Level 3 - Extensions of Time Flashcards
Are all Relevant Events also Relevant Matters?
No!
Relevant Event - EOT (Time)
Relevant Matter - Loss & Expense (Time & Money)
You talk about advising on issuing an EAI preventing the Contractor in carry out works and entitle them to an extension of time. Was this not a relevant matter and therefore time and money?
Yes this could have been a relevant matter and entitled them to loss and expense
What is a Relevant Matter?
Term in the contract relating to categories for which a Contractor is entitled to an Extension of Time and Money
An something the client has caused that has resulted in a delay for the Contractor and entitles them to an EOT and L&E
(D&B Clause 4.21)
What is a Relevant Event?
A term in the contract relating to categories for which a Contractor is Entitled to an Extension of Time.
A list of instances in the contract which, in theory, if they happen will entitle the Contractor to an EOT
(D&B Clause 2.26)
Why is it important for the Contractor to get an EOT?
If they need to extend their programme and mitigate the need for Liquidated Damages
Can you give some Examples of Relevant Events?
Variations Instructions Deferment of Possession Suspension by the Contractor Impediment by the Employer Statutory works Exceptional adverse weather Specified Perils (Fire, lighting, floods) Civil Commotion Strikes Force Majeure
What should happen if the contractor is delayed by a Relevant Event?
Contractor should issue a Delay Notice as soon as reasonable apparent:
- Stating the cause of the delay
- Identify the Relevant Event
The EA should:
- Give an EOT
- Notify the Contractor
- Give reason of EOT within 12 weeks
- State EOT in relationship to each Relevant Event
- Fix a New Completion Date
What is Loss & Expense
additional costs the contractor incurs arising from delays to programme or the disruption to the performance of the contract works
What are heads of terms (L&E)?
Prolongation costs (onsite overheads, head office overheads and loss of profit)
Finance Charges (if the contractor is borrowing money to fund the project)
Disruption (employer hampered the contractors efficient use of its plant and labour)
Cost of compiling the claim
What is the process for L&E?
CA / EA - establishes entitlement and period of delay
Contractor sets out its heads of claim
QS ascertains L&E incurred on the contractor
What is the process of EOT?
1) Contractor submits an EOT claim if they’re in delay, due to no fault of their own, identifying the relevant event i.e. • Employer change • Postponement of Work • Instructions on Provisional Sums • Instruction to open up works • Discovery of antiquities • Adverse Weather Conditions • Civil commotion • Force Majeure (Acts of God i.e. hurricanes, floods, earthquakes)
2) EA will check that contractor has:
- taken best endeavours to mitigate any delay,
- no float left in their programme and if they can resequence works,
and if they are still in delay then an EOT may be granted.
3) EA needs to respond within 12wks or before PC
4) EA grants EOT and contractor doesn’t have to pay any LD’s
What are the ways of assessing an EOT Claim?
1) Overview of the Facts
- Looking through emails, meeting minutes, contractor progress reports.
- *Quick and cheap method, but also least analytical so parties might reach different conclusions.
2) Compare Actual Vs Planned Progress
- Plotting the planned programme against the actual, ‘as built’ programme to see which activities are due to finish later than planned. If these activities are due to an employer change, then an EOT may be granted.
- *Simple to understand and highlights problem areas.
3) Carry out Critical Path Analyses
- Critical path is derived by creating logic links between construction activities. If a critical path activity is delayed, it has a direct impact on the completion date, unless it can use the float in the programme.
- *Possible issue is that logic links might be subjective and manipulated to produce a desired critical path.
