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Prolongation Claims
Prolongation Claims
PROLONGATION CLAIMS
SHANE NASH
PAUL GREGG
PROLONGATION CLAIMS
Prolongation Claims
Claims for the recovery of Time / Money for delays arising from Employer
culpable events
QUANTUM ANALYSIS
DELAY ANALYSIS
Establish “per diem” rates for
Establish EOT entitlement
delay related costs
&
&
Identify periods of
Apply daily rates to identified
compensable delay
periods of compensable delay
Claims made under the contract Society of Construction Law Delay and Disruption
Protocol
Clause 20 of SCL 2nd edition (2017)
- Occasionally valuation using contract prices
- Valuation based on cost “Unless expressly provided for elsewhere in the contract,
compensation for prolongation should not be paid for anything
other than work actually done, time actually taken up or loss and /
or expense actually suffered. In other words the compensation for
Claims for Breach of Contract prolongation caused other than by variations is based on the
additional cost incurred by the Contractor. The objective is to put
- Damages:Actual Cost incurred the Contractor in the same financial position it would have been if
the Employer risk event had not occurred.”
- Valuation based on Cost
With some exceptions Prolongation Claims are predominantly “Cost Based” claims
4. Eliminate component “non time related” costs for each remaining main Head of Cost
5. Consider costs not captured within project accounts (e.g. Head Office Overheads)
Fixed cost?
Evidence?
• Delivery dockets
• Invoices
• Payment receipts
• Photographs
Must be auditable!
1. Logically set out & presented 1. Logically set out & presented
(preferably excel) (soft copy format)
- Duplication
- Depreciation
- Profit
- Money only
- Disruption
- Disputes
- Records
DELAY
DELAY LIABILITY
• Compensable delays
- Variations, Changes
- Failure to provide access
- Failure to provide information
- Other Contractor delays, etc.
Floor
Finishes
Testing
CONCURRENT DELAY
• In the rare situation where true concurrent delay exists, the Contractor:
- Should be entitled to an EOT, and relief from paying LAD’s
- No prolongation costs.
Contract
Completion
Start of the Project Completion
14 Foundations
28 Steel design
Contractor Delay 7 Steel erection
21 Roof Panels procurement
Period of Roof Panel installation
concurrent delay
Floor
Finishes
Testing
of compensation of compensation
Start of the ject Sep Contract
Pro Completion
Completion
Aug 14 Fou
Jun Jul Oct Nov Dec Jan
ndations
28
28
Steel design
7 Steel erection
21
21 Roof Panels procurement
Roof Panel installation
Floor
Finishes
Testing
SUMMARY OF DELAY
Delay analysis summarised as a table showing days of delay for each month and
activities affected by the delay
DELAY ANALYSIS SUMMARY TABLE
Steel Design 7 21 28
Steel Erection 7 7
Roof Panels Procurement 21 21
Roof Panel Installation 0
Floor 0
Finishes 0
Testing 0
Total Delay 7 21 14 7 21 0 0 0 70
CONTACTS
SHANE NASH
Associate Director
LLM, BSc., FRICS, FCIArb, FCIOB
+974 704 66841
shane.nash@navigant.com
PAUL GREGG
Senior Consultant Navigant – Qatar office
MSc., B. Eng., ICIOB
+974 558 18006 Tornado Tower | Level 26
paul.gregg@navigant.com
Al Funduq Street | West Bay | Doha | Qatar
Tel. +974 4426 7000
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