Acceleration Claim

This Article does not discuss the causes, delays, and contractual entitlement for
the extension of time for completion. Instead, this piece of writing focuses on the
consequences of delays and acceleration under the following scenarios.

1. Delay is attributable to the Contractor

1a – If Delay is not Mitigated

1b – If Delay is Mitigated

2. Delay is attributable to the Employer

2a – If Delay is not Mitigated
2b – If Delay is Mitigated

1. Delay is attributable to the Contractor

If the Contractor’s action is the sole reason for the delay in the completion of the
project, he is not entitled for the extension of time and, therefore,

1a. if the delay is not mitigated and completes the project beyond the original
contract completion date or the date agreed through any Addendum/ Variation
Order in the past, the Contractor is liable for delay damages and must bear
Additional Costs associated with Time related expenses (1. Overheads, 2.
Contractual Requirements – Bonds & Insurances, 3. Specified Requirements -
Engineer’s & Employer’s Facilities and other time related expenses).

Need to pay Delay

Damages to the
Employer as pe the
contract, if any.

If not mitigated Late Completion

Additional Cost
associated with Time
related General Items (1.
Overheads, 2.
Contractual
Requirements – Bonds &
Insurances, 3. Specified
Requirements -
Engineer’s & Employer’s
Facilities
 1b. If the Contractor decided to mitigate the delay and complete the Project
within the Completion date to avoid owing delay damages to the Employer and
to avoid additional cost associated with Time related expenses during the
delayed period, the Contractor would incur additional cost of acceleration.

Additional Cost of Acceleration

1. Need to mobilize additional resources and provide
additional facilities
2. Generally, hourly rates during weekend and holidays
are higher than normal working hours
3. Overtime rates are higher than normal hourly rates
4. Productivity during night maybe lesser than
productivity under the natural sunlight or vice versa
Mitigate Delay depends on the severity of the climate
through
Acceleration

Employer’s Claim for additional payment to Engineer’s staff

and any other cost that will be incurred by the Employer
during the extra working hours.

2. Delay is attributable to the Employer

If the Employer’s action is the reason for the delay,

2a. if delay is not mitigated and therefore, the Contractor completes the project
late, the Employer losses the business opportunity that could have been
generated had the projected completed on time and opened for the business on
time. Also, as the delay is attributable to the Employer, the Contractor is entitled
for the Extension of Time and Prolongation Cost Claim for the Time related
expenses incurred during the extended period. The Employer has to bear the
additional supervision fees and administrative expenses during the extended
period.
Loss of Business opportunity or
inconvenience to Public if
Government Project

If not Grant EOT and pay Prolongation

Late
mitigated Cost to Contractor
Completion

Additional supervision fees and

administrative expenses during the
extended period
2b. if the delay is mitigated through acceleration as instructed by the Employer
to do so, the Employer is liable to pay Cost of Acceleration to the Contractor and
bear the additional administration cost and the fee to the supervision consultant
if any.

Pay Acceleration Cost to the Contractor

(Explained under the Contractor’s
Acceleration Cost)
Mitigate Delay
through Acceleration
Additional cost for payment to Engineer’s
staff and any other cost that will be
incurred by the Employer during the
extra working hours.

Generally, the contract itself specifies the standard working hours and rest days.
Therefore, the Contractor plans the construction program taking into
consideration of such restrictions. However, in practice, the contractors may
propose to work on-site beyond the normal working hours and days to expedite
progress and mitigate their own delay. If so, the Engineer MAY give consent for
working outside the normal hours and on holidays while not overstepping the
country’s legal obligations. In this case, the Contractor has to bear the additional
payment to Engineer’s staff and any other cost that will be incurred by the
Employer during the extra working hours. On the other hand, if the delay is
attributable to the Employer and the Employer issued acceleration instruction
to mitigate the delay, the Employer has to bear such additional cost.

Summary
See next page

Alright, now the question is if the delay is due to neutral events, which are
excusable delays and therefore, the Contractor is entitled to the Extension of
Time only, no Prolongation Cost, but the Employer instructs to accelerate and
complete within the original Contract duration, is the Contractor entitled to the
Acceleration Claim?
Contractor’s Delay

Need to pay Penalty/ Delay Damages to the Employer

If not mitigated Late Completion

Additional Cost associated with Time related General Items (1. Overheads, 2. Contractual requirements – Bonds & Insurances,
3. Specified Requirements - Engineer’s Facilities and other time related expenses

Additional Cost
1. Need to mobilize additional resources and provide additional facilities
2. Generally, hourly rates during weekend and holidays are higher than normal working hours
3. Generally, Overtime rates are higher than normal hurly rates
4. Productivity during night maybe lesser than productivity under the natural sunlight or vice versa depends on the
severity of the climate
Mitigate Delay
through Acceleration

Employer’s Claim for additional payment to Engineer’s staff and any other cost that will be incurred by the Employer during
the extra working hours

Employer’s’ s Delay
Loss of usiness opportunity or inconvenience to Public in case of Government Project

If not mitigated Late Completion Grant EOT and pay Prolongation Cost to Contractor (Time related Preliminary Bill items/ Site office Overheads)

Additional supervision fees and administrative expenses during the extended period

Pay Acceleration Cost to the Contractor

Mitigate Delay
through Acceleration

Additional cost for payment to Engineer’s staff and any other cost that will be incurred by the Employer during the extra working hours.