WORKSHOP 16

CASE DESCRIPTION
1) The Contractor is constructing a structural steel building
2) During excavation works (critical activity), a broken pump resulted in a 2-day delay
3) During erection of steel structure (critical activity), slow performance caused a 4-day delay
4) Slab execution is not a critical activity but it cannot be started until the roof is finished
5) Client delayed slab design by 11 days

The attached programme contains details of the project.

The Client’s & Contractor’s respective entitlements are as follows:

1. Liquidated Damages/Penalties: $ 10,000/day

2. Contractor's EOT Claim: $ 5,000/day

WORKSHOP EXERCISES
As a specialist claims consultant, you have been asked to analyse the effect(s) the events had on the projec

1) Impact the Critical Path with the various delay events.

2) Calculate the overall impact of the delay events to the project duration
4) Split and allocate liability for delays i.e. Compensable, Inexcusable, Excusable & Concurrent.
5) Calculate the overall claim quantum
 ACTUAL
ACTIVITYID DESCRIPTION DURATION Days 1 2 3 4 5 6 7 8 9 10

lay
A Excavation 5 days
day delay
ished
B Foundation 7 days

C Steel Structure 7 days

D Roof 5 days

E Cladding 8 days

vents had on the project.

F Slab 3 days

G Installations 5
4 days
& Concurrent.

H Finishes 4 days
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
29 30 31 32 33 34 35
Legend

A,B,C,D,E,G: Critical Activities (Total Float = 0)

F: Non Critical Activity

Float

ACTUAL
ACTIVITY ID DESCRIPTION DURATION Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14

A Excavation 5 days

B Foundation 7 days

C Steel Structure 7 days

D Roof 5 days

E Cladding 8 days

F Slab 3 days

G Installations 4 days

H Finishes 4 days
 H Finishes 4 days

CRITICAL PATH : A→B→C→D→E→G

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
Delay Events

Delay - From/To (Day Number)

Day Start on Asbuilt Finish Of
Act. ID Description of Event Programme Duration Start of Delay Delay

A1 Contractor's Delay - broken pump 3 2 days 3 4

C1 Contractor's Delay - slow performance 15 4 days 15 18
F1 Slab delay due to Clients design delay 22 11 days 22 32

1. Liquidated Damages/Penalties: $ 10,000/day

2. Contractor's EOT Claim: $ 5,000/day

Workshop Exercises

1) Impact the Critical Path with the various delay events.

2) Calculate the overall impact on the project duration due to the delay events.
4) Split Delays into Compensable, Inexcusable and Excusable.
5) Calculate the overall claim amount; which party is entitled to what?

Raj
624667241.xls
 MASTER WORKSHOP 16 - SOLUTION
Legend

F: Non Critical Activity

A,B,C,D,E,G: Critical Activities (Total Float = 0)

Float

ACTUAL
ACTIVITY ID DESCRIPTION DURATION Days 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

A Excavation 7 days

A1 Excavation - broken pump 2 days

B Foundation 7 days

C Steel Structure 11 days

C1 Structure erection low performance 4 days

D Roof 5 days

E Cladding 8 days

F Slab 3 days

F1 Slab delay due to Clients design delay 11 days 1 2 3 4 5 6 7 8 9 10 11

Float
G Installations 4 days

H Finishes 4 days

1. Liquidated Damages/Penalties: $ 10,000/day 10,000.00 $/day

2. Contractor's EOT Claim: $ 5,000/day 5,000.00 $/day
3. Labour and plant cost $ 3000/day 3,000.00 $/day

DELAY ANALYSIS

Compensable Delay non critical 8.00 Days

Compensable Delay critical 3.00 Days
Concurrent Delay 3.00 Days
Overall Impact on Original Completion Date 3.00 Days Balfour Beatty v Chestermount Properties (1993)
The solution to this workshop is inline with the famous case of Balfour Beatty v
Contractor's EOT Claim 0.00 $ No Recovery For Concurrent Delay
Chestermount Properties (1993). In this case, the Judge concluded that there should
Inexcusable Delay be a logical relationship between the Cause and effect of a delay event i.e a "NET"
Inexcusable Delay A1
Inexcusable Delay C1
2.00
4.00
Days
Days
addition to the exisiting contractual completion date is considered reasonable. The
Overall Impact on Completion date
Deduct Concurrent Delay
6.00
-3.00
Days Judge stated that the Architect should " start with the existing completion date and
Actual Critical Delay
Liquidated Damages/Penalties
3.00
-30,000.00 $
postpone it to the extent which he considered as fair and reasonable having regard
to the delay caused by the requirement to execute the variation instructions.”
FINAL OUTCOME

Contractor's EOT Claim 0.00 $

Contractor's Delay&Disruption Claim 0.00 $
Liquidated Damages/Penalties -30,000.00 $
Acceleration Claim 0.00 $

Total -30,000.00 $

Raj
624667241.xls