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INTERIM PARTICULARS
25 July 2012
Volume I
Claim Narrative
Project Name
Extension of Time Claim No. 2
CONTENTS
1 Executive Summary 4
2 Introduction 5
3 Background 6
3.1 Contract Agreement 6
3.2 Conditions of Contract 6
3.3 Contractual Parties 6
3.4 Other Parties 7
3.5 Contractual Obligations 8
3.6 Time for Completion 11
3.7 Liquidated Damages 11
3.8 Entitlement to Extension of the Time for Completion 12
3.9 Contractor Claims 13
3.10 Notification of Delay Events 16
3.11 Programme for the Works 16
4 Delay Events 16
4.1 General 16
4.2 Delays, Impediments or Acts of Prevention by the Employer 16
4.2.1 Late Procurement of Ceramic Tiles 17
5 Delay Analysis
5.1 Method 21
6 Mitigation 22
7 Entitlement 23
Major Appendices
1 Executive Summary
The Agreement between Line Investments and Property L.L.C. (The Employer)
and CONTRACTOR (the Contractor) that was signed on ?? 2008 for the
construction of the Fish, Vegetable, Meat Market and Shopping Mall in Abu Dhabi
(the ‘Works’) is a Lump Sum Contract whereby the Contractor is responsible for
executing and completing the Works and has a fundamental contractual obligation
to complete the whole of the Works by 12th January 2010, 22 months after the
Commencement Date of 12th March 2008.
The Contractor intends to submit further extension of time claims covering other
delay events.
Costs associated with the claim for an extension of time are not included in this
document and will be presented in a separate submission in due course.
2 Introduction
Costs associated with the extension of time have yet to be calculated to a degree of
accuracy required by the Conditions of Contract and so have been excluded from
this document. These costs will be calculated and submitted in due course.
This document refers to various events which have caused delay. Although it must
be recognised that these are not the only events that have given cause for delay,
they are, in the Contractor’s opinion, the primary issues. The Contractor reserves
the right to submit further claims referring to other events which have also given
rise to delays. It must therefore be understood that this document is not
exhaustive.
Other delay events will be the subject of separate extension of time claims.
A list of abbreviations that appear in this document can be found in the List of
Abbreviations Appendix1.
1
Appendix
3 Background
The Agreement for the Works was signed by The Employer and the Contractor on
?? 20082. This Agreement identified the Time for Completion as being 24 months3
and the Contract Price as being AED 000,000.00.
2 The Agreement
3 Item 6 of Appendix “A” to the Agreement
4 Item 2 of Memorandum of Understanding dated 6th March 2008.
6 Sub-Clause 5.2.
3 Background (Cont’d)
The General Conditions of Contract are the Conditions of Contract for Works of
Civil Engineering Construction (Fourth Edition 1987) reprinted in 1992 with
further amendments as prepared by the “Federation Internationale Des
Ingenieurs-Conseils (FIDIC)” and amended by Conditions of Particular
Application.
The Agreement confirms that the contract is between the Employer and the
Contractor (CONTRACTOR).
7 Clause 2
3 Background (Cont’d)
The Contractor shall, with due care and diligence, design (to the extent
provided for by the Contract), execute and complete the Works and
remedy any defects therein in accordance with the provisions of the
Contract.
The Contractor shall give prompt notice to the Engineer, with a copy to the
Employer, of any error, omission, fault or other defect in the design of or
Specification for the Works which he discovers when reviewing the
Contract or executing the Works.
The Contractor shall take full responsibility for the adequacy, stability and
safety of all Site operations and of all methods of construction. Provided
that the Contractor shall not be responsible (except as stated hereunder or
as may be otherwise agreed) for the design or specification of Permanent
Works, or for the design or specification of any Temporary Works not
prepared by the Contractor. Where the Contract expressly provides that
part of the Permanent Works shall be designed by the Contractor, he shall
be fully responsible for that part of such Works, notwithstanding any
approval by the Engineer.
3 Background (Cont’d)
3.5 Contractual Obligations (Cont’d)
1 INTRODUCTION
2 DESCRIPTION
A Basement Floor
• Underground parking lot for 1105 cars
• Three separate entrances and exists for ease of traffic
• Four entrance halls providing travelators, escalators and
lifts for the fish market and mall
• Stores, electrical and telephone rooms
3 Background (Cont’d)
The Time for Completion for the whole of the Works was established as being 22
Months from the Commencement Date of 12th March 20088. The completion date
for the whole of the Works is therefore calculated as 12th January 2010.
In the event that completion is delayed, without the Contractor having any
entitlement to an extension to those dates, the Conditions of Contract11 provides
for the imposition of delay damages by the Employer as follows:
8
Item 2 of Memorandum of Understanding dated 6th March 2008.
9
Item 6 of Appendix “A” to Agreement
10 Item 2 of Memorandum of Understanding dated 6th March 2008.
11 Sub-Clause 47
14 Based on the original Contract Price and the original Time for Completion
15 Item 15.2 of Appendix “A” to Agreement. 2.5% of AED 1,000,000/24 months = AED 1,666.67
3 Background (Cont’d)
Being such as fairly to entitle the Contractor to an Extension of the Time for
Completion of the Works, or any Section or part thereof, the Engineer shall, after
due consultation with the Employer and the Contractor, determine the amount of
such extension and shall notify the Contractor accordingly, with a copy to the
Employer.
In order to determine the amount of such Extension, the Engineer may request
that the Contractor prepares a “Time Impact Analysis” for adjustment of the
Completion Dates identified in Appendix to the Form of Tender.
The Time Impact Analysis shall define the extent of adjustment, and the basis
therefore, in a form acceptable to the Engineer and shall include (but shall not be
limited to):
• An analysis of how float has been used to minimise the additional time
required.
The Time Impact Analysis shall indicate the date(s) any extra or additional work
or other special circumstances occurred, the status of the work at that time, and
resultant impact on the Completion Dates as per the corrected programme.
3 Background (Cont’d)
3.8 Entitlement to Extension of the Time for Completion (Cont’d)
44.2 Provided that the Engineer is not bound to make any determination unless the
Contractor has:
b) Within 28 days after such event has first arisen notified the Engineer
with a copy to the Employer, and
44.3 Provided also that where an event has a continuing effect such that it is not
practicable for the Contractor to submit detailed particulars within the period of
28 days referred to in Sub-Clause 44.2(b), he shall nevertheless be entitled to an
extension of time provided that he has submitted to the Engineer interim
particulars at intervals of not more than 28 days and final particulars within 28
days of the end of the effects resulting from the event. On receipt of such interim
particulars, the Engineer shall, without undue delay, make an interim
determination of extension of time and, on receipt of the final particulars, the
Engineer shall review all the circumstances and shall determine an overall
extension of time in regard to the event. In both such cases the Employer shall
make his determination after due consultation with the Employer and the
Contractor and shall notify the Contractor of the determination, with a copy to
the Employer. No final review shall result in a decrease of any extension of time
already determined by the Engineer.
As will be seen from later sections of this document, the Contractor is clearly
entitled to an extension to the Time for Completion and therefore contractually
will have no liability for Liquidated Damages.
3 Background (Cont’d)
Clause 53 of the Conditions of Contract sets out the following procedure for
claims:
53.2 Upon the happening of the event referred to in Sub-Clause 53.1, the
Contractor shall keep such contemporary records as may reasonably be
necessary to support any claim he may subsequently wish to make.
Without necessarily admitting the Employer’s liability, the Engineer shall,
on receipt of a notice under Sub-Clause 53.1, inspect such contemporary
records and may instruct the Contractor to keep any further contemporary
records as are reasonable and may be material to the claim of which notice
has been given. The Contractor shall permit the Engineer to inspect all
records kept pursuant to this Sub-Clause and shall supply him with copies
thereof as and when the Engineer so instructs.
53.3 Within 28 days, or other such reasonable time as may be agreed by the
Engineer, of giving notice under Sub-Clause 53.1, the Contractor shall send
to the Engineer an account giving detailed particulars of the amount
claimed and the grounds upon which the claim is based, Where the event
giving rise to the claim has a continuing effect, such account shall be
considered to be an interim account and the Contractor shall, at intervals as
the Engineer may reasonably require, send further interim accounts giving
the accumulated amount of the claim and any further grounds upon which
it is based. In cases where interim accounts are sent to the Engineer, the
Contractor shall send a final account within 28 days of the end of the
effects resulting from the event. The Contractor shall, if required by the
Engineer to do so, copy to the Employer all accounts sent to the Engineer
pursuant to this Sub-Clause.
3 Background (Cont’d)
3.9 Contractor’s Claims (Cont’d)
Clause 53 (Cont’d)
53.4 If the Contractor fails to comply with any of the provisions of this Clause in
respect of any claim which he seeks to make, his entitlement to payment in
respect thereof shall not exceed such amount as the Engineer or ‘The Court
of Abu Dhabi’ assessing the claim considers to be verified by contemporary
records (whether or not such records were brought to the Engineer’s notice
as required under Sub-Clauses 53.2 and 53.3).
53.5 The Contractor shall be entitled to have included in any interim payment
certified by the Engineer pursuant to Sub-Clause 60 such amount in respect
of any claim as the Engineer, after due consultation with the Employer and
the Contractor, may consider due to the Contractor provided that the
Contractor has supplied sufficient particulars to enable the Engineer to
determine the amount due. If such sufficient particulars are insufficient to
substantiate the whole of the claim, the Contractor shall be entitled to
payment in respect of such part of the claim as such particulars may
substantiate to the satisfaction of the Engineer. The Engineer shall notify
the Contractor of any determination made under this Sub-Clause, with a
copy to the Employer.
16 Sub-Clause 44.2
3 Background (Cont’d)
The detailed time programme17 was submitted for approval on 24th March 2008.
Following the incorporation of various comments, the final programme was re-
submitted on 29th May 2008 and accepted by the Engineer on 6th August 200818.
4 Delay Events
4.1 General
During the course of the project numerous events have occurred that have affected
progress and will ultimately delay taking over of the Works. The Contractor has
identified below a number of the major delay events that clearly entitle it to an
extension of the Time for Completion and thereby relief from any liability for
Liquidated Damages. In addition, the Contractor is entitled to additional payments
in respect of prolongation, escalation and finance costs for the extended
construction period.
• Late Nomination
• Clarification of payment terms
• Delays in the review of shop drawings
The late nomination of the skylight Subcontractor20 by the Employer delayed the
commencement of this critical component of the Works.
4.2.1 Skylights
4.2.1.1 Background
The late nomination of the skylight Subcontractor21 by the Employer delayed the
commencement of this critical component of the Works.
The skylight nomination was planned to have been made by ??, but was not made
until ?? days later on 17th February 2009.
CONTRACTOR made repeated requests in 2008 for the nomination of the skylight
subcontractor and the issue was discussed in a number of site meetings22.
As a result of the late nomination, work on the skylight SK1 commenced late.
Shop drawings submitted for approval on 8th May 2009 were approved 46 days
later on 21st June 2009, 34 days longer than the established review period of 14
days23. As a result of delays in the approval of shop drawings, fabrication was
delayed.
21
Emirates . hereafter referred to as “SUB CONTRACTOR XX”
22
Refer AFGCO letter GC/PD/A323/B2/478/09 dated 21st February 2009-08-02
23
Item 2 of MGI letter MGI/CFM/AFGCC/NP/L/00981 dated 14th January 2009
4.2.1.2 Chronology
Delays resulting from the late nomination, the clarification of payment terms and
the extended review of shop drawings all delayed the commencement of skylight
installation activities. As a consequence, the completion of skylight SK1 will be
delayed.
The late completion of skylight SK1 delayed the removal of tower cranes, which in
turn delayed the installation of skylights SK2 and SK3.
31
??
As these delays occurred on the critical path, the overall effect is a delay to the
Time for Completion.
The following table sets out details of the delay period. The effect of this delay
event on the Time for Completion is contained in Section 5 of this document.
32 Appendix 5.?
33 Appendix 5.?
5 Delay Analysis
5.1 Method
The approved Clause 14.1 programme35 has been considered as the Baseline
Programme for the purposes of this extension of time claim and forms the basis
from which the Entitlement Programme has been produced.
The ‘Time Impact Analysis’ delay analysis method has been adopted in this
extension of time claim is consistent with the delay analysis methodology outlined
in the Contract Documents36.
Critical activities that are contained in the Baseline Programme form the basis for
the Entitlement Programme37. The Entitlement Programme has been produced by
updating the Baseline Programme with progress up to a point in time just before
the delay event arose. The delay event has then been introduced into the updated
Baseline Programme to establish the impact upon completion.
34 Appendix
35 See also Section 3.11 of this document
36 Sub-Clause 44.1(c) – as altered by Conditions of Contract Part II
37 Appendix
6 Mitigation
Throughout the project the Contractor has used its best endeavours to progress the
works in a professional and workmanlike manner and has adopted the following
measures in order to mitigate delays: -
46.1 If for any reason, which does not entitle the Contractor to an extension of
time, the rate of progress of the Works or any Section is at any time, in the
opinion of the Engineer, too slow to comply with the Time for Completion,
the Engineer shall so notify the Contractor who shall thereupon take such
steps as are necessary, subject to the consent of the Engineer, to expedite
progress so as to comply with the Time for Completion. The Contractor
shall not be entitled to any additional payment for taking such steps.
7 Entitlement