STATE MINISTRY OF PROVINCIAL COUNCIL AND LOCAL GOVERNMENT AFFAIRS

World Bank Funded Transport Connectivity & Asset Management Project - Loan No.P132833

Contract No: MPCLGS/PRDP/UV/05RR

CLAIM NO-03

o DISRUPTION DUE TO THE FUEL AND MATERIAL CRISIS.

EMPLOYER -CHIEF SECRETARY (UVA PROVINCE)

ENGINEER -PROJECT IMPLEMENTATION CONSULTANT

CONTRACTOR- SUHADA ENTERPRISES

01. INTRODUCTION
1.1 Objective
The purpose of this report is to claim Extension of Time for the above project due to
following causes. Upon the occurrences of this events, as we were failing or delaying
performance, we notified to the Engineer in writing set forth the nature of the occurrence, its’
expected duration and how it has affected pursuant to the sub clause 20.1 in GC. Hence
Suhada Enterprises is entitled to an Extension of Time with respect to delay.

1.2 Contract Particulars

Contract Dates
Letter of Acceptance -2021.08.26
Time for Completion - 450 Days
Due Date of Completion -17th December 2022
Revised Date of Completion - 3rd May 2023
Accepted Contract Amount - Rs. 381,688,184.20

02. Disruptions due to Fuel & Material Crisis

2.1 Background
01. As per the original scope of work we have submitted Construction Programme and
approved by the Engineer. Further submissions for EOT 01 and 02 were also accepted by the
Engineer.
03. According to the Construction Programme, major works to be complied with the critical
path to complete the project before the completion date of original completion date are,
a) Road works
b) Structure works
c) Site Clearing
d) Earth works
As per the planned milestones to gain the required physical progress over the last period was not
drastically able due to their supporting environment.
Sri Lanka’s economy has come to a near standstill and facing its worst financial crisis, run out
for fuel all activities. Fuel is a key economic enabler. Disruptions to fuel availability and price
changes potentially have considerable impact on construction industry. Because, balance
major works of the project mainly energy intensive works.

2.2 Impact of shortage on the construction programme

a) Shortage of fuel curtails the services of the officers, labours due to the curtailment of
transportation. Hence output of the human resources was drastically limited.
b) Heavy machinery is traditionally one of the greatest costs to be considered mainly due to fuel
consumption. These typically diesel-powered machines have a great variability of fuel
consumption depending on the scenario of utilization. Due to this heavy consumption rate
machineries had to be used in a limited time period. Thus excavation, loading, unloading,
transportation in the site and other related works were limited and caused to delay the road
works, structure works, earthworks and clearing works.
c) Requirement of purchasing the inadequate amount of fuel for asphalt production, paving
works, asphalt transportation has barred the above works wholly. The fuel usage factor for
asphalt concrete production includes all requirements to produce a ton of asphalt concrete,
including the material handling at the plant site, drying and heating of aggregates, heated asphalt
storage and generating power for all plant machinery. Fuel usage factors represent requirements to
place asphalt concrete with a paving machine and compact it with three rollers.
Estimated fuel requirement for whole asphalt process was calculated as approximately 12000 l
Fuel usage factors for the production of Portland cement concrete include all requirements to
produce a cubic meter of concrete including material handling at the site, mixing, and generating
power for all plant & machinery.
d) Inability of transporting inadequate amount of material, such as tor steel, cement, sand
and metal gained a huge shortage of that causing a delay on main activities

2.3 Contractor’s Entitlement for an EOT

We have made our intention to Claim for Extension of Time for the contract period with our
letters TCAMP/PRDP/UP/05RR/EN/CRE/08, EN/CRE/11 and EN/CRE/14.

Pursuant to the sub clause 8.4 (d) general conditions set forth in Section VIIӀ,

“Unforeseeable shortages in the availability of personnel or goods caused by epidemic or

“The Ceylon Petroleum Corporation was set up as a state enterprise by Act. No. 28 of 1961
in parliament and further amendments carried out subsequently. The main objectives of
Ceylon Petroleum Corporation are the following:”

“To carry on business as an importer, exporter, seller, supplier and distributor of Petroleum
products. To carry on business of exploring for the exploiting, producing, and refining of
Petroleum and to carry on any such business as may be incidental or conducive to the
attainment of the objectives”

Hence Ceylon Petroleum Corporation is functioning as a state enterprise and whole process is
controlled through government policies, effect of the mechanism squarely falls within the
mechanism of Governmental Actions.

Hence effect of this can be considered under Compensation Event pursuant to the sub clause
8.4 .Therefore occurrences of these failures to perform under contract, complied with the
sequences of failures done by the government body which has made a direct or indirect
impact.

Further neither party shall be responsible or liable to the other, for the failure or delay in the
performance of these contractual obligations due to this contingency beyond the party’s
reasonable control. Applicability of this, we, Suhada Enterprises has used its contractually
reasonable effort to overcome, eliminate or cure any such causes and resume the performance
of our obligation.
Pursuant to the sub clause 8.4 GC contractor is entitled to an Extension of Time if a
compensation event occurs or a Variation is issued which make it impossible for completion
to be achieved by the intended Completion date.
We have made our intention to claim for Extension of Time for the contract period by our
previous letters.
2.4 Number of Days of EOT

Task Name Sept- Oct- Nov Dec Jan Feb March Cumul
2022 2022 2022 2022 2023 2023 2023 ative
Nos of
days
Monthly Fuel 6850 8850 8850 7750 7750 12355 12355
Requirement/l
Maximum 2760 3960 3960 3160 3160 5360 5360
allowable
Amount of
Fuel/l (QR
code)
Work 40.3% 40.2% 40.2% 40.7% 40.7% 43.4% 43.4%
achieved
Percentage
Effective 100% 100% 100% 100% 100% 100% 100%
Percentage
Work Lost 59.7% 59.8% 59.8% 59.7% 59.7% 56.6% 56.6%
Percentage
Days of Lost 17.9 18.5 17.9 18.5 18.5 15.8 17.5 126.6

Table 01. Delayed Critical Items affected by the crisis

Current fuel crisis has been continuing since 25/02/2022 and critically affected up to
31/08/2022 and effect of other limitations done by the Government slightly affected on the
programme up to the end of March 2023. Crisis occurred potentially high up to 31/08/2022,
was considered for the Claim No. 02, Extension of Time No. 02.

Hence, Suhada Enterprises intend to claim 126 Days of EOT since 01/05/2023.

By considering all these factors you are kindly requested to consider the Extension of
Time for the balance work of the project upto 05 th September 2023. Because, above
considered effect has been affecting to the critical path of the project for this whole
period.

Hence our intended Date of Extension is 05/09/2023