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Extension of Time Request

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0% found this document useful (0 votes)
205 views15 pages

Extension of Time Request

Uploaded by

RajAn SharWan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 15

By SPAD  | Courier  | E-mail  | Hand Delivered 

Total pages including this page: [●].


Response Required?: Yes  No .

Our Ref. No: [●] Date: [●]-


[●]-20[●]

To,

The Engineer
M/s …………… ,
………………….
………………….

Contract Work : [●].


Contract Ref. No. : [●] dated [●].
Reference :
1. Y/Our letter ref. no. [●] dated [●].

Subject : Application for Extension of Time – Application No [●]

Through the Authorized Representative: Sh. [●].

Dear Sir / Madam,

In accordance with the provisions of Clause [●] we write to give notice that
further events have occurred since the date of evaluation (viz. [●]) considered in
our last application for extension of time (application no [●]) which are such as
fairly to entitle us to an extension of the time for completion of the works.

The events have been described in Annexure – 1 appended hereto and is


supported by Annexure – 2, Annexure – 3, and Annexure – 4 and item (a) – (e) of
Clause [●] applies.

Yours faithfully

(name)
(Designation) :[•]@jmcprojects.com | : +91-[•]
====================================
The Contractor - M/s JMC Projects (I) Limited

Copy to – [the Employer].

Encl. : [•] as above (total pages: [•]).

P.S.: Copy retained for further reference in our office.

Page 1 of 15
Volume – I

Contents
1. Introduction...........................................................................................................................3
2. Salient Features of the Contract...............................................................................4
3. Executive Summary...........................................................................................................4
4. Contract Provisions...........................................................................................................5
5. Delay/Disruption Events and Evaluation of Delays.........................................6
Part I: Considering Delay Events up to [date 1].......................................................6
5.1. [Delay Event 1]:...............................................................................................................6
5.2. [Delay Event 2]:...............................................................................................................7
5.3. [Delay Event 3]:...............................................................................................................7
5.4. Delay having Continuing effect..............................................................................7
Part II: Considering Delay Events from [date 2] and continuing....................7
5.5. [Delay Event 4]:...............................................................................................................7
5.6. [Delay Event 5]:...............................................................................................................7
5.7. [Delay Event 6]:...............................................................................................................7
5.8. Conclusion..........................................................................................................................7
6. Base Program and Impacted Program....................................................................8
6.1. Base Program....................................................................................................................8
6.2. Impacted Program..........................................................................................................8
Layout – 1: Impact of [delay event 1]:.........................................................................10
Layout – 2: Impact of [delay event 2]:.........................................................................11
Layout – 3: Impact of [delay event 3]:.........................................................................11
Layout – 4: Combined Effect of All Factors................................................................11
Layout – 5: Delays due to hold up areas.....................................................................12
7. Conclusion.............................................................................................................................13
Annexure – 1: Delay due to [event 1]................................................................................14
Annexure – B: Delay Due to [event 2]................................................................................14
Annexure – C: Delay Due to [event 3]................................................................................14
Annexure – D: Delay Due to [event 4]................................................................................14
Annexure – E: Details of Mobilization of Plant & Machinery.......................................14

Page 2 of 15
1. Introduction

The Program submitted under Clause [●] of the General/Special/Particular


Conditions of the Contract is based on the Tender Program. The Program was
prepared based on the information provided in the tender documents and
various assumptions and considerations made at the time of preparation of
the Bid. In case of any deviations to these assumptions and considerations,
due to reasons beyond the control of the Contractor, the Contract has
provision for extension of time to the Contract period, corresponding to the
delays caused by such reasons.

After the commencement of the Work, the Contract Program has been
affected by many events and circumstances beyond the control and
responsibility of the Contractor. The impact of all these events and
circumstances has been such that almost all the basic assumptions and
consideration for preparation of the Contract Program have been seriously
affected and have rendered the Contract Program inapplicable.

The Contractor submitted his first/second/third application for Interim


Extension of Time asking for compensation of time due to events and
circumstances occurring up to [date1] vide his letter dated [date]. In spite of
our repeated remainders, our application for interim extension of time has not
approved, which coupled with other delay/disruption events forced the
Contractor to re-examine and re-evaluate the time for completion and
accordingly submitted his revised application for Extension of Time vide his
letter dated [date]. In reply to the Contractor’s submission the
Engineer/Employer asked certain clarifications and additional information
regarding the submission vide letter dated [date]. In reply to the
aforementioned letter and in continuation with our earlier application for
Interim Extension of time, the Contractor had further updated the
Delay/Disruption events up to [date] and prepared the Impacted Programme.
Despite several reminders, the Engineer/Employer has not intimated his
determination of eligible EOT to the Contractor. Instead the Contactor has
been asked to submit another updated EOT application.

Accordingly, all delay events affecting the Progress of the Works since
inception has been analyzed once again and presented hereunder as per the
requirement of the Engineer/Employer. The current submission identifies all
the Delay/Disruption events, quantifies the delays caused by each of them,
and evaluates the impact of these delays on the Clause [●] Program as on
[date]. In addition to the Impacted Programme a Revised Work Programme
incorporating EOT entitlement will be submitted as mentioned, towards
successful completion of the Works, for review and approval of the
Engineer/Employer.

The submission is divided in to two volumes. Volume – I comprises of 8


sections covering all the aspects as mentioned in the previous paragraph and
attachments showing the details of the Delay and disruptions and Impacted
Programme. The Analysis of Delay Events and their evaluation has been dealt
into two parts. Part I: Considering the impact of delay events already
considered up to [date] and Part II: Considering the impact of delay activities
from [date] and still continuing.

Page 3 of 15
The Volume – II contains documents in support of the statement of facts and
circumstances described in Volume – I.

2. Salient Features of the Contract

Package No. : …………..

Contract Work : [name of the work]

Employer : …………..

Engineer : …………..

Tender Amount (after : INR …………


rebate)

Time of : ………….. [date]


Commencement

Contract Period : …… months

Time of Completion : ………….. [date]

Liquidation Damages : 1/…… of the Contract Price per day of delay.

Bonus for early :


completion

Defect Liability : ….. days

Limit of Retention : ….% of Contract Price


Money

Mobilization Advance : Max ….. % interest/non-interest bearing @ ….


% interest/annum.

Machinery Advance : Max ….. % interest/non-interest bearing @ ….


% interest/annum.

Handing over of site : [specify contract provision]

3. Executive Summary

Following the issuance of the LOA/WO/NTP, the Contractor took immediate


steps for mobilization of resources with the aim of completing the Works as
per the obligatory time of completion under the Contract. Accordingly the
Contractor had submitted a [●] months Program pursuant to Clause [●] of
the Contract.

The above Program was based on the clearly defined dates of handing over of
the sites and availability of the design. The progress of Works, however, could
not match the above Program, mainly because of the non-fulfillment of the
basic requirements, as briefly outlined here below:-

 [Delay Event 1]: .......................

Page 4 of 15
 [Delay Event 2]: .......................

 [Delay Event 3]: .......................

 [Delay Event 4]: .......................

Apart from the above there have been other hindrances as dealt hereinafter
which compounded the above delays.

The net effect of all the above factors was massive disruption to the Program,
unplanned and inefficient working, heavy increase in resources and
substantial delays to the Works.

The Contractor’s entitlement to Extension of time, as on [date], works out to


[●] months.

The Contractor through this submission requests, recognition of Contractor’s


entitlement to extension of time and grant him Extension of Time, with
reference to the Clause [●] Program, for completion of the Works.

4. Contract Provisions

The Tender documents made it mandatory for the Bidders to submit a


detailed note outlining the proposed methodology and Program of
Construction1. This program was to form part of the Bid 2.

The successful bidder, after the Award of the Work, is required to submit a
Program for approval of the Engineer/Employer. This Program is required to
be generally based on the Tender Program. The Contract further regards this
Program to be forming the basis for monitoring the progress of the Works, to
check the status of fulfillment of reciprocal promises by the parties and to
assess the impact of non-compliance of parties to the agreed conditions.

The Contract by express provisions entitles the Contractor to Extension of


Time3 for completion of Work in the event of:

 ………………..
 ………………..
 ………………..
 ………………..
 ………………..
 ………………..

The Contract through different clauses makes specific provision for extension
of time in case of ………………4, ………………5, ………………6, etc.

The Contract in all the cases requires the Engineer/Employer to make


determination of the Contractor’s entitlement to an extension of time, after
due consultation with the Employer and the Contractor. It is to be noted that
1
Clause No. [●] of [●].
2
Clause No. [●] of [●].
3
Clause No. [●] of [●].
4
Clause No. [●] of [●].
5
Clause No. [●] of [●].
6
Clause No. [●] of [●].

Page 5 of 15
the entitlement of the Contractor to extension of time under the Contract
provisions and the actual extension of time required for completion of the
Works may not always be the same. In other words the actual time required
for completion of the Works may be less than the Entitlement of the
Contractor to Extension of Time, under the terms of the Contract.

5. Delay/Disruption Events and Evaluation of Delays

Part I: Considering Delay Events up to [date 1]

The Contractor, immediately after the issue of LOA/WO/NTP, took all steps
necessary to enable him to commence and complete the Works within [●]
months period. The Program pursuant to Clause [●] of GCC/COPA was
submitted on [date]7. The Date of commencement of the Works pursuant to
LOA/WO/receipt of NTP by the Contractor is reckoned as [date]8. However,
several Delay/Disruption events occurred which adversely affected the critical
activities and further the scheduled completion date of the Project. These
Delay/Disruption events were neither due to the default of the Contactor nor
attributable to him. Following is the updated status of the Delay/Disruption
events up to [date] and evaluation of the impact of the same on Project and
time for Completion.

5.1. [Delay Event 1]:

Note: Each of the delay events shall be described in a manner that would
contain answers to the following questions -

Provision:

The first para should address the query ‘What was supposed to happen as
per Contract?’ Here, the Contractor should set-out the obligations of
either party relevant to the delay event (Describe relevant provision of
Contract or baseline program, or any agreement between the parties
through letter, mom, etc.).

Identification and Substantiation of Delay event:

The second para should address the query ‘What has actually happened?’
Here, describe factual position supported by documentary evidences of
contemporary record (letter, DPR, WPR, MPR, MOM, etc.). Attaché such
documentary evidences as ‘Exhibits’ in Volume – II.

Cause and Effect:

The third para should address the query ‘Whether and how the Contractor
is affected by the Delay Event identified above in second para?’ Here, the
Contractor must establish the Cause and Effect relationship and must
state clearly if the impact is in terms of only time or only cost or both.

Quantification of Delay Event:

The fourth para should address the query ‘How much affected?’ Here, the
Contractor should quantify total delays on account of the delay event
7
Contractor’s Letter: [●] dated [●].
8
[●]

Page 6 of 15
identified in the second para. The Total Delays should include ‘Direct
Delay’ and ‘Consequential or Indirect Delay’, if any. (Total Delay = Direct
Delay + Consequential or Indirect Delay).

Prayer:

In view of the above causes of delay not attributable to the Contractor,


the Contractor is fairly entitled for reasonable extension of time, in
accordance with GCC/COPA Clause [●] of the Contract.

The delay due to this event as on [date] has been calculated as shown in
Annexure – 1.

The Delay to works due to this event as on [date] works out to be [●]
months.

The entitled completion date for [●] is shown as Layout [●] in the
Impacted Program.

5.2. [Delay Event 2]:

5.3. [Delay Event 3]:

5.4. Delay having Continuing effect

Is dealt in Part – II.

The Delay analysis of the above factors on [●] Works has been dealt in
the Impacted Program in Section 6.2.

Part II: Considering Delay Events from [date 2] and continuing

5.5. [Delay Event 4]:

5.6. [Delay Event 5]:

5.7. [Delay Event 6]:

The continuing Delay Events will have further increase the Contractor’s
entitlement for Extension of Time as per the provisions of the Contract.

The Delay analysis of the above factors on [●] Works has been dealt in
the Impacted Program in Section 6.2.

5.8. Conclusion.

From the above, it is evident that actual conditions encountered during


the execution of the Works were substantially different from those
foreseen, right from the date of start of the Works. The umpteen number
of constraints and series of unexpected events had created a situation of
total uncertainty.

It was thus not possible to execute the Works to any plan, long term or
short term. In order to mitigate the extensive delays, the Works had to be
executed on ad-hoc or piece meal basis as and when, and wherever, the

Page 7 of 15
working fronts and the required information were available. The impact of
this chaotic situation on a Program, which was based on the Employer’s
commitment of providing the entire site and the drawings at specified
dates, could be easily gauged. The actual sequence of execution of
different activities, as a consequence of the events described here above,
is shown in Impacted Programme attached in Volume – 1: Section-6.2
of this submission.

All these factors had already resulted in highly unplanned and inefficient
working and low productivity of the resources.

Thus while the Contractor was able to substantially reduce the delays
caused due to reasons not attributable to him, he had to increase the
resources dramatically and had to work at much lower efficiency levels
than those foreseen.

The effect of the above events and the evaluation of delays/disruptions


for each of the events are shown in the Impacted Program.

6. Base Program and Impacted Program

6.1. Base Program

6.2. Impacted Program

The Impacted program is prepared by two independent methods. In the


first method the delay in deliverables from Employer/Engineer is
impacted in the Clause [●] Program and accordingly the Contractor’s
entitlement is worked out.

However, we have also worked out the time required for completion of
the Works taking in to consideration that the balance fronts, where works
can’t be taken up presently (Such as …………………………, etc.) due to
……….. (state delay reasons), will be released by [date] and the
Contractor will be allowed to Work on this fronts from the same date.

Method 1

Preparation of Impacted Programme considering the delay in


Client Deliverables.

Quantification of delays using the Impacted Programme:

Overview-Impacted Programme:

The Impacted Program is a tool used for quantifying the Contractual


entitlement of the Contractor to Extension of Time, based on recorded
delays that have occurred during the course of execution of the Contract.
Only such major factors, listed in the subsequent section, which have a
direct impact on the end date of the Contract have been identified and
used for impacting the Base Program (Clause [●]) enclosed at Section -
6.1. Each scenario has first been created independently and the effect of
the delay in terms of the shift in end date arrived at. Subsequently, all the
factors considered have been used for impacting the approved Program

Page 8 of 15
and the combined effect of all the delays evaluated from the resultant
end date.

Major Impacting Factors:

The following events have been identified as the ones that had a major
impact on the completion date of the Contract:

 …………….

 …………….

 …………….

 …………….

 …………….

 …………….

Method of Quantification of Delays:

The major delays to activities identified in the base program (Clause [●])
pertaining to each stage of release of work-front (Refer [●] of Contract)
have been plotted on a timescale and individual delays calculated. The
combined effect of several delays within the section has then been
evaluated and total delay to the section arrived at. In the end, the total
delay to project has been established as the difference in time between
the start dates of the earliest delay to the end date of the latest delay.

To illustrate the above process, we take an example of Phase - 2A (Km


29.00 – Km 36.00) in the Base Program.

The following delays are identified in this section:

1. Delay due to non-availability of working front.

2. Delay due to late issue of AFC drawings for roads and minor
bridges.

1. Delay due to non-availability of working front:

In the first step, the activity relating to takeover of working fronts is


identified from the Base Program (Clause [●]). The activity having
Activity ID J421301200 denotes “Handover Unobstructed stretch 7
Km: Ph-2A (Km 29.00 – Km 36.00)” and has an Early Start date of
26th February 2006.

In the next step, the actual date of release of the corresponding


stretch is arrived at. This is done based on the table showing the
actual availability status of fronts over time (Annex – 1A). It is to be
noted here that since release of front by the Employer implies
availability of un-encumbered front with full access to the works,

Page 9 of 15
dates for cumulative un-obstructed front availability is compared
with the required release date as indicated in Clause [●] program.

Continuing with the example above wherein 7 km front was


scheduled to be made available on 26th February 2006, Annex – 1A
shows that the corresponding length (7 km) became available on
1st October 2006. This gives a delay of 217 days against Activity ID
J421301200.

2. Delay due to late issue of AFC drawings:

Here too, the activities relating to issue of AFC drawings for


structures are identified from the Base Program (Clause [●]). For
example, the activity having Activity ID J422401900 denotes “Issue
AFC Drawing for RUB (2 nos.)” and has an Early Start date of 30th
January 2006.

The corresponding date of actual availability of the drawing is


derived from the table at Annex – 1B.

Evaluation of Impact on End Date:

Once all possible delays have been identified, established and quantified,
the next step is to evaluate the impact of these delays on the end date of
the Contract. This is carried out using the Impacted Program in the
following steps:

 Identification of the activity in the base program (Clause [●]) for


which scheduled date(s) was specified.

 Imposing this actual date on the base program, without changing


any other date or logic, and scheduling the program to arrive at the
new end date.

 The difference between the new end date and the end date of the
base program is the independent impact of the factor considered.

 The similar set of steps is now used for the remaining major
factors.

 Finally, all delays are imposed simultaneously on the base program


and the new end date based on the impact of combination of all
the delays is arrived at.

Presentation of Results:

The results of the above exercise of impacting the Base Program (Section
– 6.1) with all the possible factors is presented through the following
layouts:

Layout – 1: Impact of [delay event 1]:

The result of impacting the base program (Clause [●]) with the actual
dates of release of un-obstructed fronts is presented in Layout – 1.

Page 10 of 15
The impacted end date for this factor is [date] as compared to the cutoff
date of [date]. Thus, delayed release of fronts thus results in a delay of
[●] days.

Layout – 2: Impact of [delay event 2]:

The result of impacting the base program (Clause [●]) with the actual
issue dates of Approved for construction drawings for [●] structures is
presented in Layout – 2.

The impacted end date for this factor is [date] as compared to the
scheduled end date of [date]. Thus, issue of drawing results in a delay of
[●] days.

Layout – 3: Impact of [delay event 3]:

During the execution of the Contract, several decisions by the


Engineer/Employer have been delayed, affecting certain critical activities,
these activities in turn delayed the successor activities and hence
affected the project schedule and project completion time. These
activities have been identified as impacted within the base Program. The
result of these impacts has been presented in Layout – 3.

Considering the discrepancies described in Section [●] above,


considering that the [●] are finalized by [date], the Contractor envisage a
further delay of [●] weeks (from [date]) for placing orders and delivery
before the next activity “…………….” can be taken up.

Accordingly the start date of …………….. in Clause [●] Program has been
constrained to start on [date] in the preparation of impacted program.
Thus the entitled completion date is extended for different work
components as follows:-

1. …………..

2. …………..

3. …………..

The impacted end date due to this delay in decision works out to be
[date] as against the cutoff date of [date]. Thus delayed decision has
caused a delay of [●] days.

Layout – 4: Combined Effect of All Factors

Entitlement Program including Force Majeure Events:

Finally, all the above factors are impacted on the base program and the
end date obtained by scheduling the program. The resultant end date,
arising out of the impact of the combination of the above factors is [date].
Compared to the cutoff date of [date] of the Clause [●] program, this is a
delay of [●] days.

Coupled with the impacted duration arising out of the various Owner
Delay Events mentioned above, the Contractor’s entitlements to delays

Page 11 of 15
due to Force Majeure events and additional time requirement due to
increased scope of work have also been considered. The same have been
added on to the end of the impacted program to arrive at the Date of
Entitlement. The resultant Date of Entitlement is [date]. Compared to the
cutoff date of this submission i. e. [date], this is a delay of [●] days.

Method 2

Layout – 5: Delays due to hold up areas

Preparation of Impacted Program, considering the impact of


Delay due to Obstruction/Hindrance at a particular front/stretch

The impact on Base program due to Works which are yet to be ready for
execution is detailed in this section. The various sections/structures which
are not ready for executions are as detailed below. The program is
prepared based on the assumption that the obstruction/hindrance
affecting the works will be removed and the Contractor will be allowed to
work from [date] unhindered on these structures.

A. Obstruction to Work at ………… [front location]

The area of …………… (front location) can’t be taken up till date


due to the ………. and other details as described below:

 ………….

 ………….

 ………….

Assuming the fact that the Works, which is obstructed at the above
location, including the structures can be taken up from [date], the
impact of these dates are put in the base program as follows:

The start date of activity “………………….” is given the start date of


[date], accordingly the scheduled finish date of activities in the
Common is extended up to [date] and the scheduled finish date of
the Project extended up to [date].

Additional time requirement for the Increased Scope of Work

A. Additional Work in …………..:

Additional time requirement due to the increased scope in work as


explained in our various correspondences and attached program
shows a Contractual entitlement of [●] days to the Contractor for
reasons not attributable to him.

It is understood that the scope of work in ……………. has been


increased from …….. to ……… which will involve obvious time and
cost implications.

B. Increased Scope of ………….:

Page 12 of 15
Additional time requirement due to the increased scope in work is
attached here as Appendix – B Works out to be [●] days for
reasons not attributable to him.

Since these activities can be taken up parallel, the additional time


requirement due to the above reasons is taken as [●] days.

The Additional time requirement for the completion of balance


stretch/fronts, where works are obstructed as detailed above +
time required for the additional scope of Works ([●] days) gives the
minimum time requirement for the completion of the project.

SUMMARY OF ALL DELAYS

Sl. Major Delay in number of Days Extension beyond


No. Delay the cutoff date for
Events this submission i. e.
[date]

Entitled Completion Date

As calculated above the Earliest Completion date for the Project is [date].

7. Conclusion

From the facts and circumstances narrated in Section – 5 of the Document


and the Contract provisions mentioned in Section – 4 of the Document the
Contractor’s entitlement to Extension of time is established beyond doubt.
The Contractor’s evaluation of this entitlement, works out to [●] months. As
per the Contract, the Engineer/Employer shall make his determination of the
Contractor’s Entitlement to extension of time.

The Work, as already explained, has been executed by taking several


customary mitigation measures, by virtue of which delays have been reduced
appreciably. This was done on time to time instructions of the
Engineer/Employer to complete the Works within the original Contract
period.

Therefore, Engineer/Employer is presently requested to:

 Determine our entitlement to Extension of time for completion of the


Works, as required under the Contract and grant Extension of time for
completion of Works.

 Approve the Revised Work Program for completion of the Works


incorporating the EOT entitlement, which will be submitted shortly.

To finally sum up:

Page 13 of 15
Notwithstanding the fact that we have already submitted our Interim EOT
application dated [date], and [date], now that we have been able to update
the Extension of Time entitlement attributable to all delay events up to [date]
as detailed in this submission (saving for the consequences of the continuing
delay events), the same is submitted herewith as Impacted Program, which
accordingly has been incorporated in the preparation of Revised Work
Program, which will be submitted shortly, for your kind consideration and
approval.

The eligible interim Extension of Time (EOT) has been evaluated as [●]
months.

Thus the Earliest Completion Date of the Project is hereby requested to


be revised as [date], in due consideration of the causes of delay for reasons
undoubtedly not attributable to the Contractor, as explained hereinbefore.

Finally we reserve our right to add, alter, delete or modify any part or whole
of the submission at any later date for any error/omission noted therein.

Thanking you and assuring you of our best endeavors for the successful
completion of the project. We remain…

Yours faithfully

(name)

(Designation) :[•]@jmcprojects.com | : +91-[•]


====================================
The Contractor - M/s JMC Projects (I) Limited

Encl. :

Annexure – 1: Delay due to [event 1].


Annexure – B: Delay Due to [event 2]
Annexure – C: Delay Due to [event 3]
Annexure – D: Delay Due to [event 4]
Annexure – E: Details of Mobilization of Plant & Machinery.

Page 14 of 15
Volume –II
Copies of the Letters Referenced Under Footnotes and Other
Documentary Support

Index

Exhibit Document Type Date of Issue Page No


No

Exh –
001

Exh –
002

Exh –
003

Exh –
004

Exh –
005

Page 15 of 15

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