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FIDIC Lecture - EOT & Related Costs in Construction
FIDIC Lecture - EOT & Related Costs in Construction
in Construction
By
Khalil T. Hasan
Construction Solutions (www.cspk.org)
Presented at the
FIDIC Middle East Contract Users’ Conference
February 2013 – Dubai, UAE www.cspk.org
•Time is of Essence
•Delays are inevitable on construction projects
•The only project to have completed on time is a Mosque. Divine
intervention (or God’s help) was understood to be the force behind the
timely completion of this Mosque.
•Time and Money go hand-in-hand. When projects get late, additional
costs are incurred.
•This makes it imperative to take control of project delays; timely and
effectively.
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FIDIC FIDIC
FIDIC FIDIC
FIDIC
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The FIDIC Provisions define the conditions where delay may be
claimed as the basis for an Extension of Time (EOT). Some examples are;
Inclement Weather
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Meanwhile the principles of how delay and related
costs should be calculated are not defined by FIDIC.
This leads to issues; issues which are usually
contentious due to various 'schools of thoughts' and
varied interpretations existing worldwide.
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Contentious Issues in Delay Analysis
resulting in Disputes
– Critical Path
– Who owns the Float?
– Concurrent (or Contractor) Delays and how these effect
Entitlement
– EOT and its relation with Compensation for Delay
– Which is the best Method of Delay Analysis?
» As-Planned Vs. As-Built Comparison
» Impacted As-Planned
» Collapsed As-Built / But-For
» Time Slice / Sub-Networks / Time-Impact
» Etc.
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In order to eliminate disputes or facilitate settlement of
disputes, there are now certain standards used worldwide.
The leading standards are;
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The SCL Protocol was
finalized in October 2002 after
several years of deliberations
and considerable debate and
agreement between experts
from different backgrounds
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The objective of the SCL Protocol
was to bring reasonableness and
fairness into the delay assessment
process and to eliminate
widespread manipulation of
complex delay issues
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The SCL Protocol tried to standardize
the issues such that disputes would be
reduced or eliminated
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It is recommended that;
www.eotprotocol.com
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The remaining slides of this lecture will
review and discuss the basic Principles
suggested and recommended by the
SCL Protocol
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Basic Principles
suggested and recommended by
the SCL Protocol
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The Principles suggested by the
SCL Protocol are simple.
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RULE NO. 1
If there is an Employer’s delay, which is beyond the Contractor’s
control, and if this delay impacts the Completion Date of the Works,
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RULE NO. 2
For the case of recovery of delay (or prolongation) costs incurred due to
the Employer delays, the Contractor must be able to prove that there has
been no other delay, which is in his own control, and which is equally
(or partly) contributing for delaying the Time for Completion.
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RULE NO. 3
[Result of Rule No. 1 will not change and is irrespective of the result
of Rule No. 2]
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The foregoing Rules proposed by the SCL Protocol are
meant to bring fairness and reasonableness into the
delay assessment process.
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The Illustrations demonstrating the principles of the SCL
Protocol are contained in the following Figures A to G
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Figure A - Accepted Contract Programme
Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Path 1
Path 2
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Figure B - Delay Impact 1
Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
PRIOR TO EXCUSABLE DELAY (UPDATE WITH ACTUAL PROGRESS)
Path 1
<=Date of Excusable Delay
Path 1 Float = 3.0 Weeks
Path 2
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Figure C - Delay Impact 2
Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
PRIOR TO EXCUSABLE DELAY (UPDATE WITH ACTUAL PROGRESS)
Path 1
<=Date of Excusable Delay
Path 1 Float = 3.0 Weeks
Path 2
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Figure D - Delay Impact 3
Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
PRIOR TO EXCUSABLE DELAY (UPDATE WITH ACTUAL PROGRESS)
Path 1
<=Date of Excusable Delay
Path 1 Float = 3.0 Weeks
Path 2
Contract
Completion Date
Excusable Delay
Impact on Path 2 = 6.0 Weeks
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Figure E - Delay Impact 4
Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
PRIOR TO EXCUSABLE DELAY (UPDATE WITH ACTUAL PROGRESS)
Path 1
<=Date of Excusable Delay
Path 2
Excusable Delay
Impact on Path 1 = 2.0 Weeks
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Figure F - Delay Impact 5
Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
PRIOR TO EXCUSABLE DELAY (UPDATE WITH ACTUAL PROGRESS)
Path 1
<=Date of Excusable Delay
Path 2
Path 2
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Figure G - Delay Impact 6
Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
PRIOR TO EXCUSABLE DELAY (UPDATE WITH ACTUAL PROGRESS)
Path 1
<=Date of Excusable Delay
Path 2
Path 2
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Principles & Provisions of the SCL Protocol
relevant to Figure G – Slide 2/2
Core Principle No. 9 - Concurrent delay – its effect on entitlement to extension of time
Where Contractor Delay to Completion occurs or has effect concurrently with Employer
Delay to Completion, the Contractor’s concurrent delay should not reduce any EOT
due.
Core Principle No. 10 - Concurrent delay – its effect on entitlement to compensation for
prolongation
If the Contractor incurs additional costs that are caused both by Employer Delay and
concurrent Contractor Delay, then the Contractor should only recover compensation to
the extent it is able to separately identify the additional costs caused by the Employer
Delay from those caused by the Contractor Delay. If it would have incurred the
additional costs in any event as a result of Contractor Delays, the Contractor will not be
entitled to recover those additional costs.
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Key Guideline, Suggestion and Advice of the
SCL Protocol
Guidance Section 3.2.13
Although the programme should be the primary tool for guiding the
CA in his determination of EOT, it should be used in conjunction
with the contemporary evidence to ensure that the resulting EOT is
fair and reasonable. It will also be necessary for the parties to apply
common sense and experience to the process to ensure that all
relevant factors are taken into account, and that any anomalous
results generated by the programme analysis are managed properly.
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Correct Responses for Figures B to G
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Congratulations we
have come to the end of
the Lecture.
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FIDIC and Construction Solutions
thank you for your attendance and contribution.
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We urge all participants to review the SCL Protocol on their own.
Construction Solutions’ Claims Management Division
(www.cspk.org) will remain available for further discussions on the
foregoing and any other relevant issue.
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