DELAYS,DISRUPTIONSANDEOT

August02, 2012

UNDERSTANDINGEOT,DELAYS,DISRUPTIONANDCAUSE&EFFECT & NECESSARYDOCUMENTS/RECORDS FOR ANEXTENSIONOFTIME,RECOVERYOFADDITIONALCOSTSFOR DELAYSANDDISRUPTION

1. UNDERSTANDINGDELAYS,EOTANDCAUSEANDEFFECT

ProjectManager(s)mustcleartheirunderstandingwithrespecttotheContractors entitlementstoDelay,ConcurrentDelays,Disruption,ExtensionofTimeandCause&Effect (plannedvsactual).Thesearebrieflyhighlightedasfollows:

Programmes/Scheduleand Records EntitlementtoExtensionof Time(EOT) Programme/Scheduleshouldbeupdatedregularlytorecordtheactual progressandanyextensionoftimegranted. TheContractorwillpotentiallybeentitledtoanEOTonlyforthose eventswhichqualifyastheemployerriskEvent. IfasaresultofanEmployerDelay,theContractorispreventedfrom completingtheworkaspertheContractor'splannedcompletiondate, theContractorshallinprinciplebeentitledtobepaidthecostsdirectly causedbytheEmployerDelay. ConcurrentDelaysshallnotreduceEOTforanyContractor'sdelays. Disruptionisdisturbance,hindrance,interruptiontoaContractor's normalworkingmethodsresultinginlowerefficiency.TheContractoris entitledtoclaimcompensationfromtheEmployeragainstsuchevents. Detailsofplannedworksaffected,plannedsequence,durationand methodology,worksstatusofplannedvsactual,describingthechange tothatofplannedasaconsequenceoftheevent.

EmployerRiskEvent

ConcurrentDelays Disruption

CauseandEffect

2.

IMPORTANCEOFKEEPINGRECORDS

ProjectManagersmustestablishapropersystemonSiteforkeepingrecordsofeventsand theireffectsastheyoccur.Thetypeofrecordsthatneedtobekeptwillbecombinationof recordsthatrelatetospecificproblemsastheyoccur;andthoserecordsthatshouldberegularly keptonallthetime.

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August02, 2012

a.

Recordsthatshouldalwaysbekept:
i. ii. ManpoweronSite,WorkProgressandInterruptions; LabourandPlantAllocationSheetshowingthelabourandplantallocatedtospecific tasksonadailybasisincludinglabourallocatedtoadditionalordisruptedworks; ActivitiesonSite,identifyingtherelevantContractors/Subcontractors(includingother ContractorsengagedbytheEmployer); ProductivityandOutputs,recordedagainstdifferentlocationsandtherelevant Contractor/subcontractor; OperatingPlantandEquipmentwhentheyweredeliveredtoandremovedfromSite; thenumberofhoursworked,idleordownforrepair;hirecharges,settingupcostsand runningcosts; RequestforInformationandapprovalsrequiredandreceived.Theseshouldbekept onapreagreedformatandnotmerelybywayofcorrespondence; DailyDiarytoincludedetailedSiteprogress,unusuallysiteconditions,delayevents andadditionalresources; InstructionsandOrdersgiven(writtenandoral).Wheneveraninstructionisissuedby theengineer/employerorhisagentverbally,itshouldbeconfirmedbythecontractor inwritingandkeptinaseparatefile; TestandInspections:whentheytookplaceandtheresults; ApprovalsandInspectionsformaterials,workmethods&designsandtheinspection ofworkandmaterials; Photographforalmostalldelayanddisruptioncasesdulydatedandlabeled; DrawingRegisteranuptodateregisterforalldrawingsandsubsequentrevisionsis essential; Delaysencountered;WeatherConditions;LawsandOrderSituation;and MinutesofMeetingsforallinternal/externalmeetings;

iii.

iv.

v.

vi.

vii.

viii.

ix. x.

xi. xii.

xiii. xiv.

Theinformationcanberecordedinanumberofwaysincludingregularprogressreports, progressmeetingminutes,correspondenceandnotices,regularlyupdatedprograms, progressphotographs,sitediaries,labourrecordsandInvoicesetc.Possiblythemost importantofthesearethemonthlyprogressreportsandmeetingminutesastheyare oftentakentobereliableindicationofwhatwashappeningatanytimeduringthe courseofaperiod.

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DELAYS,DISRUPTIONSANDEOT

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TherealityisthatboththeContractorsandtheEmployerlooksforopportunitiestoreduce theirexposureunderanyContract.TheEmployerswillbetakingeveryopportunityto refuseclaimsforextensionsoftime,disruptionofprogressandadditionalcosts.However ifacontractorcansubstantiateitsdelayeventsoradditionaltimeandcostsclaimswith properrecordsshowingitsentitlements,anemployerwillfinditmuchhardertodismiss theclaimsoutofhand. b. Recordstobekepttojustifyaspecificeventorcircumstances:

Theimportantpointaboutcontemporaryrecordsisthattheyariseatthetimeof theClaim.Theemphasisisverymuchupontheinstantaneouskeepingofrecordswhich documentstheeventsandcircumstancesatthattime.Someoftheimportanttaskspecific recordsare:

a. Recordtheeventorcircumstance; b. Recordtheeffectsoftheeventorcircumstanceonotheractivitiesdulysupportedwith records,progress,photographsetc; c. ImpactontheScheduleafterattemptingtomitigatethedelays,ifpossible; d. TheContractortoissueNotice(s)totheEngineerwithacopytotheEmployerunder theConditionsofContracttorecordtheeventorcircumstancegivingrisetotheClaim. Thenoticeshouldbegivenassoonaspracticable,andnotlaterthan28days,oras specifiedintheContract,aftertheContractorbecomeawareoftheeventor circumstances.Noticesshallbeissuedagainstallrelevantclauses.Thetimebar provisionsareintendedtobeconditionprecedenttotheContractorsClaimforan extensionoftimeandadditionalmoney. e. TheContractorshallkeepsuchcontemporaryrecordsasmaybenecessaryto substantiateanyclaim; f. Within28daysorasspecifiedintheContract,aftertheContractorbecomeawareof theeventorcircumstancegivingrisetotheclaim,theContractorshallsendtothe Engineerafullydetailedclaimwhichincludesfullsupportingparticularsofthebasisof theclaims.Thismaybesupplementedsubsequentlyatmonthlyintervals; g. TheEngineerisrequiredtoresponsewithintheperiodspecifiedinthecontract,with approvalordisapprovalanddetailedcomments;

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