You are here:

Construction Law/time management and delay cost nalysis


Dear Sir,
I have the following view on the subject, kindlt educate me further:

•   Most of the project professionals think that it is a useless document, being prepared, / updated by the some individuals sitting in a remote room and or someone sitting in head office.
•    Most of the project professionals, even do not understand the printout reports generated from the software. This includes but not limited to the;
-   Actual start/finish dates
-   Actual start/finish constraint dates
-   %age of completion
-   Remaining duration
-   Duration variation
-   Data date
-   Free/total float
-   Calendar used
-   Project variation reports
-   Out of sequence progress delicacies
-   Change of sequence controls
•   When the schedule to be updated and mechanism of its updates as well as its progress recording.
•    When the schedule to be updated and mechanism of its updates as well as its progress recording.
•   When, to incorporate the project delay, and how to incorporate / subsequently, its impact on present estimate of project completion. No structured approach to evaluate the realistic approach to decide the completion date
•   As we are witnessing great improvements in construction quality, its documentation, its automation and a weekly/bi-weekly meeting forum to align the efforts on one point by all the stake-holders
Such mechanism, is missing
•   Bad approach, to postpone the EOT and associated cost claims analysis/decision making by the end of the project.
•   All stated above is few out of many are important to conduct a reasonably fair time management analysis, acceptable to stake holders as well as to minimize the disputes.
•     Delay cost analysis indicates that most of the contractors/ Engineers / Employers are not systematic to prepare / document / substantiate the actual / cost data. Most of time cost data is based on, dreaming, without reference to the contract and or based on some engineering practice / court decisions. Therefore, the cost claims pursuance awards are based on some thumb rules rather than on science/art of claims.
•   Since 1987, we are watching / witnessing the shortcomings in following elements of costs, most of the time these were without any bases and reference to schedule and or court of law decisions in this regard.
-   Indirect Local personals costs (No actual salary paid data)
-   Indirect foreign personals costs (No actual salary paid data)
-   General Expanses costs (unreliable, duplication of expenditures, air tickets for staff travelling, hotels, entertainments and without reference the anticipated s-curves in this regard)
-   Insurance and bonds (speculative calculation, without any actual cost incorporated in this regards
-   Equipment & Plant ownership costs (with missing manufacturing dates, base price, corporate depreciation policy, salvage price, and finally the trace of the financing costs as structure policy.
-   Head office overhead costs (ill managed item, no corporate policy, no evidence of data as what was anticipated at the time of bidding, and during the delay period who and how many were engaged for the project. Some time funny figures are pursued, as recently on contractor asked one million USD per month, whereas his vice presidents salary is in the range of 6 to 7 thousand only.
-   Devaluation of revenue  due to delay is another element of uncertainty specially if the supplier is chine’s manufacturer where appreciation of RMB and real exchange rate is not simple calculation of parity in exchange rate
I hope I am able to submit my observation for the input by my learned coleuses.

Best Regards

Dear Akhtar
In general, i agree with what you say and have the following comments that should be considered when estimating the EOT:
1- the cost associated with EOT is not to pay all the cost inflected on the contractor but to reasonably compensated him.
2- the program of works is a post tender document prepared by the contractor. it use for EOT should be double checked by other type of time estimation technique.
its very important to study, evaluate, and decide on EOT at the onsit of such claim. it is not helpful for any party to put aside such important issue.
best regards

Construction Law

All Answers

Answers by Expert:

Ask Experts


Wael Ghadban


Will respond to queries related to Engineering Contracts subject to FIDIC or other Conditions, tendering and contracting, project management, residential and commercial construction, and general Civil Engineering questions. Can answer most questions related to aviation and airports as related to the Airports, Facility management.


Project construction and Management Civil Aviation - Airports Airport Pavement Design and Use Residential and commercial construction ICAO and FAA regulation



MS Civil Engineering

Awards and Honors

Past/Present Clients

©2017 All rights reserved.