18-Mar-09 28-May-07 15-Mar-08 292.13 660.13 368.00
As a result of the extended durations caused by this event the

time for completion has not been extended and the revised
completion date remains at 9 September 2009.
The revised completion date remains at 9 September 2009.
page 114
5.1.4.5. Event No 5 – Partial Suspension of Works

ID Task Name
2007 2008 2009
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
182 Lot 1 0%
184 Villa A3/01 0%
228 Villa A3/02 0%
273 Villa A3/03 0%
274 substructure 0%
275 set out 0%
276 Excavate 0%
278 Backfill 0%
282 frame 0%
283 set kickers 0%
289 Blockwork 0%
299 Finishes 0%
318 Villa A3/04 0%
319 substructure 0%
320 set out 0%
321 Excavate 0%
323 Backfill 0%
327 frame 0%
328 set kickers 0%
334 Blockwork 0%
344 Finishes 0%
346 M&E 1st fix 0%
363 Villa A3/05 0%
364 substructure 0%
365 set out 0%
366 Excavate 0%
368 Backfill 0%
372 frame 0%
373 set kickers 0%
379 Blockwork 0%
389 Finishes 0%
391 M&E 1st fix 0%
page 115
ID Task Name
2007 2008 2009
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
408 Villa A3/06 0%
409 substructure 0%
410 set out 0%
411 Excavate 0%
413 Backfill 0%
417 frame 0%
418 set kickers 0%
424 Blockwork 0%
434 Finishes 0%
847 Lot 2 0%
849 Villa A3/07 0%
894 Villa A3/08 0%
895 substructure 0%
896 set out 0%
897 Excavate 0%
899 Backfill 0%
903 frame 0%
904 set kickers 0%
910 Blockwork 0%
920 Finishes 0%
939 Villa A3/09 0%
984 Villa A3/10 0%
985 substructure 0%
986 set out 0%
987 Excavate 0%
989 Backfill 0%
993 frame 0%
994 set kickers 0%
1000 Blockwork 0%
1010 Finishes 0%
1029 Villa A3/11 0%
1074 Villa A3/12 0%
1119 Villa A3/13 0%
1164 Villa A3/18 0%
1209 Villa A3/19 0%
1254 Villa A3/20 0%
1299 Villa A3/21 0%
1344 Villa A3/22 0%
1389 Villa A3/23 0%
1434 Villa A3/24 0%
1479 Villa A3/25 0%
1524 Villa A3/26 0%
1569 Villa A3/27 0%
1571 set out 0%
1572 Excavate 0%
page 116
ID Task Name
2007 2008 2009
1574 Backfill 0%
1578 frame 0%
1579 set kickers 0%
1585 Blockwork 0%
1595 Finishes 0%
1614 B223 Villas ( 7 nos) 0%
1615 Villa B2/01 0%
1665 Villa B2/02 0%
1667 set out 0%
1668 Excavate 0%
1670 Backfill 0%
1674 frame 0%
1675 set kickers 0%
1697 Finishes 0%
1715 Villa B2/04 0%
1765 Villa B2/05 0%
1815 Villa B2/06 0%
1865 Villa B2/07 0%
1915 Villa B2/08 0%
1965 B4 Villa (2 nos.) 0%
2262 Lot 3 0%
2263 A3 Villas ( 9 nos) 0%
2264 Villa A3/14 0%
2309 Villa A3/15 0%
2354 Villa A3/16 0%
2399 Villa A3/17 0%
2444 Villa A3/28 0%
2446 set out 0%
2447 Excavate 0%
2449 Backfill 0%
2453 frame 0%
2454 set kickers 0%
2460 Blockwork 0%
2470 Finishes 0%
2489 Villa A3/29 0%
2491 set out 0%
2492 Excavate 0%
2494 Backfill 0%
2498 frame 0%
2499 set kickers 0%
2505 Blockwork 0%
2515 Finishes 0%
page 117
ID Task Name
2007 2008 2009
2534 Villa A3/30 0%
2536 set out 0%
2537 Excavate 0%
2539 Backfill 0%
2543 frame 0%
2544 set kickers 0%
2550 Blockwork 0%
2560 Finishes 0%
2579 Villa A3/31 0%
2581 set out 0%
2582 Excavate 0%
2584 Backfill 0%
2588 frame 0%
2589 set kickers 0%
2595 Blockwork 0%
2605 Finishes 0%
2607 M&E 1st fix 0%
2624 Villa A3/32 0%
2664 B223 Villas ( 3 nos) 0%
2665 Villa B2/03 0%
2708 Villa B2/09 0%
2758 Villa B2/10 0%
3292 Lot 4 0%
3828 Sundries 0%
The following table shows the individual delays arising at each

villa suspended which also incorporates the delays described in
Event 1 through to 4.
page 118

A3/03 12-Apr-07 30-Dec-08 23-Jul-07 15-Mar-08 236.13 628.08 391.96
A3/04 09-Apr-07 15-Mar-08 23-Jul-07 15-Mar-08 236.13 341.13 105.00
A3/05 09-Apr-07 15-Mar-08 23-Jul-07 15-Mar-08 236.13 341.13 105.00
A3/06 09-Apr-07 05-Aug-08 23-Jul-07 15-Mar-08 236.13 484.38 248.25
A3/08 02-Apr-07 22-Dec-08 02-Apr-07 15-Mar-08 348.13 630.08 281.96
A3/10 09-Apr-07 02-Jul-08 09-Apr-07 15-Mar-08 341.13 450.13 109.00
A3/27 16-Apr-07 29-Sep-08 16-Apr-07 15-Mar-08 334.13 532.08 197.96
A3/28 28-May-07 06-Aug-08 28-May-07 15-Mar-08 292.13 436.08 143.96
A3/29 28-May-07 23-Apr-08 28-May-07 15-Mar-08 292.13 331.13 39.00
A3/30 25-Apr-07 15-May-08 28-May-07 15-Mar-08 292.13 386.13 94.00
A3/31 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00
B2/02 16-Apr-07 13-Sep-08 03-Jul-07 15-Mar-08 256.13 516.33 260.21
As a result the delay caused by this event is not critical and the
time for completion has not extended the revised date of 9
September 2009.
Consequently, the revised completion date remains at 9

September 2009.
page 119
5.1.4.6. Event No 6 – Design Variations (Stainless Steel

Items)
ID Task Name
2007 2008 2009
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
182 Lot 1 0%
184 Villa A3/01 0%
228 Villa A3/02 0%
273 Villa A3/03 0%
318 Villa A3/04 0%
363 Villa A3/05 0%
408 Villa A3/06 0%
847 Lot 2 0%
849 Villa A3/07 0%
894 Villa A3/08 0%
939 Villa A3/09 0%
984 Villa A3/10 0%
1029 Villa A3/11 0%
1074 Villa A3/12 0%
1119 Villa A3/13 0%
1164 Villa A3/18 0%
1209 Villa A3/19 0%
1254 Villa A3/20 0%
1299 Villa A3/21 0%
1344 Villa A3/22 0%
1389 Villa A3/23 0%
1434 Villa A3/24 0%
1479 Villa A3/25 0%
1524 Villa A3/26 0%
1569 Villa A3/27 0%
1614 B223 Villas ( 7 nos) 0%
1615 Villa B2/01 0%
1665 Villa B2/02 0%
1715 Villa B2/04 0%
1765 Villa B2/05 0%
1815 Villa B2/06 0%
1865 Villa B2/07 0%
1915 Villa B2/08 0%
1965 B4 Villa (2 nos.) 0%
2262 Lot 3 0%
2263 A3 Villas ( 9 nos) 0%
2264 Villa A3/14 0%
2309 Villa A3/15 0%
2354 Villa A3/16 0%
2399 Villa A3/17 0%
2444 Villa A3/28 0%
2489 Villa A3/29 0%
2534 Villa A3/30 0%
2579 Villa A3/31 0%
2624 Villa A3/32 0%
2626 set out 0%
2627 Excavate 0%
2629 Backfill 0%
2632 frame 0%
2633 set kickers 0%
2635 Conc. Ground Beams 0%
2638 Blockwork 0%
2647 Finishes 0%
page 120
ID Task Name
2007 2008 2009
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2664 B223 Villas ( 3 nos) 0%
2665 Villa B2/03 0%
2667 set out 0%
2668 Excavate 0%
2670 Backfill 0%
2673 frame 0%
2674 set kickers 0%
2692 Finishes 0%
2705 Swimming pool ( not applicable) 0%
2708 Villa B2/09 0%
2758 Villa B2/10 0%
3292 Lot 4 0%
3828 Sundries 0%
Similarly, the following table shows the delay which occurred at

the Mock-up Villas. Again, this delay is not critical to completion
because of the earlier delays.

A3/32 28-May-07 19-Mar-08 28-May-07 16-Nov-07 172.04 296.17 124.13
B2/03 28-May-07 12-May-08 28-May-07 04-Dec-07 190.17 350.38 160.21
page 121
5.2. Conclusion
At the outset of the Contract the Contractor suffered delays in
setting out the works. This was followed by significant disruption
caused by excavation in hard rock and partial suspension of
Works. With respect to the Contract and the Contractor’s
Programme of Works to which consent has been given, such
departure from his original planning has caused significant
increased cost. In addition, significant increases in quantities of
work caused the Contractor to fall further behind his programme.
The Project Manager also required the Contractor to perform his

work in accordance with the Programme of Works. In addition,
he has the duty to provide correct design details, in
conformance with site conditions, to the Contractor in good time
for him to be able to perform his material procurement and
construction work in accordance with that programme.
By altering the sequence, timing and quality of the design details

supplied to the Contractor, the Project Manager has acted
outside the boundaries of the existing Contract provisions.
In failing to provide final survey data, unnecessarily suspending

Works, failing to have identified and have taken account site
conditions, and not providing design information to the
Contractor in accordance with the Programme of Works, the
Employer is in breach of his obligations (through the Project
Manager in respect of design information) under the terms of the
Contract.
Furthermore, by altering the sequence, timing and quality of the

design information, when it was eventually provided to the
Contractor, the Project Manager has required the Contractor to
operate in a manner different from, slower and more expensive
than had been shown on the Programme of Works than he had
reasonably anticipated at the time of tender.
The consequences of this breach and variance of the Contract,

in terms of time for completion and financial compensation, are
explained in previous and subsequent sections of this
submission.
page 122
6. Financial Analysis
6.1. Consequences
During the periods of delay and disruption which results directly
from the varied site circumstances, varied scope of work, piece-
meal work or an adverse condition, the Contractor has incurred
costs of reduced and non-productive work necessitated by
retaining levels of resources, which otherwise would have been
decreased or deployed elsewhere. The Contractor would
maintain that it was not reasonable to discharge Staff and
Labour and remove equipment off Site for those periods. These
costs include idle equipment and labour and other direct costs,
and are recoverable under the terms and conditions of contract.
Furthermore, in response to the change in timing and sequence

of the Works, the Contractor has reorganised his resources to
meet the varied circumstances. As a consequence of such
measures to improve his production, loss of efficiency costs
caused by overtime, extra crews, larger crews, crowding or
stacking of trades, are recoverable costs under the terms and
conditions of contract. These additional costs are Wasted Costs
(in order to use one title to capture all delaying events) and are
recoverable as a Variation under the terms of the Contract.
Finally, because of the delays, which are not the fault of the
Contractor, substantial completion of the whole Works can only
be achieved beyond the original date. Consequently, the
Contractor will incur additional costs in the extended period that
is not recovered through the rates and prices of the contract.
An aspect of delay-induced expense is the cost of continuing

work on a project over a longer time than first anticipated.
Additional costs of labour, equipment and overhead has been
incurred due to the fact that performance had to be spread out,
sometimes leaving the Contractor’s resources idle or forced
personnel and equipment to remain thus postponing other work
sites.
Therefore, the amount of recovery is based on the total amount

of cost expended during the period the contract was delayed. At
the time of preparing this claim submission, delays and
disruption continue and consequently, additional costs.
The Contractor is entitled to recover the cost of his resources,

overheads and profit for this period. The additional costs will fall
under three categories:
page 123
6.1.1.Direct Cost
The direct cost of this event, delay and disruption, is the cost of
labour, staff and equipment directly employed at the Site
including profit.
6.1.2.Indirect Cost
Indirect cost flows from on-site establishments such as the
Contractor’s head and site offices and yard, which overheads
are only partially recovered during the periods of planned
construction operations when extended.
6.1.3.Consequential Cost
The consequential cost is the effect on the work in terms of
disruption to the various activities and prolongation of the
Contractor’s time related resources arising from re-sequencing
the planned work.
This cause occurred at the outset of the project and disruption

has been assessed as significant. The change, impacts planned
logic and links of many tasks shown on his Programme of Works
on which, the Contractor is heavily dependant if he is to retain
his original tender cost provisions.
6.2. Costs in Extended Contract Period

6.2.1.Nature of Loss and Expense
The loss and expense flowing from the causes described in this
Document are time-related. The loss and expense attributable to
these causes has been incurred over all of the Periods identified
in this claim. However, the major period in which variations have
caused loss and expense is:
 In the period of construction to date, May 2008, and
 In the extended construction period.
page 124
6.2.2.Contractor’s Entitlement to Reimbursement

Instructions issued are covered by the first paragraph of Clause
13.1 of the Conditions. This refers to Instructions in regard to:
 Revised setting out details;
 Suspension of Work;
 Design drawings issued for construction; and
 Additional and varied works.
The criteria for allowing the Contractor reimbursement are given

in the penultimate paragraph of Clause 12.3:

The loss and expense were not provided for, nor reasonably
contemplated by, the Contract. The Instructions did not result
from a breach by the Contractor. Accordingly, the loss and
expense must be added to the Contract Price.
6.3. Finance Cost

As this is a claim for breach of contract, the Contractor’s
approach to the quantum, or the measure of damage, is to
follow the common law rule. This is that the damages should put
the complaining party in the position he would have been, had
the breach not taken place, insofar as damages can do that.
In order to attain this, the Contractor has approached the

calculation of the quantum of the damages by asking what
would have happened, had the breach not taken place, and
comparing that with what did actually happen. The measure of
the damage is the financial consequences flowing from the
difference between the two positions.
There is one generic type of potential direct damage suffered

while the other is the financing of the work. Those two aspects
are summarised in the two points below:
page 125
1. Loss of anticipated income by way of financing. This is

the cost to the Contractor of financing the shortfall
between the income he reasonably expected to receive,
and what he actually received.
2. The idle time, and/or reduced output, of resources from

the outset of the contract to the present date.
In addition, for the purpose of satisfying the Employer’s

requirements for identifying additional costs, the Contractor has
also included additional costs anticipated to January 2010. This
date is the latest the Contractor anticipates reaching substantial
completion given all the varying circumstances existing at site.
6.4. Conclusions
In failing to provide final survey data and all the various design
details, the unforeseen ground conditions, instructing
suspension of the Works and subsequently altering the
sequence, timing and logic of his original planning, the Employer
has caused the Contractor to unavoidably incur greater costs,
loss and expense than would have been the case had the failure
not occurred. These costs are evaluated in subsequent sections
of this submission.
Since these costs, losses and expense have flowed directly from
the Employer’s failure and subsequent deviation from the terms
of the Contract, the Contractor is entitled to be compensated for
them by the Employer paying a fair value for the different type of
work that has been performed.
page 126
7. Extension of Time Entitlement

The Project Manager is requested to refer to the Contractor’s
two separate submissions for extensions of time and the
detailed analysis included in those submissions.
The Contractor had planned that all his resources would be

deployed at Site from 7 March 2007 through to 31 May 2008. In
the event, because of circumstances beyond his control and not
his responsibility, it is anticipated resources of the Contractor will
be delayed at Site until 31 January 2010.
Therefore, in order to complete the whole Works, the Contractor

requires a further 20 months to reach substantial completion.
This includes the first and second requests for an interim
extension of the period to Completion, whereas:
1. Requested on 21 November 2007 for an

extension of time amounting to 191-calendar days
from 31 May 2008 to 8 December 2008. The
Project Manager’s determination has not been
issued at time of compiling this submission;
2. Requested on 14 March 2008 for an extension of

time amounting to 106-calendar days from 8
December 2008 to 24 March 2009. The Project
Manager’s determination has not been issued at
time of compiling this submission.
The Contractor on 19 November 2007 had also updated his

programme of works showing progress achieved at 6 November
2007. In the final paragraph he stated:
Unless notice is received stating the extent to which it

does not comply with the Contract, we shall proceed in
accordance with this programme and will rely upon this
programme when planning our activities.
The Project Manager has not responded to this notice at time of

compiling this submission or to making an interim determination
for an extension of time requested in neither the Contractor’s
First request nor his Second Request.
Consequently, the Extension of Time to which the Contractor is

now fairly entitled to receive amounts to 20 months from 31
May 2008 to 31 January 2010 as substantiated in this
submission. This is the date on which it is anticipated substantial
Completion will be achieved.
page 127
8. Additional Payment
8.1. Introduction
Each of the sections in this document briefly describes the
events that have occurred that are contrary to those envisaged
at time of tender. Therefore, allowance for the event so
described has not been made in the tender rates and prices.
This Chapter of the document contains the financial details,
demonstrating the reimbursable additional value or cost of these
disruptive events.
This unforeseen difficulty has impacted all the Contractor's

resources that were on site during the periods of delay and
disruption. In addition, the same resources are, as a
consequence of the varied circumstances, to be retained on Site
for a further 20 months. That is from the original Completion
date to 31 January 2010.
8.2. Evaluation of the Financial Consequences

The delay and disruption has been caused by late survey data,
unforeseen ground conditions, suspension of works, varied
scope of work and to incomplete and late design information.
Although the Contractor continued to perform as much work as

possible in these periods, the unforeseen conditions and
changed circumstances will cause the original time to
completion to extend from 31 May 2008 to 31 January 2010.
The extension of time and associated loss and expense the

Contractor has suffered falls into five categorises:
 In the original construction period when equipment and

labour resources were under-utilised and recovery of
overheads were not secured because of a reduced
income;
 In an extended period when again the equipment and

labour resources will be retained on Site for longer than
planned and overheads are not recovered;
 In measures taken to recover earlier delays by the

addition of resources and working longer hours; and
 Other Direct and Indirect Costs
page 128
 In the original and extended period of construction where

the cost of financing construction increased due to the
longer period to completion.
8.2.1.Wasted Costs Arising from Delay and Disruption

These costs arise in the period from commencement to May
2008.
8.2.1.1. Staff and Labour
The following table provides a summary of planned revenue

against actual. The fourth column records the shortfall value
which is expressed as a percentage on planned.
Forecast Actual Shortfall as a

Month Monthly Monthly Shortfall % of Forecast
Feb-07 3,100,000.00 0.00 3,100,000.00 100%

Mar-07 601,658.62 0.00 601,658.62 100%
Apr-07 1,352,295.74 0.00 1,352,295.74 100%
May-07 1,852,720.48 3,100,000.00 -1,247,279.52 -67%
Jun-07 2,236,090.71 0.00 2,236,090.71 100%
Jul-07 2,684,335.78 682,032.85 2,002,302.93 75%
Aug-07 2,189,910.64 351,989.15 1,837,921.49 84%
Sep-07 2,236,090.71 145,803.63 2,090,287.08 93%
Oct-07 2,258,038.74 357,556.62 1,900,482.12 84%
Nov-07 2,258,038.74 478,924.03 1,779,114.71 79%
Dec-07 1,754,288.50 0.00 1,754,288.50 100%
Jan-08 1,289,372.84 0.00 1,289,372.84 100%
Feb-08 1,040,280.70 274,355.16 765,925.54 74%
Mar-08 500,424.74 1,086,667.96 -586,243.22 -117%
Apr-08 2,575,212.46 0.00 2,575,212.46 100%
May-08 0.00 0.00 0.00 0%
The next table provides a summary of the actual cost of labour

from commencement to end of May 2008. Against these values
the percentage calculated representing the shortfall on revenue
has been applied to arrive at the value of wasted costs. To this
figure 15% profit has been added in order to properly value the
Variation.
page 129
Month LabourCost % Wasted AmountWasted 15%Profit Total
Mar-07 26,831.00 100% 26,831.00 4,024.65 30,855.65

Apr-07 47,046.00 100% 47,046.00 7,056.90 54,102.90
May-07 52,890.00 -67% -35,606.35 -5,340.95 -40,947.30
Jun-07 60,384.00 100% 60,384.00 9,057.60 69,441.60
Jul-07 60,984.00 75% 45,489.26 6,823.39 52,312.65
Aug-07 61,812.00 84% 51,876.82 7,781.52 59,658.34
Sep-07 61,812.00 93% 57,781.57 8,667.24 66,448.80
Oct-07 67,056.00 84% 56,437.80 8,465.67 64,903.47
Nov-07 80,944.00 79% 63,775.99 9,566.40 73,342.39
Dec-07 86,068.00 100% 86,068.00 12,910.20 98,978.20
Jan-08 86,709.00 100% 86,709.00 13,006.35 99,715.35
Feb-08 85,629.00 74% 63,045.90 9,456.89 72,502.79
Mar-08 90,629.00 -117% -106,171.08 -15,925.66 -122,096.75
Apr-08 90,629.00 100% 90,629.00 13,594.35 104,223.35
May-08 115,007.00 0% 0.00 0.00 0.00
Total 683,441.44
8.2.1.2. Equipment
The following table provides a summary of planned revenue

against actual. The fourth column records the shortfall value
which is expressed as a percentage on planned.
Forecast Actual Shortfall as a

Month Monthly Monthly Shortfall % of Forecast
Feb-07 3,100,000.00 0.00 3,100,000.00 100%

Mar-07 601,658.62 0.00 601,658.62 100%
Apr-07 1,352,295.74 0.00 1,352,295.74 100%
May-07 1,852,720.48 3,100,000.00 -1,247,279.52 -67%
Jun-07 2,236,090.71 0.00 2,236,090.71 100%
Jul-07 2,684,335.78 682,032.85 2,002,302.93 75%
Aug-07 2,189,910.64 351,989.15 1,837,921.49 84%
Sep-07 2,236,090.71 145,803.63 2,090,287.08 93%
Oct-07 2,258,038.74 357,556.62 1,900,482.12 84%
Nov-07 2,258,038.74 478,924.03 1,779,114.71 79%
Dec-07 1,754,288.50 0.00 1,754,288.50 100%
Jan-08 1,289,372.84 0.00 1,289,372.84 100%
Feb-08 1,040,280.70 274,355.16 765,925.54 74%
Mar-08 500,424.74 1,086,667.96 -586,243.22 -117%
Apr-08 2,575,212.46 0.00 2,575,212.46 100%
May-08 0.00 0.00 0.00 0%
The next table provides a summary of the actual cost of

equipment from commencement to end of May 2008. Against
these values the percentage calculated representing the
shortfall on revenue has been applied to arrive at the value of
wasted costs. To this figure 15% profit has been added in order
to properly value the Variation
page 130
Month EquipCost % Wasted AmountWasted 15%Profit Total
Mar-07 262,545.19 100% 262,545.19 39,381.78 301,926.96

Apr-07 262,545.19 100% 262,545.19 39,381.78 301,926.96
May-07 262,545.19 -67% -176,749.40 -26,512.41 -203,261.81
Jun-07 262,545.19 100% 262,545.19 39,381.78 301,926.96
Jul-07 262,545.19 75% 195,838.02 29,375.70 225,213.72
Aug-07 262,545.19 84% 220,345.72 33,051.86 253,397.58
Sep-07 262,545.19 93% 245,426.01 36,813.90 282,239.91
Oct-07 262,545.19 84% 220,971.60 33,145.74 254,117.34
Nov-07 262,545.19 79% 206,860.05 31,029.01 237,889.06
Dec-07 262,545.19 100% 262,545.19 39,381.78 301,926.96
Jan-08 262,545.19 100% 262,545.19 39,381.78 301,926.96
Feb-08 269,952.60 74% 198,757.50 29,813.62 228,571.12
Mar-08 293,656.30 -117% -344,015.79 -51,602.37 -395,618.16
Apr-08 293,656.30 100% 293,656.30 44,048.44 337,704.74
May-08 293,656.30 0% 0.00 0.00 0.00
Total 2,729,888.31
8.2.1.3. Site and Head Office
The following table provides the wasted costs associated with

the indirect staff and labour costs arising from the Site Office
overheads. The value of overheads is estimated to be at 3%.
Mar-07 26,831.00 3% 804.93 120.74 925.67

Apr-07 47,046.00 3% 1,411.38 211.71 1,623.09
May-07 52,890.00 3% 1,586.70 238.01 1,824.71
Jun-07 60,384.00 3% 1,811.52 271.73 2,083.25
Jul-07 60,984.00 3% 1,829.52 274.43 2,103.95
Aug-07 61,812.00 3% 1,854.36 278.15 2,132.51
Sep-07 61,812.00 3% 1,854.36 278.15 2,132.51
Oct-07 67,056.00 3% 2,011.68 301.75 2,313.43
Nov-07 80,944.00 3% 2,428.32 364.25 2,792.57
Dec-07 86,068.00 3% 2,582.04 387.31 2,969.35
Jan-08 86,709.00 3% 2,601.27 390.19 2,991.46
Feb-08 85,629.00 3% 2,568.87 385.33 2,954.20
Mar-08 90,629.00 3% 2,718.87 407.83 3,126.70
Apr-08 90,629.00 3% 2,718.87 407.83 3,126.70
May-08 115,007.00 3% 3,450.21 517.53 3,967.74
Total 37,067.84
Similarly, the table below provides the wasted costs associated

with indirect staff and labour costs arising from the Head Office
overheads. The value of overheads is estimated to be 9%.
page 131
Mar-07 26,831.00 9% 2,414.79 362.22 2,777.01

Apr-07 47,046.00 9% 4,234.14 635.12 4,869.26
May-07 52,890.00 9% 4,760.10 714.02 5,474.12
Jun-07 60,384.00 9% 5,434.56 815.18 6,249.74
Jul-07 60,984.00 9% 5,488.56 823.28 6,311.84
Aug-07 61,812.00 9% 5,563.08 834.46 6,397.54
Sep-07 61,812.00 9% 5,563.08 834.46 6,397.54
Oct-07 67,056.00 9% 6,035.04 905.26 6,940.30
Nov-07 80,944.00 9% 7,284.96 1,092.74 8,377.70
Dec-07 86,068.00 9% 7,746.12 1,161.92 8,908.04
Jan-08 86,709.00 9% 7,803.81 1,170.57 8,974.38
Feb-08 85,629.00 9% 7,706.61 1,155.99 8,862.60
Mar-08 90,629.00 9% 8,156.61 1,223.49 9,380.10
Apr-08 90,629.00 9% 8,156.61 1,223.49 9,380.10
May-08 115,007.00 9% 10,350.63 1,552.59 11,903.22
Total 111,203.51
The following table provides the wasted costs associated with

the indirect Equipment costs arising from the Site Office
overheads. The value of overheads is estimated to be at 3%.
Mar-07 262,545.19 3% 7,876.36 1,181.45 9,057.81

Apr-07 262,545.19 3% 7,876.36 1,181.45 9,057.81
May-07 262,545.19 3% 7,876.36 1,181.45 9,057.81
Jun-07 262,545.19 3% 7,876.36 1,181.45 9,057.81
Jul-07 262,545.19 3% 7,876.36 1,181.45 9,057.81
Aug-07 262,545.19 3% 7,876.36 1,181.45 9,057.81
Sep-07 262,545.19 3% 7,876.36 1,181.45 9,057.81
Oct-07 262,545.19 3% 7,876.36 1,181.45 9,057.81
Nov-07 262,545.19 3% 7,876.36 1,181.45 9,057.81
Dec-07 262,545.19 3% 7,876.36 1,181.45 9,057.81
Jan-08 262,545.19 3% 7,876.36 1,181.45 9,057.81
Feb-08 269,952.60 3% 8,098.58 1,214.79 9,313.36
Mar-08 293,656.30 3% 8,809.69 1,321.45 10,131.14
Apr-08 293,656.30 3% 8,809.69 1,321.45 10,131.14
May-08 293,656.30 3% 8,809.69 1,321.45 10,131.14
Total 139,342.69
Similarly, the table below provides the wasted costs associated

with indirect staff and labour costs arising from the Head Office
overheads. The value of overheads is estimated to be 9%.
page 132
Mar-07 262,545.19 9% 23,629.07 3,544.36 27,173.43

Apr-07 262,545.19 9% 23,629.07 3,544.36 27,173.43
May-07 262,545.19 9% 23,629.07 3,544.36 27,173.43
Jun-07 262,545.19 9% 23,629.07 3,544.36 27,173.43
Jul-07 262,545.19 9% 23,629.07 3,544.36 27,173.43
Aug-07 262,545.19 9% 23,629.07 3,544.36 27,173.43
Sep-07 262,545.19 9% 23,629.07 3,544.36 27,173.43
Oct-07 262,545.19 9% 23,629.07 3,544.36 27,173.43
Nov-07 262,545.19 9% 23,629.07 3,544.36 27,173.43
Dec-07 262,545.19 9% 23,629.07 3,544.36 27,173.43
Jan-08 262,545.19 9% 23,629.07 3,544.36 27,173.43
Feb-08 269,952.60 9% 24,295.73 3,644.36 27,940.09
Mar-08 293,656.30 9% 26,429.07 3,964.36 30,393.43
Apr-08 293,656.30 9% 26,429.07 3,964.36 30,393.43
May-08 293,656.30 9% 26,429.07 3,964.36 30,393.43
Total 418,028.07
8.2.1.4. Summary of Wasted Costs
Item Category Amount
Staff and Labour 683,441.44

Equipment 2,729,888.31
Site Overheads Staff and Labour 37,067.84
Equipment 139,342.69
Head Office Overheads Staff and Labour 111,203.51
Equipment 418,028.07
Total 4,118,971.85
8.2.2.Additional Costs Arising from Acceleration

In order to recover part of the earlier delays the Contractor has
already implemented steps to improve and increase his staff,
labour and equipment.
At this juncture the Contractor has ordered and organised the

following additional resources shown in the table below.
page 133
Staff and Labour

5 Expatriate Workers 880,000.00 1,423,510.00
Equipment

4 JCB 70,000.00
Total additonal resources 1,958,701.00
8.2.3.Additional Costs in Extended Contract Period

The Contractor has entitlement to recovery of his indirect costs
arising in the extended contract period. These costs arise in the
period the Contract is extended as a result of critical delays.
Consequently, this allowance has no relation to additional

expenditure arising in the original contract period as a result of
non-critical delays. That is to say, those costs that are attributed
to delay and disruption, the first period, are separate to costs
flowing in an extended period, the second period.
The Contractor has entitlement to payment of additional indirect

costs in the period they arise. However, this recovery would
exclude his indirect costs not paid through his rates and prices
for doing the work which remain recoverable in the extended
period. These costs are detailed below:
page 134
Item Nature of Cost Fixed Variable PlannedCost ExtendedPeriod
1 Insurance 250,000.00 17,857.14 321,428.57

2 Foreign Staff, Labour Repatriation 450,000.00 32,142.86 578,571.43
3 Facilities for Staff and Labour 170,000.00 12,142.86 218,571.43
4 Measures against Insect and Pect Nuisance 60,000.00 4,285.71 77,142.86
5 Supply of Foodstuffs 660,000.00 47,142.86 848,571.43
6 Supply of Water 80,318.00 5,737.00 103,266.00
7 Shop Drawings 10,000.00 714.29 12,857.14
8 As-Built Documents 5,600.00 400.00 7,200.00
9 Temporary Site Office for Employers Consultants 65,250.00 0.00 0.00
10 Site Signboard 3,275.00 0.00 0.00
11 Access to Site 35,000.00 2,500.00 45,000.00
12 Site to be Tidy 12,727.00 909.07 16,363.29
13 Co-ordination 14,727.00 1,051.93 18,934.71
14 Site Records 3,275.00 233.93 4,210.71
15 Site Records 29,913.00 2,136.64 38,459.57
16 Safety Procedures 5,700.00 407.14 7,328.57
17 Security at Site 13,426.00 959.00 17,262.00
18 Contractors Site Operations 7,485.00 534.64 9,623.57
19 Site Radio Communication 11,725.00 0.00 0.00
20 Environmental Impact Assessment 5,000.00 0.00 0.00
21 Taking Delivery from NS 50,000.00 3,571.43 64,285.71
22 Contractors Temporary Accommodation 35,000.00 2,500.00 45,000.00
23 Superintendence 15,000.00 1,071.43 19,285.71
24 Transport of People 125,475.00 8,962.50 161,325.00
25 Contractors Equipment 365,000.00 26,071.43 469,285.71
26 Scaffolding 105,000.00 7,500.00 135,000.00
Total 3,218,973.43
8.2.4.Other Costs
The following activities caused the Contractor to incur additional
costs because of the changed events described in this
document. At time of preparing this submission these costs have
yet to be ascertained and will therefore, be part of future claim
submissions.
8.2.4.1. Procurement of Permanent Materials
The following table provides a summary of all major materials

ordered on the project to date. It will be noted that all major
materials required for 55 number villas are ordered although the
constraint to receiving the complete order is payment.
The inability to complete full payment to the supplier has been

explained in various notifications, particularly the Advance
recovery which is disconnected from progress payments. This
compounded an existing reduced income generated each month
because progress could not be achieved as planned due to as
example, unforeseen ground conditions.
page 135
Q uantity
Des c ription of Materials Ordered Date O rdered Amount rec eived B alanc e C omments
F OR AL L 55 VIL L AS
50K G bags P ortland C ement 2,800.00 04/04/07 300.00 2,500.00 B alance on order s ubject to payment to s upplier
P lywood for S huttering/R oofing 6,000.00 14/11/07 1,800.00 4,200.00 B alance on order s ubject to payment to s upplier
C rus her D us t 6,000.00 23/06/07 1,565.13 4,434.87 B alance on order s ubject to payment to s upplier
Aggregate 8,000.00 25/06/07 1,222.64 6,777.36 B alance on order s ubject to payment to s upplier
P las tering S and 1,000.00 16/07/07 80.00 920.00 B alance on order s ubject to payment to s upplier
150mm S oild concrete B locks 125,000.00 05/07/07 31,975.00 93,025.00 B alance on order s ubject to payment to s upplier
100mm Hollow concrete B locks 15,000.00 15/07/07 2,340.00 12,660.00 B alance on order s ubject to payment to s upplier
A252 W eld Mes h (R oadworks ) 912.00 14/05/07 162.00 750.00 B alance on order s ubject to payment to s upplier
High tens ile s teel-8,10,12,16,25mm (tons ) 500.00 14/01/07 158.00 342.00 B alance on order s ubject to payment to s upplier
C edar S hingles (s qm) 12,757.64 03/05/07 3,712.00 9,045.64 B alance on order s ubject to payment to s upplier
Iroko timber (external cladding) L M 54,198.00 07/05/07 1,548.00 52,650.00 B alance on order s ubject to payment to s upplier
12mm G yps um boards (S H E E T S ) 5,600.00 03/02/07 5,600.00 0.00 Awaiting for other building from I.D
S tainles s s teel threaded rods 12,16mm 16,300.00 09/11/07 8,110.00 8,190.00 B alance on order s ubject to payment to s upplier (Not B .O .Q item)
S tainles s s teel gus s et plates (variation) 450.00 09/11/07 50.00 400.00 B alance on order s ubject to payment to s upplier (Not B .O .Q item)
B alau T imber (L M) 169,074.50 08/06/07 6,148.16 162,926.34 B alance on order s ubject to payment to s upplier
T reated P ine T imber (L M) 94,148.50 20/04/07 43,225.50 50,923.00 B alance on order s ubject to payment to s upplier
Consequently, it is likely initial materials ordered and not

secured by full payment will attract a different cost at a later
date. The additional cost arising is not the responsibility of the
Contractor. These costs will be identified and evidenced at a
later date as they arise.
8.2.4.2. Temporary Materials including Equipment
A similar situation exists with temporary materials whereby

orders could not be made to enhance productivity at Site.
8.2.5.Finance Costs
The additional costs defined within the preceding sections of this
chapter on claim for additional payment have been borne and
financed by the Contractor. The Contractor has paid the costs
by obtaining bank loans or overdrafts, or by the use of working
capital that would have been employed in profitable work. These
financing costs are an additional cost incurred as a
consequence of the circumstances herein and, become part of
the reimbursable sum.
The Contractor has carried this additional cost since the outset
of the Contract to the present date, end of May 2008, a period of
about 14 months.
Compound interest over this period is against the heads of cost

amount to:
page 136
Month Labour Equipment Sub-total SiteO/H H/Q Total Sub-total Total
Mar-07 26,831.00 262,545.19 289,376.19 3.00% 9.00% 12.00% 34,725.14 324,101.33

Apr-07 47,046.00 262,545.19 309,591.19 3.00% 9.00% 12.00% 37,150.94 346,742.13
May-07 52,890.00 262,545.19 315,435.19 3.00% 9.00% 12.00% 37,852.22 353,287.41
Jun-07 60,384.00 262,545.19 322,929.19 3.00% 9.00% 12.00% 38,751.50 361,680.69
Jul-07 60,984.00 262,545.19 323,529.19 3.00% 9.00% 12.00% 38,823.50 362,352.69
Aug-07 61,812.00 262,545.19 324,357.19 3.00% 9.00% 12.00% 38,922.86 363,280.05
Sep-07 61,812.00 262,545.19 324,357.19 3.00% 9.00% 12.00% 38,922.86 363,280.05
Oct-07 67,056.00 262,545.19 329,601.19 3.00% 9.00% 12.00% 39,552.14 369,153.33
Nov-07 80,944.00 262,545.19 343,489.19 3.00% 9.00% 12.00% 41,218.70 384,707.89
Dec-07 86,068.00 262,545.19 348,613.19 3.00% 9.00% 12.00% 41,833.58 390,446.77
Jan-08 86,709.00 269,952.60 356,661.60 3.00% 9.00% 12.00% 42,799.39 399,460.99
Feb-08 85,629.00 293,656.30 379,285.30 3.00% 9.00% 12.00% 45,514.24 424,799.53
Mar-08 90,629.00 293,656.30 384,285.30 3.00% 9.00% 12.00% 46,114.24 430,399.53
Apr-08 90,629.00 293,656.30 384,285.30 3.00% 9.00% 12.00% 46,114.24 430,399.53
May-08 115,007.00 0.00 115,007.00 3.00% 9.00% 12.00% 13,800.84 128,807.84
Period Principle Amount Interest Finance Total

Month/Year Days Monthly Cummulative Gross Rate Value Amount
Mar-07 31.00 324,101.33 324,101.33 324,101.33 11.00% 3,027.91 327,129.23

Apr-07 30.00 346,742.13 327,129.23 673,871.36 11.00% 6,092.54 679,963.90
May-07 31.00 353,287.41 679,963.90 1,033,251.31 11.00% 9,653.11 1,042,904.42
Jun-07 30.00 361,680.69 1,042,904.42 1,404,585.11 11.00% 12,698.99 1,417,284.10
Jul-07 31.00 362,352.69 1,417,284.10 1,779,636.79 11.00% 16,626.20 1,796,262.98
Aug-07 31.00 363,280.05 1,796,262.98 2,159,543.03 11.00% 20,175.46 2,179,718.49
Sep-07 30.00 363,280.05 2,179,718.49 2,542,998.54 11.00% 22,991.49 2,565,990.03
Oct-07 31.00 369,153.33 2,565,990.03 2,935,143.36 11.00% 27,421.48 2,962,564.84
Nov-07 30.00 384,707.89 2,962,564.84 3,347,272.73 11.00% 30,263.01 3,377,535.74
Dec-07 31.00 390,446.77 3,377,535.74 3,767,982.51 11.00% 35,202.25 3,803,184.76
Jan-08 31.00 399,460.99 3,803,184.76 4,202,645.74 11.00% 39,263.07 4,241,908.82
Feb-08 28.00 424,799.53 4,241,908.82 4,666,708.35 11.00% 39,379.35 4,706,087.70
Mar-08 31.00 430,399.53 4,706,087.70 5,136,487.23 11.00% 47,987.46 5,184,474.69
Apr-08 30.00 430,399.53 5,184,474.69 5,614,874.22 11.00% 50,764.62 5,665,638.84
May-08 31.00 128,807.84 5,665,638.84 5,794,446.68 11.00% 54,134.42 5,848,581.10
Total Amount 415,681.34
Finance Costs will continue on this amount and in the remaining

contract period unless these additional costs are paid.
8.2.6.Grand Summary
The additional costs defined within the preceding sections of this
chapter are summarised below:
page 137
Gategory of Additional Cost Amount
Wasted Monthly Costs in Original Contract Period 4,118,971.85

Acceleration Costs 1,958,701.00
Finance Costs in Period 415,681.34
Extended Costs 3,218,973.43
Total Additional Costs to May 2008 9,712,327.62
page 138
9. Statement of Claim
During the course of performing the Contract Works to May
2008, the Contractor has drawn the Project Manager’s attention
to the fact that the Employer has deviated from certain of the
contractual requirements established in the Contract. He has
required the Contractor to perform the Contract Works in a
manner significantly different from that laid down in the Contract
Conditions and Specifications. These deviations are:
1. The Project Manager failed to provide setting out data in

variance to the Contract or the timing depicted on the
Programme of Works;
2. The Project Manager unnecessarily instructed a partial

suspension of the Works;
3. The Project Manager did not issue construction design

details in accordance with the Contract or the Contract
Programme of Works;
4. The discovery of significant had rock at many of the Villa

locations, which occurrence is an unforeseen condition as
allowed and described in the Contract;
5. The Project Manager did not issue construction design

details free from significant errors in accordance with the
Contract; and
6. The Project Manager has not properly measured, valued,

or paid for changes to the scope of work in respect of
additional time and cost.
The Contractor is entitled to payment, in respect of the

above matters for the reasons stated. In addition he is also
entitled to an extension of time all as summarised below:
Head of Claim EOT Months Value

Extension of time (31 May 08 – 31Jan 09) 20 3,218,973.43
Wasted Costs to May 2008 In period 4,118,971.85
Acceleration Costs In extended period 1,958,701.00
Finance Costs To May 2008 415,681.34
Total Entitlement USD 9,712,327.62
page 139
10.Appendices
10.1. Wasted Costs

10.1.1. Record of Resources – Staff and Labour
10.1.2. Record of Resources – Equipment
10.1.3. Direct and Indirect Costs

The following table provides figures from the Contractor’s
audited accounts.
The next table shows the average indirect costs for the head
office (Victoria, Mahe) and site office expressed as a
percentage. The Contractor expects to recover as a return on
turnover, approximately 9% on the head office costs and 3% for
the site office costs.
page 140
10.2. RFI and RFA

ID Date Reference From To Subject EventType Location EventDescription Notes
Roof trusses - Stainless steel Contractor requested for detailed PM stated the designs shall follow
plates - Detailed drawings Request for designs for stainless steel plates forthose of the mock up villas already
001 10-Mar-08 RFI-001 Island Construction Polus Investments required Information Villas & Buildings all the remaining buildings constructed
Contractor requested the detailed PM provided the required information
Thermal Roof Insulation - Request for Mock up villas and design and insulation details for on 16 Mar '08. Information was
002 10-Mar-08 RFI-002 Island Construction Polus Investments Design details required Information other buildings thermal roof insulation required by 15 March 2008
PM provided clarification on 13 March
A3 Villas - Decking Span - Request for Contractor requested clarification on 2008. Information was required by 15
003 12-Mar-08 RFI-003 Island Construction Polus Investments Clarification Required Information A3 Villas the span of the timber decking March 2008
Request for clarification on Request for Contractor requested clarification on
004 10-Mar-08 RFI-004 Island Construction Polus Investments socket position at B2/03 Information B2/03 the socket position at B2/03 Clarification provided
A3 Villas - Lanai screens - Request for Contractor requested design for Clarification provided on 13 Mar '08.
005 12-Mar-08 RFI-005 Island Construction Polus Investments designs required Information A3 Villas lanai screens Information was required by 15 Mar '08
All Villas – Bathroom Entrance
Door Type DO.02 – Infill Clarification required on the
Bamboo Resin Panel – Request for descrepancy in sizes of the bamboo
006 12-Mar-08 RFI-006 Island Construction Polus Investments Discrepancy in Size Information Villas resing panel Clarification provided
Clarification required on the
Mock Up Villas – Window Sill & desrepancy in sizes of window sill
Lining Details – Cut Stone Request for Mock up villas A3/32 shown in the desgn and the one Clarification provided on 16 Mar '08.
007 13-Mar-08 RFI-007 Island Construction Polus Investments Cladding – Discrepancy in Size Information and B2/03 supplied Information was required by 16 Mar 08
Ironmongery – Supplier – Other Request for Further contact details of

008 14-Mar-08 RFI-008 Island Construction Polus Investments Contact Details Required Information Villas ironmongery supplier required Not yet provided
page 141
10.3. Correspondence
ID Date Reference From To Subject EventType Location EventDescription Notes
PS, Ministry of Concessions Granted for the Shangri-La Resort Concessions granted during the
001 05-Jul-07 FIN/PS/POLUS/83 Finance Polus Investments Project Information Project construction phase of the project
Environment Visit Report - 10 Shangri-La Resort Contractor's response to
002 11-Jul-07 LIHRD/env/05 Island Construction Polus Investments July 2007 Environmental Project Environmental visit report
Quotation for Retaining Wall
along CHI-SPA Shangri-La Resort Quotation for Retaining wall along
003 30-Aug-07 LIHRD/VO/01 Island Construction Polus Investments area/Restaurant Area Quotation Project CHI-SPA area/Restaurant area
Shangri-La Resort PM requested to approve the list of
004 30-Aug-07 LIHRD/VO/02 Island Construction Polus Investments List of Variations Variations Project variations
Shangri-La Resort New rates for boat transport as a
005 03-Sep-07 Angel Fish Island Construction New Rates for Boat Transport Information Project result of increased fuel prices
Shangri-La Resort Schedules for boat transport from
006 12-Sep-07 Island Construction Angel Fish Transfer Boat to Long Island Information Project Mahe to Long Island and back
Inquiry from Independent Shangri-La Resort Submission of the company's
007 19-Sep-07 Island Construction Polus Investments Engineer Information Project technical profile
Instructed variations and changes are
being made prior to reaching
agreement on the price contrary to
terms and conditions of the contract.
Lump Sum Contract Price - There exists disparities between BQ
Variations to Scope of Works - Shangri-La Resort Request for Employer's agreement to quantities and quantities measured
008 24-Oct-07 Island Construction Polus Investments Instructions Variations Project payment of changes and variations from construction drawings.
Timing and sequence for the mock up

villas is not allowed in the POW,
material procurement and labour
The requirement to complete Mock requirements are in variance to original
up villas is a variation. Detailed planning, advance construction of the
particulars of associated delays and mock-up villas continues to be an
Mock-up Villas - Variation Variation & Shangri-La Resort additional costs shall be submitted impediment on the rate of progress for
009 24-Oct-07 Island Construction Polus Investments Instruction - Additional Costs Notification Project once ready other parts of works.
Disagreement to Minutes of meeting
No. 23 and all previous minutes.
Minutes of Meeting No.23 - Proposal by the Contractor to verify The minutes are in Contractor's view
Recorded Minutes - Not Shangri-La Resort and comment on the minutes before inaccurate and have not received
010 24-Oct-07 Island Construction Polus Investments Approved Information Project circulation Contractor's concurrence.
Notification of Contractor's
Suspension of Works- entitlement to time extension and In addition, the Contractor awaits PM's
Extension of Time & Additional Shangri-La Resort additional costs occassioned by instruction to proceed with all the works
011 26-Oct-07 Island Construction Polus Investments Payment-Notice Notification Project suspension of works. affected by the suspension notice
Notification of delay and disruption The changes constiture variation.
Setting Out - Late Instructions & Notification & Shangri-La Resort occassioned by varied location, Associated delays and costs to be
012 26-Oct-07 Island Construction Polus Investments Variations - Additional Costs Variation Project position and orientation of buildings submitted once ready
Request for PM's concurrence with
Advance Payment - Unfixed Contractor's intention to raise a
Materials & Goods - Payment Shangri-La Resort separate statement for payment of
013 26-Oct-07 Island Construction Polus Investments Application Payment Project Unfixed Materials and Goods
Shangri-La Resort Quotation for earth filling to CHI-SPA
014 26-Oct-07 Island Construction Polus Investments Earth Filling to CHI-SPA area Quotation Project area
page 142
Shangri-La Resort
015 26-Oct-07 Island Construction Polus Investments Quotation for Rock Excavation Quotation Project Quotation for rock excavation
Contractor maintains changes in the

location, position and orientation of
buildings constitute variation, hence
delays and additional costs, detailed
Setting Out - Late Instructions & Shangri-La Resort particulars of which will be submitted
016 29-Oct-07 Island Construction Polus Investments Variations - Additional Costs Variation Project once available
Contractor maintains he has

Suspension of Works- entitlement to extensions of time and
Extension of Time & Additional Shangri-La Resort recovery of costs due to suspension.
017 29-Oct-07 Island Construction Polus Investments Payment-Entitlement Determination Project Awaiting PM's determination
Programme - Revision 1 Dated
6th Nov 2007 - Progress of Programme of Shangri-La Resort Submission of Revised Programme
018 19-Nov-07 Island Construction Polus Investments Works Works Project of Works
Interim Statement No. 3 - Issue

of Interim Payment Certificate - Shangri-La Resort Undercertification shall subsequently
019 19-Nov-07 Island Construction Polus Investments Contract Procedure Payment Project attract finance costst
Cash Flow Forecast - Advance Shangri-La Resort

020 19-Nov-07 Island Construction Polus Investments Repayment - Ammendment Cash Flow Project Ammended cash flow forecast
Shangri-La Resort
021 20-Nov-07 LIHRD/PC/05 Island Construction Polus Investments Interim Statement No. 3 Statement Project Application for Payment for works
The Contractor claims extension of
Extension of Time for time for completion up to 8 Dec 08
Completion-First Interim Shangri-La Resort and additional costs amounting to
022 21-Nov-07 Island Construction Polus Investments Entitlement-Claim Claim Project US$ 857,145.00
Ammeded cash flow forecast
Cash Flow Forecast - Advance consequent to the extended contract
Repayment - Proposed Shangri-La Resort period as per the revised programme
023 21-Nov-07 Island Construction Polus Investments Revisions Cash Flow Project of works
Clarification on time and money
issues contained in the minutes and
notification of intention to submit
Minutes of Meeting Nr. 27 - Clarification & Shangri-La Resort additional costs for acceleration of
024 21-Nov-07 Island Construction Polus Investments Clarification - Notice Notice Project works
Contractor requests a Variation
Variations & Adjustments - Meeting to discuss and agree on all
Instructed Changes & Additions Claims & Shangri-La Resort the variations and claims on the The Variations and claims identified so
025 23-Nov-07 Island Construction Polus Investments - Measurement & Evaluation Variations Project project to date far are listed
PM states it is the Contractor who
suspended the works hence refuse to The PM encloses previous email
Shangri-La Resort approved any Extension of time and correspondences with the Contractor
026 23-Nov-07 E-01-23.11.07 Polus Investments Island Construction Suspension of works Claim Project Additional Costs over the issue
Shangri-La Resort PM will endeavour to issue meeting

027 23-Nov-07 E-01-23.11.07 Polus Investments Island Construction Minutes of Meeting Information Project minutes by every Wednesday
page 143
Instruction to vary any part of the

works whether for the specification or PM agrees to have mutual
Measurement and Payment for Shangri-La Resort quantities is additional work entitled measurement of variation and payment
028 23-Nov-07 E-03-23.11.07 Polus Investments Island Construction Variations Variations Project to additional payment thereof
Shangri-La Resort The PM states mock up villas do not
029 23-Nov-07 E-04-23.11.07 Polus Investments Island Construction Mock-up Villas Variations Project comprise variation
Shangri-La Resort All communications must be
030 23-Nov-07 E-05-23.11.07 Polus Investments Island Construction Clients Address Address Project addressed to the Project Manager
Setting out at Site - Changes in Variation & Shangri-La Resort PM requires detailed particulars for
031 23-Nov-07 E-06-23.11.07 Polus Investments Island Construction Positions, Orientation Claim Project associated delays and costs
PM awaits detailed document
Clarification & Shangri-La Resort regarding Variations and claims so
032 23-Nov-07 E-07-23.11.07 Polus Investments Island Construction Minutes of Meeting Notice Project far identified
Variations & Adjustments -

Instructed Changes & Additions Shangri-La Resort PM agrees to value changes in
033 04-Dec-07 E-09-04.12.07 Polus Investments Island Construction - Measurement & Evaluation Variations Project design and quantities as Variations
Interim Statement No.3 - Issue The Invoice required is not

of Interim Payment Certificate - Shangri-La Resort contractual but solely for accounting
034 04-Dec-07 E-08-04.12.07 Polus Investments Island Construction Contract Procedure Payment Project purposes
Contractor proposes the amount in

General Contractor's the Performance Security is reduced
Obligations-Performance Performance Shangri-La Resort equal to the amount of cover included
035 07-Dec-07 Island Construction Polus Investments Security-Reduction of Amount Security Project in the EME's performance security
The Letter of Acceptance takes

priority over the conditions of
contract. As such, in practice it
means that no variation arising from
Variations & Adjustments - aditional work or design change can
Instructed Changes & Additions Shangri-La Resort commence prior to receiving the
036 08-Dec-07 Island Construction Polus Investments - Measurement & Evaluation Variations Project agreement of the Employer
Shangri-La Resort
037 19-Dec-07 E-13-19.12.07 Polus Investments Island Construction List of Plants for A3/32 - B2/03 Landscaping Project Enclosed list of plants
The PM can still issue a payment
Interim Statements for Payment certificate even when the amount falls
- Issue of Interim Payment Shangri-La Resort below the minimum payable by the
038 24-Dec-07 Island Construction Polus Investments Certificate-Payment Payment Project Employer
Contractor maintains Mock-up villas

is a variation because the
Mock-up Villas - Variation Shangri-La Resort procurement process is in complete
039 24-Dec-07 Island Construction Polus Investments Instruction - Additional Costs Variation Project variance to original planning
Shangri-La Resort
040 15-Jan-08 Polus Investments Island Construction Specification for Door panelling Specification Project Specification for door panelling
Environment Visit Report - 13 Shangri-La Resort Contractor required to take necessary

041 17-Jan-08 E-14-17.01.08 Polus Investments Island Construction Dec 2007 Environmental Project measures to improve the situation
page 144
Environmental - Monitoring visit

for Class 1 Project and SPA at Shangri-La Resort Steps being taken to address the
042 21-Jan-08 Island Construction Polus Investments Long Island Environmental Project environmental issues
Roof structure gusset plate Shangri-La Resort The proposed 4.5mm thick gusset
043 22-Jan-08 Island Construction Polus Investments design Design Project plate is appropriate for use
Shangri-La Resort
044 29-Jan-08 Polus Investments Island Construction Revised cash flow Cash Flow Project PM forwards a revised cashflow
Shangri-La Resort PM requires the mock-up villas

045 29-Jan-08 E-14-29.01.08 Polus Investments Island Construction Mock-up Villas - Variation Variation Project completed as per original programme
Shangri-La Resort Payment has been made to the Main
046 30-Jan-08 E-15-30.01.08 Polus Investments Island Construction Certification and Payment Payment Project Contractor
Shangri-La Resort
047 30-Jan-08 Polus Investments Island Construction Approved Balustrade Design Project Pictures of approved balustrade
Shangri-La Resort 2 Hard copies of the statement
048 04-Feb-08 E-16-04.02.08 Polus Investments Island Construction Statement Statement Project required
Minutes of meeting between Zsolt
Shangri-La Resort and Wilson. Action by Contractor
049 06-Feb-08 Polus Investments Island Construction Site Issues General Project required
Shangri-La Resort
050 07-Feb-08 Island Construction Polus Investments Site Issues General Project Response to issues raised above
Programme of Shangri-La Resort Contractor required to submit revised
051 13-Feb-08 E-18-13.02.08 Polus Investments Island Construction Revised Programme of works Works Project programme of works
The negative amount reflects very

slow progress at site. Submit revised
Payment Certificate & Rate of Shangri-La Resort POW and supporting report outlining
052 13-Feb-08 E-19-13.02.08 Polus Investments Island Construction Progress Certificate Project methods to expedite progress
Nominated Subcontractor EME Existing contractual matters that

Overseas Ltd - Design and prevent execution of agreement
Build Subcontract Conditions - Shangri-La Resort between Island Construction Pty ltd
053 26-Feb-08 Island Construction Polus Investments Objection to Nomination Subcontract Project and EME overseas
Suspension of Works -
Extension of time and Entitlement to Extensions of time and
Additional Payment - Suspension of Shangri-La Resort additional payment arising from
054 27-Feb-08 Island Construction Polus Investments Entitlement Works Project instruction to suspend works
Delaying Events Shangri-La Resort Delaying Events and Proposed
055 01-Mar-08 Island Construction Polus Investments Situation Report Details Project Financial Arrangements
Delaying Events & Changed
Circumstances - Revised
Programme of works - Request for
Extension of time for Extension of Shangri-La Resort Request for extension of time for
057 14-Mar-08 Island Construction Polus Investments completion Time Project completion to 24 March 2009
Cash Flow Forecast - Advance Revision of
Repayment - Proposed Advance Shangri-La Resort Proposed amendment of cashflow
058 19-Mar-08 Island Construction Polus Investments Revision Recovery Project with revised advance recovery
Shangri-La Resort
059 07-Apr-08 Island Construction Polus Investments Extension of time Time Extension Project Detailed particulars required
page 145
Interim Report on Programme Programme & Shangri-La Resort Report on Programme of Works and
056 08-Apr-08 Island Construction Polus Investments of Works, Progress & Valuation Valuation Report Project Request for Time Extension
PM responds to ICCL's objection to
Shangri-La Resort enter into nominated subcontract with
060 09-Apr-08 E-18-09.04.08 Polus Investments Island Construction Nominated Subcontractor Subcontract Project EME
Nominated Subcontract -
Subcontract Agreement - Shangri-La Resort Reason for Objection of nominated
061 14-Apr-08 E-17-07.04.2008 Polus Investments Island Construction Reason for Objection Subcontract Project subcontract agreement
Extension of Time for
Completion - First Interim Detailed Request for approval to submit
Entitlement - Detailed particulars for Shangri-La Resort detailed particulars within 45 days
062 15-Apr-08 Island Construction Polus Investments Particulars Extension of time Project from 15 April 2008
Shangri-La Resort Statement for works done up to End
063 15-Apr-08 Island Construction Polus Investments Interim Statement Nr. 08 Statement Project of March 2008
Interim Statement Nr. 08 -
Materials On & Off site - Shangri-La Resort Amended statement incorporating off
064 17-Apr-08 Island Construction Polus Investments Amendment Statement Project site Balau timber
Landscaping - Additional Work - Shangri-La Resort Confirmation of oral instruction to

065 17-Apr-08 Island Construction Polus Investments Confirmation of Oral Instruction Additional Works Project execute landscaping works
Delay to Completion - Recovery
Programme - Approval to Shangri-La Resort Request for approval to accelerate
066 21-Apr-08 Island Construction Polus Investments Accelerate Programme Project works
PM states ICCL has not
Extension of Shangri-La Resort demonstrated entitlement to time
067 02-May-08 E19-02.05.08 Polus Investments Island Construction Delays Time Project extension
Shangri-La Resort
068 05-May-08 E-21-05.05.08 Polus Investments Island Construction Valuation Certificate Payment Project Valuation certificate No. 08
Shangri-La Resort
069 06-May-08 Island Construction Polus Investments Interim Payment - Invoice No. 7 Payment Project Invoice for Interim Payment
Valuation No. 8 - Cession of
Right for Material On and Off Shangri-La Resort Cession of right for materials on and
070 07-May-08 Island Construction Polus Investments Site Materials On Site Project off site
The Employer is contemplating
Programme of Shangri-La Resort engaging others to expedite progress
071 09-May-08 E20-09.05.08 Polus Investments Island Construction Accelerative measures Works Project of works
Programme of Shangri-La Resort PM outlines ways of putting the
072 12-May-08 E21-12.05.08 Polus Investments Island Construction Recovery Measures Works Project recovery measures into effect
Employer proposes the contractor

engages in discussions with PM on
Delays and Completion of Shangri-La Resort the ammendment of the contract and
073 19-May-08 Polus Investments Island Construction works Delays Project the remedial measures
Claim for Time and Additional
Payment - Entitlement - Shangri-La Resort ICCL informs PM detailed particulars
074 28-May-08 Island Construction Polus Investments Determination Claim Project will be submitted on 09 June 2008
page 146

First Draft 013 June 08 - Final

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

First Draft 013 June 08 - Final

Uploaded by

Copyright:

Available Formats

Polus Investments (Seychelles) Limited

Shangri-La Resort at Long Island

First Interim Request for

Island Construction (Pty) Ltd

3.3.3.2.1. Technical Variations..................................................................37

During the course of both the Employer’s design and the

For the Contractor, this is an important matter. He needs the

The Contractor’s further view is that Site conditions are in

As will be seen from the sections following this introduction, the

All of these factors have caused the Contractor to have to carry

As will be seen from the following sections of this claim, almost

1.2. Purpose of this Document

The Contractor has made a number of notice submissions to the

We acknowledge receipt of the Employer’s letter dated

In summary we disagree entirely with all interpretations,

In our letter of 14 April 2008 we indicated a time to

The purpose of this document is, therefore, to provide the

 The delays and disruption experienced to May 2008 and

 The extensions time for completion requested by the

for which the Employer is contractually liable.

1.3. Scope of this Document

1. Causes of delay and disruption to the Works;

2. Impact of these causes on contract completion;

3. Contractual position regarding the Contractor’s

4. Consequences of delay and disruption in terms of the

The scope of this claim submission is limited to known events to

2. The Structure of the Contract

2.1. The Contract Existing

In practice this is inoperable and this soon became evident at

In a letter dated 24 October 2007 the Contractor gave notice:

Two important matters require your confirmation:

First, we draw your attention to the changes and

Secondly, we have reviewed the estimated quantities in

In conclusion, we require the Employer’s agreement to

In a further letter dated 23 November 2007 the Contractor

This Contract contains specific conditions in regard to

In particular it states that “the lump sum contract price

It further states that “Any changes in the design, which

Essentially this means a new or varied price or rate for all

 Introduce a design change;

 Introduce additional works, and

 Introduce an increase in the scope of work beyond

As such, the purpose of this letter is to record several

At this juncture we have identified the following Claims

1. Additional costs associated with delay and

2. Additional costs associated with the Project

3. Additional costs arising from delays caused by

4. Additional costs in excavation of hard rock and

5. Additional costs that arise due to the

6. The increase in size of structural timber to roof

7. Door timber type and finishing specifications

8. Window timber type and finishing specifications

9. Ironmongery specifications have changed and

10. Structural galvanised steel plates have changed

11. Increased costs arising from additional site work

This meeting must also acknowledge and agree the

 Excavation in common material;

 Concrete in foundations to suit varied

 Reinforced concrete in columns, ring beams

In addition, all lump sums for works for which detailed

valued using detailed design drawings received in

Please confirm as soon as possible when a meeting can

The last letter with regards Variations and increased scope of

We acknowledge receipt of your letter dated 4 December