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OST - Comprehensive Claim Application For Extension of Time Implications-IAP

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RESIDENTIAL BUILDINGS (G + 2P + 12 FLOORS + ROOF +

GYM) ON PLOT NO. 2410560 AT AL NAHDA SECOND,


DUBAI, U.A.E.

COMPREHENSIVE CLAIM APPLICATION


FOR EXTENSION OF TIME
IMPLICATIONS

OST Constructional Projects, L.L.C.


OST CONSTRUCTIONAL PROJECTS, L.L.C.

COMPREHENSIVE CLAIM APPLICATION


FOR
EXTENSION OF TIME
IMPLICATIONS

Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai,
U.A.E.

PART I

CLAIM NARRATIVE

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
TABLE OF CONTENT

PART I – CLAIM NARRATIVE

Chapter 1 EXECUTIVE SUMMARY 5


Chapter 2 DEFINITIONS 8
Chapter 3 ABBREVIATIONS 10
Chapter 4 INTRODUCTION 11
Chapter 5 PROJECT PARTICULARS 13
Chapter 6 CHRONOLOGICAL DELAY EVENTS 14
Chapter 7 DUTY TO MINIMIZE DELAY 33
Chapter 8 ENTITLEMENT AND DISCUSSION 34

PART II – DELAY METHODOLOGY

Chapter 9 CLAIM CONCEPT AND IMPACT METHODOLOGY 45


Chapter 10 OVERALL IMPACTED PROGRAMMES 52

Page 3 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
PART- I CLAIM NARRATIVE

TABLE OF CONTENTS

Chapter 1 EXECUTIVE SUMMARY 5

Chapter 2 DEFINITIONS 8

Chapter 3 ABBREVIATIONS 10

Chapter 4 INTRODUCTION 11

Chapter 5 PROJECT PARTICULARS 13

Chapter 6 LIST OF DELAY EVENTS AND CHRONOLOGY 14

Chapter 7 DUTY TO MINIMIZE DELAY 33

Chapter 8 ENTITLEMENT AND DISCUSSION 34

Page 4 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Chapter

1 EXECUTIVE SUMMARY
1.1 PREFACE

1.1.1. Where Messrs. Dubai Limited Investment L.L.C. (hereinafter called “the
Employer”), desire to execute a residential building located in Al Nahda
Second, Dubai U.A.E. (hereinafter called “the Project”).

1.1.2. Where the Employer and Messrs. OST Constructional Projects L.L.C.
(hereinafter called “the Main Contractor”) have entered into agreement to
perform the Works pertaining to the Project (hereinafter called “the Main
Contract”).

1.1.3. Where the Employer has appointed the Engineer of Messrs. Bel-Yoahah
Architectural & Eng. Consultants (hereinafter called “the Consultant” or “the
Engineer”) to act as the Engineer for the Main Contract.

1.1.4. Where the Main Contract’s Commencement Date means the date upon which
the Main Contractor need to commence the works, which was agreed between
the Employer and the Main Contractor to be 09 October 2016.

1.1.5. Where the Main Contract’s Time for Completion means the time allowed for the
completion of the works under the Main Contract, which was agreed between
the Employer and the Main Contractor to be 19 Months, commencing from the
Commencement Date and ending on 22 May 2018.

1.1.6. Several delay events have affected the execution of the Project, imposing
irrecoverable delays to the Time for Completion. This Claim has been made to
substantiate the Main Contractor’s entitlement for extension of Time for
Completion.

1.2 GENERAL OVERVIEW

1.2.1. This Claim comprises the several factors that have affected the execution of
the Main Contract Works, the majority stemming from Variations initiated by the
Employer/Engineer and confirmed by the Main Contractor, delayed approval
for shop drawings or material, thus resulting in time implications, which induced
extensive delays to the Project’s Time for Completion.

Page 5 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
1.2.2. In Chapter (6) of this Claim, OST Constructional Projects, L.L.C. has introduced
the encountered delay events, and included the following titles for each of the
delay events:

A. CHRONOLOGY: This presents the relative background in relation to the


subject delay event in order to provide a better understanding of the subject
matter and establish the casual link between the delay events and the effect of
the same to the Sub-Contract Works.

B. ANALYSIS: This presents an explanation of the effects resulting from the


subject delay event.

1.2.3. In Chapter (7) of this Claim, OST Constructional Projects, L.L.C. displays the
attempted mitigation efforts / measures, in an endeavor to minimize the effects
these Exceptional Circumstances are having on the Contractor’s daily regular
operations at Site.

1.2.4. In Chapter (8) of this Claim, OST Constructional Projects, L.L.C. has attempted
to delineate the responsibilities regarding the effects imposed through reverting
to the Main Contract and the applicable provisions of Law.

1.2.5. In Part II of this Claim, OST Constructional Projects, L.L.C. has attempted to
determine in an objective manner the effect of the subject delay events,
through analyzing the impact of the delay events in terms of time, on the Main
Contract’s activities and the respective Time for Completion.

1.2.6. While OST Constructional Projects, L.L.C. hereby attempt to determine the
causes of the delay events. No part or parts of this document shall be
construed as an act of aggression or an act of accusation of incompetence
toward the Employer or the Engineer nor should the same be understood as an
attempt from OST Constructional Projects, L.L.C. to escape its obligations
under the Main Contract.

1.2.7. It is well understood by OST Constructional Projects, L.L.C. that all parties have
executed their obligations in the best of intentions, considering the
circumstances, for the benefit of the Project.

1.2.8. Moreover, OST Constructional Projects, L.L.C. hereby extends to the Employer
and the Engineer its cordial gratitude for the support it had received while
executing the Project and furthermore asserts its fullest cooperation and best
intentions.

Page 6 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
1.3 RESULTS

1.3.1. The several delay events have imposed delays to the Time for Completion.

1.3.2. OST Constructional Projects, L.L.C. has endeavoured to mitigate the delays
regardless of the party responsible thereto, keeping in mind that OST
Constructional Projects, L.L.C. shall not be responsible for the extent of such
mitigation.

1.3.3. Moreover, the following associated implications were presented:


(a) Time Implication.

1.3.4. OST Constructional Projects, L.L.C. is entitled to an extension of the Time for
Completion until 16 June 2019 as a final Time for Completion.

Page 7 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Chapter

2 DEFINITIONS
2. DEFINITIONS:

2.1. In this Claim, as hereinafter defined, the following terms and expression shall
have the meanings hereby assigned to them:

2.2. Employer: means M/s. Dubai Limited Investment L.L.C.

2.3. Main Contractor: means M/s. OST Constructional Projects L.L.C.

2.4. Engineer: means M/s. Bel-Yoahah Architectural & Eng. Consultants.

2.5. Main Contract: means the Contract entered into between the Employer (Dubai
Limited Investment L.L.C.) and the Main Contractor (OST Constructional
Projects L.L.C.) for construction, completion, testing, commissioning, operation
and maintenance the Works for the Residential Buildings (G + 2P + 12 Floors +
Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E..

2.6. Commencement Date: means the Commencement Date of the Main Contract
Scope of Works in compliance with the Programme of Works.

2.7. Time for Completion: means the time for completing the execution of and
passing the Tests on Completion of the Works or any Section or part thereof
stated in the Contract (or as extended under Clause 44) calculated from the
Commencement Date.

2.8. Site: means the places provided by the Employer where the Works are to be
executed and any other places as may be specifically designated in the
Contract as forming part of the Site.

2.9. Variation: any change to the Works that is instructed or approved by the
Engineer and/or the Employer as confirmed by the Main Contractor.

2.10. Taking-Over Certificate: means a certificate issued pursuant to Clause 48.

2.11. Works: means the Permanent Works and the Temporary Works or either of
them as appropriate.

Page 8 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
2.12. Permanent Works: means the permanent works to be executed (including
Plant when it is installed in its final position on Site) in accordance with the
Contract.
2.13. Temporary Works: means all temporary works of every kind (other than
Contractor's Equipment) required in or about the execution and completion
of the Works and the remedying of any defects therein.

Page 9 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Chapter

3 ABBREVIATIONS
3. ABBREVIATIONS:

BOQ : Bill of Quantity


EOT : Extension of Time
IR : Inspection Request
LD : Liquidated Damages
MEP : Mechanical, Electrical, and Plumping
MIR : Material Inspection Request
RFI : Request For Information

Page 10 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Chapter

4 INTRODUCTION
4. INTRODUCTION:

4.1. The Main Contractor has incurred substantial time impact due to delay events
that were out of its reasonable control. This application is submitted as an
application for Time analysis and Delay Register, with the related particulars of
the application, the delay events, and entitlement. The Main Contractor
believes that this application will highlight in detail that most of the delays
suffered in the Project were out of its control and the prolongation of the Time
for Completion was extremely beyond the Main Contractor’s control, which also
had caused the Main Contractor to incur undue direct and consequential
losses.

4.2. The main purpose of this Claim is to detail and record the chronological history
of all the delay events suffered by the Main Contractor during the execution of
Works along with all supporting documents, analysis, and entitlement
pertaining to the same.

4.3. The intention of this document is to present the additional entitlement which the
Main Contractor deserve based on the various delay events that were
encountered during the course of execution of the Main Contract Works.

4.4. The Main Contractor has incurred substantial time impact attributable to the
numerous Variations instructed by Engineer as well as the delayed approval of
the Project documents (i.e., shop drawings, materials, … etc.). These events
extended throughout the duration of the Project and affected all phases of the
Project. Several design changes were introduced by the Employer and the
Engineer at a late stage of the Project, which caused the Main Contractor to
incur undue cost and time implications that otherwise could have been avoided
should these conflicts have been resolved at an early stage of the Project.

4.5. The Main Contractor has suffered from the delayed issuance of building
permits and several other disruptions due to design modifications, additional
Works and delayed approvals. This in turn induced irrecoverable delays to the
Time for Completion.

Page 11 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
4.6. The Main Contractor Claim for extension of Time for Completion arising out of
the events detailed herein, as per the following:

PART I – DELAYED APPROVAL/ CERTIFICATION OF THE PROJECT


DOCUMENTS BY THE ENGINEER/ THE EMPLOYER

1. DELAYED APPROVAL FOR INSPECTION OF THE SECOND FLOOR


SLAB.
2. DELAYED NOMINATION OF THE LIGHT FITTING SUPPLIER BY THE
EMPLOYER.
3. DELAYED RELEASE OF CONTRACTOR’S INTERIM PAYMENT
CERTIFICATES BY THE EMPLOYER.

PART II – DESIGN CHANGES AND MODIFICATIONS TO THE SCOPE OF


WORKS BY THE ENGINEER

4. CHANGING FACADES FINISHES FROM ALUMINUM CLADDING INTO


PLASTER AND PAINTING.

PART III– ADDITIONAL SCOPE OF WORKS BY THE ENGINEER

5. ADDITIONAL FALSE CEILING WORKS FOR ALL TYPICAL FLOORS.

PART IV– STOPPAGE OF WORKS ON SITE DUE TO THE ENCOUNTERED


EXCEPTIONALLY ADVERSE CLIMATIC CONDITIONS

6. STOPPAGE OF WORKS ON SITE DUE TO HEAVY RAIN.

4.7. The impediments and disruptions caused by these delay events have
adversely affected the Programme of Works, and affected the economic
viability of the Main Contractor’s scope of Works that were all beyond its
reasonable control which could not have been avoided by the use of due care
and diligence.

4.8. In line with the above, the Main Contractor has prepared this Claim application
comprising Main Contractor’s detailed particulars of the extension of Time
pursuant to the correlated Clauses of the Main Contract and in compliance with
the Laws of the United Arab Emirates.

Page 12 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Chapter

5 PROJECT PARTICULARS
5.1 PROJECT PARTIES:

5.1.1 Employer:
M/s. Dubai Limited Investment L.L.C.

5.1.2 Engineer:
M/s. Bel-Yoahah Architectural & Eng. Consultants

5.1.3 Main Contractor:


M/s. OST Constructional Projects L.L.C.

5.2 REFERENCES (CONTRACT DOCUMENTS):


The several documents forming the Contract are to be taken as mutually
explanatory of one another, but in case of ambiguities or discrepancies the
same shall be explained and adjusted by the Engineer who shall thereupon
issue to the Contractor instructions thereon and in such event, unless
otherwise provided in the Contract, the priority of the documents forming
the Contract shall be as follows:
(1) The Contract Agreement;
(2) The Correspondence of Acceptance;
(3) The Tender;
(4) Part 2 of these Conditions;
(5) Part 1 of these Conditions; and
(6) Any other document forming part of the Contract.

5.3 PROJECT DESCRIPTION:

5.3.1 SCOPE OF WORK

The scope of the Main Contractor is to perform / complete the residential


building Works as shown in the drawings, specifications provided to them in
compliance with the authority requirements, application codes.

5.4 PROJECT DATA

 Commencement Date : 09 October 2016


 Time for Completion : 19 Months
 Contract Price : 35,350,000 Dhs

Page 13 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Chapter
LIST OF DELAY EVENTS AND
6 CHRONOLOGY
 Completion Date : 22 May 2018

Through this Claim, the Main Contractor includes the following events, which induced
delays to the Time for Completion and prevented the Main Contractor from proceeding with
the Works in the manner it had tendered to carry out the same.

PART I – DELAYED APPROVAL/ CERTIFICATION OF THE PROJECT


DOCUMENTS BY THE ENGINEER
6.1. DELAYED APPROVAL FOR INSPECTION OF THE SECOND FLOOR SLAB

A. CHRONOLOGY

6.1.1. On 27 August 2017, via Inspection Request ref. OST/116/186 rev. 00 [Exhibit
6.1-A], the Main Contractor submitted the said Inspection Request for the
inspection of the post tension structural works for the second floor slab by the
Engineer. Wherein the Engineer approved the works in question on 27 August
2017 with comments for the Main Contractor to proceed accordingly.

6.1.2. On 27 August 2017, via Inspection Request ref. OST/116/182 rev. 01 [Exhibit
6.1-B], the Main Contractor submitted the said Inspection Request for the
inspection of the shuttering works for the second floor slab by the Engineer.
Wherein the Engineer approved the works in question on 27 August 2017 with
comments for the Main Contractor to proceed accordingly.

6.1.3. On 27 August 2017, via Inspection Request ref. OST/116/183 rev. 01 [Exhibit
6.1-C], the Main Contractor submitted the said Inspection Request for the
inspection of the reinforcement steel works for the second floor slab by the
Engineer. Wherein the Engineer approved the works in question on 27 August
2017 in order for the Main Contractor to proceed accordingly.

6.1.4. On 27 August 2017, via application form [Exhibit 6.1-D], the Main Contractor
attempted to submit to the Authorities the said application form for the structural
inspection of the second floor in order of the Contractor to proceed accordingly
with the proper course of action.

Page 14 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
However, the Authorities system showed, per [Exhibit 6.1-D], that the building’s
number was not shown on the system.

6.1.5. On 28 August 2017, via general message [Exhibit 6.1-E], the Main Contractor
sent to the Project parties a general message depicted the obstacles
encountered whilst submitting the required application form to the Authorities for
the inspection of the second floor stating that: “Building No. Not showing in the
system attached”.

6.1.6. On 28 August 2017, via structural/ shoring system checking request [Exhibit
6.1-F], the Main Contractor submitted the said request for the structural
inspection of the second floor slab by the Authorities.

6.1.7. On 28 August 2017, via [Exhibit 6.1-G], Dubai’s Municipality replied vide the
said portal: “please contact the permit section because the building card of this
project is cancelled”, rendering the Main Contractor hindered and unable to
proceed with the respective Works thereto on Site.

6.1.8. On 28 August 2017, via correspondence reference OST/116/CON-007 [Exhibit


6.1-H], the Main Contractor dispatched its correspondence depicting the
hindrances encountered whilst applying for the structural inspection of the
second floor slab vide Dubai Municipality’s portal pertaining to reasons beyond
its reasonable control despite the Main Contractor’s exerted efforts, resulting in
suspension of the respective Works on Site since 27 August 2017.

6.1.9. On 06 September 2017, via correspondence ref. BY/1395/MJ/K/0471/17


[Exhibit 6.1-I], the Engineer replied stating that: “As informed in site meeting
date: 30th august, 2017. we are coordinating with the Dubai Municipality to
resolve this issue” ascertaining the fact that the matter in hand did not lie within
the Main Contractor’s liability/ culpability.

6.1.10. On 07 September 2017, via [Exhibit 6.1-J], the Main Contractor attempted,
once again, to apply for the structural inspection of the second floor vide Dubai
Municipality’s portal.

Wherein the said application was approved by Dubai’s Municipality on 07


September 2017, allowing for the Main Contractor to proceed accordingly with
the proper course of manner.

6.1.11. On 12 September 2017, via correspondence reference OST/116/CON-009


[Exhibit 6.1-K], the Main Contractor dispatched its correspondence in reply to
the Engineer’s correspondence [Exhibit 6.1-I] depicting that the Main Contractor
was unable to apply for the structural inspection of the second floor slab vide
Dubai Municipality’s portal pertaining to reasons beyond its reasonable control

Page 15 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
till the Engineer has informed the Contractor verbally that the said issue has
been resolved, allowing the Main Contractor to reapply vide the said portal and
get the respective approval on 07 September.

Furthermore, the Main Contractor reserved its rights against the negative
implications resulted as a consequence of the matter in hand which his beyond
the Main Contractor’s liability/ culpability.

B. ANALYSIS

6.1.12. OST had suffered from the delays in cancelling the building’s number from
Dubai Municipality’s portal. Which had caused in delays / losses to the Main
Contractor and induced irrecoverable delays to the Time for Completion beyond
the Main Contractor’s reasonable control. The Main Contractor has made its
best endeavor towards its obligations with the numerous notices to the
Engineer, urging the Engineer to expedite the resolving of the issue, and
recording the adverse implication of not doing so by the Engineer.

6.1.13. The impediments and disruptions caused by the cancelling of the Project’s
building number on Dubai Municipality’s portal has adversely affected the
Programme of Works, as well as the economic viability of the Main Contractor’s
package. That were beyond the Main Contractor’s reasonable control and
could not have been avoided by use of due care and diligence.

6.1.14. Accordingly, the Main Contractor seeks a reasonable adjustment to the


Contract’s Time for Completion, due to the occurrence of the above event that
had caused the Main Contractor to incur irrecoverable losses beyond its
reasonable control, as detailed further in Part II of this Claim.

6.2. DELAYED NOMINATION OF THE LIGHT FITTING SUPPLIER

A. CHRONOLOGY

6.2.1. On 08 August 2017, via correspondence ref. OST116.CON.1160072 [Exhibit


6.2-A], the Main Contractor submitted to the Engineer for approval seven (7)
quotations in connection with the supply of light fittings for the Project, wherein
the Main Contractor highlighted the fact that the light fittings are rendered as
Prime Cost (PC) items and requested the Engineer to proceed with the
nomination of the respective supplier taking due regard of the payment terms
and issue such confirmation to the Main Contractor in order to proceed with the
release of the subsequent Local Purchase Order (LPO) for such nominated
supplier.

Page 16 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
6.2.2. On 15 August 2017, via correspondence ref. BY/1395/MQ/0428/17 [Exhibit
6.2-B], the Engineer replied to the Main Contractor’s submitted quotations in
connection with the supply of light fittings for the Project. Wherein the Engineer
requested the Main Contractor to submit the following documents in order to
review and furnish to the Employer the quotations in question for his approval:

a. Manufacturer's published Technical Catalogs of the proposed light


fittings, along with details of ballast, lamps etc. (Specifications+ photos).

b. Compliance statement confirming conformance with the Specifications


and Drawings.

c. Submit warranty details for the proposed light fittings and accessories.

d. Confirm country of origin details including ballasts, lamps etc.

e. Confirm IP rating of all the light fittings from all the Vendors along with
area of installation details.

f. Propose LED type light fittings for recessed down lights and surface
mounted round lights. Contractor shall ensure the proposed LED lamps
are incompliance with latest DM circler.

g. Submit quantity take-off sheets as per the approved shop drawings for
our reference.

6.2.3. On 05 September 2017, via Technical Submittal ref. OST/116/183 rev. 00


[Exhibit 6.2-C], the Main Contractor submitted the requested details depicted
with the Engineer’s correspondence [Exhibit 6.2-B] for the Engineer’s review,
approval and subsequent issuance of confirmation/ nomination of the selected
supplier for the light fittings, whilst attaching the following comments sheet in an
endeavor to ascertain its full compliance with the Technical Specifications and
the Employer Requirements per the response bolded hereunder:

a. Manufacturer's published technical catalogs of the proposed light


fittings, along with details of ballast, lamps etc., (specification + photos)
– Attached.

b. Compliance statement confirming conformance with the specifications


and drawings – Attached.

c. Submit warranty details for the proposed light fittings and accessories -
Attached.

Page 17 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
d. Confirm country of origin details including ballasts, lamps etc., –
Attached.

e. Confirm IP rating of all the light fittings along with area of installation
details – Attached, refer the compliance statement.

f. Propose LED type light fittings for recessed down lights and surface
mounted round lights. Ensure that the proposed LED lamps are in
compliance with latest DM circular. – Noted.

g. Submit quantity take-off sheets as per the approved shop drawings for
our reference – Attached.

6.2.4. On 07 September 2017, via correspondence ref. OST/116/CON-008 [Exhibit


6.2-D] and upon the receipt of the Engineer’s instruction to submit the required
documents vide a correspondence and not a Technical Submittal, the Main
Contractor has again submitted the required details in connection with the light
fittings for the Engineer’s review and approval and in reply to the Engineer’s
correspondence [Exhibit 6.2-B], whilst attaching the following comments sheet
in an endeavor to ascertain its full compliance with the Technical Specifications
and the Employer Requirements per the response bolded hereunder:

a. Manufacturer's published technical catalogs of the proposed light


fittings, along with details of ballast, lamps etc., (specification + photos)
– Attached.

b. Compliance statement confirming conformance with the specifications


and drawings – Attached.

c. Submit warranty details for the proposed light fittings and accessories -
Attached.

d. Confirm country of origin details including ballasts, lamps etc., –


Attached.

e. Confirm IP rating of all the light fittings along with area of installation
details – Attached, refer the compliance statement.

f. Propose LED type light fittings for recessed down lights and surface
mounted round lights. Ensure that the proposed LED lamps are in
compliance with latest DM circular. – Noted.

g. Submit quantity take-off sheets as per the approved shop drawings for
our reference – Attached.

Page 18 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
6.2.5. On 15 August 2017, via Technical Submittal ref. OST/116/183 rev. 00 [Exhibit
6.2-E], the Engineer replied to the Main Contractor’s submitted quotations in
connection with the supply of light fittings for the Project. Wherein the Engineer
rejected the said quotations and requested the Main Contractor to “Refer to the
comments on the attached sheet. Comply comments and resubmit ” pertaining
to the following:

a. General Comments:
a. Lamp color Is subject to Employer/Engineer/Architect approval.

b. The Contractor shall ensure LUX level. The Contractor shall


provide LUX level calculation & confirmation correspondence
along with material submittal.

c. All light fixture samples to be provided at site for final approval.

d. The Contractor shall confirm the Quantities of light fixtures as per


approved Shop drawings/ Approved RCP drawings.

e. All Vendors to modify light fixture quotations as per revlslon-1


comments; modified quotations shall include all technical details
as per attached Technical Comparison Sheet with Product
Warranty & Product Image.

f. All Vendors shall attach product Technical Catalogue in the


same order of quotation. Model number of light fixtures to be
highlighted in the quotation.

g. Propose LED type light fixtures instead of CFL type.

b. Specific Comments:
a. AL GHANDI ELECTRONICS
i. ltem-01: - propose decorative type light fixture for living room
& Bedroom areas.
ii. No warranty included for lamp. Provide warranty for lamps.
iii. Provide at least 3- Year warranty for light fixtures instead of
one year.
iv. ltem-06:- Provide IP-54 type light fixture for laundry area.
v. ltem-08:- IP rating of proposed light fixture not matching with
design / requirements. Provide IP-65 light fixture for Sauna
area.
vi. ltem-09:- Provide IP-44/IP-54 Type light fixture for kitchen
area.

Page 19 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
vii. ltem-10:- Technical details not attached for detailed product
review.
viii. ltem-12:- IP rating of water tank light fixture not matching with
design/requirements. Provide IP-67 light fixture for water tank
as per design.
ix. ltems-13, 14, 15, and 16:- Provide IP-65 weather proof type
LED light fixture for all driveway, parking & service rooms.
x. ltem-17:- propose wall mounted (recessed) type light fixture
for top roof staircase.
xi. Ignore ltem-11 form the quotations & follow continuous
numbers for comment reference.
xii. Attached project specification compliance is partial. Attach
fully complied (All clauses against the supply of light fixtures)
signed & stamped project specification compliance report.
xiii. The Vendor to confirm the use of Dubai Lamps in the
quotation.
xiv. The Vendor shall consider quantities as per BOQ.
xv. Provide product warranty draft correspondence.
xvi. Confirm Country of Origin of all light fixtures. 'Made in China'
not acceptable.
xvii. Confirm Country of Origin Certificate will be provided for all
light Fixtures as per the part number during delivery.

b. AL SHOLA AL MODEA LIGHTING LLC


i. Attach full technical specification of light fixtures for detailed
product review.
ii. Propose IP- 67/68 light fixture (ltem-12) for water tank area.
iii. Propose LED Type light fixtures instead of CFL.
iv. Ballast & Lamp details (I.e. - make, ballast type, power rating
& Country of origin) to be mentioned in quotation/product
catalog.
v. ttems-13, 14, 15, and 16:- Provide IP-65 weather proof type
LED light fixture for all driveway, parking & service rooms.
vi. Attach fully complied (All clauses against the supply of light
fixtures) signed & stamped project specification compliance
report.
vii. The Vendor to confirm the use of Dubai lamps in the
quotation.
viii. The Vendor shall consider quantities as per BOQ.
ix. Provide product warranty draft correspondence.
x. Confirm Country of Origin of all lighting fixtures. 'Made In
China' not acceptable.
xi. Confirm Country of Origin Certificate will be provided for all
Light Fixtures as per the part number during delivery.

Page 20 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
c. HUDA LIGHTING
i. Ballast & Lamp details (I.e. - make, ballast type, power rating
& Country of origin) to be mentioned in quotation/product
catalogue.
ii. ltem-01:- not Included in the quotation, attached quotation is
partial. Provide quotation as per BOQ.
iii. Propose LED type light fixtures instead of CFL.
iv. ltems-13, 14, 15, and 16:- Provide IP-65 weather proof type
LED light fixture for all driveway, parking & service rooms.
v. Attach fully complied (All clauses against the supply of light
fixtures) signed & stamped project specification compliance
report.
vi. The Vendor to confirm the use of Dubai Lamps in the
quotation.
vii. The Vendor shall consider quantities as per BOQ.
viii. ltem-10:- Provide IP-44/IP-54 type light fixtures for toilet
areas.
ix. ltem-18:- Recessed type LED light fixtures is preferred.
x. Provide complete warranty for light fixtures including
accessories & ballast.
xi. Product warranty draft correspondence to be attached.
xii. Confirm Country of Origin of all light fixtures. 'Made in China'
not acceptable.
xiii. Confirm Country of Origin Certificate will be provided for all
light Fixtures as per the part number during delivery.

d. LAMPARAS TRADING LLC


i. Ballast details (i.e. - make, ballast type, power rating &
Country of origin) to be mentioned in quotation/product
catalogue.
ii. Technical data sheet for all products to be attached.
iii. Propose LED type light fixtures instead of CFL.
iv. ltems-13, 14, 15, and 16:- Provide IP-65 weather proof type
LED light fixture for all driveway, parking & service rooms.
Proposed light fixtures power rating Is less.
v. Attach fully complied (All clauses against the supply of light
fixtures) signed & stamped project specification compliance
report.
vi. The Vendor to confirm the use of Dubai Lamps In the
quotation.
vii. The Vendor shall consider quantities as per SQQ.

Page 21 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
viii. ltems-12:- Propose suitable type water tank light fixtures
ix. Provide complete warranty for light fixtures including
accessories & ballast.
x. Product warranty draft correspondence to be attached.
xi. Confirm Country of Origin of all light fixtures. 'Made in China'
not acceptable.
xii. Confirm Country of Origin Certificate will be provided for all
Light Fixtures as per the part number during delivery.

e. ISTANBUL ELECTRICAL TRADING


i. ltems-13, 14, 15, and 16:- Provide IP-65 weather proof type
LED light fixture for all driveway, parking & service rooms.
ii. Attach fully complied (All clauses against the supply of light
fixtures) signed & stamped project specification compliance
report.
iii. The Vendor to confirm the use of Dubai Lamps in the
quotation.
iv. The Vendor shall consider quantities as per BOQ.
v. Provide complete warranty for light fixtures including
accessories & ballast.
vi. Product warranty draft correspondence to be attached.
vii. Confirm Country of Origin of all light fixtures. 'Made In China'
not acceptable.
viii. Confirm Country of Origin Certificate will be provided for all
Light Fixtures as per the part number during delivery.

f. SMART LOOK ELECTRONIC TRADING


i. ltems-13, 14, 15, and 16:- Provide IP-65 weather proof type
LED light fixture for all driveway, parking & service rooms.
ii. Item-01:- Power rating is very less. Consider power rating
matching with design.
iii. Attach fully complied (All clauses against the supply of light
fixtures) signed & stamped project specification compliance
report.
iv. The Vendor to confirm the use of Dubai Lamps in the
quotation.
v. The Vendor shall consider quantities as per BOO.
vi. Provide complete warranty for light fixtures including
accessories & ballast.
vii. Product warranty draft correspondence to be attached.
viii. Attach detailed technical data sheet for all light fixtures for the
detailed product review.
ix. Confirm Country of Origin of all light fixtures. 'Made in China'
not acceptable.

Page 22 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
x. Confirm Country of Origin Certificate will be provided for all
Light Fixtures as per the part number during delivery.

6.2.6. On 10 October 2017, via Technical Submittal ref. OST/116/183 rev. 02 [Exhibit
6.2-F], the Main Contractor has once again submitted the required details in
connection with the light fittings for the Engineer’s review and approval and in
reply to the Engineer’s comments and requirements depicted within its
response for the dispatched Technical Submittal in question via [Exhibit 6.2-E].

6.2.7. On 18 October 2017, via Technical Submittal ref. OST/116/183 rev. 00 [Exhibit
6.2-G], the Engineer replied to the Main Contractor’s submitted quotations in
connection with the supply of light fittings for the Project. Wherein the Engineer
released the Technical Submittal in question with code (B) “Approved As
Noted” and, astonishingly, requesting the Main Contractor to again resubmit
the said Submittal, rendering the approval as null and void.

Additionally, the Engineer requested the Main Contractor to:


a. “Refer to the comments on the attached comparison sheet and
comment sheet. Comply comments and resubmit ”.
b. “Arrange sample board for final selection”.
c. “Provide samples with labels of location Type of light fitting as per
Contract”.

Along with the respective comments sheets which state that:


a. General Comments:
a. Lamp color is subject to Employer/Engineer/Architect approval.
b. The Contractor shall ensure LUX level. The Contractor shall
provide LUX level calculation & confirmation correspondence
along with material submittal.
c. All light fixture samples to be provided at site for final approval.
d. The Contractor shall confirm the Quantities of light fixtures as per
approved Shop drawings/ Approved RCP drawings.
e. All Vendors to modify light fixture quotations as per revision-2
comments; modified quotations shall include all technical details
as per attached Technical Comparison Sheet with Product
Warranty & Product Image.
f. All Vendors shall attach product Technical Catalogue in the
same order of quotation. Model number of light fixtures to be
highlighted in the quotation.
g. Propose surface mounted type light fixture for balcony
applications.
h. All vendors shall confirm the Intensity of light (Lux level) shall be
as per authority requirements Submit Lux level calculations for
various regions.

Page 23 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
b. SPECIFIC COMMENTS:
a. AL GHANDI ELECTRONICS
i. Not respond towards Rev-01 comments.
b. AL SHOLA Al MODEA LIGHTING LLC
i. Product country of origin China is not acceptable,

c. HUDA LIGHTING
i. SL No-13 propose lp-65 rating light fixture for parking,
Driveway & service rooms.

d. LAMPARAS TRADING LLC


i. Sl-No-12 IP-67 light fixture to be proposed for water tank
applications.
ii. Attach detailed product technical catalog for detailed product
review.
e. ISTANBUL ELECTRICAL TRADING
i. Sl-No-4 Provide IP-65 light fixture for balcony applications.
ii. Submit Country of Origin certificate for all the Light Fittings.
f. SMARTLOOK LIGHTINGS
i. Submit Country of Origin certificate for all the Light Fittings.
g. ECO SMART LIGHTING
i. Submit Country of Origin certificate for all the Light Fittings.
ii. Refer attached comments.

All of which ascertains the fact that such comments were not in conjunction
with the received code (B) reverting the Main Contractor back to square one.
Whereas the Main Contractor, for the overall benefit of the Project, has duly
resubmitted the requested samples for the Employer’s selection and approval
and such was carried out on 08 November 2017 for the Main Contractor to
proceed accordingly with the proper course of manner.

6.2.8. On 25 November 2017, via Technical Submittal ref. OST/116/339 rev. 00


[Exhibit 6.2-H], the Main Contractor has resubmitted the requested quotations
in line with the Employer’s selected/ approved samples on 08 November 2017.

6.2.9. On 19 December 2017, via correspondence ref. OST/116/CON-017 [Exhibit


6.2-I] and upon the receipt of the Engineer’s instruction again to submit the
required documents vide a correspondence and not a Technical Submittal on
18 December 2018, the Main Contractor has again submitted the required
revised quotations in connection with the light fittings for the Engineer’s review
and approval.

Page 24 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
6.2.10. On 07 January 2018, via email [Exhibit 6.2-J], the Engineer requested the Main
Contractor to provide samples of chandeliers for living rooms and bedrooms
from the supplier (M/s Lamparas) catalog, along with the respective Technical
Data sheets and comprehensive quotation for the Engineer’s review and
approval.
6.2.11. On 18 January 2018, via correspondence ref. OST/116/CON-019 [Exhibit 6.2-
K], the Main Contractor submitted the requested details for the chandeliers of
living rooms and bedrooms, and highlighted that the respective samples are
available on Site for selection.

Whereas the Engineer’s came, to the Main Contractor’s astonishment, to


submit the light fitting quotations not only for the chandeliers as requested by
the Engineer, but also for all the lighting fixtures again.

6.2.12. On 25 January 2018, via correspondence ref. OST/116/CON-020 [Exhibit 6.2-


L], the Main Contractor submitted the requested revised full and final quotations
for all the lighting fixtures as per the Employer requirements.

Whereas the Engineer’s hectic feedback came to include an additional


quotation to be included for the Project’s lighting fixtures.

6.2.13. On 30 January 2018, via correspondence ref. OST/116/CON-021 [Exhibit 6.2-


M], the Main Contractor has once again resubmitted the revised full and final
quotations for all the lighting fixtures as per the Employer requirements and
respective selection.

Whereas the Engineer’s reluctant feedback came to the contrary of what was
accustomed to for the said documents. Whereas the Engineer requested the
Main Contractor to resubmit the said revised quotations via Technical Submittal
and not correspondence as previously directed, obstructing the Main
Contractor from proceeding the with the respective Works thereto on Site.

6.2.14. On 31 January 2018, via Technical Submittal ref. OST/116/ 183 rev. 04 [Exhibit
6.2-N], the Main Contractor has once again resubmitted the revised full and
final quotations for all the lighting fixtures as per the Employer requirements
and respective selection.

Wherein the Engineer’s feedback was received with code (B) “Approved As
Noted” carrying the following comments:

a. The unit rates of light fittings as per lampras quotation


LT/QTN/GL/2017/848R4 dated 24/01/2018 (A copy of the quotation
attached with Employer’s representative approved there upon).

Page 25 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
b. Include 10% attic stock. The same to be handed over to Employer at
the time of handing over.

c. PC rate adjustment to be submitted as per Contract in a timely manner.

d. Delivery shall be per Contractor agreed Cl 14.1 programme of Works

6.2.15. On 13 February 2018, via correspondence ref. OST/SITE-116/ 069 [Exhibit


6.2-O], the Main Contractor dispatched its correspondence in connection with
the negative impacts encountered throughout the entire process of nominating
the supplier for the lighting fixtures by the Engineer. Whereas the nomination in
question was only received on 07 February 2018, whilst should had been
received, pre the Project’s programme, within 18 March 2017 to 09 May 2017.

B. ANALYSIS

6.2.16. OST had suffered from the reluctant/ hesitant decisions by the Engineer
resulting in extensive delays in nominating the Project’s supplier for the lighting
fixtures. Which had caused in delays / losses to the Main Contractor and
induced irrecoverable delays to the Time for Completion beyond the Main
Contractor’s reasonable control. The Main Contractor has made its best
endeavor towards its obligations with the numerous notices to the Engineer,
urging the Engineer to expedite the resolving of the issue, and recording the
adverse implication of not doing so by the Engineer.

6.2.17. The impediments and disruptions caused by the extensive delays in nominating
the supplier for the Project’s lighting fixtures has adversely affected the
Programme of Works, as well as the economic viability of the Main Contractor’s
package. That were beyond the Main Contractor’s reasonable control and
could not have been avoided by use of due care and diligence.

6.2.18. Accordingly, the Main Contractor seeks a reasonable adjustment to the


Contract’s Time for Completion, due to the occurrence of the above event that
had caused the Main Contractor to incur irrecoverable losses beyond its
reasonable control, as detailed further in Part II of this Claim.

Page 26 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
6.3. DELAYED RELEASE OF CONTRACTOR’S INTERIM PAYMENT
CERTIFICATES

A. CHRONOLOGY

6.3.1. Via the Project’s cash flow of the Project’s Programme [Exhibit 6.3-A], and as
highlighted hereunder, the Main Contractor was expected to receive an
average of Dhs 1,767,497.00 on a monthly basis in order to cover for its
expenses thereto that were progressively carried out on Site.

Figure 1 Project's Cash Flow per the Project's Baseline Programme

6.3.2. The aforementioned monthly average is calculated based on the formula


below:

( 509,039+226,240+1,905,362+512,574 +1,032,219+1,534,188+1,226,643+1,120,593+ 1,940,71

6.3.3. The Contractual duration for the release of payments by the Employer after the
receipt of the respective Certificate from the Engineer is 30 Days as defined in
Chapter (8) of the Claim hereunder.

6.3.4. Pertaining to several circumstances that were beyond the Main Contractor’s
reasonable control, several Interim Payments Certificates were delayed in their
respective release, incurring the Main Contractor irrecoverable losses imposing
extensive obstructions on the part of the Main Contractor in terms of the
progress of Works on Site as a consequence of the subsequent disruption in
the Main Contractor’s cash flow.

6.3.5. The delayed payments are as summarized hereinunder:

Page 27 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Interim Certified Released Elapsed Time
Payment Amount Amount between
Time Payment
Certificate by the by the Certifying and
Scale Overdue
(IPC) Engineer Employer Releasing the
Number (Dhs) (Dhs) Payments
11-Jul-17 IPC (7) 575,273
15-Aug-17 IPC (8) 537,431
28-Aug-17 1,112,704 48 -18
12-Sep-17 IPC (9) 477,989
19-Oct-17 477,989 37 -7
09-Nov-17 IPC (11) 906,123 23
24-Dec-17 906,123 45 -15
20-Feb-18 IPC (14) 1,805,378
28-Mar-18 1,805,378 36 -6
09-Sep-18 IPC (21) 772,971
11-Oct-18 772,971 32 -2
18-Oct-18 IPC (22) 886,552
20-Nov-18 886,552 33 -3
26-Nov-18 IPC (23) 1,249,930
08-Jan-19 1,249,930 43 -13
Total 7,211,645 7,211,645 -64
Table 1 Delayed Released Payments Log

B. ANALYSIS

6.3.6. OST had suffered from the delays in releasing the certified payment amounts.
Which had caused in delays / losses to the Main Contractor and induced
irrecoverable delays to the Time for Completion beyond the Main Contractor’s
reasonable control. The Main Contractor has made its best endeavor towards
its obligations, bearing the Employer’s best interest in mind, urging the
Engineer/ Employer to expedite the resolving of the issue, whilst progressively
highlighting the adverse implications resulted as a consequence of the
aforesaid.

6.3.7. The impediments and disruptions caused by the delayed release of the
Project’s Interim Payment Certificates has adversely affected the Programme of
Works and the respective cash flow thereto, as well as the economic viability of
the Main Contractor’s package. That were beyond the Main Contractor’s
reasonable control and could not have been avoided by use of due care and
diligence.

Page 28 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
6.3.8. Accordingly, the Main Contractor seeks a reasonable adjustment to the
Contract’s Time for Completion, due to the occurrence of the above event that
had caused the Main Contractor to incur irrecoverable losses beyond its
reasonable control, as detailed further in Part II of this Claim.

Page 29 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
PART II – DESIGN CHANGES AND MODIFICATIONS TO THE SCOPE OF
WORKS BY THE ENGINEER
6.4. CHANGING FACADES FINISHES FROM ALUMINUM CLADDING INTO
PLASTER AND PAINTING

A. CHRONOLOGY

6.4.1. The Main Contractor was instructed to implement and carry out the
replacement of the elevations aluminum cladding works. Whereas such Works
would be replaced with the conventional finishes (i.e., plastering and painting)
for the said areas.

6.4.2. On 05 March 2017, via correspondence ref. OST116.CON.1160059 [Exhibit


6.4-A] dispatched through email [Exhibit 6.4-B], the Main Contractor notified the
Engineer with the relevant amounts resulted as a consequence of the
replacement of such works with the conventional ones (i.e., plastering and
painting).

B. ANALYSIS

6.4.3. The instruction to replace the aluminum cladding external works for elevations
by the Engineer has obstructed the Main Contractor from proceeding with its
scope of Works on Site in the manner that has been originally tendered, which
subsequently caused extensive delays / disruptions to the Main Contractor’s
scope of works not relevant to the Main Contractor and beyond its reasonable
control.

6.4.4. The impediments and disruptions caused by the issuance of the instruction by
the Engineer had adversely affected the Project’s Programme and the
economic viability of the Project which could not have been avoided by the use
of due care and diligence by the Main Contractor. Whereas the said instruction
had caused the Main Contractor to prepare and resubmit the respectively
added workshop drawings and the subsequent works thereto.

6.4.5. Accordingly, the Main Contractor seeks a reasonable adjustment to the Main
Contract Time for Completion, due to the occurrence of the above event that
had caused the Main Contractor to incur losses beyond its reasonable control,
and had induced irrecoverable delays to the Time for Completion, as detailed
further in Part II of this Claim.

Page 30 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
PART III– ADDITIONAL SCOPE OF WORKS BY THE ENGINEER

6.5. ADDITIONAL FALSE CEILING WORKS FOR ALL TYPICAL FLOORS

A. CHRONOLOGY

6.5.1. On 08 November 2017, via the Request for Information (RFI) ref. RFI/ 003
[Exhibit 6.5-A], the Main Contractor released the RFI in question inquiring about
the fresh air duct branches that are passing either through the living or the
dining areas without any false ceiling to cover such areas.

6.5.2. On 08 November 2017, via the Request for Information (RFI) ref. RFI/ 003
[Exhibit 6.5-B], the Engineer responded to the Main Contractor inquires
released vide the RFI in question by stating the following:

a. “Provide 60 cm wide false ceiling – CG1.”


b. “Install fresh air duct as per Dubai Municipality approved Building Permit
drawing to the subject area.”

B. ANALYSIS

6.5.3. The various modifications/changes and additional works that had been
instructed to the Main Contractor, due to the various Project’s design changes,
had caused delay to the Main Contractor’s engineering works and
subsequently had delayed the progress for the Project’s works on Site and
respective Site activities.

6.5.4. The Project’s Completion Date has been delayed due to the inclusion of the
additional false ceiling works to the scope of works that had not been initially
part of the Main Contract Works. In addition to that, the inclusion of the
additional quantities has been associated with obstruction of the Works on Site
that had affected/delayed the Contract’s Time for Completion.

6.5.5. Accordingly, the Main Contractor seeks a reasonable adjustment to the Main
Contract Time for Completion and Contract Price, due to the occurrence of the
above events that had caused the Main Contractor to incur losses beyond its
reasonable control, and had induced delays to the Time for Completion, as
detailed further in Part II of this Claim.

Page 31 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
PART IV– STOPPAGE OF WORKS ON SITE DUE TO THE ENCOUNTERED
EXCEPTIONALLY ADVERSE CLIMATIC CONDITIONS

6.6. STOPPAGE OF WORKS ON SITE DUE TO HEAVY RAIN

A. CHRONOLOGY

6.6.1. On 21 March 2017, via correspondence ref. OST116.CON.1160060 [Exhibit


6.6-A], the Main Contractor notified the Engineer with the encountered
exceptionally adverse climatic conditions (viz; heavy rain), negatively impacting
therefore the Main Contractor’s progress of Works on Site which caused the
whole Works on Site to be completely halted till the cessation of such heavy
rains which was beyond the Main Contractor’s reasonable control.

6.6.2. On 26 March 2017, via correspondence ref. OST116.CON.1160063 [Exhibit


6.6-B], the Main Contractor notified the Engineer with the encountered
exceptionally adverse climatic conditions (viz; heavy rain) that occurred on 24
March and 25 March 2017 respectively, negatively impacting therefore the
Main Contractor’s progress of Works on Site which caused the whole Works on
Site to be completely halted till the cessation of such heavy rains which was
beyond the Main Contractor’s reasonable control.

B. ANALYSIS

6.6.3. The Main Contractor suffered from the occurrence of such exceptionally
adverse climatic conditions which consequently resulted in halting the progress
of the Main Contractor’s scope of Works on Site, leading to the inability to
redeploy the Contractor’s personnel to Site for extensive durations that has
adversely affected the progress of the Site activities and induced delays to the
Time for Completion.

6.6.4. Accordingly, the Main Contractor seeks a reasonable Indemnity by the


Engineer to the associated time implications, due to the occurrence of the
above event, as detailed further in Part II of this Claim.
6.13.1.

Page 32 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Chapter

7 DUTY TO MINIMIZE DELAY


7. DUTY TO MINIMIZE DELAY

7.1. INTRODUCTION

7.1.1. In this Chapter, the Main Contractor is displaying its efforts to minimize the
effect of the Exceptional Circumstances, as a consequence of the various delay
events encountered throughout the course of the Project.

7.1.2. The Contractor has a general duty to mitigate the effects on its Works of
Employer Risk Events. The duty to mitigate does not extend to require the
Contractor to add extra resources or to work outside its planned working hours.
The Contractor’s duty to mitigate its loss has two aspects: first, the Contractor
must take reasonable steps to minimize its loss; and secondly, the Contractor
must not take unreasonable steps that increase its loss.1

7.1.3. The Main Contractor does not have a duty to carry out any change in scope
any more efficiently than the original scope. Neither is the Main Contractor
obliged to expend money in order to attempt to mitigate the effect of an
Employer Risk Event. If the Employer wishes the Contractor to take measures
to mitigate the Employer Delay (whether by adding extra resources, by working
outside its planned working hours or otherwise), the Employer should agree to
pay the Contractor for the costs of those efforts.2

7.1.4. It is the obligation of the Main Contractor to proceed with the Works so as to
complete on or before the Completion Date. However, the method, speed and
timing of the activities forming the contract scope are generally left to the Main
Contractor’s discretion, subject to any stipulated prior process of acceptance of
method and/or programme.3

7.1.5. Even though such exceptional circumstances are providing massive pressure
over the Contractor’s expenses; the Contractor refrained from discharging any
of its personnel and/or labor, for the benefit of the Project, alternatively, the
Contractor adopted rotational shifts and working from home measures.

1
SCL Delay and Disruption Protocol 2nd Edition: February 2017 P. 7/79
2
SCL Delay and Disruption Protocol 2nd Edition: February 2017 P. 40-41/79
3
SCL Delay and Disruption Protocol 2nd Edition: February 2017 P. 41/79

Page 33 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Chapter
ENTITLEMENT AND
8 DISCUSSION
8. ENTITLEMENT AND DISCUSSION

8.1. Introduction

1.1. In this Chapter, the Main Contractor has attempted to delineate the
responsibilities regarding the effects imposed through reverting to the Main
Contract.

1.2. The following Clauses and conditions are clear contractual entitlement to
substantiate the Main Contractor’s rights for an extension of Time. The bases of
the entitlement for the Main Contractor’s claim for extension of Time is the
provision stated in the Main Contract and under the provisions of fairness and
good faith as clearly stipulated within the Law of the United Arab Emirates.

8.2. Conditions of Contract

8.2.1. Sub-Clause 5.2 [Language and Law] of the Particular Conditions of Contract
states that:

“(a) The Contract Documents shall be drawn up in the English Language.

(b) The Contract shall be governed by and construed according to the


Laws in force in the U.A.E. and in Dubai.”

8.2.2. Sub-Clause 14.1 [Programme to be Submitted] of the Particular Conditions of


Contract states that:

"(a) The Contractor shall within 7 days of receiving the order to commence
the Works, pursuant to Clause 41 hereof, submit to the Engineer for his
approval a programme showing the procedure in which he proposes to
carry out the Works.

(b) The programme shall be in the form of a Critical Path Method (CPM)
network analysis which shall show the earliest start (ES) and latest
finish (LF) dates, the length of duration and total float time applicable to
each activity. The critical path/paths shall be clearly highlighted.

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
(c) The approved programme shall be the sole basis of assessing any
extension/ extensions of time in accordance with Clause 44 herein and
each month the Contractor shall submit details of any revisions to the
programmed sequences, logic and times.

The programme shall be accompanied by a complete critical path analysis


for the execution of the Works. which shall show clearly the float times
available within the programme, utilising 3 time estimating procedures or
by stating the Earliest Start/Earliest Finish and Latest Start/Latest Finish
times for each and every activity."

8.2.3. Sub-Clause 20.3 [Loss or Damage Due to Employer's Risks] of the General
Conditions of the Contract states that:

“In the event of any such loss or damage happening from any of the risks
defined in Sub-Clause 20.4, or in combination with other risks, the
Contractor shall, if and to the extent required by the Engineer, rectify the
loss or damage and the Engineer shall determine an addition to the
Contract Price in accordance with Clause 52 and shall notify the Contractor
accordingly, with a copy to the Employer. In the event of any loss or
damage happening from a combination of Employer's and Contractor's
Risks, as defined by Sub-Clauses 20.4 and 20.5, the responsibility for
rectification of such loss or damage shall be that of the Contractor. Under
such circumstances, the Engineer shall, when determining an addition to
the Contract Price in accordance with Clause 52, take into account the
proportionate responsibility of both the Contractor and the Employer and
shall notify the Contractor accordingly with a copy to the Employer.”

8.2.4. Sub-Clause 20.4 [Employer's Risks] of the General Conditions of the Contract
states that:

“The Employer's Risks are:


(a) war, hostilities (whether war be declared or not), invasion, act of foreign
enemies,

(b) rebellion, revolution, insurrection or military or usurped power, or civil


war,

(c) ionising radiations, or contamination by radioactivity from any nuclear


fuel, or from any nuclear waste from the combustion of nuclear fuel,
radio-active-toxic explosive, or other hazardous properties of any
explosive nuclear assembly or nuclear component thereof,

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
(d) pressure waves caused by aircraft or other aerial devices travelling at
sonic or supersonic speeds,

(e) riot, commotion or disorder, unless solely restricted to employees of the


Contractor or of his Sub-Contractors and arising from the conduct and
execution of the Works.

(f) loss or damage due to the use or occupation by the Employer of any
Section or part of the Permanent Works, except as may be provided for
in the Contract,

(g) loss or damage to the extent that it is due to the design of the Works,
other than any part of the design provided by the Contractor or for
which the Contractor is responsible,

(h) damage to crops being on the Site (save in so far as possession has
not been given to the Contractor),

(i) damage (other than that resulting from the Contractor's method of
construction) which is the unavoidable result of the construction of the
Works in accordance with the Contract,

(j) any interference, whether temporary or permanent with any right of way,
light, air, water, or other easement or quasi-easement which are the
unavoidable results of the construction of the Works in accordance with
the Contract,

(k) Acts of Government.

8.2.5. Sub-Clause 41.1 [Commencement of Works] of the General Conditions of the


Contract states that:

“The Employer shall fix the date by which the Contractor is to commence
execution of the Works on Site and the Engineer shall issue a notice to this
effect to the Contractor, which notice shall be issued within the time stated
in the Appendix to Tender after the date of the Correspondence of
Acceptance. Thereafter, the Contractor shall proceed with the Works with
due expedition and without delay.”

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
8.2.6. Sub-Clause 43.1 [Time for Completion] of the General Conditions of the
Contract states that:

“The whole of the Works and, if applicable, any Section required to be


completed within a particular time as stated in the Appendix to Tender,
shall be completed, in accordance with the provisions of Clause 48, within
the time stated in the Appendix to Tender for the whole of the Works or the
Section (as the case may be), calculated from the Commencement Date, or
such extended time as may be allowed under Clause 44.”

8.2.7. Sub-Clause 44.1 [Extension of Time for Completion] of the General Conditions
of the Contract states that:

“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.”

8.2.8. Sub-Clause 44.2 [Contractor to Provide Notification and Detailed Particulars] of


the General Conditions of the Contract states that:

“Provided that the Engineer shall not 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 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.

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Such detailed particulars shall include reference to the Programme
submitted to the Engineer pursuant to Clause 14 and shall clearly set out
the basis and justification for extension of time to which the Contractor is of
the opinion that he is entitled to receive.”

8.2.9. Sub-Clause 51.1 [Variations] of the General Conditions of the Contract states
that:

“Subject to the provisions of Clause 2, the Engineer shall make any


variations of the form, quality or quantity of the Works or any part thereof
that may, in his opinion, be necessary and for that purpose, or if for any
other reason it shall, in his opinion, be appropriate, he shall have the
authority to instruct the Contractor to do and the Contractor shall do any of
the following:
(a) increase or decrease the quantity of any work included in the Contract,

(b) omit any such work (but not if the omitted work is to be carried out by
the Employer or by another contractor),

(c) change the character or quality or kind of any such work,

(d) change the levels, lines, position and dimensions of any part of the
Works,

(e) execute additional work of any kind necessary for the completion of the
Works,

(f) change any specified sequence or timing of construction of any part of


the Works.

A copy of all instructions issued by the Engineer to the Contractor pursuant


to the above paragraphs, shall be sent by the Engineer to the Employer at
the time of issue of such instructions to the Contractor.

No such variations shall in any way vitiate or invalidate the Contract, but
the effect, if any, of all such variations shall be valued in accordance with
Clause 52. Provided that where the issue of an instruction to vary the
Works is necessitated by some default of or breach of contract by the
Contractor or for which he is responsible, any additional cost consequent
thereon or incidental
thereto which are attributable to such default shall be borne by the
Contractor and may be recoverable from the Contractor by the Employer
and may be deducted by the Employer from any monies due or to become
due to the Contractor.”

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
8.2.10. Sub-Clause 51.2 [Instructions for Variations] of the General Conditions of the
Contract states that:

“The Contractor shall not make any such variation without an instruction of
the Engineer. Provided that no instruction shall be required for increase or
decrease in the quantity of any work where such increase or decrease is
not the result of an instruction given under this Clause, but is the result of
the quantities exceeding or being less than those stated in the Bill of
Quantities”

8.2.11. Sub-Clause 53.1 [Notice of Claims] of the General Conditions of the Contract
states that:

“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.”

8.2.12. Sub-Clause 53.2 [Contemporary Records] of the General Conditions of the


Contract states that:

“Upon the happening of the event referred to in Sub-Clause 53.1, the


Contractor shall keep such contemporary records as may 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 may 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 this Sub-Clause and shall supply him with copies
thereof as and when the Engineer so instructs.”

8.2.13. Sub-Clause 58.1 [Definition of Provisional Sums] of the General Conditions of


the Contract states that:

“ "Provisional Sum" means a sum included in the Contract and so


designated in the Bill of Quantities for the execution of any part of the
Works or for the supply of goods, materials, Plant or services, or for
contingencies, which sum may be used, in whole or in part, or not at all, on
the instructions of the Engineer. The Contractor shall be entitled to only
such amounts in respect of

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
the work, supply or contingencies to which such Provisional Sums relate as
the Engineer shall determine in accordance with this Clause The Engineer
shall notify the Contractor of any determination made under this Sub-
Clause, with a copy to the Employer.”
8.2.14. Sub-Clause 58.2 [Use of Provisional Sums] of the General Conditions of the
Contract states that:

“In respect of every Provisional Sum the Engineer shall have authority to
issue instructions for the execution of work or for the supply of goods,
materials, Plant or services by:
(a) the Contractor, in which case the Contractor shall be entitled to an
amount equal to the value thereof determined in accordance with
Clause 52,

(b) a nominated Subcontractor, as hereinafter defined, in which case the


sum to be paid to the Contractor therefore shall be determined and
paid in accordance with Sub-Clause 59.4.”

8.2.15. Sub-Clause 59.1 [Definition of “Nominated Subcontractors”] of the General


Conditions of the Contract states that:

“All specialists, merchants, tradesmen and others executing any work or


supplying any goods, materials, Plant or services for which Provisional
Sums are included in the Contract, who may have been or be nominated or
selected or approved by the Employer or the Engineer, and all persons to
whom by virtue of the provisions of the Contract the Contractor is required
to subcontract shall, in the execution of such work or the supply of such
goods, materials, Plant or services, be deemed to be subcontractors to the
Contractor and are referred to in this Contract as "nominated
Subcontractors".”

8.2.16. Sub-Clause 60.1 [Monthly Statements] of the General Conditions of the


Contract states that:

“The Contractor shall submit to the Engineer after the end of each month
six copies, each signed by the Contractor or by the Contractor's
representative approved by the Engineer in accordance with Sub-Clause
15.1, of a statement, in such form as the Engineer after due consultation
with the Employer and the Contractor may from time to time prescribe,
showing the amounts to which the Contractor considers himself to be
entitled up to the end of the month in respect of:
(a) the value of the Permanent Works executed including the value of the
work of Nominated Subcontractors,

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
(b) any other items in the Bill of Quantities including those for Contractor's
Equipment, Temporary Works, dayworks and the like,

(c) the percentage of the invoice value of listed materials, all as stated in
the Appendix to Tender, and Plant delivered by the Contractor on the
Site for incorporation in the Permanent Works but not incorporated in
such Works,

(d) any other sum to which the Contractor may be entitled under the
Contract.

The value of work executed by Nominated Sub-Contractors shall be listed


separately.”

8.2.17. Sub-Clause 60.2 [Monthly Payments] of the General Conditions of the Contract
states that:

“The Engineer shall, within 28 days of receiving such statement, certify to


the Employer the amount of payment to the Contractor which he considers
due and payable in respect thereof, subject:

(a) firstly, to the retention of the amount calculated by applying the


Percentage of Retention stated in the Appendix to Tender, to the
amount to which the Contractor is entitled under paragraphs (a), (b), (c)
and (d) of Sub-Clause 60.1 until the amount so retained reaches the
Limit of Retention Money stated in the Appendix to Tender, and

(b) secondly, to the deduction, other than pursuant to Clause 47, of any
sums which may have become due and payable by the Contractor to
the Employer.

Provided that the Engineer shall not be bound to certify any payment under
this Sub-Clause if the net amount thereof, after all retentions and
deductions, would be less than the Minimum Amount of Interim Certificates
stated in the Appendix to Tender.

Notwithstanding the terms of this Clause or any other Clause of the


Contract no amount will be certified by the Engineer for payment until the
performance security, if required under the Contract, has been provided by
the Contractor and approved by the Employer.”

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
8.2.18. Sub-Clause 69.1 [Default of Employer] of the Particular Conditions of the
Contract states that:

“(1) In the event of the Employer failing to pay to the Contractor the amount
due under any certificate of the Engineer within sixty (60) days after the
end of the period for payment stipulated in sub clause 60(6), subject to any
deduction that the Employer is entitled to make under the Contract, the
Contractor shall be entitled to terminate his employment under the Contract
after giving thirty days' prior written notice to the Employer, with a copy to
the Engineer.”

8.3. Caveat

3.1. This is an updated claim document, for the purpose of providing a supported
case for OST’s entitlement to an Extension of Time, as a result of the events
detailed in the claim submission. OST reserves its rights to amend, supplement,
omit or provide further information at any time should this be considered
appropriate by either party.

3.2. Neither the adopted methodology nor the claim generally takes any account of
any events taking place for reasons other than the subject matter of the claim or
for events occurring during the period of time not considered under the claim.
OST reserves all rights to pursue such matters separately.

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
OST CONSTRUCTIONAL PROJECTS, L.L.C.

COMPREHENSIVE CLAIM APPLICATION


FOR
EXTENSION OF TIME
IMPLICATIONS

Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai,
U.A.E.

PART II

CLAIM METHODOLOGY

Page 43 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
PART II

TABLE OF CONTENTS

Chapter 9 CONCEPT AND DELAY ANALYSIS METHODOLOGY

9.1. INTRODUCTION 45

9.2. CONCEPT 46

9.3. PROGRAMME ANALYSIS 47

9.4. CONCLUSION 51

Chapter 10 IMPACTED PROJECT MASTER SCHEDULE

10.1. OVERALL IMPACTED PROGRAMMES 52

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Chapter
CONCEPT AND DELAY ANALYSIS
9
METHODOLOGY

9.1. INTRODUCTION

9.1.1. In this chapter, the Main Contractor analyzes the impact of the delay events
highlighted and mentioned in Part-I of this Claim, in terms of time effects, on the
Project and/or the Completion Date.

9.1.2. The computerized calculations of the critical path for applying this method are
attached to chapter 10 of this part under the “Impacted Programme of Works”.

9.1.3. The overall thrust of this analysis is to establish the impact of delay events on the
Project’s Programme of Works in a dynamic manner. The delay events that are
modeled are introduced into the Project Master Schedule, and linked in an
appropriate manner.

9.1.4. Having incorporated the delay events to the Project’s Programme of Works is then
modeled/recalculated. The resultant impact upon completion is determined to be the
critical delay impact of the introduced delay events.

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
9.2. CONCEPT

9.2.1. The Programme used for this analysis is the Project’s approved Baseline Schedule,
as submitted by the Main Contractor,

9.2.2. Each delay event is inserted individually in the Project’s Baseline Schedule and
linked logically to the other correlated activities in order to identify the actual impact
of each individual event on the other Works’ activities and on the Completion Date
as well. This exercise will be principally used to define the damages.

9.2.3. Ultimately, all delay events will be presented together on the Project Baseline
Schedule in order to evaluate the integrated and net impact on the time for
completion.

9.2.4. The activities that ended beyond the Completion Date will be the main driver for the
adjustment of the time for completion and consequently the contractual Completion
Date.

9.2.5. The delay analysis is performed by using the Project Baseline schedule and
impacting it in successive iterations to evaluate the effect of delay events.

9.2.6. This analysis is performed to identify and calculate the impact of the delay events
that occurred during the Contract Time for Completion. The facts associated with
each delay event were examined and a “event fragnet” (a portion of a Critical Path
Method (CPM) schedule network) was developed for each event.

9.2.7. The insertion of an event activity representing the delay events and changes to the
Scope of Work into the Project Programme CPM allows its specific impact on the
Project to be integrated into the Project Programme.

9.2.8. The use of this methodology assures that the individual impact of each event is
properly considered with respect to its influence on the Project Baseline Programme.

9.2.9. When all the impacts (event activities) for a particular time period had been
developed and inserted into the Project Baseline Programme, the Critical Path
Method schedule was recalculated. [All schedule evaluations were conducted using
Primavera software].

9.2.10.The Project Baseline Programme is the timetable for implementation and completion
of the Works, including and integrating the acts of the Employer / the Engineer in
terms of review and approval of engineering submittals and the sequence for the
execution of the Works.

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
9.2.11.The delay analysis methodology used is known as the (Impacted-As-Planned)
method or (Net Impact Analysis) and it is commonly used for delays analysis.

9.2.12.The Impacted Project Schedule may show a start date for certain activities later than
what actually have been performed in the Project, because the impact of most of the
events affects the Time for Completion of the activity rather than the start date of that
activity.

9.2.13.In the analysis, the delay event activity is added to the Project Baseline Programme
in order to demonstrate the influence of the event on the Project Baseline
Programme activities sequence and overall duration. Thus, incorporating delays and
impacts into the Project Baseline Programme as they were encountered.

9.3. Programme Analysis

Delay Events affecting the Project Completion

9.3.1. A new Work Breakdown Structure (WBS) has been incorporated into the Project’s
Baseline Programme named with their relative event numbered as illustrated in Part
I of this Claim. In order to reflect the same impact effect on any device with different
users, all global calendars were changed into a project calendar. The analysis of
these delay events had been carried out as follows:

9.3.2. Delayed Approval/ Certification of the Project Documents by the


Engineer/ the Employer

9.3.3. Event No. 1 – Delayed Approval for Inspection of the Second Floor Slab

For showing the Impact of this delay event, the Main Contractor added the delayed
activities assigned to the Project Baseline Programme activities with the listed details
to reflect the impact of each delay event.

Please refer to the below referenced exhibits depicting the assigned activities and
the relevant impact(s) thereto:

a. [Exhibit 6.1-L] Baseline Programme Longest Path.

b. [Exhibit 6.1-M] Impacted Longest Path after the Event.

The Main Contractor relied on the dispatched correspondences and/ or the


respectively issued request forms as depicted in Part I of this Claim hereinabove,
and rendered such delays in nominating the respective supplier for the scope of

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PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
works in question as an obstruction of the sequence of the Works on Site in order to
be able to calculate the magnitude of the incurred delays, which consequently led to
a total of 75 Calendar Days Extension of Time for the Project’s Time for Completion
as a consequence of the delays incurred by the Employer/ Engineer.

9.3.4. Event No. 2 – Delayed Nomination of the Light Fitting Supplier by the
Employer

For showing the Impact of this delay event, the Main Contractor added the delayed
activities assigned to the Project Baseline Programme activities with the listed details
to reflect the impact of each delay event.

Please refer to the below referenced exhibits depicting the assigned activities and
the relevant impact(s) thereto:

a. [Exhibit 6.2-P] Employer/ Engineer Programme Longest Path.

b. [Exhibit 6.2-Q] Main Contractor Programme Longest Path.

The Main Contractor relied on the dispatched correspondences/ Technical


Submittals as depicted in Part I of this Claim hereinabove, and rendered such delays
in nominating the respective supplier for the scope of works in question as an
obstruction of the sequence of the Works on Site in order to be able to calculate the
magnitude of the incurred delays, which consequently led to a total of 36 Calendar
Days by the Main Contractor, and a total of 119 Calendar Days Extension of Time
for the Project’s Time for Completion as a consequence of the delays incurred by the
Employer/ Engineer.

9.3.5. Event No. 3 – Delayed Release of Contractor’s Interim Payment Certificates

For showing the Impact of this delay event, the Main Contractor shows hereunder
the method utilized for the calculation of the irrecoverable losses resulted as a
consequence of the event in question.

The Main Contractor relied on the monthly average (viz; Dhs 1,767,495) as depicted
in Part I of this Claim hereinabove, and rendered such figure as a measured mile in
order to be set as a benchmark for the calculation of the incurred delays, which
consequently led to a total of 122 Calendar Days Extension of Time for the Project’s
Time for Completion, per the below equation:

7,211,645
=4.08 Months∗30 Days=122.4 Calendar Days
1,767,495

Page 48 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
9.3.6. DESIGN CHANGES AND MODIFICATIONS TO THE SCOPE OF
WORKS BY THE ENGINEER

9.3.7. Event No. 4 – Changing Facades Finishes from Aluminum Cladding into
Plaster and Painting

For showing the Impact of this delay event, the Main Contractor added the delayed
activities assigned to the Project Baseline Programme activities with the listed details
to reflect the impact of each delay event.

Please refer to the below referenced exhibits depicting the assigned activities and
the relevant impact(s) thereto:

a. [Exhibit 6.4-C] Baseline Programme Longest Path.

b. [Exhibit 6.4-D] Impacted Longest Path after the Event.

The Main Contractor relied on the dispatched correspondence as depicted in Part I


of this Claim hereinabove, and rendered such instruction to change the scope of
works as an obstruction of the sequence of the Works on Site in order to be able to
calculate the magnitude of the incurred delays, which consequently led to a total of
54 Calendar Days Extension of Time for the Project’s Time for Completion.

9.3.8. ADDITIONAL SCOPE OF WORKS BY THE ENGINEER

9.3.9. Event No. 5 – Additional False Ceiling Works for All Typical Floors

For showing the Impact of this delay event, the Main Contractor adjusted the
calendars assigned to the Project’s Baseline Programme activities with the listed
details to reflect the impact of each delay event.

Please refer to the below referenced exhibits depicting the assigned activities and
the relevant impact(s) thereto:

a. [Exhibit 6.5-C] Impacted Longest Path after the Event.

The Main Contractor relied on the Released Requests for Information (RFI)s as
depicted in Part I of this Claim hereinabove, and rendered such instruction to carry
out and implement the additional scope of works on site as an obstruction to the
sequence of the Works on Site in order to be able to calculate the magnitude of the
incurred delays, which consequently led to a total of 13 Calendar Days Extension of
Time for the Project’s Time for Completion.

Page 49 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
9.3.10. STOPPAGE OF WORKS ON SITE DUE TO THE ENCOUNTERED
EXCEPTIONALLY ADVERSE CLIMATIC CONDITIONS

9.3.11.Event No. 6 – Stoppage of Works on Site due to Heavy Rain

For showing the Impact of this delay event, the Main Contractor adjusted the
calendars assigned to the Project’s Baseline Programme activities with the listed
details to reflect the impact of each delay event.

Please refer to the below referenced exhibits depicting the assigned activities and
the relevant impact(s) thereto:

a. [Exhibit 6.6-C] Longest Path with the Original Calendars.

b. [Exhibit 6.6-D] Impacted 5-Days with Holidays Calendar.

c. [Exhibit 6.6-E] Impacted 6-Days with Holidays Calendar.

d. [Exhibit 6.6-F] Impacted Longest Path after the Adjusted Calendars.

The Main Contractor adjusted the Project calendars assigned to the Project’s
Baseline Programme various activities by implementing the following variations to
the original calendars:

a. For the occurrence of 21 March 2017, the Main Contractor Rendered the days
21 March and 22 March 2017 as Non-Working Days in an endeavor to depict
the adverse implications of the event in question. Whereas the progress of
Works on Site was halted pertaining to the said occurrence in addition to the
fact that the Main Contractor was unable to redeploy its personnel to Site as a
consequence of such occurrence, whilst being able to redeploy only an
approximate amount of 50% of its personnel on 23 March 2017.

b. For the occurrence of 24 March and 25 March 2017, the Main Contractor
Rendered the days 24 March, 25 March and 26 March 2017 as Non-Working
Days in an endeavor to depict the adverse implications of the event in question.
Whereas the progress of Works on Site was halted pertaining to the said
occurrence in addition to the fact that the Main Contractor was unable to
redeploy its personnel to Site as a consequence of such occurrence.

Accordingly, and in light of the dispatched correspondences by the Main Contractor


as depicted in Part I of this Claim hereinabove to accommodate for the subsequent
obstructions of the progress of the Works on Site, the magnitude of the incurred
delays was calculated and led to a total of 7 Calendar Days Extension of Time for
the Project’s Time for Completion.

Page 50 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
9.4. CONCLUSION

9.4.1. Several changes initiated by the Employer / the Engineer to the Main Contractor
impacted the timely execution of the Contract’s Scope of Works.

9.4.2. Several factors have contributed to the above, resulting in irrecoverable delays
which could not have been avoided with the use of due care and diligence.

9.4.3. From the “Delay Events Analysis” illustrated hereinabove, and subsequent to a
meticulous study to the critical path of the Works, OST Constructional Projects,
L.L.C. concludes a total of Three Hundred and Ninety (390) calendar days as an
overall delay beyond the Contractual Completion Date. This gives an adjusted
Completion Date on the 16 June 2019.

9.4.4. The Contractor is claiming for extension of the project time by 390 calendar days
and extension of Time for Completion as follows:

No. Event Contractual Impacted Finish Variance


Description Finish (Calendar
Days)
01 Delayed Approval 22-May-18 05-Aug-18 -75
for Inspection of
the Second Floor
Slab
02 Delayed 22-May-18 19-Sep-18 -119
Nomination of the
Light Fitting
Supplier by the
Employer
03 Delayed Release 22-May-18 25-Jul-18 -122
of Contractor’s
Interim Payment
Certificates by the
Employer
04 Changing Facades 22-May-18 15-Jul-18 -54
Finishes from
Aluminum
Cladding into
Plaster and
Painting
05 Additional False 22-May-18 05-Jun-18 -13
Ceiling Works for
All Typical Floors
06 Stoppage of 22-May-18 29-May-18 -7
Works on Site due
to Heavy rain

Page 51 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Chapter

10 IMPACTED PROGRAMME

OVERALL
IMPACTED
PROGRAMMES

Page 52 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
Overall Baseline
Programme

Page 53 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
OVERALL IMPACTED
PROGRAMME

for Event 01

Page 54 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
OVERALL IMPACTED
PROGRAMME

for Event 02

Contractor Delay

Page 55 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
OVERALL IMPACTED
PROGRAMME

for Event 02

Employer Delay

Page 56 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
OVERALL IMPACTED
PROGRAMME

for Event 04

Page 57 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
OVERALL IMPACTED
PROGRAMME

for Event 05

Page 58 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.
OVERALL IMPACTED
PROGRAMME

for Event 06

Page 59 of 59

PROJECT : Residential Buildings (G + 2P + 12 Floors + Roof + Gym) on Plot No. 2410560 at al Nahda Second, Dubai, U.A.E.
MAIN CONTRACTOR : OST Constructional Projects, L.L.C.

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