PERFORMANCE You are in the preparation of a determination report on the Contractor's EOT claim of the following situation:
-Contractor's program was submitted in accordance with
FIDIC 8.3 (Program)
-As the work progress, engineer felt that contractor is not
going to achieve as per his program and asked for updated program.
-contractor submitted a updated program with a completion
date as per the contract. Along with the program, contractor added a sentence in covering letter, this program do not drop their right to ask for an EOT mentioned in previous correspondences. CASE STUDY PROGRESS MONITORING AND PERFORMANCE • -Engineer several times ask contractor to substantiate and submit the EOT program.
• -even after the updated program, the contractor
submitted a monthly report including a program that has got the completion date as per the contract. • -after couple of months, contractor submitted an EOT program with insufficient substantiation documents. CASE STUDY PROGRESS MONITORING AND PERFORMANCE • Please note all the delay events mentioned in his claim was occurred before his updated program, however his updated program commit that completion date will be as per the contract.
• The monthly progress report submitted after updated
program does not states any notice of claim and shows all commitments as per contract. In addition, contractor failed to submit the detailed particulars within 28 days of the event.
• What will be your determination and why?
• EOT is governed by FIDIC cl 8.4. • Could be due to variation • Exceptionally adverse climatic condition • Unforeseeable shortage of resources • Delay attributed to employer • Facts: • Contractors Program as per cl 8.3 • Employer asked updated program cl 8.3 • Contractor submitted updated program as per cl 8.3 • Contractor submitted a letter stating that this program do not drop their right to ask for an EOT mentioned in previous correspondences. • Engineer ask substantiation of EOT. • Monthly progress report shows the same completion date in updated program. • Contractors submits claim after a long time, without proper substation. • Updated program does not refer to any delays. • The monthly progress report submitted after updated program does not states any notice of claim • Details particular after 28 days. • In support • The contractor has submitted correspondence related to request for Extension of time. • Reminded at the time of submission of program. • In Against • As per cl 20.1, the claim should be notified within 28 days after contractor become aware describing the event or circumstances giving rise to claim. • Within 42 days after the Contractor became aware (or should have become aware) of the event or circumstance giving rise to the claim, the contractor should submit fully detailed claim with supporting document. • The updated program must show that due to the events or circumstances the proposed completion time is moving, this should be substantiated with reason. The contractor must give notice about probable future event which may adversely affect the work. (The contractor earlier correspondence and letter with program could be considered as notice). • As per cl. 4.21(h) the progress report should contain comparison of actual and planned progress, with details on any events or circumstances which may jeopardize the completion, and measure adopted to overcome delay • Conclusion: • The Contractor does not followed the time line for claim stated in 20.1 and hence their claim can not be accepted. • The contractor has not substantiated his claim properly. • The updated program submitted and progress report does not indicate any reasons and circumstances of extension required. • Assuming that the contractor would have followed the time line, the engineer’s determination will be based on the part of claim which has been substantiated and, notified as per 8.3 program and stated in the progress report. • The netwrok program derived from the program submitted could be the basis for analysiong and finalizing the extension of time in case the bidder could be given notice and substantiated the reason.