FIDIC, extension to Time for Completion and

liquidated damages in the Middle East

April 2014

© Turner & Townsend plc December 11

making the difference
FIDIC, extension to Time for Completion and liquidated damages in the
Middle East
Timetable

Richard Chamberlain

Timetable
Time Topic
5 mins Timetable
8 mins FIDIC Range of Contracts
3 mins Contractual Roles
8 mins The Contractor and Clause 8
4 mins The Contractor and Sub Clause 20.1
2 mins Clause 8 and relevant Sub Clauses
5 mins The Engineer
10 mins Engineer’s calculation and determination
5 mins Employer’s Claims & Delay Damages
Demonstration and illustration of unliquidated and liquidated
10 mins
damages
5 mins Conclusion
Questions & Answers
2
 FIDIC Range of Contracts

© Turner & Townsend plc December 11

making the difference
GREEN BOOK

Short Form of Contract

Recommended for
building or engineering
works of a relatively small
capital value, for relatively
simple work, or work of a
short duration.

4
RED BOOK

Conditions of Contract
for Construction
for Building and Engineering
Works Designed by the
Employer

5
PINK BOOK

Construction
Contract MDB
Harmonised Ed
(Version 3: June
2010)

Pink Book project is

MDB financed and a
development of the Red
Book
(Multilateral Development
Banks who provide
finance for projects in
developing countries)

6
YELLOW BOOK

Conditions of Contract for

Plant and Design-Build
for Electrical and
Mechanical Plant and for
Building and Engineering
Works designed by the
Contractor

7
SILVER BOOK

Conditions of Contract
for EPC/Turnkey
Projects

8
GOLD BOOK

Design, Build and

Operate Projects
(2008)

9
WHITE BOOK

Client/Consultant Model
Services Agreement
(4th Ed 2006)

10

10
 Contractual Roles

© Turner & Townsend plc December 11

making the difference
FIDIC & Contractual Roles

• Provide possession of
the Site
• Provide information
• Consultancy Agreement
• permits and consents
• Responsible for Design
• Appoint the Engineer
• Supervision of
Contractor • Payment

Engineer Employer
Obligations Obligations

Engineer
Contractor
Administers
Obligations
• Instructions Contract
• Variations • Complete design
• Certifier of extensions • Progress the works in a
to Time for Completion regular and diligent
• Certifier of Payments manner
• Determinations • Safe manner of work
• Workmanship

13
The Contractor & Clause 8

making the difference

 The Contractor

■ The Contractor in FIDIC is :

■ the master of the programme
■ revises the programme when necessary
■ notifies the Engineer of the causes of delay to the
programme (Clause 8 and 20)
■ consults with the Engineer to assist in the determination
of extension to the Time for Completion

15

15
 Clause 8

■ 8.1 Commencement of Work

■ 8.2 Time for Completion
■ 8.3 Programme
■ 8.4 Extension of Time for Completion
■ 8.5 Delays Caused by Authorities
■ 8.6 Rate of Progress
■ 8.7 Delay Damages
■ 8.8 Suspension of Work
■ 8.9 Consequences of Suspension
■ 8.10 Payment for Plant and Materials in Event of Suspension
■ 8.11 Prolonged Suspension
■ 8.12 Resumption of Work

16

16
 Sub Clause 8.3 Programme

■ Summary:
■ The Contractor shall submit a programme to the
Engineer as required in the Contract.
■ The Employer's Personnel shall be entitled to rely upon
the programme when planning their activities.
■ The Contractor shall promptly give notice to the
Engineer of specific probable future events or
circumstances which may delay the execution of the
Works.
■ If the Engineer gives notice to the Contractor that a
programme fails the Contractor shall submit a revised
programme to the Engineer in accordance with this Sub-
Clause.

17

17
 Clause 8.4: Extension of Time for Completion

■ Summary
■ The Contractor shall be entitled to an extension to Time for
Completion, if delayed by any of the following causes:
■ (a) a Variation
■ (b) a cause of delay under a Sub-Clause of these Conditions
■ (c) exceptionally adverse climatic conditions
■ (d) any Unforeseeable delay, impediment or prevention caused
by Employer
■ ….”the Contractor shall give notice to the Engineer in
accordance with Sub-Clause 20.1 [Contractor's Claims]”
■ ….”the Engineer shall review previous determinations and may
increase, with the Employer's written approval, but shall not
decrease, the total extension of time”

18

18
The Contractor and Sub Clause 20.1

making the difference

Tension between Clause 8.3 and 20.1
Does probable = aware ?

Cl 8.3: The Contractor shall promptly

give notice to the Engineer of specific
probable future events…

Clause 20.1: The notice shall be given

as soon as practicable, and not later than
28 days after the Contractor became
aware or should have become
aware, of the event or circumstance

20
Avoiding “probable and aware”

Cl 20.1
Cl 8.3 & 20.1 Cl 20.1
Fully Detailed Claim
"Probable "and "Aware" are Fully Detailed Claim
(Interim)
merged (Interim)
Update or final after end of effects
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Tension between 8.3 and 20.1

•Notices are in a state of flux

• Engineer can time bar
• Engineer’s Determination can only be overturned in arbitration

21
 Clause 8 Matrix

© Turner & Townsend plc December 11

making the difference
Clause 8 Matrix of potential causes of delay

23
 The Engineer

© Turner & Townsend plc December 11

making the difference
The Engineer - Generally

■ The Engineer is a quasi arbitrator and has two functions,

namely:
■ Agency function, where s/he administers the Contract on
behalf of the Employer
■ Decision making function, where s/he certifies time and
money
■ When in the agency function, the Engineer must not
misapply or misunderstand the Contract
■ When in the decision making function the Engineer must be
independent and fair to both the Employer and the
Contractor
■ Over certification by the Engineer is negligence
■ The Engineer has no duty of care to the Contractor

25

25
The Engineer - Certification

■ The Engineer
■ acts as the Employer’s agent
■ must consult with the Contractor and Employer when
differences arise
■ must carry out fair determinations
■ must calculate all certificates in a logical and methodical
manner

26
 Engineer’s calculation and determination

© Turner & Townsend plc December 11

making the difference
Logical and methodical process

Investigation Review Analysis Conclude

Step 1 - Step 2 - Step 3 - Step 4 - Step 5 - Step 6 -

Investigation Summary Verification Analysis Graphical Award
Engineer
Records Data basing Method Application Finalisation determines
Analysis selection of method of Report entitlement
Graphing

28
Step 1 - Investigation

Action Output Comment

Information No external Aims and
Gathering deliverables considerations
- Meetings interviews with Internally: Analysis route to be
project team - Chronology matched to information
- Orientation meetings - Document mapping available and issues
with client - Sequence sketches identified.
- Document review - General overview notes Initial aim is to develop
(schedule of likely robust overview as-planned
document types included v as-built.
below)

Investigation
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Investigation Summary Verification Analysis Causation Liability

29
Step 1 - Typical record types

Programme Drawings and production Records

•Ba s e l i ne P r o g r a m m e
•R e vi s e d B a s e l i ne p r o g r a m m e s
•P r o g r e s s P r o g r a m m e U p d a t e s
•Is o / s p o o l d w g t r a c ki ng s c he d ul e s
•Is o / s p o o l fa b / d e l i ve r y r e c o r d s
•D r a w i ng r e g i s t e r s
•Ins p e c t i o n a nd t e s t r e c o r d s
• R e a c t o r ve s s e l / p l a nt i t e m d e s i g n, m a nufa c t ur e a nd
d e l i ve r y r e c o r d s
•F EED d e s i g n d e t a i l s

Progress Records
Payment records

•P r o g r e s s R e p o r t s
•M a r ke d up p r o g r e s s d r a w i ng s •EP C c o nt r a c t o r a p p l i c a t i o ns
•P r o g r e s s P ho t o s •S up p l i e r / s ub - c o nt r a c t o r a p p l i c a t i o ns
•S i t e d i a r i e s
•M i nut e s o f S i t e M e e t i ng s
Project Admin Records
Contract Documents
•Client instructions
•Site Instructions
•D r a w i ng s •Change notices
•S p e c i fi c a t i o n •Delay Notices
•Co nd i t i o ns o f Co nt r a c t •Correspondence
•Any claims submissions to date by Tecnicas Reunidas

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Investigation Summary Verification Analysis Causation Liability

30
Step 2 - Summary

Action Output Comment

Establish baseline As-planned v As- Aims and
and actuals built considerations
- Identifying Baseline -Reasoned selection of As-built programme
programme from baseline element potentially as
candidates. -Verifiable as-built summary level in order to
- Compilation / - Notes on verification and deliver early overview.
verification of as-built sources of data. Extent to which summary
records to generate required depending upon
robust As-built availability and quality of
programme. records, time available and
-Sense checking / cross consideration of issues.
referencing as-built
records for resilience

Summary
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Investigation Summary Verification Analysis Causation Liability

31
Step 3 - Verification

Action Output Comment

Interrogation of Key Decision point Aims and
T&T output considerations
-Review of Step 2 outputs -Definition of key events. Step presents opportunity
(predominantly As- - Definition of Analysis to review delays identified
planned v As-built). windows/time slices. and to consider potential
-Identification of causation/ liability
significant programme positions.
variance (delay / Option to substantially
sequence change). modify approach based on
-Identify key events. findings to date.
- Develop analysis
windows.

Verification
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Investigation Summary Verification Analysis Causation Liability

32
Step 4 - Analysis

Action Output Comment

Detailed
investigation
-Review progress by sub
dividing the project into a
series of windows and
examining each window in
detail
-Analysis will deliver
extent and causes of
delays in each window.
- development of view of
actual critical path in each
window.
No external outputs
Internally:
-Windows analysis and
graphics.
- Initial report outline.
- Notes on causation.
- Notes on critical path
and critical delays.
Aims and
considerations
Detailed analysis stage.
This stage is likely to be
time consuming.
Initial approach of
investigation of most
significant areas of delay
may be appropriate.
NOTE - A selective
approach cannot deliver
certainty and often
increases time and cost to
prepare opinion in the long
term.

Analysis
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Investigation Summary Verification Analysis Causation Liability

33
Step 5 - Causation

Action Output Comment

Finalising Report
- Finalising delay in each
window and cumulative
critical delay.
- Causation findings set
out.
- Drafting Preliminary
Expert opinion.
Opinion
- Summary table of delay
events, extent, whether
critical, dates during
which delay occurred, etc
– to enable quantum
assessment to be
established.
Aims and
considerations
In order to comply with
initial phase timescale
significant short cuts in
analysis and causation
phases are likely to be
necessary – hence the
preliminary nature of the
report.
Causation opinion should
enable issues behind
critical delays to be
identified and settled.

Causation
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Investigation Summary Verification Analysis Causation Liability

34
Step 6 - Liability

Action Output Comment

Legal views
- Preliminary report
should enable legal
assessment of liability
issues.
- Quantum (loss &
expense, liquidated
damages) assessment
should be available
Output Engineer’s
Determination
- Output likely to be Preliminary opinion should
award or non award of the be suitable for use in
extension to Time for dispute resolution.
Completion.

Liability
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Investigation Summary Verification Analysis Causation Liability

35
FIDIC & Delay Damages

making the difference

Unliquidated or general damages

Employer breaches:
• interference and prevention
• late supply of information
• failure to give possession

Result of Employer breaches is Contractor’s claims for:

•delay
• disruption
• prolongation
• extension to the Time for Completion
• additional payment

In summary, the Contractor’s remedy for an Employer’s breach

is recovery of general or unliquidated damages.

(Note: Unliquidated damages are assessed after the

breach)

37
Liquidated damages

Liquidated is a word recognised in the Shorter Oxford Dictionary and

from as early as 1574 and is defined as ‘ascertained and fixed’

Questions that arise with respect to liquidated damages:

• Are they an exclusive remedy for a breach?

• an agreed price to be paid for a breach or non performance

• Is an agreed price for a breach a penalty?

• is the liquidated damage disproportionate to the loss?

• Can the parties agree any price they wish?

• freedom of contract –v- penalty

• What is a genuine pre-estimate of loss?

• is a genuine precise pre estimate impossible to determine?

•What is the purpose of liquidated damages?

• from Contractor’s perspective it takes away uncertainty and provides
an incentive to perform
• for Employer, the burden of proving actual loss
38
Middle East (FIDIC delay damages –v- Liquidated damages)

Qatar

• Arabic term for liquidated is fines

• principle of ‘freedom of contract is endorsed
• principle of ‘good faith’ and bound by terms agreed
• pre estimates of liquidated damages are permitted
• no distinction between penalties and liquidated damages
• FIDIC delay damages replaces liquidated damages
• a genuine pre estimate is an important concept
• exhaustive remedy depends on drafting
• adjustment if no loss is incurred
• superseding or contributory fault reduces compensation
• liquidated damages provide certainty in contract
• liquidated damages are uncertain in law due to exceptions and
circumstances

A guide to liquidated and ascertained damages for the Qatar

construction sector, Warren L, Hall A (2013), Clyde & Co

39
Middle East (FIDIC delay damages –v- Liquidated damages)

United Arab Emirates

Construction contracts provide for:

• pre determined amount of damages to be paid by Contractor for late
completion of a project
• liquidated damages are an incentive for the contractor to perform
• liquidated damages removes the burden of ascertaining loss

The Courts have determined:

• liquidated damages is a secondary obligation
• delay fines in contracts are a penalty clause and a secondary
obligation
• termination is fatal to liquidated damages
• liquidated damages are an estimate and actual loss is preferred
• no loss then liquidated damages should be repudiated
• the application of liquidated damages is subjective and prone to the
application of exceptions

Liquidated damages under UAE and UK law, a comparison

(2014), Ibrahim A, Mullen J, Fenwick Elliot

40
Middle East (FIDIC delay damages –v- Liquidated damages)

Sultanate of Oman

Royal Decree No. 29/2013 enacting the Civil Code issues such as liquidated
damages relating to building contracts (Muqawala) is codified as follows:

• if the subject matter of obligation is not a sum of money, the contracting

parties may determine the amount of compensation in advance by making
provision of same in the contract or in a subsequent agreement

• In all cases, the court may, upon application of either of the parties amend
such agreement to make the compensation equal to the damage , and any
agreement to the contrary shall be null and void

Result :
• courts may award liquidated damages

• liquidated damages must be a reasonable assessment of the loss

• Court may reopen liquidated damages and award general damages

Construction Disputes in Oman – Here and Now (2013), Curtis, Mallet

– Prevost, Colt & Mosie LLP

41
Summary (FIDIC delay damages –v- Liquidated damages)

Principles surrounding liquidated damages :

• freedom of contract is acceptable practice

• parties free to agree liquidated damages
• liquidated damages must be reasonable estimate
• liquidated damages can be reopened by the courts
• liquidated damages may fall away and be substituted by general
damages

Conclusion: In respect of the application of liquidated damages in

the Middle East there is no such thing as certainty

42
Presenting extensions to Time for
Completion

making the difference

Visualising the Critical Path

making the difference

 DN65
DN65 Contract 208
DN65 Pitesti County Limit to
Contract 206 Contract 207
Slatina to Pitesti County Pitesti = 90+000 to
DOLJ County Limit to 115+000Km
Slatina Limit 54+000 to
90+000 Km NR65B
21+200 to 49+000 Km Pitesti County Limit to
Pitesti 45
 km
Km 0+000

7+
40
km

0
3+
km

40
Km 115+000

11

0
5+
00
0
km
10
9
km

+0
Km 7+400

10

0
0
6
+4
00
A2
A1

km
10
A3

0
+5
00
B 1- km 3+365
A4

km
B 2 - km 1+440

94
+5
00
B 3 - km 109+137

km
A5
B 4 - km 109+067

90
+0
00
B 5 - km 107+170

km
83
km

+2
81

0
0
+0
0 0
A6

km
20

75
+5
00
t

km
A7 B 6 - km 96+300
c

72
km
ra

+6
B 7 - km 96+088

69

00
t

+5
n

00
A8 B 8 - km 94+700
Negreni Lane
Co
B 9 - km 92+500
A7

km
B 3 - km 86+476

60
A6

+5
km

00
58

B 2 - km 82+191
+0
00
km

A5
54
+0

A4 B 1- km 75+634
00
km
49

B 4 - km 71+863
km

+0

7
0
47

A3
0

20
B 5 - km 70+650
+3
06

B 6 - km 70+265

c t
km

ra
A2
42
km

+1

t
80
41

n
+6

Co
A1
50
km

B 7 - km 59+050
37
+2
00
km
32

A8
km

+6
0
29

Saru Forest
+6
9

B 6 - km 48+570
km

A7
0
24

B 5 - km 48+250
+6

A6
50
km

A5 B 4 - km 44+850
21

Key
+2
0

B 3 - km 43+550
0

A4
Km 21+200
A1 A2 A3

6
20 = Bridge:- Number &
B 2 - km 33+180

B1 - km 75+634
t
B 1- km 28+179
Chainage
rac
nt A7 = Programme Window \
Co Timeslice

= Tree Felling
46
 Construction Methods
Stage 1 : Original Road Profile and Structure Exhibit C-2 : Typical Cross Section
Nr. 1
Exhibit C-2 : Typical Cross Section
Nr. 1 shows the proposed
rehabilitated road profile in black
lines. Original road profile shown in
broken green line

47
 Construction Methods
Stage 2 : Topsoil Removed
Working Drawings Non-Critical
A 1km stretch of carriageway is
closed and the topsoil removed
from the banks and stored for
future use

48
 Construction Methods
Stage 3 : Excavation
Working Drawings Non-Critical
The existing bank is excavated to
enable the new profile of the
rehabilitated road to be formed and
the foundation layers placed

49
 Construction Methods
Stage 4 : Fill to Form Bank Profile
Working Drawings Non-Critical
A portion of the excavated area is
filled with earth to form the new
road bank profile and enable work
to begin on the foundation layers of
the road

50
 Construction Methods
Stage 5 : 4% Lime Sub-Base
Working Drawings Non-Critical

A 15cm deep sub-base layer made

up of soil treated with 4% lime is
laid

51
 Construction Methods
Stage 6 : Granular Sub-Base
Working Drawings Non-Critical

A 35cm deep granular sub-

base layer is laid and
compacted

52
 Construction Methods
Stage 7 : Stabilised Ballast 6%
Cement
Working Drawings Non-Critical
A 25cm layer of natural aggregates
stabilised with 6% cement is laid
using shuttering to the outer edge

53
 Construction Methods
Stage 8 : Regulating/Base Course
Working Drawings Critical
A 4cm base course is laid across the
carriageway together with a
regulating course where necessary
to achieve the proposed road profile

54
 Construction Methods
Stage 9 : Binder Course
Working Drawings Critical

A 4cm binder course is laid on top

of the base course

55
 Construction Methods
Stage 10 : Fill up to Base Course
Level
Working Drawings Non-Critical
The new bank is filled to underside
of the stabilised ballast layer

56
 Construction Methods
Stage 11 : Identical Works to Opposite
Carriageway
The same 1km stretch of the
opposite carriageway is closed and
stages 1 to 10 inclusive are carried
out to that side (construction up to
binder course)

57
 Construction Methods
Stage 12 : Wearing Course to First
Carriageway
Working Drawings Critical
A 4cm wearing course (MASF16) is
laid to the first carriageway

58
 Construction Methods
Stage 13 : Wearing Course to Opposite
Carriageway
Working Drawings Critical
A 4cm wearing course (MASF16) is
laid to the opposite carriageway

59
 Construction Methods
Stage 14 : Fill to Shoulders
Working Drawings Non-Critical
The remaining section of the new
bank is filled. During this process a
small length of one side of the
carriageway is closed to carry out
the work

60
 Construction Methods
Stage 15 : Topsoil to Banks Exhibit C-2 : Typical Cross Section
Working Drawings Non-Critical Nr. 1
Constructed
The new banks are covered with
topsoil using the material removed
in stage 2

Completed Road
61
 Photographs to illustrate
the critical path

making the difference

South Central Depot Improvement Contract
Littlehampton Depot Volume 1:
7.0 EXTENSION OF TIMEPARTICULARS
Delay Event 1: Bellmouth: DELAY EVENT 1

(Entrance to the site and car park and work which has encountered
a critical path delay of 34 days)

63
South Central Depot Improvement Contract
Littlehampton Depot Volume 1:

Delay Event 2: Upsidings: 7.0 EXTENSION OF TIMEPARTICULARS

DELAY EVENT 2

(An area of work located between the cleaning shed and train
washer and adjacent the car park and that has encountered a critical
path delay of 42 days)

64
South Central Depot Improvement Contract
Littlehampton Depot Volume 1:

Delay Event 3: Path 6 7.0 EXTENSION OF TIMEPARTICULARS

DELAY EVENT 3

(An elevated reinforced concrete pathway and canopy located

between siding 3 and 4 in the “Backsidings” and that has
encountered a critical path delay of 20 days)

65
South Central Depot Improvement Contract
Littlehampton Depot Volume 1:
7.0 EXTENSION OF TIMEPARTICULARS
Delay Event 4: PSU DELAY EVENT 4

(The upgrade of the power supply that is located adjacent the car park
and which has caused a critical path delay of 81 days)

66
South Central Depot Improvement Contract
Littlehampton Depot Volume 1:
7.0 EXTENSION OF TIMEPARTICULARS

Delay Event 5: ETE DELAY EVENT 5

(The late installation of electrical traction engineering, which has

resulted in a critical path delay of 17 days)

67
South Central Depot Improvement Contract
Littlehampton Depot Volume 1:
7.0 EXTENSION OF TIMEPARTICULARS

Delay Event 6: Car Park Works DELAY EVENT 6

(The late construction of the car park, which has resulted in a

critical path delay of 41 days)

68
Modelling the critical path

making the difference

Dalston Junction Station

70
70
71
71
Construction Sequence

72
72
Piles

Piles

73
73
Pile Caps

Pile Caps

Piles

74
74
Walls & Columns

Columns
Walls

Pile Caps

Piles

75
75
Podium Steel

Podium Steel

Columns
Walls

Pile Caps

Piles

76
76
Trackslab and Platforms

Podium Steel

Columns
Walls Platforms
Trackslab Trackslab Trackslab
Pile Caps

Piles

77
77
Temporary Supports

Podium Steel

Temporary Supports Columns

Walls Platforms
Trackslab Trackslab Trackslab
Pile Caps

Piles

78
78
Podium Slab

Podium Slab Podium Steel

Columns
Walls Platforms
Trackslab Trackslab Trackslab
Pile Caps

Piles

79
79
Platform Finishes

Podium Slab Podium Steel

Platform
Columns
Walls Platforms
Finishes

Trackslab Trackslab Trackslab

Pile Caps

Piles

80
80
Flow charting the critical
path

making the difference

 Flowcharts to assess the impact of variations

Remove
Perforated
Plate and Perforated Plates
blank 1
No Bell
Mouth
Acoustically
line 4No Bell
Mouths

Revised
Minimum Disable CV Box
Air
OffVolumes
Site design Modify
of software /
graphics &
Volumes to
development of perimeter
DOP’s zones

82
 Analysis of commissioning plansNote: Off Site
Operations should be
complete.
• Engineer located at
the Head End.
• Engineer located at
the Controller.
• Engineers
communicate via radio.
• Certain conditions
require simulation by
the Engineer at the
Controller i.e. Boilers
and Chillers need not be
available.
• All points would be
checked in this way.
• The Specification set
out that Systems 33 &
35 should be
commissioned
separately.
• In our opinion, 1 - 2
Off Site design days would have been
of software / allowed to commission
graphics & System 33.
development • After all points are
DOP’s checked and both
Engineers satisfied, the
System is ready for
83
witnessing.
 SPECIFIED WITNESSING PROCEDURE

Stage 1 - Point to
Point Checks.

• Carried out in the field

with the Witness
Authority located with
Engineer at IQ
Controller.
• Another Engineer in
the Plant Room.
• Communication via
radio.
• Engineer at Controller
would force values and
start fans etc.
• Plant Room Engineer
confirming actions have
taken place.
Off Site design • 10% of points agreed
of software /
between OAP, Skanska
graphics &
and Axima.
development
DOP’s

84
 SPECIFIED WITNESSING PROCEDURE

Stage 2

• Engineer located at
Controller.
• Engineer at Head End
along with the
Witnessing Authority.
• Communication via
radio.
• Proving the
functionality of the plant
in automatic mode using
graphics.
• This witness would take
place on a System by
System basis again with
simulation being
generated to prove
Global Interfaces.

Off Site design System 33 and 35

of software / should have been
graphics & witnessed
development
DOP’s
individually as the
specification
dictated.
85
 SPECIFIED WITNESSING PROCEDURE
Stage 3

• The final stage is

termed as The Global
Witness.
• This can only be
carried out when ALL
relevant items of plant
are online and
functioning correctly.
• In the instance of
Systems 33 & 35, the
Boilers and Chillers are
required to be
operational and
functioning in automatic
mode.
• This witness would
take place during a 2
week period at the end
of the project, which
would include the 7 day
Continuous Run,
Site design of immediately prior to
software / Practical Completion.
graphics & • The building should be
development empty of other trades,
DOP’s sub-contractors & free of
dust & debris etc.
86
Bar charts & network
analysis

making the difference

Factual Analysis
Dealing with Scenario 3 – Impact on Level 3

88
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3

Contractor theoretical
critical path

89
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3

2 Month Delay

90
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3

7.5 Month Delay

91
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3

9.5 Month Delay

92
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3

12 Month Delay

93
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3

12 Month Delay

94
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3

Engineer critical path

after factual analysis

15
Month
Delay

95
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3

2 Month Delay

7.5 Month Delay

9.5 Month Delay

12 Month Delay

12 Month Delay

15
Month
Delay

96
Charts in general

making the difference

 Factual Analysis
Dealing with Scenario 2 – Late Detail Design

Anticipated output = green line

Actual output = Blue Line

Delay Effect = Red Bars

98

98
 Factual Analysis PROCUREMENT DELAY EVENT 1: ROOF FANS

Dealing with Scenario 2

Level 3 Critical Path Analysis PROCUREMENT DELAY EVENT 2: MOLY SCREW DRYER

Primary Critical Path

PROCUREMENT DELAY EVENT 3: AGITATORS

■ The example of the Level 3 programme shows the effect of

design delay in blue background facilities that make up the
project PROCUREMENT DELAY EVENT 4: ROCK BREAKER

The construction in each facility is being driven out and delayed

PROCUREMENT DELAY EVENT 5: HIGH ANGLE CONVEYORS

■
by red delay bars that represent late detail design
PROCUREMENT DELAY EVENT 6: IN PLANT CONVEYORS

■ Each red delay bar in each facility has a different effect and
length of delay, this is called causative potency PROCUREMENT DELAY EVENT 7: BELT FEEDER

PROCUREMENT DELAY EVENT 8: MOLY BAG FILLING SYSTEM

■ The longest red bar in a facility = the primary critical path and
the others that follow behind are the secondary critical paths
PROCUREMENT DELAY EVENT 9: BRIDGE CRANE

99

99
Factual Analysis
Dealing with Scenario 3 – Resource Analysis

Use of man hour histograms

to analyse displaced start
and subsequent effect upon
man hour expenditure
Blue = cause of delay
Red = effect of delay

100

100
Thank You
Questions & Answers

making the difference