EOT

Hi Skan,



In response to your queries, I hope that these will clarify something on the best of my knowledge.



Your comment: a) "Late is not a serious problem, is it?", “What constitute a lack of notice?”



Under the standard condition of contract like FEDIC, AS 4000 and many others defending on which form of contract are being exercised by countries covered of a project there’s a clause on EOT entitlement and how many days that contractors should notify the client if delays are determined. Some stating “the Contractor gives the Superintendent, within 28 days of when the Contractor should reasonably have become aware of that causation occurring, a written claim for an EOT evidencing the facts of causation and of the delay to WUC (including extent).”



Some of them are stated on the contract itself and should be exercised to avoid the dispute when claiming EOT. In absence of the clause a standard condition of contract usually prevail.



Majority of the contractors ignore this clause and wait until the end of the project that ends up to legislation or arbitration.



Some notice requirements are condition precedent to the Contractor’s entitlement and therefore the Contractor loses his right to claim if he fails to comply with such a notice requirement.



Your comment: “What phase or words should be included in the notice to be a notice? Can a verbal report in the progress meeting and recorded in the meeting constitute a notice which details to be provided later?”



A reputable/ big company should have a standard proforma/ document for “Delay & Disruption Notices form”. A basic form includes:

1) Nature of delay (Inclement Weather, Variation, SI/FI, late decision/ info/ drawing…etc)

2) Evidence of delay (RFQ, SI/FI, TQ, Daily Diary/ Report, MOM, Drawings…etc)

3) Impact of delay

4) Time/ days of impact or delay

5) Area, Drawings, Activities related/ affected by the delay



In absence of this documents, in some cases “Daily Diary/ Report sign by Client representative, MOM cc to client, schedule/ programme, RFQ, TQ and document evidencing received of informal notice” can be used. As long as client awareness is documented in any ways formal or informal and substantiated by received by client representative during the transmittal that can be consider as notices.



Your comment: b) “One can’t keep record if one do not know there is a problem until the problem emerge!!!, then record can be kept.”

I personally disagree on your comment, which is one major role of the document controller. How can you justify the delay if no evidence or document to substantiate? Records of RFI, TQ, SI/FI, Document/ Drawing register, Action and response date or status of its document that normally used as your evidence.



your comment: c) “…contractor & client keep progress or monitor the progress against the contract programme so could that be constituted as an update?”



Yes, Progress/ Schedule meeting and regular update/ monitor progress against the contract programme are the common and hard evidence unless client are not involved on the meeting/ update and they don’t have evidence of received of updated programme submitted by the contractor. As I mention on “b” document control should have a copy of received evidence of client representative not only when claiming EOT.



d) “as you said…” expert or claim consultant can deliver the process more efficient. My only suggestion is to make sure that the claims are proven, illustrated the impact and substantiated.



e) A good example of this is a no case EOT. Non compliance EOT entitlement and lack of evidence that failed to illustrate reasonable detailed critical path which having difficulties to assess or recognized affect of delay.



Ex: If the client’s professional adviser cannot evaluate or having difficulties to recognized the affect of delay due to lack of information and failed to comply on the entitlement to claim EOT then there is no demand or high priority to entertain the claim.



“Be aware that EOT claim are being assessed at the time when the Works are actually carried out and not when they were programmed to be carried out.” Meaning that you cannot just present a programme showing all the delays and critical activities produced by the software and not the reflection of actual works being carried out.”



Hope these all make sense.



Cheers,



Rodel

Rodel,



"a) Late or lack of notice from the Contractor."



Late is not a serious problem, is it?

I read somewhere that as soon as a delay become known, then the contractor have to give notice.

What constitute a lack of notice? This is part of my query earlier. Are you able to give us an example of a 99.99% notice/as close to as prefect or what phase or words shopuld be included in the notice to be a notice? Can a verbal report in the progress meeting and recorded in the meeting constitute a notice which details to be provided later?



"b) Failure to recognise delay that results in contemporary records not being kept."

As long as progress/allocation/daily records are kept or acknowledged by teh engineer or representative, is that sufficient?

One can’t keep record if one do not know there is a problem until the problem emerge!!!, then record can be kept.



"c) Failure to regularly update the programme."



Again I thought the contractor & client keep progress or monitor the progress against the contract programme so could that be constituted as an update?



"d) Poor presentation of the claim to show how the progress of the work has been delayed."

Ahh.. this one I think some expert advise from other members could help.



"e) Insistence on the part of the Employer’s professional advisers, that unreasonably detailed critical path programmes are essential in order to assess the effects of the delay."



I do not understand what is meant here. could you expand?



thanks

Hi Sony,



In addition to my post here are some guide that I found in my notes.



Major obstacles to EOT claim

a) Late or lack of notice from the Contractor.

b) Failure to recognise delay that results in contemporary records not being kept.

c) Failure to regularly update the programme.

d) Poor presentation of the claim to show how the progress of the work has been delayed.

e) Insistence on the part of the Employer’s professional advisers, that unreasonably detailed critical path programmes are essential in order to assess the effects of the delay.



Hope this help.



Cheers,



Rodel

Charleston,



I’m sure there are more polite ways of communicating the same thoughts which hopefully wouldn’t involve the need to emigrate!!!!!!

Hi Sony,



Good if you’re on the client side. There are so many ways of checking EOT claim but first you need to review the condition of contract between the client and contractor. Most probably focus on EOT entitlement and claims. Have a thorough review on the deliverable milestones and critical activities included on the submission based on the original schedule. Check the impact of program re-arrangement or sequencing if the deliverable milestones are affected. Always bear in mind that not all program re-sequencing have the entitlement of EOT unless the deliverable milestones are affected seriously.



You also need to understand what the basis of their EOT claim. Are they entitled on that basis? Is the client/ principal are the contributing factor of delay or their productivity? What are the impacts of variation to their schedule? Are they exercising the acceleration of work to catch up the schedule? If so, is the acceleration are being paid under variation? Are they supplying only labour and all materials are pre-issue or are they on lump sum basis?



These are only the basic checking of EOT and can learn a lot more as you go on your review.



Try this website having some pointers and tips that may able to help you published by Ron Winter Consulting on 110 ways baseline review. http://www.ronwinterconsulting.com/rabaseline.htm



Regards,



Rodel

Sony Boy,



Before you do what Andrew telling you since I believe Andrew is right, be sure you got a new employer in some other country.



I know how it is done in this part of the world.



Charlie

Sony,



You start with the original, change and update it to reflect the actual and see what drops out.



I wrote somewhere on a post about an Employer who wouldn’t allow changes to logic and durations in the baseline:-



"go and tell to him sit in the corner with ’I’m an idiot’ hat on" - the same applies to contractors who do similar.

Hi,



Didn’t I read somewhere that the schedule does not have to be approved?

What matter is what is written in the contract.

Are there any dates entered in the contract, eg milestone or completion?



Even without an approved schedule or the logic does not work, the contractor (if you are one) can still present a schedule based on reasonable/fair logic to show that it is your initial intent to meet those milestone & completion date then show the issues that had disrupted the logic and so prove the delay. EOT comes after that?



Can someone enlighten me on the salient steps (typical/standard format etc) to manage a contract so that a contractor will not loose the right to claim for EOT?

I have heard that even if the letter of notice did not contain certain phase, it is not a notice.

Can anyone give a typical letter (guarantee to work.)

Any case law/judgement to this point?



Thanks

From your statement, it was surprising to note that that how the Contractor could commence the Works prior to approval of Construction Programme ?



In this situation, the best way to analyze EOT is that review EOT in line with the related contractual provisions/clauses thoroughly and treat this application accordingly.

Hi Sony,



Are you on Client or Contractor side?



If you are on the contractor side then you’re hitting a brick wall with your head. Too tough but there are other ways of claiming EOT.



First review the contract and look for any loop holes and ambiguous condition on the contract like practical completion, milestone etc…



Check the clause on claims, variations, EOT and entitlements. Check if the contract have baseline schedule submitted, working documents, drawing register and other deliverables that can be use to justify the delay.



Check the equipment, instruments, cable schedules and other material deliverable ETA/ dates if client supply versus actual ROS date.



Check all RFQ/ TQ register and action date by client against the condition of contract requirements. If RFQ/ TQ action date by client are more than the days specified on the contract then that can contribute a basis of EOT.



Check all SI/ FI and other variation and accumulate the days affected on the original contract.



Check original BOQ vs. Actual Qty, Resources levelling min and max against actual.



Is there any Industrial issue, safety issue, direction of public authority and its delay, inclement weather and many others that contribute delay?



Hope this help…good luck!!!



Cheers,



Rodel