Extension of Time Analysis

1. Extension of Time –Various Delay
Analysis Approaches
By
Dharmendar Pardasani
LLM, MSc(QS), FRICS, FAIQS, FCIArb, MCIOB
&
Narinder Kumar Sharma
MTech, MCIArb
20 December 2014

2. Few Common Terms used in Delay Analysis-Definition
 Critical Path
Longest Path in the Program –Commonly known as the path along
which float is least (generally zero in a baseline program).
 Float
This is the period by which an activity can be delayed without
delaying the subsequent activity (Free Float) or without delaying the
project completion (Total Float)
 Excusable Delay Event
This is the delay event, the risk of which lies with the Employer and
occurrence of which would entitle the Contractor for an Extension of
Time, if it cause the delay to the project completion.
 Excusable and Compensable Delay Event
This is similar to Excusable Delay Event, with the difference that
this delay event will entitle the Contractor for the cost in
addition to the time.

3. Various Delay Analysis Approaches
•As-Planned v As-Built
•Impacted As-Planned
•Collapsed As-Built
•Time Impact Analysis

4. As-Planned v As-Built
This method compares the duration of all the activities on the
As-Planned program with the corresponding activities on the
As-Built Program which are affected by the excusable delay
events especially the critical activities.
Advantages:
•Simple to use
•Inexpensive
•Disadvantages:
•Suitable for only simple programs

5. Impacted As-Planned
•This method adds an excusable delay event into the As-
Planned Program.
•This adding of delay can be as a separate activity or by
revising the duration of an existing activity.
•The revised completion date achieved as a result of this impact
indicates the entitlement for an Extension of Time.
•Duration considered for the new activities is generally based on
the production rate considered in the original program, unless it
is very irrational.

6. As Planned Impacted Approach
Pavement Layers
Road Furniture
Foundation
Finishing
Earth Works
Superstructure
Contractor’s Delay
=15 days
Employer’s Delay
=35 days
Extension of Time = 35 Days
Concurrent Delay = 15 Days
Hence Cost = 20 Days
Contractor’s Delay
=7 days Contractor’s Delay
=8 days
Employer’s Delay
=15 days
Employer’s Delay
=20 days
Contractor’s
Delay
Employer’s
Delay

7. “The sooner you get behind the Schedule, the
more time you have to make it up!”

8. An Example of How to
Insert Delay in a Program

9. Base Line Program

10. Inserting of Delay
Two New
Activities Added

11. Impacted As-Planned
Advantages:
 As-Built Information is not required
 There is no hassle of having arguments over correctness of
Program Updates.
 The Extension of Time is determined as per the original
intent of the parties, i.e. any float in the activities comes into
effect as per the As-Planned Program.
Disadvantages:
• This method is very theoretical since it does not take into
account that the actual program vary a lot a as compared to
As-Planned Program.
• Any errors in the program creep into the delay analysis
• Any Extension of Time assessed may not be rational if the
actual sequence/progress is substantially different to As-
Planned Program.

12. Does not Take into Consideration Pre-existing Delays of Other
Party
Earth Works
Pavement Layers
Road FurnitureFoundation
Superstructure
Finishing
Pavement Layers
Road Furniture
Foundation
Supers
Finishing
Earth Works
Superstructure
Contractor’s Delay
Pre-existing
Employer’s Delay will
show impact on
Program incorrectly

13. Delay Impact Does Not Take into Consideration the Actual
Sequence /Progress of Works
Earth Works
Pavement Layers
Road Furniture
Foundation
Superstructure
Finishing
Pavement Layers
Road Furniture
Foundation
Finishing
Earth Works
Superstructure
Case 1 –Will show delay,
while no actual delay
Case 2 –Will not show
delay, while there is
actual delay
Work Completed
Earlier by
Contractor
If Float initially consumed by the Contractor
before the Employer's Delay, still will not show
the delay if the duration of a subsequent activity
increased due to Employer’s Delay
Employer's Delay

14. Collapsed As-Built
In this method, all the Employer’s delays are removed from the
As-Built Program. The period by which it shrinks the As-Built
Program, reflects the total delay of the Employer or the
Extension of Time.
Advantages:
•It takes into account the actual built program, hence certainty
that delay analysis is based on the actual sequence of work
adopted in the project.
Disadvantages:
•The critical path resulting from removal of Employer’s delays
retrospectively may not result in the same critical path as existed
during the course of project.
•Creating an equivalent Baseline Program also involves lot of
subjectivity
•The logic of the program has to be rebuilt once the Employer’s
delays are removed, which is complex

15. As built Collapsed Approach
Pavement Layers
Road Furniture
Foundation
Finishing
Earth Works
Superstructure
Pavement Layers
Road Furniture
Foundation
Finishing
Earth Works
Superstructure
Extension of
Time
Entitlement
Contractor’s
Delay
Employer’s
Delay
As-Built Program
Collapsed Program

16. Time Impact Analysis
Time Impact Analysis can be done by either of following
methods,
• Snap Shot Analysis
• Window Analysis (Or Time Slice Analysis)
Snapshot Analysis
Snapshot Analysis is normally used in contemporaneous delay
analysis. i.e. taking the progress update on the instance of
occurrence of delay and incorporating the effect of excusable
delay in the progress update. This method is recommended in
‘Delay and Disruption Protocol’ by UK SCL

17. Snapshot Analysis –Example 1 ( UK SCL -Delay & Disruption Protocol
EOT 4 Days
Cost 0 Days

18. Snapshot Analysis –Example 2 ( UK SCL -Delay & Disruption Protocol
EOT 9 Days
Cost 9 Days

19. Snapshot Analysis –Example 3 ( UK SCL -Delay & Disruption Protocol
EOT 4 Days
Cost 4 Days

20. “The nice thing about not planning is that
failure will come as a surprise rather than being
preceded by a period of worry and depression!

21. Time Impact Analysis
Window Analysis
In Window Analysis, the entire period of project is divided into
multiple time windows (Say one month or so depending upon the
period of updating the program).
Each Progress update is updated with the actual progress /any
change of sequence of work etc. This shall also include the effect of
delay due to any excusable events. Each window is then compared
with previous window to analyze the effect of valid delay events.

22. Window Analysis
Advantages:
•This method is most favored and is most robust for
retrospective delay analysis and has been adopted
internationally in many litigation and arbitration cases.
•In each window, there are few activities (with negative float)
that need to be analyzed to evolve the delay and therefore
process of delay analysis is more clearer than a global
approach. .
•It gives more realistic results, since it takes into account the
project status at the time of occurrence of delay events. Also, it
takes into account the changes by the Contractor in terms of
logic links etc.
•Calculation of Concurrent Delays is more practical to do.
.

23. Window Analysis
Disadvantages:
•Accurate Progress information to relate to each progress
update needs to be maintained.
•This method is more time consuming than other methods and
requires more planning skills.

24. Window Analysis

25. Progress Update 1 (End of Month 1)
Pavement
Layers
Road Furniture
Foundation
Finishing
Earth
Works
Superstructure
Pavement
Layers
Road Furniture
Foundation
Finishing
Earth Works
Superstructure
Progress Update 2 (End of Month 2)
Contractor’s
Delay = 10
Days
EOT = 0 Days
Cost = 0 Days
-10 Days
Contractor’s
Delay
Employer’s
Delay

26. Progress Update 2 (End of Month 2)
Pavement
Layers
Road Furniture
Foundation
Finishing
Earth Works
Superstructure
Progress Update 3 (End of Month 3)
-20 Days Contractor’s
Delay = 20
DaysPavement
Layers
Road Furniture
Foundation
Finishing
Earth Works
Superstructur
e
Employer’s
Delay = 10
Days
EOT 0 Days
Cost 0 Days
- 10 Days
Contractor’s
Delay = 10
Days
Contractor’s
Delay
Employer’s
Delay
-10 Days

27. Progress Update 4 (End of Month 4)
Progress Update 3 (End of Month 3)
-20 Days Contractor’s
Delay = 20
Days
Pavement
Layers
Road Furniture
Foundation
Finishing
Earth Works
Superstructur
e
- 10 Days
-20 Days
Pavement
Layers
Road Furniture
Foundation
Finishing
Earth Works
Superstructur
e
- 25 Days
Employer’s
Delay = 10
Days
-5 Days
Contractor’s
Delay = 25
Days
Employer’s
Delay = 25
Days
EOT 5 Days
Cost (View 1) 0 Days
Cost (View 2
- Sharing)
2.5 Days

28. Progress Update 5 (End of Month 5)
-20 Days
Pavement
Layers
Road Furniture
Foundation
Finishing
Earth Works
Superstructur
e
- 25 Days
-5 Days
Contractor’s
Delay = 25
Days
Employer’s
Delay = 25
Days
EOT 10 Days
Cost (View 1) 10 Days
Cost (View 2
- Sharing)
10 Days
-20 Days
Pavement
Layers
Road Furniture
Finishing
Earth Works
Superstructur
e
- 25 Days
-5 Days
Employer’s
Delay = 35
Days
Foundation
Contractor’s
Delay = 25
Days
- 10 Days
Progress Update 4 (End of Month 4)

29. Summary of EOT & Cost
Window Period EOT Cost (View
1)
Cost (View
2) Sharing
Window 1 End of Month 1 to
End of Month 2
0 Days 0 Days 0 Days
Window 2 End of Month 2 to
End of Month 3
0 Days 0 Days 0 Days
Window 3 End of Month 3 to
End of Month 4
5 Days 0 Days 2.5 Days
Window 4 End of Month 4 to
End of Month 5
10 Days 10 Days 10 Days
Total 15 Days 10 Days 12.5 Days

30. Concurrent Delays
•What is concurrent Delay
Where two or more events of approximate equal efficacy (one
Employer’s Risk event an other Contractor’s Risk Event),
causes the delay in almost the same period
•General Practice in the Industry
•In case of Concurrent Delays, i.e. delay by the Employer as
well as the delay by the Contractor, only entitlement would be
Extension of Time but no prolongation cost.
•Approach Advocated by Society of Construction Law
‘Delay and Disruption Protocol’
•Unless it is possible to separate out the cost caused by the
Contractor’s delay and the cost caused by the Employer’s
delays, the Contractor will not have an entitlement of cost in
case of concurrent delay.

31. Concurrent Delays
 What does the Contract Stipulates
 Most of the contracts do not have any express provision to
address the concurrent delays. As such, the parties intentions
are to be interpreted from the associated terms of contracts.
 What are other ways to deal with Concurrent Delays
 In various cases, the courts have addressed the issue of
concurrent delays in different ways, such
 Only time, but no cost based on the principle of ‘loss lies
where it falls’
 Apportioning the cost to relate to the delay caused by each
party.
 Apportioning the time as well as the cost.

32. Concurrent Delays
 What is the legal views that the courts in some countries may take on
this issue:
 Apportionment of damages based on the responsibility of respective
party is widely accepted in most of the jurisdictions. Accordingly, this
approach may be adopted by the courts.
 However, again, apportionment may be viewed differently by courts,
such as
 Employer to bear its own loss of not being able to levy the delay
damages and contractor to bear its own loss of prolongation cost.
 Entitlement for Extension of Time to be reduced due to delays by
both the parties. However, in that case, the cost is likely to be
awarded for the reduced Extension of Time period.
 Entire period of Employer’s delay be awarded as Extension of Time
and Cost be apportioned between the parties.
 Due to contrasting judgments by various courts across the world, it
may be difficult to arrive to a conclusion

33. Concurrent Delays
Recent Legal Cases in Scotland and England
City Inn and Shephard Construction
In this Scottish case, the Scottish Appeal court mainly emphasized on
two issues:
In case, the Employer’s delay and the Contractor's delays are fairly
concurrent, the Contractor is entitled for an Extension of Time.
What is ‘fair and reasonable’ is a matter of ‘common sense’ and a
critical path analysis was not always necessary.
De Beers Case
In this English case, the judge concluded that delay damages were
not recoverable as long as the contractor would have suffered same
damages due to his own delays

34. Heads of Prolongation Cost Claims
 Site Overheads
 Salaries or Wages of Indirect Staff such as project Manager /
Engineers/Foremen/Store man/QSs/Safety Staff/Watchmen etc.
 Engineer’s and Contractor’s Site Offices cost
 Extended Safety Requirement
 Handling /Protection works
 Material Storage Yards
 Scaffolding Extended Duration
 Bond/Insurances Extension
 Other costs
 Head Office Cost (Mostly contentious)
 Sub-Contractor’s claims
 Delayed Release of Retention
 Financing Cost for Delayed payments (Always contentious)
 Loss of Profit due to lost opportunities (Always contentious)
 Disruption (Reduced Productivity /Idle Resources etc.)
 Off-site overheads

35. Good Planning –To Ensure Effective Use of
Baseline Program for Delay Analysis
 Activities Duration 7-28 Days
 Activity Duration to be derived from Standard Production Rates
or the Company Standard Production Rates with reasonable
allowance for specific risks
 Ensure Milestones are included
 Ensure complete scope of work is included
 Ensure activities are linked logically (correct predecessor and
successors)
 Ensure reasonable period allowed for approvals
 Allowance for Specified Provisional Sums
 Verify critical path runs through logical chain of activities
 Avoidance of open ends
 Check for excessive floats
 Lags to be checked

36. Good Planning –To Ensure Effective Use of
Baseline Program for Delay Analysis
 Check Holidays/Weekly-Offs are assigned
 Resources are loaded into the program and resources are
leveled /balanced.
 Cost is loaded into the various activities
 Check for resources with respect to projected cash flow
 Avoidance of (Constraints) Must start /Must Finish dates etc. as
far as possible.
 Check what is the %age of critical activities to the total number
of activities, to ensure that it is realistically planned.

37. Final Word
 Follow the contract provisions related to techniques to be used
for Extension of Time Analysis, since that is what has been
agreed between the parties.
 In case the provisions in the contract are not well defined, look
for what could be acceptable the local laws by consulting the
legal experts.
 Key word in Delay Analysis is to be Fair in our approach
 Regardless of which approach we use (As Planned-Impacted or
Window Analysis), it is always good to maintain the bi-weekly or
monthly progress updates. Ensure protect the digital files.
 As QSs/Cost Professionals, ensure we all learn Primavera, so
that at least can read the Program and understand the basis
principles how the claim can be made or defended

38. If Contract Terms Are Not Clear… Don’t
Expect Other Party to Rescue You During
Dispute…………

39. What is Fair differs from case to case
Apportionment is not fair in the given case……..

40. QUESTIONS?
(if still awake !)