GYK Newsletter – Your EOT Claim may have been rejected because…

Welcome to the new issue of Grow Your Knowledge Newsletter where you get free, ready to use, actionable, clear information regarding FIDIC Contracts and Construction Claims.

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Today at a Glance;

➤   Term of the Week

➤   One Tweet

➤  Your EOT Claim may have been rejected because…

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TERM of the WEEK 

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ONE TWEET 

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Hello from eayglobal.com.

Your Extension of Time (EOT) claim is rejected.

You believe that the EOT claim you have submitted was effective and valid.

You think you have;

➤ Accurately defined the CAUSES of the delay event

➤ Perfectly explained the EFFECTS of the delay event

➤ Correctly established the contractual ENTITLEMENT

➤ Sufficiently SUBSTANTIATED the claim

And, when the result is a failure despite all, that means;

➤ There may be a DEEPER PROBLEM in the background

Here are the probabilities;

PROBABILITY #1: The Baseline Program may not be correct

It may not include all the;

➤ Required activities to execute the work

➤ Interrelationships between the activities

➤ Calculated durations calculated to execute each activity

All of that makes the baseline program unreliable and cannot be used as a solid base/benchmark for any future claim.

If various circumstances are met, such as;

• Each action has at least one predecessor and one successor activity, and that there are no gaps.
• The critical path which has a continuous chain of activities from start to completion
• Durations for all activities along critical, and near critical paths, are reasonable
• All milestones, constraints and sectional completion milestones are reflected accurately

When these conditions can be realized the baseline program can be used as a significant base for any future claim.

PROBABILITY #2: Delay records may not be accurate

Records may be far from;

➤ Becoming the evidence that you will need later on

➤ Contributing to the cause of the critical delays incurred

A delay notice should be generated and given to the employer within the time frame specified in the contract for each potential delay event. 

The delay notice should include all important information about each delay event, such as: 

• Change requests
• Cost impact
• Time impact
• Related drawings and specifications
• Relevant contract clauses
• Correspondence

PROBABILITY #3: Program updates may not be sufficient

Updates may not reflect the;

➤ Current site conditions and constraints

➤ Actual physical progress achieved compared to the planned

➤ Changes to the critical path and out-of-sequence activities

Lack of ability by the Contractor to provide sufficient program updates may result in delay claims being easily rejected by the Employer. 

Regular updates keep track of how well each party adhered to deadlines and how comprehensive their work was.

The program updates should also take into account the effects of any disruptions that influence the effectiveness of the resources needed to accomplish the work and lengthen the time needed to finish the impacted activity or set of activities as a result.

PROBABILITY #4: Program revisions may not be reliable

Revisions may not be developed from the;

➤ Latest updated program

and show all the;

➤ Delays, scope changes to that point of time

The frequency of the program revision is primarily influenced by the volume of changes that took place throughout the period and the validity of the construction work sequence, as well as by the site’s current limits and conditions.

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Before formulating the claim don’t forget to clearly understand whether the preconditions are met or not.

See you next week.

 

This information is provided for your convenience and does not constitute any “Legal Advice”. This document is prepared for the general information of the interested persons. This should not be acted upon in any specific situation without appropriate legal advice.

This information may not be reproduced or translated without the prior written permission of eayglobal.com

For further information please contact eay@eayglobal.com