1. FORMULATION & PRESENTATION OF EOT CLAIMS
LECTURE 3
FORMULATION & PRESENTATION OF EOT CLAIMS

2. CONTENT FOR FORMULATION & PRESENTATION OF EOT CLAIMS
Practical completion
Extension of Time & L. D.
Presentation of Extension of Time claim
Delay within float time by Architect, but later delay by the contractor
Delay not on the critical path
Concurrent delay by both parties
Concurrent delay followed by subsequent delay
Delays after the Contract Completion Date
Prevention, presentation & assessment
Summary on Extension of Time claims
Recovery of loss and / or Expenses and / or Damages

3. DATE FOR / OF COMPLETION
Date for (Practical) Completion
Specified completion date agreed at tender time
Set at the outset of the contract
The date calculated from the date of possession including, if any, EOT granted
Date of (Practical) Completion
The actual date that the contractor
completes his work

4. IMPLICATION OF P.C. Relieve contractor from (further) L.D.
Employer is entitled to take possession of the site.
Employer to take out insurance
D.L.P. commences
Release half retention
End of regular interim certificate
Measurement period commences
Arbitration can be opened

5. EXTENSION OF TIME Delay not by fault nor responsibility
of the contractor
Extension of time
Relieve contractor from paying
L.D. to the Employer

6. EXTENSION OF TIME Delay by Employer Relevant clause in Contract No
for EOT No
Architect cannot grant EOT
Yes
Time at large, i.e. complete within a reasonable time
Architect grants EOT

7. TIME AT LARGE ??? Reasonable time ???
Reasonable time is equated to the amount of delay
Failure to complete within a reasonable time
Unliquidated Damages (U.D. not L.D.)

8. What is Liquidated Damage ?
It is a kind of contractual provision in which a specified sum of money is to be paid by one party to the other, or the forfeiture of goods or other property by that party to the other in event of particular specified breaches of the contract committed by the former party.

9. L.D. & PENALTY L. D. Genuine pre-estimate of the loss Penalty
Extravagant compared with the greatest possible amount of loss
It does not matter whether the term used is L.D. / penalty
Non completion certificate needs to be issued before deducting L.D.

10. COULD THE EMPLOYER DEDUCT L.D. IF HE HAS NOT SUFFERED ANY LOSS?
As far as the L. D. amount is a genuine pre-estimate of the possible loss, the L.D. is enforceable.
They are recoverable whether or not the employer can prove that he has in fact suffered loss or even if, in the event, there is no loss at all. case : Clydebank Engineering Vs Castende.

11. ARCHITECT ASSESSES EOT AT HIS BEST KNOWLEDGE
If the contractor did not give notice of claim or did not furnish full particulars of the EOT claim, the Architect / Engineer must do his best to estimate the EOT that can be granted to the contractor.
Case: Merton v. Leach
However, the contractor cannot complain if the EOT granted, based on the inadequate information the Architect has, is not up to his desired period.

12. CAN THE ARCHITECT USE THE CONTRACTOR'S FLOAT TIME ?
The float in the Contractor's program is for the benefit of the contractor
Delay on the part of the Employer which reduces that float may have to be taken into consideration when considering the time required for completion
However, if the subsequent delays are outside the float of the non-critical activities, EOT is entitled eventhough the delay event is a non-qualifying event provided that sufficient float is used up by a qualifying event before

13. DELAY NOT ON CRITICAL PATH
If delay occurs to activity not on the critical path and the total delay to the activity does not make it critical, then no extension of time will be granted as there is no effect to the completion date
Activity on non-critical path
No EOT for delay within this time limit

14. CONCURRENT DELAYS
Delay by the Contractor
Delay by the Architect / within the control of the Employer
The contractor may not recover the loss & expense for the period delay by the Architect if he has some contribution in the delay

15. CONCURRENT DELAY - CRITICAL & NON-CRITICAL
D1 & D2 are concurrent, i.e. at the same time
If D1 is a qualifying delay/ relevant event, D2 is not EOT can be granted.
If D2 is a qualifying delay / relevant event, D1 is not no EOT can be granted.

16. CONCURRENT DELAY FOLLOWED BY SUBSEQUENT DELAY
If the subsequent delays are still within the float of the non-critical activities, then no EOT would be entitled
If the subsequent delays are outside the float of the non-critical activities, EOT is entitled eventhough the delay event is a non-qualifying event provided that sufficient float is used up by a qualifying event

17. CULPABLE DELAY A contractor is late and liquidated
IN THEORY
A contractor is late and liquidated
damages are incurred
Client issues variations which will further
delay the completion date (culpable delay)
Time is set at large
Client's rights to deduct L.D. are forfeited

18. DELAY AFTER THE CONTRACT COMPLETION DATE
If extension of time has not been made for previous qualifying delays, Architect has no power to extend the time for completion for a new qualifying event occur after 'any extended time previously fixed ……'
Therefore, EOT must be granted for all known delays before the existing completion date has passed, otherwise time will be at large and L. D. cannot be enforced.

19. Revised completion date
Unknown gas
A.I.reroute
Delay by Main Contractor
(excavation for final connections
to the foul drainage)
EOT for only A.I. Works if
it is on the critical path

20. Revised completion date
Architect instructs to
cease work & add manholes
Delay by Main Contractor
(excavation for final connections
to the foul drainage)
Delay due to additional manholes
EOT for total delay as Architect should have issued the instructions

21. EOT AFTER DATE FOR COMPLETION
Most contracts do not contain the essential machinery to enable the employer to deduct L. D. for the period when the contractor is in culpable delay
The contractor's liability for L. D. may evaporate if employer causes delay after the extended completion date. However, the employer has to prove Unliquidated Damages for deduction.

22. DAMAGES Substantial Damages Actual loss / damage Nominal Damages
No loss / damage at all
Exemplary (Punitive,
vindictive) Damages
Not in contract, in tort only
General Damages
1. For loss presumed w/o proof
2. Loss incapable of precise
estimation, e.g. pain
Special Damages
1. For loss need to be proved
2. Out of pocket expenses or
earning loss
Liquidated Damages
Genuine pre-estimate of loss fixed by contracting parties
Unliquidated Damages
Amount fixed by court

23. PREDOMINANT CAUSE OF DELAY
Ignored
Inclement weather
CONSTRUCTION
PERIOD
Works is
stopped
Industrial relations problem
FIRST OCCURING (PREDOMINANT)
CAUSE

24. CONDITIONS PRECEDENT
Depends on the conditions (and special / supplementary conditions, if applicable) of contract, the following conditions are precedent to granting EOT :
Notice
Mitigate the delay
Details must be given as soon as possible
Within the time limit specified, if any.
(time barred)
The costs and expenses must not be
duplicated in a variation.

25. PREVENTIVE MEASURES OF DELAY
Improve and adhere to quality assurance programs
Review the contract carefully
Review the program of works carefully
Establish an early warning system including diaries, reports and concise filing systems
Be prompt in the request for variation orders
Act quickly & do not ignore the problem
Recognise the responsibility in the project team, work with the other professional members and consultants.
Identify the dates when the work associated with potential variations started and finished.

26. PRESENTATION OF EOT INCLUDES
Supporting records & particulars
activities status
dates
events
Narrative of the events
Effects on progress
No. of days requested to be granted for extension
Cause of delay
Contractual ground
Delay commencement
Delay period
Notice of delay
effects of the delay
estimated delay
Program before delay
Program after delay

27. EOT CLAIMS ASSESSMENT
Delay due to weather must be considered in relation to the work being carried out by the contractor at the time of the delay and not by referencing to the work which could or should have been happening in accordance with the Contractor's program of operations.
If it is not possible to avoid delay due to the fact that neither party had realised sufficiently in advance that the information was necessary, the contractor is not entitled to an extension of time.
Architect has no obligation to provide information to enable the contractor to move faster than envisaged.

28. SUMMARY ON EOT CLAIMS Keep accurate up to the minute records
Accept a fair settlement, mitigate losses at all times if appropriate
Maintain an as built construction program
Keep accurate site progress sheets
Keep notes of discussions held, contractors or COW reports
Keep a record of weather conditions
Record the current workforce and equipment levels
Identify the status of documented progress to which the variation or daywork items should relate
Regular progress photographs also provide good records especially when the date and time is recorded on the plate.

29. EOT AND COSTS
Granting EOT does not automatically allow contractor for loss and expense, etc.
Loss & expenses claims will be dealt with in Lecture 4