Construction Law/Extension of Time
QUESTION: Dear Mr. Daniel
As a general case, EOT shall take effect in tow ways:
1- Delay is attributable to the Employer, in such case No delay damages (liquidated damages) shall apply on the Contractor
2- Delay is attributable to the Contractor, in such case no EOT shall be granted to the Contractor and delay damages shall apply
in case (1), the Contractor shall also be entitled to be compensated against prolongation costs (continuation of indirect casts and preliminaries due to extension of time)
My question is: is there a case in which the Contractor can be granted an EOT without applying delay damages and meanwhile the prolongation costs wouldn't be paid to the Contractor?
ANSWER: Dear Khaled,
Your question if EOT is granted to contractor and neither LD nor prolongation cost id paid Contractually is not possible. If there is an extension of time there is a cost of this and someone either EMployer or Contractor shall pay for this.
But in general practice this case happens because there is a mutual delay of Employer and Contractor. They agree to have an understanding for an EOT without penalty or cost claim.
---------- FOLLOW-UP ----------
QUESTION: Dear Mr. Daniel
Thank you so much ,however, let me ask you about the actual case we face in our project.The project is one milestone (no Sections) and a delay took place due to a lack of information of a specific part of the Work (fire fighting system) that should be provided by the Employer which has affected the critical path and led to EOT of 9 months.
However, upon the contractual taking over date the Contractor hasn't completed some activities which have no relation at all with fire fighting system (i.e. the delay of such activities is attribute to the Contractor) and he would complete them within the 9 months extension (in the revised programme, such activities needed 4 months). IN this case, I believe that no penalties shall apply (of course if he completed the whole project on the EOT date) and when compensating the Contractor against prolongation cost, this cost will be only considered as related to fire fighting system works as well as any other works affected or connected to them. costs related to the other works delayed by the Contractor shall not be considered.
1- is this OK ?
2- May we apply penalties on the Contractor for the works delayed by him only although they are included within the total EOT period granted to him (9 months) due to the works delayed by the Employer?
please Sir , answer the 2 questions. I need your feedback urgently and so sorry for my long message.
To be clear you have only one completion date of your Contract. So you do not have a completion date for Fire Fighting services or other services. Therefore if there is a EOT issued because of Fault of Employer the related cost shall be calculated for this period and awarded to Contractor. This shall not be effected from the delay of Contractor in other areas if there is no mid milestones or partial delivery milestones.
Again in general practice it is very often that Employer and Contractor agree for a mutual cost and period by both party favour.