Date

Ref

: 22nd May 2016

: 0004423-NS-MPW-3763-16

The Engineer
Eng. Ahmed Suleiman Al-Husan
Assistant Undersecretary for Roads Works
Ministry of Public Works
Kuwait
Project: Contract No: RA/167 Construction, Completion and Maintenance of Roads,
Overpasses, Sanitary and Storm Water Drains as well as other Services for the Jamal
Abdul Nasser Street
Subject: Interim Claim No.2 - Extension of Time and Additional Payment
Entitlements as at 25 April 2015
Dear Sir,
Please find enclosed herein our Interim Claim No.2 (IC2) for entitlements related to
delays occurring on the subject Project pursuant to Clauses 42.1, 44 and/or 52.4 of the
Conditions of Contract, and up to a cut-off date of 25 April 2015. This submission is
generally a follow up of Contractors Interim Claim No.1 (IC1) submitted in
June 2014. It has been prepared and submitted for delay events occurring
after 25 September 2013 (IC1 cut-off date) in the absence of any
determination on IC1 submission to date.
The Contractors original intention was to submit this Claim with an arbitrary cut-off
date of April 2016. It was subsequently noted that such an arbitrary cut-off date will
pose complications from a technical/planning perspective as said cut-off date will
overlap and extend beyond the Data Date of the Programme May 2015 that has been
submitted by the Contractor as its proposed new baseline and working programme, and
is being reviewed by the Engineer/ Employer. Accordingly, the cut-off date of this
interim submission was intentionally chosen to be on 25 April 2015 to avoid any such
complications.
In this document the Contractor,
a)

initially recaps Interim Claim No.1 history of events, updates the facts
surrounding its delay events which were of on-going effect as at 25 September
2013, correlate same to the Contract, and further clarifies its particulars, and
summarizes the delays incurred and, subsequently,

b)

the Contractor will demonstrate its entitlement to a further extension of time and
additional payment in respect of matters and events that have occurred after the
IC1 cut-off date and have consequently delayed and disrupted the regular
progress of the Contract Works beyond the Contractors control, some of which
originating before 25 September 2013 and being of on-going effect as at that
date.

As a matter of fact, discrepancies in the design, additional engineering works, delayed

replies to Contractors queries and submittals and, mainly, delays in granting access to

RDE-OHL-BOODAI-TREVI Joint Venture, Tel: ++965 2486 2895, Fax: ++965 2486 2949
P. O. Box 1722 Salmiya, State of Kuwait

parts of the Site till this date, etc. have all contributed to the delay events described in
this submission, being namely:

1.

Sector K delays, which can be summarized as follows:

The Employer narrowing the ROW between 8+400 and CH +850
MPWs instruction on 20 August 2013 not to demolish the U-turn Bridge
called for in the original design, thereby preventing the Contractor from
taking possession of the U-turn Bridge;

2.

Failure to approve Sector (K) Detour Schemes by the 17 January 2014

to free the area around the U-Turn Bridge; and
MPW/MOIs extra contractual constraint restricting the Contractor to
open Sector (K) Detour only between 01 July 2015 and 01 September
2015

Sector I delays, preventing relocation of Service Utilities, Box Culvert C11

and causing delay to commencement of Pier construction at Sector I. In
summary, all detours were delayed due to the lack of approval of the
Contractors detour proposal. The North Detour was specifically delayed by:
-

The late Site possession of the Kuwait Port North

The delay in the relocation of the utilities inside the Port area

The delay to the relocation of the Waterline 10

The South Detour was specifically delayed by:

-

The late Site possession of the KGL buildings

The delay in the relocation of the Fresh & Brackish lines 13 & 4

All of the above have delayed the commencement of pier construction thus
delaying the diaphragm construction and the segmental viaduct erection
Works to the JANS Mainline at Sector I.

3.

Lack of possession of Al-Ghazali Bridge part of the Site, delaying

commencement of the Works in this area.

All of the above being the dominant or main causes of the overall delay claimed in this
submission, in addition to other delays which were assessed to be concurrent with the
aforementioned delays.
The above delay events have adversely affected the Contractors progress of Works
and delayed the planned completion date of the Project, and the Contractor seeks relief
in this submission for:
1. An extension of the Time for Completion until 28 October 2018, on the clear
assumption that the Contractors proposal to close Al Ghazali Bridge and divert the
traffic on the Main Line onto Ramps L and M is timely approved or, in the alternative
such proposal is not approved by the Engineer, until 24 th May 2019; and
2. Compensation for the financial losses incurred by Contractor in the sum of
KWD 76,654,223.151 (KWD Seventy Six Million Six Hundred Fifty Four
Thousand Two Hundred Twenty Three and 151 Fils), based on the same

RDE-OHL-BOODAI-TREVI Joint Venture, Tel: ++965 2486 2895, Fax: ++965 2486 2949
P. O. Box 1722 Salmiya, State of Kuwait

assumption stated above, failing which the sum claimed herein will need to be
adjusted/increased accordingly.
The said sum includes the costs of Interim Claim No. 1 as detailed in the financial
section of this submittal (Appendix. 81).
Regarding your request to address Ghazali Area costs separately, kindly note that IC2 is
an interim claim comprising, inter alia, prolongation costs related to various delay
events including, without limitation, delays related to Kuwait University, Sector K,
Sector I and lack of possession of the Ghazali Bridge area being the four (4)
predominant or leading delay events in the Time Impact Analysis leading to the 856
days being requested under IC2. Therefore, MPW/ LBP would appreciate that the costs
directly related to the Ghazali Bridge area delays cannot be technically or possibly
isolated and/or identified unless and until

i)

a determination is made on all preceding delay events included in IC1 and IC2 and
leading to the Ghazali Bridge area delay, some of which are still on-going and,
accordingly
ii) the remainder period of delay that is solely attributed to the Ghazali Bridge area has
been clearly and unambiguously identified.
We trust you will find our submission in order. Should you have any queries we stand
ready to clarify or explain as necessary.
Please note that your timely response is highly appreciated to avoid unnecessary
financial hardship which may result should the Contractor finds itself obliged to operate
an additional period of 28-months without any compensation for the additional running
and indirect costs being incurred for reasons beyond Contractors control.
It is our opinion that if we do not receive a fair compensation with regard to the claims
submitted, we will no longer be able to continue with this unbearable situation where
the Project is financed at our expense.
Yours faithfully,

Massimo Maiani
Project Manager
Cc: Engineers Representative

RDE-OHL-BOODAI-TREVI Joint Venture, Tel: ++965 2486 2895, Fax: ++965 2486 2949
P. O. Box 1722 Salmiya, State of Kuwait

 22 : 2016
NS-MPW-3763-16-0004423 :
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:
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RDE-OHL-BOODAI-TREVI Joint Venture, Tel: ++965 2486 2895, Fax: ++965 2486 2949
P. O. Box 1722 Salmiya, State of Kuwait

(
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RDE-OHL-BOODAI-TREVI Joint Venture, Tel: ++965 2486 2895, Fax: ++965 2486 2949
P. O. Box 1722 Salmiya, State of Kuwait

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.

RDE-OHL-BOODAI-TREVI Joint Venture, Tel: ++965 2486 2895, Fax: ++965 2486 2949
P. O. Box 1722 Salmiya, State of Kuwait