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Assessing EOT and

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
Prolongation Cost Claims
4251 words (17 pages) Essay in Contract Law
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  02/02/18  Contract Law  Reference this  Law Student

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Now days the construction projects are becoming more complex, time
constraint, expensive and challenging. A small change in any of the
above is leading to a time or cost loss to the contractors as well as the
client. This technical paper describes about the problems involved in a
building services system Subcontractor, Project was delayed due to wide
variety of causes like; Impact from directed changes (pricing and effect
on unchanged work), Untimely direction and administration of changes,
Deficient or tardy customer supplied materials or equipment,

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specifications and drawings, design releases, facilities and utilities, or
payments, Delays, disruptions and interferences by others. 
 Contractors are contractually obligated and have to provide adequate
explanation and documents of claims with complete submittal of the
factual causes, contractual basis, and quantified impact, documentary
evidence like keeping regular records of delay events, disruption events
and notification and proposed resolution from the contractor and
requested relief which are highlighted in the following Technical paper.
And the usage of these documents which serves as an evidence and
proof for Extension of time prolongation costs claims and disruption
related loss of productivity costs claims is also detailed in the submitted
paper. Mainly that the Procedures are followed by the Building services
system Subcontractor in the referred claims which can be considered as
a recommended practice.

 Since the contractual completion date has expired and that the work on
site has been in extended period due to delays not attributable to

Building services system Subcontractor. It is only appropriate therefore
 to have the Client’s determination and approval of this extension of
time and prolongation costs claim based on the defaults of the Main
 contractor (Main Contractor is the client in development of the project).
Due to these unforeseen delays, cash flow has been adversely affected

and facing financial crisis, thereby causing financial losses in the project.
 Under this circumstances, Subcontractor request financial relief from
Client.
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LIST OF TABLES & FIGURES

1) Table 2.1.1 ‘ Extension of Time Summary

2) Table 6.2.1 – Delay Impact Summary of Subcontractor time claim

3) Table 6.3.1 – The Cause and Effect schedule

4) Graph 6.4.1 ‘ The Labour Histogram

5) Table 6.4.1 – Productivity Rate Analysis Report

6) Table 7.7.1 ‘ Subcontractor’s Quantum claim costs Summary

1.0 THE INTRADUCTION:

This Technical paper has been submitted to demonstrate to the readers

as practical advice and the procedures that can be followed as
recommended practices by the Building Services system Subcontractor
in the preparation of time related cost claims and productivity loss 

 disruption claims. Particularly reminded that these matters in this role is
set out in their Building FIDIC form of contract and is normally limited to
determining quantum; It does not usually extend to determining
liability. This is an acceptable claim to the project in accordance with
conditions of contract and circumstances which contractors have
prevailed, it is generally quickly determinable. Procedural approach,
Contents and a brief summary of each section of Building Service Sub
Contractor claim.

It cannot be emphasized too strongly that ascertainment of loss and/or

expense is an exercise in calculating as precisely as possible that which
is incurred by the contractor directly and solely due to the matters listed
in the contract. It is not an attempt to impose a penalty on an employer
 or design team

 The Author’s view of points and recommendations on the importance of

supporting particulars for effective claim submittal has given at the end

of this paper.
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2.0 STATEMENT OF CLAIM EXECUTIVE SUMMARY:

2.1 EOT Summary

It is better to highlight the following details for an easy understanding
 and a quick review on the submitted claim to the Client and the project
team. The date of Contract was signed with a firm contractual
completion date. The reasons for delays prompting out of sequencing
work, design changes Variations, approvals process, including reworking
for redesigned areas following installation, logistical events causing
access delay and disruption of work face lack of coordination of the
various trades and other contractors on site which was System
contractor suffered from the commencement of works throughout the
project. Each of above principle heads of time delay and disruption
events are significant in their own right but sometimes the initial delays
in respect of approvals and design changes will be superseded by
delayed release of work faces and logistical problems on site as a direct
consequence of the lack of progress of other trade/contractor works
which makes impossible for the works to complete in a timely and
productive manner.

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