Extension Of Time Claims Research Articles

Analysis of Causes for Extension of Time in Construction Projects: A Case Study of Kageshwori Manohara Municipality

Extension of Time (EoT) claims are a common occurrence in construction projects worldwide, often leading to disputes due to insufficient attention to delay causes during the contract initiation phase. However, in the context of Kageshwori Manohara Municipality, these challenges are particularly pronounced due to localized factors. This study identifies key causes of EoT through qualitative and quantitative analyses, utilizing Principal Component Analysis (PCA), Kaiser-Meyer-Olkin (KMO) testing, Bartlett's Test of Sphericity, Eigenvalue and variance analysis, and reliability assessments using Cronbach's Alpha. Principal Component Analysis (PCA) helped to categorize twelve major EoT causes into three components: Design and Consultant-Related Issues (Eigenvalue: 13.892, Variance: 55.57%), Project Management and Execution Challenges (Eigenvalue: 1.146, Variance: 4.58%), and External and Unforeseen Conditions (Eigenvalue: 1.000, Variance: 4.00%). Significant causes include inadequate design information, poor project management, and unforeseen challenges like land acquisition disputes. These causes were ranked using the Relative Importance Index (RII) to prioritize their impacts on project time extensions. The authors believe that present findings illuminate the need for improved design and planning processes, along with adaptive project management practices to mitigate EoT claims and enhance project performance within the municipality.

Condition Precedents to the Extension of Time (EOT) Claims in Building and Infrastructure Projects: A Review of the Malaysian Litigation Cases

Delays in building and infrastructure construction projects are a persistent issue that significantly affects the project completion and often results in legal disputes, increased costs, and reduced productivity. Generally, building and infrastructure construction contracts include Extension of Time (EOT) provisions to address delays and to protect the contractor from liquidated damages and penalties due to neutral events and delays caused by the employers. However, EOT claims frequently entangled with disputes due to contractors’ failure to fulfil the condition precedent required for such claims. This purpose of the study is to identify issues relating to the condition precedent for Extension of Time (EOT) claims based on the Malaysian litigation cases and to analyse the ground of judgment on Extension of Time (EOT) claim. The study examines building and infrastructure construction-related cases reported in the Malayan Law Journal (MLJ) from 2013 to 2023. A systematic methodology that incorporates a comprehensive literature review and data collection from court cases using PRISMA guidelines was employed in this research. The findings reveal several issues relating to condition precedent to EOT claims, which are notification requirements, causation, criticality of delay, substantiation of claims, and mitigation efforts. The analysis to the grounds of judgment on EOT claim litigation cases shows that courts often examine whether proper and timely notices were given as required by the contract, the need for clear and convincing evidence to establish the causation of delays, the criticality of the delay events and their impact on the project's critical path, the substantiation of claims with adequate documentation, and the contractor's efforts to mitigate delays. This study contributes to the understanding and raising awareness for contract parties to fulfil the condition precedent to EOT claims. The findings provide significant insights for the project stakeholders in improving claim management practices and reducing time-related disputes in the construction industry.

Decision Support Framework for the Choice of Delay Analysis Techniques Used in Extension of Time Claims

Decision Support Framework for the Choice of Delay Analysis Techniques Used in Extension of Time Claims

Investigating Reasons for the Unsuccessful Extension of Time (EoT) Claim in the Malaysian Construction Industry; Views from the Professionals

Construction claims are often being cited as difficult and complex; hence, the rejection of claims is regarded as common in the construction industry. Such situation will generally lead to various consequences, among which are conflicts and disputes. In this respect, this paper aims to investigate the reasons for the rejection of EoT claims in the Malaysian construction industry. Findings were drawn from a consolidation of practitioner’s perceptions via questionnaire survey and semi-structured interviews. However, this paper will only present results obtained from the semi-structured interviews which was conducted to complement findings gathered from the questionnaire survey. The results revealed that failure by the contractor to establish the cause-effect relationship, inadequate supporting documents, non-entitlement in principle/non-valid ground/s, late submission, and non-compliance to the conditions of the contract are the top five (5) reasons for the failure of the submitted claim. The findings suggest the important areas that require much attention. Proper record keeping and management are obviously essential as these are the keys that determine the success of any claim.

Effective management strategies for construction contract disputes

PurposeContract risk management has become a critical mission, as contract issues may lead to a loss of vast amounts of money to parties involved or cause project failure. This study sought to identify effective management strategies to mitigate construction contract issues that might emerge during construction.Design/methodology/approachA quantitative research approach was adopted for the study. Structured questionnaires made up of close-ended questions were distributed to construction professionals in South Africa via the SurveyMonkey platform. The data were then analysed using descriptive statistics.FindingsThe findings indicate that the critical sources of contract-related disputes are ambiguous definitions of the contract parties' scope of their rights and obligations, lack of precise arrangements regarding the calculation of contractual penalties for failure to meet the deadline, lack of detailed specification of the works and specific milestones, lack of provisions regulating changes to the project documentation during the construction stage, an excessive amount of contractual penalties on contractor's side and lack of provisions regarding the rules of performing additional and replacement works and their settlement. However, for these disputes to be effectively managed, strategies such as reduction uncertainties in project's phases, setting up contingency plans, construction guarantee, extension of time claims, payment guarantee, retention and escalation clause should be implemented by the parties involved.Research limitations/implicationsEven though the empirical study focused on construction professionals in South Africa, the findings could be applied to other countries outside of South Africa.Practical implicationsTo effectively manage and prevent contract disputes from averting project failures and losses to parties involved in the contract, construction professionals need to be aware of strategies that must be implemented before and during the project execution. If well implemented, these strategies will help a construction project be successful and experience fewer contractual disputes.Originality/valueThe study has identified the knowledge gap concerning suitable contract risk management strategies available for implementation to effectively prevent any contract parties from losing money, time and project failure.

EFFECTIVE CRITERIA FOR SELECTING DELAY ANALYSIS METHODOLOGIES FOR CONSTRUCTION PROJECT IN ABU DHABI

This paper examines the effective criteria to determine the capable delay analysis methodologies by the contractors for the construction’s claim in Abu Dhabi. The previous research was argued that 50% of the construction projects in UAE encounter delays and are not completed on time. Selecting the delay analysis methodology is a significant part of the claim process. Numerous delay analysis techniques used in the UAE, and constitute several factors. Thus, the selection practice is more significant to identify the delays. Contractor’s analyst consumed exaggerated time and effort to show their right using delay analysis methodologies (DAMs) and submit this as an extension of time claim, demanding to make the most of their benefits. The aim of this study contains exploring the selection of the delay analysis methodologies by the contractors for the construction’s claim in Abu Dhabi. In this regard, five case studies were selected on the basis that they represent examples for application of the delay analysis methods and techniques for the residential building. The respondents were selected from five projects and the interviews were held with the Contractor of each project. The collected Qualitative Data was analysed manually by using Thematic Analysis. The study found that the effective criteria for determining the delay analysis methodologies lie in its acceptance in court and as per contractual requirements. Furthermore, the factors influence the selection of the effective criteria for determining the delay analysis methodologies are the acceptance of the selected delay analysis method /technique, realistic results and accuracy of the delay analysis method /technique. However, the findings from this study become more important, if more studies are conducted to extend the exploring of the different delay analysis methodologies used by the contractors for the construction’s claim for wide range of projects in Abu Dhabi.

Claims in Construction Projects: A Comprehensive Literature Review

Construction industry plays main part in the financial development of a country and occupies an essential position in the state’s growth policies. Construction industry generates thousands of jobs into different sectors to accommodate people according to its capabilities. On the contrary, it faces huge number of claims, as a result it gives birth to various problems including additional cost and time to complete the project. Therefore, this paper aims to identify the common types and causes of claims generally occur in construction industry and specifically in large scale projects. A detailed literature review has been carried out for this research and covers past research papers of the last two decades. The results showed delay in claims and extra work claim submitted by the parties, they are the main types of claims followed by contract ambiguity claims, extension of time claim and suspension of work claims. Delay of payment is the most important cause of claim followed by incomplete design, variation order, change order by owner, lack of communication and in last poor project management. It is concluded that proper contract documentation should be done and early error identification in contract documents, drawings and specifications should be highlighted. Finally, it is recommended to adopt proper claim management policy and procedures to address the queries by all parties. This paper will be used to design future guidelines in managing claims in large scale construction projects to improve the performance of construction industry.

BIM-based claims management system: A centralized information repository for extension of time claims

In traditional claim management system, Extension of Time (EOT) claims often lead to disputes among key construction stakeholders. This necessitates shifting traditional system to a digital environment for efficient processing. This research, therefore, focuses on utilizing Building Information Modeling (BIM) technology for developing a BIM-Based Claims Management System (BIM-CMS) to manage EOT claims. Twenty-nine problematic issues in prevalent EOT claim management process are extracted through an extensive literature review and semi-structured interviews of industry experts. Using Application Programming Interface, a plugin is developed in Autodesk Revit for managing EOT claims. The developed plugin is evaluated by industry's experts, who opined that BIM-CMS can be used to a great extent, as a tool to resolve most of the identified issues. It is also expected to proficiently mitigate potential disputes among contracting parties. The study also highlights barriers to BIM-CMS implementation and proposes corrective measures.

Consensus Views on the Success Elements for Extension of Time Claim (EoT) in the Malaysian Construction Industry: A Modified Delphi Study

Producing a good contractual claim is never an easy task. A good claim not only requires fact and evidences but also demands other important elements that complement each other. This paper reports on a Delphi study focusing on identifying the success elements for Extension of Time (EoT) claim specifically in the Malaysian construction industry. Two rounds of a modified Delphi surveys were conducted and consensus was obtained from twelve experts. The Delphi study has successfully elicit experts’ consensus on the elements that perceived to be the most important element in producing a quality EoT claim that may lead to a speedy, successful and amicable settlement of such claim.

The effectiveness of Microsoft Project in assessing extension of time under PAM 2006 standard form of contract

Time is equal to money; and it is applies in the construction industry where time is very important. Most of the standard form of contracts provide contractual clauses to ascertain time and money related to the scenarios while Extension of Time (EOT) is one of them. Under circumstance and delays, contractor is allow to apply EOT in order to complete the works on a later completion date without Liquidated Damages (LD) imposed to the claimant. However, both claimants and assessors encountered problems in assessing the EOT. The aim of this research is to recommend the usage of Microsoft Project as a tool in assessing EOT associated with the standard form of contract, PAM 2006. A quantitative method is applied towards the respondents that consisted of architects and quantity surveyors (QS) in order to collect data on challenges in assessing EOT claims and the effectiveness of Microsoft Project as a tool. The finding of this research highlighted that Microsoft Project can serve as a basis to perform EOT tasks as this software can be used as a data bank to store handy information which crucial for preparing and evaluating EOT.

해외 대형건설공사 공기지연클레임의 공기연장기간 입증방법

국내 건설산업의 침체가 장기화됨에 따라 대형 건설업체를 중심으로 국내사업 비중이 줄고 상대적으로 해외사업의 비중이 증가되고 있으며, 중견 건설업체 및 특수기술을 가지고 있는 전문건설업체의 해외프로젝트 수행이 확대되고 있다. 이러한 해외건설공사 수행의 중요성이 부각되고 있는 최근 상황에서 해외 대형건설공사에서 일반적으로 발생되고 있는 공기지연에 대한 적극적 대응이 성공적 프로젝트관리의 중요한 이슈로 제기되고 있다. 본 연구에서는 해외 대형프로젝트의 공기지연 클레임의 공기연장기간을 입증하는데 활용되는 기존 공기연장기간 분석방법의 실무적 적용상의 문제점을 제기하였다. 제시된 문제점을 해결하기 위한 개선방법으로 1)클레임의 명확성을 확보하기 위해 지연영향력 분석이전에 주요지연(dominant delay)를 선정하는 절차를 갖는 개선개념과 2)Time Impact Analysis을 시행을 위한 분석구간의 설정방법에 대한 개선개념을 제시하였다. 본 연구에서 제시한 공기연장기간 분석방법을 실제 해외 대형건설공사의 공기지연 클레임 사례에 적용함으로써, 제안한 개선안의 실무적용에 대한 유효성을 입증하였다. 국내의 해외 대형공사 공기지연 클레임을 담당하고 있는 기술자들이 본 연구에서 제안한 방법들을 공기지연 클레임 추진 및 관련자 협상 등과 같은 실무 추진에 참고하고 활용함을 통해, 공기연장기간 입증관련 클레임의 협상실패로 인한 리스크와 후속적인 분쟁 및 회사의 경영손실 리스크를 최소화 하는데 도움이 될 것이라고 사료된다. Recently many Korean large-sized construction companies as well as specialty contractors have been expanding their business in the overseas market to mitigate impacts from long-term stagnation in the domestic market. Such as a result, it has been arisen as a major issue that contractors effectively manage the delays which have been commonly faced with in international mega-projects. Therefore it can be said that the ability of the delays management leads a success of project. This paper presents a review of literature for delay analysis methods such as time impact analysis(TIA) and raises practical problems to rationally substantiate the duration of extension of time(EoT) in international mega projects which have wide scope of works as well as complicated and detailed contract baseline programs by taking theoretical approaches. We suggest the two improvement concepts to substantiate the EoT claims which are effectively applicable to practical projects. The first is to sort out dominant delays among numerous delays in advance of applying a delay analysis. The second is to set up the delay sections with the advanced concept for analysing delays' effects by TIA. This study performed a case study on an actual international mega-project. to confirm the effectiveness of improvement concepts that this practical approach is applicable for the assessment of EoT. In conclusion, this paper supposes to provide practitioner in charge for an EoT claim with an advanced substantiation methodogy when they not only analyse the construction delays by using TIA, but also negotiate with stakeholders about with the assessment of EoT.

Issues Associated with Extension of Time (EoT) Claim in Malaysian Construction Industry

This paper aims to identify the common disputed issues related to the Extension of Time (EoT) claim; particularly in private funding projects. A survey research approach, using questionnaire as an instrument, was employed to achieve the aim of this research. An extensive review of previous related research– was conducted and consolidated by interviews with industry experts, after which eleven issues were identified. Findings from the survey revealed that “concurrent delay,” “eligibility of a time extension claim,” and “non- compliance to contractual requirement,” were the top three (3) disputed issues in EoT claims. These results imply that adherence to the contract is paramount, not only for the smooth management of a project, but also to ensure the success of any contractual claim without any disputes arising. These findings are expected to offer a significant contribution to industry players, researchers, and academicians; and thus help to identify areas for further improvement.

Briefing: Extension of time claims

The ability to recover costs in an extension of time claim can be greatly enhanced if a contractor produces and issues with tender documents a critical path network that clearly shows the floats of all non-critical activities. By merely supplying a computer-generated Gantt chart that may well show the floats in the form of bar extensions, a contractor may not be able to prove adequately which, and to what extent, other activities are affected by a client-originated variation, resulting in an extension of time. This article shows that costs can be recovered over and above the normal site establishment and labour costs associated with an extension of time. At the same time, the client will be able to see to what extent the variation has affected the original completion date.

An integrated decision support system for dealing with time extension entitlements

Claims and disputes on time extension for delays are common in construction projects. Various methods and divergent approaches are used by different parties in assessing delays. Disputes then often arise on (a) eligibility of a delay event for claiming extension of time (EOT), (b) choice of method for evaluating EOT, and (c) quantification of the EOT. This research initiative aims at formulating a knowledge-based decision guidance system to help all concerned parties in navigating through these various options, in order to rationalize their approaches towards the preparation and evaluation of the EOT claims. Such rationalization is based on structured approaches, which are in turn devised from the particular contractual and project conditions. This rationalization is also expected to assist in a convergence of assessment approaches that would in turn reduce disputes and consequently wasted resources. In targeting those aims, a prototype of an integrated decision support system (DSS) for dealing with time extension claims was recently developed using (a) a structured web-based decision support framework, which is supplemented by (b) a Pocket PC based portable framework with seamless database integration. This paper presents some essential highlights on the development and usefulness of key modules of the DSS.