Delay analysis in construction contracts pdf free download

Project completion for the owner means that he can make use of his new assets on time by habitation, renting, or selling. Any delay in project completion will disturb his plans. The client will not be able to make use of the property, and his business will be affected in almost all areas, especially finance.

For the contractor, any delay in completion of the project gives rise to indirect overhead expenses and additional payments to the project staff and workforce.

It also means that he will possibly be subjected to compensation claims. The consultants and all other parties involved will also lose if the project is delayed: they will at least lose time, which may mean losing money.

Despite the great effort that has been put into the evolution of construction project planning and control during the last four decades, delay is still a very common feature of construction projects, and most experience extensive delays.

These often result in adversarial relationships between construction stake holders clients, contractors, consultants, etc. Types of Delay: There are several types of delay in construction projects according to the liability of these projects, the occurrence of the delay and the effects of the delay. The major delay types are a following 1 : 1- according to the liability of the construction parties: this type falls of delay into two major categories, excusable and non excusable delay.

It excuses a contractor from performing within the contract period and justifies an extension of time to perform. This type of delay can also have an impact on non-critical activities which need more detailed analysis to determine whether additional time extension is warranted or if the reduction of float time can be justified.

Generally, whether delays are excusable depends on contract provisions. Acts of God, unexpected weather, labor disputes, owner design problems, owner-initiated changes and similar factors may cause excusable delays. Delays are generally excusable when another party caused but could have avoided them, or when they were due to environmental factors beyond the control or foresight of anyone.

Excusable delays can be further classified into compensable and non-compensable Excusable delay is "a delay to completion which is caused by matters deemed to be outside the control of the contractor" A. Excusable compensable delays Excusable compensable delays are caused by the owner or the owner's agents. A compensable delay usually leads to a schedule extension and exposes the owner to financial damages claimed by the contractor.

Examples of this would be the late release of drawings from the owner's architect, failure of the owner to hand over the site to the contractor or major changes in the scope of work. Excusable non-compensable delays Excusable non-compensable delays are caused by third parties or incidents beyond the control of both the owner and the contractor.

Each party owner and contractor must pay his own part of the delay cost. Examples typically include acts of God, unusual weather, strikes, fires and acts of government in its sovereign capacity. It may be excusable, non-excusable, compensable or non-compensable. Common examples of independent delays are delays made by the owner as a consequence of the delays caused by the contractor due to bad management of the project. Concurrent delays consist of two or more independent delays that occur at the same time as a result of different causes.

Causes of concurrent delays may be excusable, non-excusable, compensable or non-compensable, the right to receive an extension of time or delay damages will depend on which of these types applies.

However, it is generally the case that the contractor has the right to receive a time extension but not delay damages, and the owner does not receive liquidated damages. In other words, delay can be classified into two major categories according to the effect on the time schedule: A. Critical delays Delays that result in extended project completion times are known as critical delays. In the case of excusable critical delays, the contractor will generally be entitled to a time extension.

Non-critical delays Non-critical delays are delays incurred off the critical path which do not delay ultimate project performance. If the delay in this case is excusable, the contractor does not have the right to receive a time extension, because this type of delay does not have an effect on the overall completion of the project.

This is one of the most critical categories among the five delay categories because all of the causes were identified as key delays, i. According to the survey, design-related delays are considered to be excusable compensable delays. In the construction stage, the contractor always has the responsibility and the construction company will get no time or money if a delay occurs.

Delays due to lack of inspections are the most common in this stage. The Owner of the project always has the responsibility, which means that the delay will be excusable compensable. However, the two parties involved owner and contractor must bear the responsibility depending on the cause of the delay.

The type of delay is also dependent on what caused the delay. This category has the most influence on delay, especially on projects built in coastal areas.

Very often, the Government is responsible and, in this case, the delays are considered excusable compensable. Contractor related factors The contractor is the party responsible for carrying out the work of the project, and generally bears most of the responsibility for construction.

Almost all previous surveys conducted to examine responsibility for delay found that the blame, for the most part, lies with the contractor. If truth be told, the contracting profession is extremely complex and demanding compared to other professions. All contractors are familiar with the difficulties of fluctuating work. Many factors related to contractors may lead to project delay, and these factors are subdivided into five major categories as follows 1 : 1.

Materials 2. Equipment 3. Manpower 4. Project management performance 5. Project finance Consultant related factors The owner may employ an external professional consultant to assist him in managing the project.

The obligation of the consultant may be to carry out the design of the project including architectural, structural, mechanical, and electrical designs. He may also be responsible for the preparation of the project documents e. In some cases, consultants undertake responsibility for project planning, scheduling, cost estimation and quality control.

However, our focus will be on the tasks required during the construction phase, starting with reviewing and approving the design drawings, then monitoring the performance of the contractors and supervising the execution of the works 3. Delays occurring in construction projects regarding consultant performance include delays in the preparation of drawings or in the approval of contractor submissions, accepting inadequate design drawings and delays in performing inspection and testing.

From time to time during the project, contractors have many inquiries; slow response by the consultant engineer may lead to a slowing down of the progress of the work. In a case where a response is slow in coming, the contractors may extemporize a solution for the problem they face and execute it. This solution may not satisfy the consultant, which in turn results in doing the work again. Therefore, consultants should attend pre-construction meetings with construction contractors and respond promptly to them during construction 1.

Owner related factors The client or the owner is the key to the whole construction production process from inspection to completion and at times to post-occupancy maintenance. Many owners that sponsor a number of projects have their in-house project management teams to fulfill their responsibilities.

Nevertheless, many, if not most, clients for construction do not have the organizational capabilities to manage their own construction projects themselves. One of the critical issues at the early stage of the project is determining the contract duration. Number of Pages ISBN Delay and disruption in the course of construction impacts upon building projects of any scale.

As such, it remains an essential reference for any lawyer, dispute resolver, project manager, architect, engineer, contractor, or academic involved in the construction industry. Introduction and Terminology 2. Risk of Development 3. Project Procurement 4. Standard Form Provisions for Time and Cost 5. Notices, Claims and Early Warnings 6.

Extensions of Time and Time at Large 7. Planning and Programming 8. Presentation and Approval of Programmes 9. Monitoring, Updating, and Amending Programmes Change Management Mitigation and Acceleration Variation and Change