INTRODUCTION

This session will deal with two contractual areas frequently encountered when
administrating a contract and which if not properly dealt with might result in a great
lost to the Contractor in terms of both money and time (which incidentally also
translates back to money).
These areas are the provisions of the Contract, which deal with: a)
b)

Extension of time
Loss & Expense (as often referred to by us)

The best kept secret about these Clauses are that they are provided to provide
assistance to client and their removal will actually result in great difficulty to the
Client (sometimes the removal of these Clause would trap the client in a very
uncomfortable position, contractually). Therefore if ever the client implies that the
extension of time or loss and expense are for the contractors advantage, he should be
reminded that the actual case is otherwise.
However the importance of these Clauses to us, are that they provide a contractual
avenue to claim additional time and money without actually resorting to litigation.
The reason both these Clauses are being dealt together is because the claim arising
would normally lead to a claim in the other especially in the case of an extension of
time claim.
Therefore let us proceed with the examination of the various different standard
contract forms and the provisions dealing with extension of time and loss and
expense.
The examinations of these Clauses are to:
a)

identify the notification requirement

b)

set up Claim Action Plan and Procedures

c)

set up Claim Substantiation

d)

set up Record Keeping and Filing

e)

create Standard Correspondence and Forms

FIDIC FORM OF CONTRACT CONDITIONS

44.1 EXTENSION OF TIME FOR COMPLETION
In the event of: a)

the amount or nature of extra or additional work, or

b)

any cause of delay referred to in these Conditions, or

c)

exceptionally adverse climatic Conditions, or

d)

any delay, impediment or prevention by the Employer, or

e)

other special circumstances, which may occur, other than through a default of
or breach of contract by the Contractor or for which he is responsible,

being such as fairly to entitle the Contractor to an extension of the Time for
Completion of the Works, or any Section or part thereof, the Engineer shall, after due
'consultation with the Employer and the Contractor, determine the amount of such
extension and shall notify the Contractor accordingly, with a copy to the Employer.
44.2

CONTRACTOR TO PROVIDE NOTIFICATION & DETAILED

PARTICULARS

Provided that the Engineer is not bound to make any determination unless the
Contractor has: a)

within 28 days after such event has first arisen notified the Engineer with a
copy to the Employer, and

b)

within 28 days, or such other reasonable time as may be agreed by the

Engineer, after such notification submitted to the Engineer detailed particulars
of any extension of time to which he may consider himself entitled in order
that such submission may be investigated at the time.

44.3 INTERIM DETERMINATION OF EXTENSION

Provided also that where an event has a continuing effect such that it is not practicable
for the Contractor to submit detailed particulars within the period of 28 days referred
to in Sub-Clause 44.2(b), he shall nevertheless be entitled to an extension of time
provided that he has submitted to the Engineer interim particulars at intervals of not
more than 28 days and final particulars within 28 days of the end of the effects
resulting from the event. On receipt of such interim particulars, the Engineer shall,
without undue delay, make an interim determination of extension of time and, on
receipt of the final particulars, the Engineer shall review all the circumstances and
shall determine an overall extension of time in regard to the event. In both such cases,
the Engineer shall make his determination after due consultation with the Employer
and the Contractor and shall notify the Contractor of the determination, with a copy to
the Employer. No final review shall result in a decrease of any extension of time
already determined by the Engineer.

THE FIDIC FORM (FOURTH EDITION OF THE FIDIC FORM)

Currently enjoying wide usage among internationally financed project and other large
civil project and also is similar to Civil Engineering Works Form used by JKR.
The above Clause allows for extension of time to be claimed for the reason stated.
However, any other event arising due to reasons beyond the control of the Contractor
would also entitle him to an extension of time, the main reasons are
a)

extra or additional work arisen a result of a variation

order.

b)

change in quality, kind or character of any such work.

c)

inclement of weather.

d)

delay in providing information or instruction by the

client/representative.

e)

unforeseen physical or artificial obstruction.

f)

delay in clarifying discrepancies or ambiguities in the contract document.

g)

delay as a result of an Engineer's instruction which - could

not have been reasonably foreseen at the time of tender.

h)

change in construction method from that which would have been reasonably
used for the said works as would have been contemplated at the time of tender.

i)

delay from independent contractors or caused by additional

work related to the said contractors.

j)

delay from Nominated Subcontractor or Nominated Suppliers.

k)

delay due to the suspension of work.

1)

failure to give full and vacant, possession on time.

m)

act of God.

n)

force majeure.

o)

strike.

p)

lockout or civil commotion.

r)

other reason beyond the control of Contractor.

NOTIFICATION
a)

i)
ii)

The Contractor is to notify the Engineer and;

send a copy of the notice to the Employer.

b)

The notice is to be sent within 28 days from the commencement of the event.

c)

The submission of detailed particulars of the extension of time within 28 days

from the date of notification. However, the Engineer may extend the duration
required for the submission of the detailed particulars.

i)

If however the event is continuing and therefore making it not practicable to

submit the details within 28 days as above.

ii)

There can be interim submission at intervals of not more than 28 days, and

iii)

Not later than 28 days after the end of the event the final substantiations has to
be submitted.

ACTION PLAN AND PROCEDURES

1)

2)

Upon identification of an event that would likely result in an extension of a

time a notice has to be prepared and send: a)

the original to the Engineer.

b)

a copy to the Employer.

The compilation of all related documentary evidence

a)

letters from the Engineer.

b)

letters from any third party employed by the Employer.

c)

letters from the Nominated Subcontractor or Nominated

Suppliers.

d)

document from authorities related to the event.

CLAIM SUBSTANTIATION
There is no specific requirement, which means that there must be adequate evidence
of: a)

the total amount of delay claimed.

b)

the related action of all parties including ours.

c)

specific documentation related to the event.

RECORD KEEPING AND FILING

All copies of documents to be filed in one file and all related documents subsequently
received also should be filed (copies of such documents) in the same file.
All claims should be recorded and kept in the standard form as in Appendix A.

Standard Correspondence
Dear Sir
CONTRACT:
SUBJECT: APPLICATION FOR EXTENSION OF TIME
We herewith make application for extension of time pursuant to Clause 44 of the
Conditions, having previously given notice of our intention to claim for delay by
cover of our letter/letters datedand now noting the consequence of such
delay/delays to be reasonably apparent.
The circumstances giving rise to delay/most recent circumstances giving rise to delay
are.
This delay/[and] delays previously notified arise(s) on the ground of: Clause

Reason
Clarification of ambiguity.
Late receipt of setting out information.
Late receipt of drawings.
Late receipt of details.
Late receipt of bending schedules.
Encountering physical or artificial obstruction
which could not have been reasonably foreseen
by an experienced Contractor.
Compliance with an Engineer's instruction
causing delay that could not reasonably have
been foreseen by an experienced Contractor at
the time of tender.
Late consent to the proposed method of construction.

Time in
Weeks

Clause

Reason

Time In
Weeks

The putting forward of methods of construction for the Engineer's

approval the nature and complexity of which could not reasonably
have been foreseen by an experienced Contractor at the time of the
tender.
Limitation imposed on the methods of construction to comply with
design criteria supplied by the Engineer and not made available at the
time of tender.
Correction of setting out-of the works due to errors attributable to
wrong setting out information provided by the Engineer.
The making of boreholes or carrying out of exploratory excavation not
provided for under the Contract.
Making good damages, loss or injury attributable to an excepted risk.
Carrying out varied work to obtain compliance with a statute,
ordinance, law regulation or byelaw.
Delay by an independent Contractor or duly constituted authority.
Provision of facilities for independent Contractor or duly constituted
authority.
Suspension of work or part of the work.
Suspension of work or part of the work arising due to no fault of the
Employer.
Non-availability of the site or part of the site.
Increase in quantities due to a variation (Clause.).
Due to a variation in accordance to the conditions of contract
(Clause)

Clause

Reason

Time In
Weeks

Exceptionally adverse climatic conditions.

Strike or lock-out not caused directly by the unreasonable

action of the Contractor being a special circumstance.

Non-availability of Employer - supplied free issue materials

being a special circumstance.

A special circumstance in the form of

Total/Cumulative total of weeks
applied for

We deem all these week/s of these week/s. rate for an

additional payment pursuant to Clause 53 of the Conditions, the appropriate
notice/notices having been previously given.
Yours faithfully
Note: - All events marked with an asteric (+) will also lead to a claim in loss and/or
expense, and item marked with a will be items for which the cost of the event has
to be borne by the Contractor.

Standard Correspondence

Dear Sir
CONTRACT:
SUBJECT: NOTICE FOR THE EXTENSION OF TIME
We herewith give notice of our intention to claim for extension of time pursuant to
Clause 44 of the condition of contract. This event which causes this delay commenced
on..and is still continuing/or ended on the
The delay circumstance-giving rise to the delay or- most recent circumstance-giving
rise to the delay is: Clause

Reason

Time
In Weeks

We will submit further details to substantiate this claim within..

day in accordance to the Clauseof the conditions of
contract.
*
Notice is also given that we shall pursuant to Clause make a claim for loss
and/or expense.
The total amount being claimed in accordance to the Clause is
Please revert to us if you require any further information with regards to our claim for
extension of time and loss and/or expense.

Yours faithfully

PROCEDURE FOR CLAIMS

53.1 NOTICE OF CLAIMS

Notwithstanding any other provision of the Contract, if the Contractor intends to
claim any additional payment pursuant to any Clause of these Conditions or
otherwise, he shall give notice of his intention to the Engineer, with a copy to the
Employer, within 28 days after the event giving rise to the claim has first arisen.
53.2 CONTEMPORARY RECORDS
Upon the happening of the event referred to in Sub-Clause 53.1, the Contractor shall
keep such contemporary records, as any reasonably be necessary to support any claim
he may subsequently wish to make. Without necessarily admitting the Employer's
liability, the Engineer shall, on receipt of a notice under Sub-Clause 53.1, inspect such
contemporary records and instruct the Contractor to keep any further contemporary
records as are reasonable and may be material to the claim of which notice has been
given. The Contractor shall permit the Engineer to inspect all records kept pursuant to
the Sub-Clause and shall supply him with copies thereof as and when the Engineer so
instructs.
53.3 SUBSTANTIATION OF CLAIMS
Within 28 days, or such other reasonable time as may be agreed by the Engineer, of
giving notice under Sub-Clause 53.1, the Contractor shall send to the Engineer an
account giving detailed particulars of the amount claimed and the grounds upon which
the claim is based. Where the event giving rise to the claim has a continuing effect,
such account shall be considered to be an interim account and the Contractor shall, at
such intervals-as the Engineer may reasonably require, send further interim accounts
giving the accumulated amount of the claim and any further grounds upon which it is
based. In cases where interim accounts are sent to the Engineer, the Contractor shall
send a final account within 28 days of the end of the effects resulting from the event.
The Contractor shall, if required by the Engineer so to do, copy to the Employer all
accounts sent to the Engineer pursuant to this Sub-Clause.

53.4 FAILURE TO COMPLY

If the Contractor fails to comply with any of the provisions of this Clause in respect of
any claim which he seeks to make, his entitlement to payment in respect thereof shall
not exceed such amount as the Engineer or any arbitrator or arbitrators appointed
pursuant to Sub-Clause 67.3 assessing the claim considers to be verified by
contemporary records (whether or not such records were brought to the Engineer's
notice as required under Sub-Clause 53.2 and 53.3).
53.5 PAYMENT OF CLAIMS
The Contractor shall be entitled to have included in any interim payment certified by
the Engineer pursuant to Clause 60 such amount in respect of any-claim as the
Engineer, after due consultation with the Employer and the Contractor, may consider
due to the Contractor provided that the Contractor has supplied sufficient particulars
to enable the Engineer to determine the amount due. If such particulars are
insufficient to substantiate the whole of the claim, the Contractor shall be entitled to
payment in respect of such part of the claim as such particulars may substantiate to
the satisfaction of the Engineer. The Engineer shall notify the Contractor of any
determination made under this Sub Clause, with a copy to the Employer.

PROCEDURES FOR CLAIMS

This Clause deals with all additional claims for reimbursement not dealt with by other
provisions for payments in the Conditions.
This Clause is not an automatic provision enabling a claim for additional payment
each time there is an extension of time but reasons marked with an asteric (*) in the
letter for claim of extension of time can result in the operation of this provision.
The requirements for this Clause are as follows: NOTIFICATION
1)

Notice to be issued within 28 days from the event giving rise to-the claim
(with a copy to the employer).

2)

To keep records of all related documents and correspondence and to also keep
any other record as instructed by the Engineer.

3)

To allow the Engineer to inspect the records.

4)

Within 28 days of giving the notice, we must provide an estimate and the
grounds for the claim with documents and other evidence of the cost.

5)

If the event is continuing, the action above (4) must be repeated at reasonable
interval as required by the Engineer and within 28 days of the end of the event
we must provide the final substantiation.

Failure to comply with the above requirements will result in us being unable to claim
more than what the Engineer or Arbitrator reasonably certifies based on the available
records.
If the claim is approved then we are entitled to receive the sum in our following
interim payment.
ACTION PLAN & PROCEDURES
1)

The keeping all documents related to the, basis of the claim.

2)

Keep records of all expenditure incurred eg.

a)
plants and machinery
b)
workmen
c)
preliminaries
d)
material
e)
other related details eg. construction method legal requirement (fees).

3)

Obtain verification of the event from the Engineer.

4)

Evidence that we had everything in our ability to reduce the loss.

CLAIM SUBSTANTIATION
1)

Record in a chronological order of all activities executed.

2)

Evidence of the cause of the originating evidence.

3)

All records related workmen employed on the works.

4)

Material used.

5)

Fee, license, contribution royalties and the like.

6)

Preliminary items.

7)

Records disruption cost in terms of lost productivity or uneconomic scale of

work.

RECORD KEEPING & FILING

Similar to the requirements in Clause 44 of the FIDIC Form.

Standard Correspondence
Dear Sir
CONTRACT:
SUBJECT: CLAIM NOTIFICATION
We herewith notify your good office of our intention to make a claim for additional
payment in accordance to Clause 53 of this Contract pursuant to
Clauseof the conditions of the Contract.
In the event giving rise to this claim is..which therefore us to be
reimbursed in accordance to Clause.
Please revert to us if you require any further clarification or information.
Yours faithfully

Standard Correspondence
Dear Sir
CONTRACT:
SUBJECT: SUBSTANTIATION OF CLAIM
We herewith provide all necessary substantiation for our claim as entailedin our
letter refdated.as required pursuant to Clause 53.3.
Please find the said information as in the attached appendix.
If any further clarification is required please revert stating your- requirement.
Yours faithfully

JKR 203
GOVERNMENT STANDARD FORM OF CONTRACT
43.

DELAY AND EXTENSION OF TIME

Upon it becoming reasonably apparent that the progress of the Works is delayed, the
Contractor shall forthwith give written notice of the causes of delay to the S.O. and if
in the opinion of the S.O. the completion of the Works is likely to be delayed or has
been delayed beyond the Date for Completion stated in the Appendix or beyond any
extended Date for Completion previously fixed under this Condition
a)

by force majeure, or

b)

by reasons of any exceptionally inclement weather, or

c)

by reason of directions given by the S.O. consequential upon disputes with

neighbouring owners provided the same is not due to any act, negligence or
default of the Contractor or any sub-contractor, nominated or otherwise, or

d)

by reason of loss or damage occasioned by any one or more of the

contingencies referred to in Clause 36 hereof (provided and to the extent that
the same is not due to any act negligence, default or breach of contract by the
Contractor or any sub-contractor, nominated or otherwise, whether in failing
to take reasonable steps to protect the Works or otherwise), or

e)

by reason of S.O. 's instruction issued under Clause 5 hereof, provided that
such instructions are not issued due to any default or breach of contract by the
Contractor or any sub-contractor nominated or otherwise, or

I)

by reason of the-Contractor not having received in due time necessary

instructions, drawings, levels or instructions in regard to the nomination subcontractors and/or suppliers provided in this Contract, from the S.O. due to
any negligence or default of the S.O. and for which he shall have specifically
applied in writing on a date which having regard to the Date for Completion
stated in the Appendix to these Conditions or to any extension of time then
fixed under this Conditions, was neither unreasonably distant from nor
unreasonably close to the date on which it was necessary for him to receive the
same, or

g)

by reason of delay in giving possession of the Site as provided under Clause

38 (d) hereof, or

h)

by reason of any action due to local combination of workmen, strike, or

lockout affecting any of the trades employed upon the Works, provided the
same are not due to any unreasonable act, neglect or default of the Contractor
or of any sub-contractor, nominated or otherwise, or

i)

by delay on the part of artists, tradesmen or others engaged by the Government

in executing work not forming part of this Contract, or

j)

by the Contractor's inability for reason beyond his control and which he could
not reasonably have foreseen at the date of closing of tender of this Contract to
secure such goods and/or materials as are essential to the proper carrying out
of the Works, or

k)

by delay on the part of Nominated Sub-Contractors and/or Nominated

Suppliers of their works, and such delay shall be caused by the same reasons
affecting their work as stated above in Sub-Clauses (a) to (j) inclusive
(provided that the same are not due to any act, negligence, default or breach of
contract by the Nominated Sub-Contractor and/or Nominated' Supplier and/or
the Contractor, or any of the servants or agents of such Nominated SubContractor or Nominated Supplier or the Contractor);

then S.O. shall so soon as he is able to estimate the then length of the delay beyond
the date or time aforesaid make in writing a fair reasonable extension of time for
completion of the Works, provided always that the Contractor shall use constantly his
best-endeavours to prevent delay and shall do all that may reasonably be required to
the satisfaction of the S.O. to proceed with the Works. The certificate issued by the
S.O. under this Condition shall be referred to as the "Certificate of Delay and
Extension of Time".

THE JKR 203-CONDITIONS OF CONTRACT

DELAY AND EXTENSION OF TIME

Delay and extension of time for the delays in the JKR 203 are strictly limited to a few
applicable reasons. The Contractor bears the risk of any other event arising and
causing a delay, which is not the fault of either party.
The reasons allowed for extension of time are
1)

force majeure.

2)

Exceptionally inclement weather.

3)

S.0.'s instruction due to disputes with neighbouring owners, which was not
caused by the Contractor, his agents or his subcontractors.

4)

Loss due to cause in Clause 36 as long as the loss or damage is not attributable
to the Contractor or his agents.

5)

Due to the S.O.'s instruction in Clause 5 but 'the instruction should have been
issued to remedy a breach caused by the Contractor.

6)

Delay in receiving instruction or information when it was due after making an

application for the information or instruction within a reasonable period*.

7)

Delay in giving possession of the site.

8)

Commotion, strike, lockouts which are not the fault of the Contractor.

9)

By others engaged by the Government executing work, which is not part of the
Contract.

10)

Unable to secure goods/material by reasons beyond his control which he could

not have foreseen at the time of tender.

11)

Delay by the Nominated Subcontractor/Supplier due to reasons stated before

from (1) to (9), which was not caused by the Contractor or his agents.

The operation of the provision requires the following: NOTIFICATION

1)

The Contractor is to notify in writing to the S.O. of any delay stating the cause
of the delay.

2)

The notification has to be done upon it becoming reasonably apparent that the
progress of the works is delayed - upon the delay actually happening and then
becoming apparent to the Contractor.

3)

The notice must include the cause for the delay and also provide substantiation
to enable the verification of the cause.

ACTION PLAN & PROCEDURE

1)

Submission of notice.

2)

Submission of the cause and all related substantiation.

CLAIM SUBSTANTIATION
Not expressly required but there is implication that the cause must be substantiated; 1)

Requirement as per FIDIC requirement.

RECORD KEEPING AND FILING

1)

similar to that required in administering the FIDIC Form of Contract.

Standard Correspondence
Dear Sir
CONTRACT:
SUBJECT: NOTICE OF THE DELAY IN THE PROGRESS OF WORKS
We herewith notify you pursuant to Clause 43 that the progress of work has been
delayed due to, and that we are submitting the details of the
said cause for your attention (refer to attachment).
Please revert to us if any further details are required.
Yours faithfully

44.

LOSS AND EXPENSE CAUSED BY DELAYS

If the regular progress of the Works or any part thereof that been materially affected
by reason as stated under Clause 43 (c), (f) or (i) hereof (and no other), and the
Contractor has incurred direct loss and/or expense for which he would not be
reimbursed by a payment made under any other Provision in this Contract. Then the
Contractor shall within one (1) month of the occurrence of such event of circumstance
give notice in writing to the S.O. of his intention to claim for such direct loss or
expense together with an estimate of the amount of such-loss and/or expense, subject
always to Clause 48 hereof.

LOSS & EXPENSE CAUSED BY DELAY

This provision for loss and expense in the JKR 203 Clause 44 is only limited to claim
for additional reimbursement for loss or expenses caused by limited types of delays.
The delays, which give rise to a loss and expense Claims are
1)

Delays due to S.O.'s instruction [Clause 43 (C)] which was not due to any
fault of the Contractor.

2)

Delays in receiving instruction or information which required and the

requirement brought to the attention of the S.O. a reasonable duration before
the actual requirement [Clause 43(f)].

3)

By delay of other engaged by the Government but where 'the work is not
forming part of the Contract.

NOTIFICATION
1)

To provide a notice of intention to claim-together with an estimate.

2)

Notice is to be lodged within one month of the occurrence of the event.

Occurrence here means happening, therefore upon the beginning of the event
causing the delay, the event is occurring.

3)

All the particular, documents and evidence must be furnished to the S.O.
before 3 months after the practical completion is achieved.

ACTION PLAN & PROCEDURE

1)

Classify the delay.

2)

Lodge the notice for intention to claim loss-and expense and submit an
estimate all within one month from the beginning of the delay.

3)

Organise all substantiation for the claim including all documents,

correspondence, site records and invoices, bills etc.

4)

Submit all substantiation within the duration of three (3) months after practical
completion is achieved.

CLAIM SUBSTANTIATION
1)

Plant and machinery records.

2)

Material records.

3)

Workmen requirement records.

4)

Loss of productivity records.

5)

Preliminary records.

6)

Disruption records.

7)

Other cost incurred records.

RECORD KEEPING AND FILING

Similar to that required in the administration of the FIDIC Contract.
Note: Clause 5(d) allows for any loss and expense arising from any S.O.'s
instruction for which the loss and expense could not have been reasonably
known by the Contractor at the time of tender. The Contractor is also required
to notify as per Clause 44 but the time limitation is one month from the
instruction.

Standard Correspondence

Dear Sir
CONTRACT:
SUBJECT: CLAIM FOR LOSS & EXPENSE
We herewith write to inform you that pursuant to Clause 44 of the Conditions of
Contract, we are notifying your good office of our intention to claim for loss and
expense for.
We also submit that our interim* estimate of the claim is
We shall submit all relevant particulars in accordance to Clause 48 within the allowed
duration.

Yours faithfully

Delete if not applicable, if applicable provide a rate for fixed duration which
can use to determine the amount.

PAM FORM OF CONTRACT CONDITIONS

CLAUSE 24
LOSS AND EXPENSE CAUSED BY DISTURBANCE OF REGULAR PROGRESS
OF THE WORKS
1.

If upon written application being made to him by the Contractor, the Architect
is of the opinion that the Contractor has been involved in direct loss and/or
expense for which he would not be reimbursed by a payment made under any
other provision in this Contract by reason on the regular progress--of the
Works or of any part thereof having been materially affected by

a)

the Contractor not having received due time necessary instructions, drawings,
details or levels from the Architect for which he specifically applied in writing
on a date which regard to the Date for Completion stated in the appendix to
these Conditions or to any extension of time then fixed under Clause 23 or
Clause 32 (I) (c) of these Conditions was neither unreasonably distant from
nor unreasonably close to the date on which it was necessary for him to
receive the same; or

b)

the opening up for inspection of any work covered up or the testing of any of
the work materials or goods in accordance with Clause 6 (3) of these
Conditions (including making odd in consequences or such opening up or
testing), unless the inspection or test showed that the work, materials or goods
were not in accordance with this Contract; or

c)

any discrepancy in or divergence between the Contracts

Drawings and/or the Contract Bills; or

d)

delay on the part of artists tradesmen, or others engaged by the Employer in

executing work not forming part of this Contract; or

e)

Architect's instructions issued in regard to the postponement of any work to be

executed under the provisions of this Contract;

and if the written application is made within a reasonable time of it becoming

apparent that the progress of the Works or of any part thereof has been affected as
aforesaid, then the Architect shall either himself ascertain or shall instruct the
Quantity Surveyor to ascertain the amount of such loss and/or expense. Any amount
from time to time so ascertained shall be added to Contract Sum, and if an Interim
Certificate is issued after the date of ascertainment any such amount shall be added to
the amount which would otherwise be stated as due in such Certificate.
2.

The provisions of this Condition are without prejudice to any other rights and
remedies, which the Contractor may possess.

LOSS & EXPENSE CAUSED BY DISTURBANCE OF REGULAR PROGRESS OF

THE WORKS
This Clause deals exclusively with some named events, which can
result in loss and/or expense to the Contractor.
The events are as following: a)

events that would enable the Contractor to claim extension of time in Clause

i) 23(f)
ii) 23(1)
iii) 23(h)
b)

discrepancy or divergence between the Contract drawing and/or the Contract

Bills.

c)

Architect instruction postponing any of the works to b e executed.

and this provision allows 'for reimbursement of the loss and/or expense, arising from
the disturbance to the regular progress of work. The following are the practical
implication of the provision: NOTIFICATION
1)

Written notice that the progress of work has been affected.

2)

Within a reasonable time after the loss and/or expense is apparent (know).

ACTION PLAN AND PROCEDURE

1)

Writing in the notice that the progress of work has been materially affected
within the time limitation.

2)

Providing all necessary information, documents and evidence to the Architect

to allow him to process the claim.

CLAIM SUBSTANTIATION
The requirements are similar to the requirements of the JKR's claim substantiation as
in JKR 203's requirement for loss and expense.

RECORD KEEPING & FILING

The requirements are similar to the requirements of the JKR'S record keeping and
filing as in JKR 203's requirement for loss and expense.

Standard Correspondence

Dear Sir
CONTRACT:
SUBJECT: CLAIM FOR DIRECT LOSS AND/OR EXPENSE
We herewith make an application for direct loss and/or expense pursuant to Clause 24
of the condition due to the regular progress of works being materially affected
by
Please revert to us if you require any further clarification or information with regard
to the above claim.

Yours faithfully

Clause 23
EXTENSION OF TIME
1.

Upon it becoming reasonably apparent that the progress of the Works is

delayed, the Contractor shall forthwith give written notice of the cause of the
delay to the Architect, and if in the opinion of the Architect the completion of
the Works is likely to be or has been delayed beyond the Date for Completion
stated in the appendix-to these Conditions or beyond any extended time
previously fixed under either this Clause or Clause 32(1)(c) of these
Conditions

a)

by force majeure, or

b)

by reason of any exceptionally inclement weather, or

c)

by reason of loss or damage occasioned by any one or more of the

contingencies referred to in Clause 20(A), (B) or (C) of these Conditions or

d)

by reason of civil commotion, local combination of workmen, strike or

lockout affecting any of the trades employed upon the Works or any of the
trades engaged in the preparation, manufacture or transportation of any of the
goods or materials required for the Works, or

e)

by reason of Architect's - instructions issued under Clauses 1(2), 11(1) or

21(2) of these Conditions, or

f)

by reason of the Contractor not having received in due time necessary

instructions, drawings, details or levels from the Architect for which he
specifically applied in writing on a date which having regard to the Date for
Completion stated in the appendix to these Conditions or to any extension of
time then fixed under this Clause or Clause 32(1)(c) of these Conditions. was
neither unreasonably distant from nor unreasonably close to the date on which
it was necessary from him to receive the same, or

9)

by delay on part of Nominated Sub-Contractors or Nominated Suppliers which

the Contractor has taken all practicable steps to avoid or reduce, or

h)

by delay on part of artists, tradesmen or others engaged by the Employer in

executing work not forming part of this Contract, or

(i)

by reason of the opening up for inspection of any work covered up or of the

testing of any of the work materials or goods in accordance with Clause 6(3)
of these Conditions (including making good in consequence of such opening
up or testing), unless the inspection or test showed that the work materials or
goods were not in accordance with this Contract, or

(j)

by the Contractor's inability for reasons beyond his control and which he could
not reasonably have foreseen at the date of this Contract to secure labour
goods or materials are essential to the proper carrying out of the Works.

then the Architect shall so soon as he is able to estimate the length of the delay
beyond the-date or time aforesaid make in writing a fair and reasonable extension of
time for completion of the Works. Provided always that the Contractor shall use
constantly his best endeavours to prevent delay and shall do all that may reasonably
be required to the satisfaction of the Architect to proceed with the Works.
*

Footnote - Strike out if Sub-Clause (J) is not to apply.

PAM FORM OF CONTRACT

EXTENSION OF TIME
The requirement in the PAM Form is only for a limited number of reasons, all other
reasons will not result in extension of time and the Contractor bears the risk and loss
for delays, which arise to no fault of either party, which are not provided for in the
provision.
The events that will result in an extension of time for the Contractor is: 1)

force majeure.

2)

Exceptionally inclement weather.

3)

Loss or damages claimable from the insurance.

4)

Civil commotion, local combination of workmen strike or

lockout.

5)

Architect's instruction issued under Clause 1(2), 11(11) or 21(2).

6)

Late delivery of information or instruction requested by the Contractor within

a reasonable duration from the date on which the information or instruction is
required.

7)

Delay by Nominated Subcontractor or Nominated Supplier for which the

Contractor has taken all practicable steps to overcome.

8)

Delay by others employed by the Client executing works not forming part of
the Contract.

9)

Delay because of opening up and inspecting work, which is not detective.

10)

Inability to secure goods/material for reasons beyond the Contractors control

for which the Contractor could not have reasonably foreseen at the time of the
tender.

IMPORTANT LEGAL INTERPRETATION TO THE CLAUSE 23

1)

Notice by the Contractor is not condition precedent.

2)

Architect on his own accord must process an extension of time.

3)

Failure to give notice is a breach of Contract and therefore if the delay could
have been reduced by early notice such as extra period will not be taken into
account.

4)

A notice not stating the cause of delay is still acceptable as a good notice.

5)

The Contractor must provide all necessary information to enable the Architect
to make an accurate evaluation of the extension time.

[London Borough-of Merton v Stanley Hugh Leach Ltd (1985)]

The

following are the requirements and duties arising from the provision: -

NOTIFICATION
1)

A written notice stating the cause of the delay.

2)

The notice is to sent in upon it becoming reasonably apparent the project is

delayed.

3)

All related documents, correspondence and evidence should also be furnished

to the Architect.

ACTION PLAN AND PROCEDURES

As per the requirement set out in JKR 203's action plant and procedures section.
CLAIM SUBSTANTIATION
As per the requirement set out in JKR 203's claim substantiation section.
RECORD KEEPING AND FILING
As per the requirement set out in JKR 203's record keeping and filing section.

STANDARD CORRESPONDENCE
AS per the requirement set out in JKR 203's standard correspondence section.

Note

Please refer to the attached flowchart.

C1NTRI\CTUALCLI\lMS ACfl0N
1I0JECT TITlE;
I leNT

CCML.OI

MASTEIt UST
_

PIC

JODNO:

NOTE:

1) All contractual claJms 10 be InMlsted and pursued shall be listed down above. any new claims arisIng shall be updated Into Ihls lorm
2) All clslmsllsted hera shaU ba followed up In detail In the CCAS.Ot (only ona (1) clalm per CCAS.01 form) .
3) All subsequent updating of progress altha claim shAll be dono In tho CCAS.OI. (and not In tha CCML01 lorm)

I
..

GUIDELINES ON THE USE OF THE CCML.01 AND CCAS.01

1.0 OBJECTIVE
1.1 Purpose of the CCML.01 and CCAS.01 is to allow for
a)

The highlighting of all contractual issues encountered in the Project, to allow

for any necessary contractual suggestions and advise from the Contracts
Department (Contractual Services Division).

b)

The provision of a complete list of all contractual problems encountered in the

Project.

c)

The preparation of a joint action plan at an early stage to avoid any contractual
resistance or hindrance at a later stage.

d)

The proper monitoring of all related documents and correspondence to ensure

efficient records and easy discovery.

e)

The monitoring of all action undertaken and the progress of the claim,
including the subsequent adjustment of the Action Plan in the event there are
circumstances, which warrant it.

2.0

SCOPE
This procedure and all the related forms are to be used on all projects
undertaken by the Company immaterial of the type of Standard Form of
Contract being utilised in the Project.

3.0

DEFINITION

4.0

IMPLEMENTATION REQUIREMENT

4.1

The successful implementation of this form will depend on prompt and

accurate reporting and recording all relevant information. All persons
described below are required to adhere and execute their respective
responsibilities accordingly.

4.2

The PIC of each Project shall have overall control and are to ensure that all
activities are executed promptly and accordingly.
They shall ensure that any new claim arising shall be documented in the
CCML.01 and that all the relevant information be included immediately. All
new claims shall be so recorded to allow for the compiling of a complete
master list.
They shall ensure that any contractual claim arising is immediately recorded
by him or any site personnel assigned by them to do so.
They shall also ensure that all incoming or outgoing correspondence related to
the claim (in any manner whatsoever) shall have its reference number
recorded and a photocopy made; this shall be done upon receipt or despatch of
the letter or document. The photocopy shall at all times be attached to the
original CCAS.01 form, which details the said claim.