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Question
expalin the procedure regarding the award of EOT interim and full as per pink book.

contract period is nine months and due to major design change need eight month more to complete the project.

Answer
Dear Imran

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Now we come to your question. The original contract period is nine months and the required EOT is for 8 months. This means that there are major design changes involved. I understand that these changes might have occurred at a later stage of original completion period.

For an EOT to be admissible the contractor must submit an EOT request under Clause 8.4 of the COC stating the reasons of delay and demonstrating that the EoT has been requested due to any or all the reasons mentioned in the request and the amount of delay in each case. If he had already submitted a program of Works then he has to demonstrate that the delay is disturbing the Critical Path, because activities other than on the critical path always have certain amount of float. The EOT request should be for net delay in the critical path due to the reasons mentioned. The contractor can propose to use additional resources than those committed in the Contract to achieve early completion that the delay anticipated, but it may involve further additional costs.

The Engineer has to check whether the delay shown in the program is only attributable to the design changes and causes attributable to the Employer or there are other other causes attributable to the Contractor. Moreover the Engineer has to check whether the delays mentioned in the EOT request are concurrent or linearly distributed. Taking all this into account, the Engineer may recommend the total time extension which are attributable to the Employer. It may include the delay attributable to the Contractor if those are less than the delays attributable to the Contractor. The delays attributable to the contractor must be known and recorded as these will be used while assessing the cost element involved. For this purpose I will recommend to Consult SCL protocol for delay claims which is very useful in such cases.

An interim EOT is issued only when there is an urgent requirement, and without granting interim EOT, the payments to be made to the contractor may stop or when the processing of the EOT needs much longer periods of time due to its complex nature or sometimes due to the bureaucratic attitude of the Employers. In that case the Engineer is required to recommend an Interim EOT to remove this impediment and the contract run smoothly. For this purpose he may recommend an Interim EOT, which should be much less than the admissible EOT but good enough to cater for the time in which the whole process of granting the EOT is completed. It is always to be kept in mind that the total EOT to be granted should never be less than the Interim EOT.


I hope this answers your question.

ABDUL MAJID KHAN  

Construction Law

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Abdul Majid Khan

Expertise

I am interested in questions related to time Extension, Liquidated Damages,variations, price adjustments,payments, disputes and Dispute Board under FIDIC IV, FIDIC 1999 and FIDIC 2006 Harmonized Documents.

Experience

I have been heading the Construction Management Division and Contract Divisions of National Engineering Services Pakistan (PVT) Limited, NESPAK, the largest Consulting Engineering Firm in Pakistan, for more than seven years and two years respectively. I have also worked as "The Engineer" on a number of projects. I have been working in Saudi Arabia for about seven years on a road projects. Additionally I worked as Arbitrator and am member of few Dispute Boards in individual capacity on Asian Development Bank funded projects.

Organizations
Inland and in Middle East. I have worked with National Engineering Services Pakistan (Pvt) Limited (NESPAK)as my Employer for more than 27 years in Pakistan. In Saudi Arabia I worked for Rashid Engineering, Consulting Engineers during 80s. After retirement I provided advisory services to NESPAK on technical and contractual matters to its various divisions and lately I was appointed as Advisor to Managing Director NESPAK on Technical and Contractual matters. Currently I work as Free Lance Contract Specialist on Fidic Form of Contracts.

Education/Credentials
I am a graduate with a B.E (Civil Engineering) degree. My year of graduation is 1970.

Awards and Honors
A few appreciation Letters and Honorariums during my service in NESPAK. I remained member of Administrative Committee and Board of Management of NESPAK. I had been part of the Management Committee in the absence of Managing Director.

Past/Present Clients
Most of the Clients used to be Government Departments, Corporations and Authorities. In Saudi Arabia the Client was Ministry of Communications. As Arbitrator and Dispute Board (DB) member, I provide services to various Government Departments and Contractors.

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