Questions and Answers
Baseline & Updated Programme
1The Contractor did not submit a Baseline programme, Is the contractor still eligible to Claim for EOT&Additional Cost?
Each Project should have an approved Baseline Programme, in the case of a non-approved baseline programme it will be very hard to applying the delay analysis and prove the company rights in any claim (time or cost).
2What is the importance of an updated programme?
For each project there should be weekly or monthly progress updates which are a major tool in preparing our claim even if it’s not requested by the client/Engineer, and it should be approved by Engineer/Client.
Delay Analysis Methods
1Which delay analysis method should be used in an EOT claim?
The Contractor shall use the method which is stated in the contract, but if it is not stated, the contractor shall use the most appropriate method subject to the case.
2How many method for calculate the delay’s impact?
The most common methods of calculating the delay impact are 5 methods: “As-Planned Vs. As-Built”, “Impacted as-planned”, “Collapsed as-built”, “Window analysis”, “Time Impact Analysis”.
1Why is the contract review very important process?
Any contract shall be reviewed prior to signing in order to review all clauses and to understand the project risk and each party’s obligation, also to know and understand the clauses related to claims (time and cost) and to ensure it goes with the company policy to save company’s right and to avoid any losses of time or cost in the near future.
2Will the Contractor loss his right in claim if he didn’t send a a notice of delay?
A notice of delay shall be sent for each event or an incident which has any potential of delaying the project within 28 days of the event occurring as per clause 20.1 general conditions of contract (FIDIC), moreover the same should be sent with each variation of change submitted stating clearly that a cost and time claims will be submitted in due course. In case of not sending a notice of delay for any occurred even the contractor may not be entitled for any time or cost impact.
3If the Contract has no clause related to an EOT or Prolongation cost, is the Contractor still eligible to Claim for any?
If The Contract has not stated anything related to Claims That does not mean that the Contractor has no right to submitting his Claims.
4The Contract is against the Law,
The Law include two types of rules: 1- Supplementary rules: The Contract can include clauses against these rules. 2- Mandatory rules: The Contract’s parties cannot agree on any clauses against these rules. If they did that, these clauses will not be valid in court.
1Are all Claims related to only EOT?
There are a lot of types of Claims but all of it related to time or cost. Such as: 1- EOT Claim. 2- Prolongation cost. 3- Disruption Claim. 4- Acceleration cost. 5- Delayed payments. 6- Variation Claim. 7- Suspension Claim.
2What is the different between the prolongation cost and disruption claim?
Prolongation cost is the cost incurred by the contractor as a result of project delays that affect the project's complation date. Disruption claim is a claim for idle resources or loss of productivity of resources due to the other party (even there is any delay in project completion date).
3How does the prolongation cost calculated?
There are two methods to calculate the prolongation cost: 1- By using Preliminaries.(Hadson Formula) 2- By using Actual cost.(MDM Formula)
1WE HAVE USED THE CONTRACT PRELIMINARIES AMOUNT TO PRICE OUR PROLONGATION CLAIM!
In case of calculating of the prolongation cost by using the contract preliminaries, it will compensate for the damages that the party has suffered due to the delay caused by the other party, then it shall be applicable to be used. If the Contractor can prove that the damages are more than the amount calculated by using the preliminaries, he can use the actual cost which it has been spent in this duration.