2. 2
WHAT IS DELAY?
• DELAY is an act or event that extends the time required to
perform tasks or activities under a Contract . It is usually
reflected as additional days of work or as delayed start of
activities.
• DELAY May or may not include change(s) in the scope of work
of activity(s) or the Contract.
4. 4
• Activity duration and relation determination.
• Network Forward and Backward calculations lead
to float (most used is total float).
• Total float is margin for delay, and equal the
difference between late and early dates.
• Total Float Indicator
Positive Float: Project/Activity in good situation
Zero Float: Project/ Activity is critical
Negative Float: Project/ Activity is delayed
6. 6
Risk Events:
Usually causes will be categorized as Contractor Risk
Events (CRE), or Employer Risk Events (ERE). Until
any of these events are confirmed as having caused
actual delay, they are only risk events.
There is another category is Neutral event such as
Force majeure.
8. 8
Concurrent Delay
(ERE) exceed (CRE)(CRE) exceed (ERE) (ERE) after completion date
Excusable Delay
(ERE)
In‐Excusable Delay (CRE)
Excusable Non
Compensable Delay
In-Excusable
Delay
concurrent
with shorter
Excusable
Delay yields
a net
Excusable
Non
Compensable
Delay
ONLY Time
Extension is
Granted
Should be
recovered
Excusable Delay (ERE)
In‐Excusable Delay
(CRE)
Excusable Non
Compensable Delay
In-Excusable
Delay
concurrent
with longer
Excusable
Delay yields
an Excusable
Delay and
Partial
Compensation
- Time
Extension is
Granted with
prolongation
cost
Excusable
Compensable
10. 10
Prospective Delay Analysis:
Analysis of facts associated with delay events during
construction of a project and the estimation of their effect
upon the planned completion date of a project. (Interim
Extension of Time)
Retrospective Delay Analysis:
Analysis of facts associated with delay events after completion
of the construction period of a project. (Final Extension of
Time)
11. 11
Guidance Section 4
4. Guidelines on dealing with disputed extension of time issues after completion of
the project – retrospective delay analysis
4.13 The table below summarises the types of analysis that can be conducted depending
on the types of factual material available. An ‘X’ indicates the factual material that is
required for a particular analysis, but in some cases there are alternatives, as indicated in
the table:
13. 13
Change Request
Instruction or Proposal of new woks
requested by any stakeholder may
include: addition, omission, corrective
action or preventive action.
Claim Submittal
Request from one contracting party to
another party for additional payment/
compensation, or/and extension of the
time for completion, as result of change
or any other event / issue.
Variation Order
Description of the work to be performed
including the time impact or/and cost
impact if applicable, as result of change
or claim.
Dispute
Unresolved claim, and resolution
methods are: negotiation, mediation,
arbitration & litigation.
14. 14
Methods of Dispute
resolving
Negotiation
The most direct method for
resolving any type of
construction claim.
Requires certain skills that reduce the gap between the
negotiation parties.
The objective: is to reach a solution that might be acceptable
to both parties.
15. 15
Mediation
When negotiation does not work, either because of lack of
trust or a lack of skills, mediation may be an option.
The mediator may be an individual or a team.
Dispute review boards
The owner and the contractor select
an independent neutral panel with
construction experience when the
contract is signed .
Rather than waiting until the end of project to settle claims,
(DRBs) resolve disputes as they arise.
16. 16
Arbitration
It is usually a formal process performed
by an independent professional
arbitrator.
Arbitration is voluntary.
Arbitration does not require the use
of lawyers
Litigation
When none of the previous work and parties can not
reach a settlement, the complaining party uses the
other party in a court of law.
Construction litigation is usually complicated lengthy,
and expensive.
18. Institutional vs. 'ad hoc' arbitration
Domestic vs. International arbitration
(address is the difference)
Types of Arbitration
19. Arbitration agreement :
The arbitration agreement is ordinarily a
clause in a larger contract.
or, post-dispute arbitration agreement.
Procedure, dispute, arbitrator panel, seat /
legal place, duration, language, the applicable
law and rules.