Case Study

Hi Rohit,

The 100 days delayed issuance of NTP is a weak argument to say that you were not able to perform the project activities as scheduled since the contract award unless otherwise your project really did not perform on site. Your daily site reports will prove that one. Another thing to consider for that 100 days delay is the question on the acceptance of your baseline by the client.

As to the sum of total delay, you cannot simply add up all the delayed number of days in every delaying event as the concurrency of those events are then to be determined for analysis. Its end reference is the resulting variance between your baseline and actual end dates. For me, you can build up a case on your delayed activities with reference to that actual issuance of NTP on matters in which the client may have direct or indirect effect in its review and approval responsibility. For instance, you may say that "due to delayed NTP, your project were not able to finalize the MEP drawings and specifications for the municipality approval. Likewise, the client as well has made delayed approval on items as per municipality comments and requirements, thereby causing delay in the finalization of your engineering, procurement, and ultimately its construction with that much number of days in your program of work". It may sound ambiguous but you are establishing your EOT case.

Your 500 or 450 days EOT claim will grossly be measured in terms of your contract stipulations, thorough analysis on the merit of the delaying events, and baseline credibility of your program.

Simply sharing.

Ferdinand

Thanks for your response,

Let us assume that delays identified & Baseline programme are reasonable.

The only problem is how reasonable it is to add delay on project completion date with delay on key date to say total delay on the project.

Regards,

Key dates are usually Client requirements, so if there are any project delays that caused the key dates to move farther up the program, I think its reasonable enough for claiming of EOT. But of course, with several factors that affected the delayed key date and in consideration as well to other succeeding key dates, one cannot simply add it all up to the project completion date. Consider as well the argument of float in your program.

Dear Rohit,

If your contract is under FIDIC, then you need to refer to clause 8.1 "Commencement date". If the Engineer did not issue the NTP, then the commencement date is considered as 42 days after the Contract was signed.

You should have done your homework and submitted the Performance Security and the Program of works. Then submit the Program of Works within 28 days after the 42 days. If you do not receive comments within 21 days, then it is considered as approved.

Obviously you have done a program and calculated the delays. You can use the following clause which indicate allowable considerations for extension of time:

1. Clause 2/1 Right of Access to Site
2. Clause 4/7 Setting out.
3. Clause 8/4-2 cause of delay.

The you need to do the delay analysis and see the impact. Of course, you need all your supporting documents that were submitted in a timely manner throughout the delay. Documentation is essential in this case.

Good luck,

Samer

Hi Sameer,

Yes what you have mentioned here is very true.

Now my point is that Engineer has first determined the delay due to Late issue of Notice to Proceed & determined the EoT based on last key date - "Poject completion date".

And then Engineer determined the EoT due to other events based on Key Date#1

Finally Engineer added the EoT due to Late issue of notice to proceed (on Last Key Date)with EoT due to other events (On Key Date # 1) and determined the overall EoT.

Engineer has determined EoT due to other events on Key Date # 1 because the project was terminated and this is the only key date for which the work was in progress.

I understand that adding EoT on last key date with EoT due Key Date 1 is incorrect, EoT should be determined on either on Key Date 1 or on Project completion date.

I am not getting a good justification to show that the engineer;s approach is wrong.

Thanks

Dear Rohit,

Can you please clarify how came the NTP delay was only 100 days and the effect in you programme was 200 and 150 days to KD1 and PC respectively. Any special issues?


Regards,
Nestor

Initially KD1 was not on the critical path but KD9 was on the critical path. KD1 had a total float of 50 days.

Due to the delay of 100 days NTP, effect on KD 1 was more due to the weather effect and KD1 comes on the critical path and drives the KD9.

Dear Rohit,

Run a complete "Impacted schedule" due owner Owner delays (delaying Notice to proceed) and see what is the completion date.

Then run another schedule with delayed NTP and the other delays due to Contractor and see what is the completion date.

What is the difference between the two schedules?

Best,

Samer

The difference comes out to be 474 cd.