Construction Management Engineering

EOT Claim Preparation | Extension of Time Claim Analysis [PDF]

Any construction project schedule is a sequence of a number of activities having a fixed duration. If there is a delay in any activity which lies on the critical path of the project schedule then it will delay the project completion date & will lead to time overrun. Time overrun is very important for project success. It may be due to the contractor’s fault, the client’s fault, interface contractor’s fault or due to force majeure. It’s necessary to analyze the cause of delay & if the delay is not due to the contractor’s fault than the contractor is entitled to the EOT.  EOT claim requires the involvement of different departments. This article discusses the protocols followed in claiming EOT  & suggests about the amendments to be taken to eliminate disputes in the process of claiming EOT.

Extension of Time in Construction (Time Impact Analysis Method)

As the project is evaluated through cost & time. The time taken to complete the project & cost incurred in project completion, the success of the project is estimated by these two main factors.

  1. Work schedule preparation including a narrative outline within 15 days of the notice to continue.
  2. First,3 months rolling schedule to be submitted within 30 days of the notice to proceed.
  3. Submission of a detailed version of the proposed initial work schedule within the employer consent.
  4. Submission of the baseline schedule after consulting with other interfacing contractors if any, against which actual progress of the contract shall be reckoned.
  5. Review by owner & program correction if any.
  6. Proper updating of the program.
  7. If the updated schedule indicates an actual or potential delay in the contract completion date or key dates, identify a cause of delays.
  8. Divide between fault and delay of the contractor due to the owner, contractor interface and delays of force majeure.
  9. Prepare evidence for the delay.
  10. Extension of Time claim on delays not due to the contractor’s fault after deduction of concurrent delays.
  11. Updating the baseline schedule on granting of an extension of time by the competent authority.

How to prepare a claim for an extension of time

When it becomes fairly evident that there is, or is likely to be, a delay that might merit an EOT (time extension), a formal letter is presented to the contract administrator requesting the extension of time, setting out the reasons and referring to the contract clause allowing the application.

Below is a brief on the preparation of an EOT claim preparation:

The contractor should record all events and issues that cause, appear to cause or have the potential to cause delay, including:

  • When the event occurred.
  • Reason for the event occurred.
  • The activities that it affected
  • The resources that it required
  • List of affected activities from the approved schedule.
  • Sketches, photographs, plans.
  • Communications related to possible delays between the construction team.

All time claims extensions should address the following:-

– EOT Claim should identify delay events

– For each event, the EOT claim should include liability

-Time extension should include cause and effect for each caset

– Concurrency (If found)

– Consideration needs to be given to who owns the float in the schedule and the effect this has on the revised Completion Date

– Delay analysis

There are  four groups categorizing most of the recognized extension of time (EOT) assessment techniques:

A- Impressionistic.
B- Simplistic.
C- Prospective analysis.
D- Retrospective analysis.

Download EOT Claim Preparation PDF

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