Habtemariam Tesfaye
Habtemariam Tesfaye
June, 2016
Addis Ababa
Addis Ababa institute of technology
School of civil and Environmental Engineering
I the undersigned declare that this thesis work is my original work and
has not been presented for a degree in any other university. All sources
of materials used for the thesis have been duly acknowledged.
SIGNATURE ______________________
ACKNOWLEDGEMENTS
First and foremost, I owe my special thanks to the almighty GOD for empowering and giving me
internal courage andstrength to accomplish my educational career one step further. I would like to
take this opportunityto express my sincere gratitude to my advisor Prof. Dr.-Ing.Abebe Dinku
for his patience, motivation, enthusiasm, and immense knowledge.He shaped me for the last 20
years starting from advanced diploma, Bachelor of Science and M.Sc studies in this institute.
Hisguidance and support both during lectures and research is very crucial for me in mastering
thesubject.
I owe special thanks to my sponsor Ethiopian Road Authority for giving me the chance to study
this vital and unique courses which enables me to perceive my problems in contract
Administration.
It is also my pleasure to thank those who made this thesis possible byresponding to questionnaires
and provide archive documents for desk study. The case study effort is accomplished and became
fruitful with the cooperation of consulting offices that are committedto support researches and
awaiting the outcome of the research to learn from it.
My special credit also goes to all instructors for their various forms of support during my graduate
study.
I take this opportunity to express gratitude to all class mates for their help and support. Many
friends have helped me stay sane through these difficult years. I greatly value their friendship.
Most importantly, none of this would have been possible without the patience and support of my
family. So, I would like to thank family: my wife and children, my parents and to my brothers and
sister for the unceasing encouragement and for supporting me spiritually throughout writing this
thesis and my life in general.
ABSTRACT
The complexity of the construction industry due to different stakeholders’ involvement makes it
differ from other industry. This complexity gives rise mostly to unwanted situation like Delay and
time Extension with their attached effects. The aim of every construction project is to meet the
objectives of time, cost and quality. If the project is not completed on its time, and/or on its
budget cost and/or on specified quality unsatisfactorily, claim or dispute may raise between
stakeholders.Delay claims are extremely complex and difficult to resolve, for this reason projects
requires an effective and reliable method to minimize the cause and effect of construction
delay.That is why this research is focused on assessment of delay and time extension analysis
techniques and trend with selected consulting firms in Addis Ababa.
To achieve the study objectives, a critical review of relevant literature was done coupled with
questionnaire. Case studies also carried out to show the gap between delay and time extension
analysis techniques recommended in literatures and trends with selected consulting firms. The
research surveyedSix (6) samples Grade one consulting firms around Addis Ababa to assess the
techniques that how time extension delay analysis are prepared and evaluatedcompared with
literature and as per the standards stipulated in contract provisions.
The findings of this research indicate that, the consultants surveyed and the contractors worked
with themhavelack of experience in preparing and evaluating time extension delay analysis in
acceptable, procedural and scientific ways as per the standards stipulated in contract provisions.
Some concepts which are familiar in developed countries, like Time at large and No damage for
delay provision are not familiar in Ethiopian construction industry. Concurrent delays are not also
exercised in most of the consulting firms.
According to the research (34.78%) of the clients agree projects are completed with 200-300%
time extension of the original contract time. Thus, Project delays are the major cause of claims of
time extension and associated cost overrun.
Finally, this thesis addressed the need of standard guide manuals how time extension claim to be
prepared and settled in accepted and consistent ways in all construction and consulting firms in
Addis Ababa, and forward recommendations on how to improve the existing prevailing situations.
Key Words: Claims, Conditions of Contract, Construction Industry, Delay, Concurrent, Time at
large, Construction Contracts, Excusable, Compensable, Time Extension and No damage
provision
ABBREVIATIONS/ACRONYMS
GLOSSARY
Conditions of Contract: general terms and clauses of the contract concerning the
duties,obligations, liabilities etc. of both parties where it describes the guidelines to be
employed incontract administration.
Construction Industry: a sector involved in the planning, execution and evaluation of all types
ofcivil works.
Contract: a construction contract that comprise the letter of acceptance, contract
agreement,conditions of contract (general and particular), specification, drawings, BOQ and any
furtherdocuments (if any).
Engineer: a consulting firm or a person representing this firm appointed by the employer for
thepurpose of the contract i.e. contract administration, construction supervision etc.
Table of content
ACKNOWLEDGEMENTS........................................................................................................................................... I
ABSTRACT.................................................................................................................................................................. II
ABBREVIATIONS/ACRONYMS…………….......................................................................................................... III
GLOSSARY………………......................................................................................................................................... III
TABLE OF CONTENTS............................................................................................................................................ IV
LIST OF TABLES AND FIGURES................................................................................................................ VII
CHAPTER ONE
1.1 Introduction ...................................................................................................................................................1
1.2 Significance of the Study ...............................................................................................................................4
1.3 Research question ..........................................................................................................................................4
1.4 Statement of the problem ...............................................................................................................................4
1.5 Scope of the research .....................................................................................................................................5
1.6 Objective of the research ...............................................................................................................................5
1.7Ethical Consideration .....................................................................................................................................6
1.8 Organization of the study……………………………………………………………………… ...................6
CHAPTER TWO
2.1 Definition of Delay.........................................................................................................................................7
2.2 Types of delay in construction .......................................................................................................................7
2.2.1 Excusable Delay…………………………….………………………………………………………...7
2.2.2 Non Excusable Delay ………………………………………………………………………………….8
2.2.3Compensable Excusable Delay ….............................................................................................................8
2.2.4Non compensable Excusable Delay ………………………………………..……………………........….9
2.2.5 Concurrent, Classic and Serial Delays.....................................................................................................10
2.2.5.1 Concurrent Delay...................................................................................................................................10
2.2.5.2 Classic Delay ..........................................................................................................................................11
2.2.5.3 Serial Delay ............................................................................................................................................11
2.3 Causes of Delay............................................................................................................................................11
2.4 Identification of delay ..................................................................................................................................12
2.5 Requirements for Time Claims....................................................................................................................13
2.5.1 Procedural Requirement: Notice..............................................................................................................13
2.5.2 Substantive Requirement: Contract and /or Law.....................................................................................14
2.5.3 Proof Requirement: Records & Evidences...............................................................................................14
2.5.4 Other Legal Requirements........................................................................................................................15
2.6 Process of Claims.........................................................................................................................................15
List of tables
CHAPTER ONE
1.1 Introduction
In order to discuss one of the problems of the construction industry, Delays, which are the major
cause of claims, we need to have a clear definition of the industry itself and its role in country’s
economy. According to UN (1996) International Standards Industrial Classification (ISIC), Rev. 3,
construction is defined generally as an economic activity directed to the creation, renovation,
repair or extension of fixed assets in the form of buildings, land improvements of an engineering
nature, and other such engineering constructions as roads, bridges, dams, etc.
Construction industry makes significant contributions to the socio-economic development process
of a country. It contributes to the national output and stimulates the growth of other sectors through
a complex system of linkages. It contributes to employment and creates income for the population
and has multiplier effects on the economy. The construction industry employs large unskilled
labor.
The construction industry has also important contributions to the Ethiopian economy, as
demonstrated by its share in the GDP. For instance, the share of the sector in the total GDP
averaged at about 5.2 percent in the period 2002/03 - 2006/07.)
However, with all the above advantages, the industry is complex due to different stakeholders’
involvement. This complexity gives rise mostly to unwanted situation like project delay, project
termination and disputes. It is almost becoming a rare thing for a project not to have delay, thus
becoming a normal occurrence in all construction projects.
It has been understood that the construction industry has special features that are not usually
encountered in other industries (Antil and woodhead ,1990) Therefore it requires unique
management. The project management starts at project development and ends at project
completion. Improper management leads the project to claims mostly caused by delay of projects
[Ismael Ibrahim 1996]. Construction projects are time bounded. Each project has predetermined
duration with defined beginning and completion time.
But, Construction projects may not go smoothly as planned due to uncertainties about events in
the future. Delays, which are the major cause of claims, may occur due to unforeseen site
condition; increase in scope of work and others. These delays which raise during construction
leads the parties in the construction to conflict (dispute) [Ismael Ibrahim 1996].
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AbdoAbatemam (July 2006) describe in his thesis that, the actual completion time ranges from
110% to 467% of initial contract time for individual projects. Forty nine out of fifty two public
building projects suffered delays in their execution. The average time for fifty two building project
under his analysis is found to be 189.9% of the initial contract time.
Project delays are the major cause of claims of time extension and associated cost overrun. The
consequence of delay may be increased construction cost; time extension (if caused by owner)
liquidated damage if caused by the contractor). A lot of researches have done about the
fundamental cause of delay in construction and sufficient literatures are written in related with. But
so far adequate researches are not done about the deviation between the evaluation methods for
time extension requests applied by Ethiopian consulting firms and internationally accepted time
extension analysis techniques. I have been involved in the construction industry for over 17 years,
as a resident Engineer in consulting offices and both at project level and at head office in different
managerial positions in Construction Companies. During this time, I have never seen a project
completed within the contract time set on the contract and many of them suffered extreme delays
and some of them are in dispute. So since I got a chance to involve in time-related disputes and
claims both as consultant and contractor, I have observed that most of the construction claims
prepared by contractors are not logical and excusable. In addition those defective claims are not
submitted on the specified time on the contract. Consulting offices also carried out the time
extension delay analysis subjectively with personal judgment of the professional and not in
procedural and scientific ways as per the standards stipulated in contract provisions. There is no
consistency on the assessment of extensions of time and prolongation claims even in same
company professionals. The engineer, or the consultant, or employer many times fails to grant an
EOT, with in the period contemplated by the contract. That is why this research is to be focused on
assessment of delay and time extension analysis techniques and trend with selected consulting
firms in Addis Ababa.
Failure to complete the construction works according to its prescribed schedule became the reason
for the existence of extension of time clause in the contract. Extension of time (EOT) is the
additional time granted to the contractor to relieve it from liability for liquidated and ascertained
damages(LADs) and to prove an extended contractual time period or date by which the works are
to be, or should have been completed.
It is generally understood that claims are an inevitable fact of the civil engineering profession.
They are unavoidable at least up to the present. The best that practicing engineers can do is,
therefore, to minimize the impact of such claims, attempt to keep project cost within budget and in
some cases mitigate the damage that may result. Girmay Kahsay (2003)
Claims for EOT must be based on delays that are caused by the owner or the owner’s agents, or on
delay due to acts of God or based on the provision clauses in the form of contract. Under the study
in construction time overrun in Florida have identified two kinds of causes of time overruns of
construction projects. These are external and internal causes.
An EOT provision is inserted in a construction contract for the benefit of both the employer and
the contractor, its insertion is primarily for the advantage of the employer. If there was no EOT
provision, once the employer had caused delay to completion of the works, it would no longer be
able to reply on the liquidated damages provision in the contract. In such circumstances, the
contractor’s obligation would be to complete within a reasonable time in all of the circumstances.
(James. R. Knowles, 2005).
Further, even if there is an EOT provision, if the engineer, or the consultant, or employer fails to
grant an EOT, with in the period contemplated by the contract, the employer may lose its rights to
grant an EOT, and the result would be the same as if there had been no EOT provision, i.e. time
would be set at large and the employer could no longer rely on the liquidated and ascertained
damages provision on the contract.
Most contractors have had experience of their EOT submissions being assessed through a ‘wet
finger in the air’ and/or a quick guess at what ‘they can get away with’ technique, rather than the
application of a logical and analytical method involving the programmed and a critical path
analysis-based technique.
In October 2002, the Society of Construction Law (SCL) published its ‘Delay and Disruption
Protocol’. This protocol provides guidance to people dealing with submissions for extension of
time and delay claims, both during a contract and after completion of the works. The protocol
envisages that decision-takers (e.g. contract administrators, adjudicators, dispute review boards,
arbitrators, judges) may find it helpful in dealing with time-related issues. Therefore, effectively
managing EOT will be vital to help contractor to escape from liquidated damages and saves the
client from suffering delay in completion time.
1. It helps the parties involved in construction industry how to submit application of time
extension delay analysis in a logical and analytical method and evaluating delay analysis
with the recognized and acceptable techniques.
2. It could also serve as springboard for further studies in the area about the need of standard
guide manuals how time extension claim to be prepared and evaluated in logical acceptable
and consistent ways in all construction and consulting firms.
1. What are the fundamental causes of claims and degree of fairness of time extension
requests which are submitted by the local contractors engaged in building project?
2. Do contractors give notice for intent of time claim?
3. What are the techniques used by the consulting firms to assess the time extension delay
analysis?
4. Do consultants or clients give Time claim response as per the standard stipulated in the
contract?
5. Do Contractors and Consultants in this research apply “Time At Large” concept?
6. Do Consultants in this research apply “Concurrent Delay?
7. What are the procedures and scientifically accepted time extension delay analysis
techniques.
1.4 Statement of the Problem
Past researches shows that delays are endemic to construction projects in Ethiopia and the delays
encountered in most of the projects range between 100% and 460% of the original contract time.
Thus, Project delays are the major cause of claims of time extension and associated cost overrun.
Construction projects are time bounded. Each project has predetermined duration with defined
beginning and completion time.
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But, Construction projects may not go smoothly as planned due to uncertainties about events in
the future. Delays, which are the major cause of claims, may occur due to unforeseen site
condition; increase in scope of work and others. These delays which rise during construction lead
the parties in the construction to conflict (dispute). Delay claims are extremely complex and
difficult to resolve.
In addition, even though, some of the delays submitted by contractors are non excusable, most of
the consultants and clients grant extensions of time for contractors fearing the prolonged justice
process in the country. Thus contactors take this as an advantage to cover their fault on attaining
the project completion time and they don’t request financial claims since they know they are not
entitled. All parties provide unconvincing reasons for the non performance of the contract that
leads the users to extreme cost overrun and excessive project completion time delay.
1.5 Scope of the research
The study is encircled to assess the causes of delay provide by contractors and the time extension
delay analysis assessment techniques applied by randomly selected construction and consulting
firms in Addis Ababa and limited for buildings constructed from 2000 – 2008 G.C under their
supervision .
1.6 Objective of the study
The main objective of this research is to carry out a survey on submitted cause of delay by the
contractors and review of time extension delay analysis techniques and trend with selected
consulting firms in Addis Ababa to handle for buildings constructed from (2000 – 2008 G.C). The
specific objectives of this study are:
1. To evaluate the fairness of time claim request by the contractors which are working with
those selected consulting firms.
2. Evaluate the fairness of approval of time extension in selected consulting firms in Addis
Ababa
3. To show the gap between delay and time extension analysis techniques recommended in
literatures and trends with selected consulting firms.
4. Forward applicable time extension delay analysis techniques
5. Address the need of standard guide manuals how time extension claim to be settled in
accepted and consistent ways in all consulting firms and indicate further areas of study.
CHAPTER TWO
Literature Review
2.1 Definition of Delay
Definition of delay: - A ‘real’ delay may be defined as a period during which a contractor cannot
employ his men or machines or staff at their normal intended output, having regard to the nature
and amount of work which is available under the agreed program of working or under practicable
rearrangement of the program. [ACT. WORT 1966]
Delay in general could be defined as “to act slower than desired/planned”.(Dr. Khaled Ahmed Al-
Naas Dec.2014
On the other hand delay also defined as the principal dimension measured by schedules McGraw-
Hill (1998). According to the writer delay to the private owner mean, a loss of revenues through
the resulting lack of production facilities and rentable space, as well as through continuing
dependence on present facilities. To the public owner, it can mean that a building or facility is not
available for use at the planned time. Finally, to the contractor, delay means higher overhead costs
that result from the longer construction period, higher prices for materials resulting from inflation,
and escalation costs that are due to labor cost increases. Further, working capital and bonding
capacity are so tied up that other projects cannot be under taken.AbrhamAregawiet.al B.Sc Thesis.
2.2Types of Delay in Construction
1. Excusable Delay–Employer’s delay.
2. Non-Excusable Delay–Contractor’s Delay
3. Compensable Delay–Employer’s delay.
4. Non-Compensable DeLay–Contractor’s Delay or otherwise stated in the Contract.
5. ConcurrentDelay-whentheownerandcontractorareconcurrentlydelaythework
(3) The contractor has not assumed risk to delay through a “No Damages for Delay” clause. If such
a clause should exist in a contract, the contractor is entitled to seek time extension for owner-
caused delays, but not compensation.
On projects with contracts that do not contain a “No Damages for Delay” clause, the following is a
list of possible compensable delays:
• Owner’s failure to furnish the site to the contractor by an agreed date
• Faulty design
• Incomplete drawings and specifications
• Changes in scope
• Suspension of work
• Differing site conditions
• Late delivery of owner-supplied materials
When drafting the contract, the contractor may wish to include a clause specifically related to
compensable delays (also referred to as owner-caused delays), which reinforce the contractor’s
right to recover damages under and express warranty. However, not doing so will not prevent the
contractor from making future delay damages claims for compensable delays. Abrham Aregawi
et.al (June 2008),
2.2.4 Non compensable excusable delays: -.Non-compensable excusable delays entitle a contractor
to an extension of time only. In such type of excusable delay the contractor will not receive
compensation for the cost of delay, but he/she will be entitled for an additional time to complete
his work and is relived form any contractually imposed liquidated damages for the period of delay.
Typically, this type of delay is caused by something beyond the control of either the contractor or
the owner. For example, acts of God, unusual weather and labor disputes will entitle a contractor to
additional time to complete the work, and is usually the contractor’s only remedy.
Contractors may agree to make a compensable delay a non-compensable one by waiving their
right to delay damages in exchange for an extension of time, and generally such waivers are valid.
If a contractor specifies that a particular delay shall not be compensable, or has a valid No Damage
for Delay provision, the delay is non-compensable for all practical purposes.
Many construction contracts include a No Damage for Delay provision, which purports to excuse
an owner from contractual liability for any damages due to delay caused by the owner, its agents,
or other contractors under its supervision. Contractors who face No Damage for Delay provisions
in the general or prime contract may often include a No Damage for Delay provision in their
contracts with subcontractors as well, and may even do so by a specific incorporation by reference
of the prime contract’s delay provisions. Furthermore, No Damage for Delay provisions in a
subcontract is held to the same standards as a provision in a prime contract.
Advocates for the No Damage for Delay provision believe that the clause is necessary and a
positive aspect for a construction contract that such provisions help achieve fiscal stability and
integrity; such provisions attempt to deflect troublesome litigation; such provisions intend to
protect the public bidding process by ensuring that the lowest bid is actually the lowest bid; and
that if contractors know that they alone will bear the cost of delay regardless of fault, the
contractor will be less inclined to delay and attempt to extract delay claim money from the owner.
Those against the No Damage for Delay provision believe that where a contract is competitively
bid, the contractor is forced to increase the contingency factor for such foreseeable contingencies
as inclement weather, increased costs, etc. It is argued that if the contract contains a No Damage
for Delays provision, contractors will bid even higher in order to account for any unforeseen
contingencies. Furthermore, some contractors will not engage in the competition under such terms
because the risk of contractor default is significantly increased if delays for which compensation is
barred are actually experienced.
No Damage for Delay provisions is enforceable in New York, as long as the basic requirements for
a valid contract are met. Kushnick Pallaci (2010)
2.2.5 Concurrent, Classic and Serial Delays
2.2.5.1 Concurrent Delay
If only one factor is delaying construction, it is usually fairly easy to calculate both the time and
money resulting from that single issue. A more complicated – but also more typical – situation is
one in which more than one factor delays the project at the same time or in overlapping periods of
time. These are called concurrent delays.
Concurrent delays occur when both owner and the contractor are responsible for the delay.
Generally, if the delays are inextricably intertwined, neither the contractor can be held responsible
for the delay (forced to accelerate, or be liable for liquidated damages) nor can he recover the
delay damages from the owner. Until the development of CPM schedule analysis, there was no
reliable method to differentiate the impact of contractor caused delays from owner-caused delays.
With the sophisticated computerized techniques now available, however, it has become possible to
segregate the impacts of apparently concurrent owner and contractor delays.
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Concurrent delays are delays that occur simultaneously when they were carried out parallel. Their
effect for the project can be assessed using that part of the work which causes longest delay and its
consideration are made as such. For instance, if a project owner agreed to supply material and
irrespective of its delay, if the project faced adverse weather condition; the project cannot be
executed. Therefore, both delays could not be counted as serial delay but concurrent and the one
that causes longer delay is considered for time delay computations. (Abebe Dinku etal.2000)
2.2.5.2 Classic Delay
These types of delay occur when a period of idealness and/or uselessness is imposed on the
contracted work. These types of delays are excusable compensable delays. And they are called also
owner caused delays. The contractor is entitled not only an extension of time but also monetary
compensation caused by the delay.
The owner is responsible for both the time and cost effects of the delay. Moreover, the outer states
that the contractor may claim the owner interfered with the work, did not deliver owner purchased
equipment or supplies on site as promised, or that the owner’s actions or inactions caused other
delays.
2.2.5.3 Serial Delay
This is linkage of delays (or some times of different cases of a delay). Thus the effects of one delay
might be amplified by a later delay. For instance, if an owner’s representative delays review of
shop drawings and the delay causes the project to drift into a strike or a period of severe weather,
resulting in further delays, a court might find the owner liable for the total serial delay.
Abrham Aregawi et.al (June 2008)
2.3Causes of Delay
There are many factors that contributed to causes of delays in construction projects. These range
from factors inherent in the technology and its management, to those resulting from the physical,
social, and financial environment. There are in total of seven groups of causes for delay in
construction project
1: Causes of delay by client
2: Causes of delay by contractor
3: Causes of delay by Consultant
4: Causes of delay by materials
5: Causes of delay by equipment
Claim Closure: Once this compensation or entitlement is due in accordance with the approved
claim and its enforcement requirements, then it is concluded for its closure.
In order to account for such an administration process contracts provide claim clauses within their
provisions in their conditions of contract.
2.7Extension of Time
Extension of time (EOT) is the additional time granted to the contractor to relieve it from liability
for liquidated and ascertained damages(LADs) and to prove an extended contractual time period or
date by which the works are to be, or should have been completed.
Hamid and Torrance (2006) identified extension of time (EOT) as an excusable delay that occurs
when the contractor is delayed by occurrences beyond his control.
2.7.1. Basis of Extension of Time
(James. R. Knowles, 2005). Stated failure to complete the construction works according to its
prescribed schedule became the reason for the existence of extension of time clause in the contract.
Many disputes could be avoided if employers and their agents (Engineer, Consultant) give due
consideration to the reasons for having an EOT provision, and if contracts recognize the need for
giving sufficient notice and particulars to enable extensions of time to be granted promptly.
An EOT provision is inserted in a construction contract for the benefit of both the employer and
the contractor, its insertion is primarily for the advantage of the employer. If there was no EOT
provision, once the employer had caused delay to completion of the works, it would no longer be
able to reply on the liquidated damages provision in the contract. In such circumstances, the
contractor’s obligation would be to complete within a reasonable time in all of the circumstances.
(James. R. Knowles, 2005).
Further, even if there is an EOT provision, if the engineer, or the consultant, or employer fails to
grant an EOT, with in the period contemplated by the contract, the employer may lose its rights to
grant an EOT, and the result would be the same as if there had been no EOT provision, i.e. time
would be set at large and the employer could no longer rely on the liquidated and ascertained
damages provision on the contract.
2. Late, insufficient or total lack of notice of delay or likely delay on the part of the contractor.
3. Failure to maintain contemporary records.
4. Failure to regularly update the program so that the effects of delay can be monitored.
5. Poor presentation of the claim to show how the progress of the work has been, or is likely to be,
impacted.
6. The probability that the cause of delay will reflect on the performance, or lack of it, on the part
of the employer’s professional team.
7. Pressure, on the part of the employer, to complete the project by the original completion date,
irrespective of delays which occur.
The Employer’s Personnel shall be entitled to rely upon the program when planning their
activities’’. The initial delays occurring during the baseline program approval period have no
proper basis to measure and are debatable. Hence the recommendation is that the delays that
occurred during this period should be properly recorded and monitored by giving advance notices
to the employer for the requirement of any urgent information by referring to the first submittal of
the program.
2.7.4 Proper program updates
Construction projects by their nature are very dynamic and subjected to changes compared with
the original plans and assumptions. A construction project could face many changes when it comes
to the construction phase such as but not limited to unforeseen soil conditions, delay to engineering
and procurement deliverables, adverse weather conditions, political issues, changes to scope of
work. Therefore, all parties involved in any construction project such as employer, contractor,
supervision consultant and any relevant stakeholders are always keen to have accurate status
reports of the project performance and to be updated to envisage changes or delays to the original
plan.
Accordingly, the project program should be continually updated or revised whenever required, in
accordance with the frequency stated in the contract documents, to reflect the current site
conditions and constraints. Delays to the engineering and procurement deliverables including any
changes and there must be included otherwise the project program will be outdated and misleading
to all stakeholders. Failure by the contractor to provide proper program updates can result in any
delay and disruption claim being easily declined by the employer.
The purposes of program updates are;
(1) To determine the actual physical progress achieved compared to planned,
(2) provide a complete and accurate report to the actual progress compared with original plan,
(3) It is often a contract requirement and may be required for payment purposes (in case of lump-
sum price contracts), (4) it identifies the changes to the critical path and identifies out-of-sequence
activities, which may require an adjustment to the plan for completing the remaining work and
(5) Predict a more accurate completion date as of the date the project status is measured.
A reliable program update will give the project management the opportunity to assess the impact
of changes or unforeseen events and implement timely remedial measures if required in order to
mitigate/avoid the impact of such changes or unforeseen events. When documenting a project’s
history, a delay analysis could be easily performed to identify the causes of delays, measure the
contribution of each party to such delay and accordingly the impacts can be calculated.
2.7.5 Program revisions
Taking into consideration the span of construction projects, the frequent scope changes and the
delays which can occur during the execution phase, the approved baseline program becomes
misleading and needs to be revised from time to time to incorporate the changes, revise logic and
sequence of work and to incorporate the mitigation measures. The interval of the program revision
depends mainly on the volume of change received during the period and validity of the
construction sequence of work along with the current site conditions and constraints.
The approved revised program will replace the approved baseline program and will be the new
benchmark which will be the base for any future claims for extension of time and/or disruption. It
will also be used for the progress updates, monitoring delays and any other scope changes, etc.
However if the project completion date extends beyond the contractual completion date, the
revised program will not be approved by the engineer/employer until the related extension of time
claim is approved. The engineer could give conditional approval only for progress monitoring
purpose or sometimes delay the approval requesting additional information and substantiations. In
general, the approval of extension of time claim by the employer is a very time consuming process
and normally takes four to six months and sometimes the extension of time will be granted only at
the time of expiry of the original contractual completion date. During this time, there is no
approved revised program to monitor the delays although the revised program is being updated
only to monitor the progress. Hence any analysis of delays in the extension of time submittals
becomes debatable and may lead to arbitration. The contractor will face problems in obtaining the
extension of time in this process.
Thus in order to avoid or minimize the conflicts in measuring delay, we recommend to update the
baseline programs simultaneously in the case that revised programs are approved for progress
monitoring purpose only. The contractor should submit the baseline and revised program updates
to the employer or his representative to see exactly how the delays are affecting the project
execution. Although it is difficult to measure the delays on the baseline program updates (when
there is revised program in force with current logic and sequence of work), this will help the
contractor to ease out some of the problems until the revised programs are approved.
b) C
E
I
Time :-
Cost:- No claim for extra costs incurred
c) C
E
I
Time :-
Cost:- No claim for extra costs incurred
d) C
E
I
Time :-
Cost:-
f) C
E
I
Time :-
Cost:-
g) C
E
I
Time :-
Cost:-
E
h) I
Time :-
Cost:-
Initial Delay Caused by Independent
i) C
E
I
Time :-
Cost:- No claim for extra costs incurred
j) C
E
I
Time :-
Cost:- No claim for extra costs incurred
k) C
E
I
Time :-
Cost:-
l) C
E
I
Time :-
Cost:-
2.8.1 Extension of Intended Completion Date as per PPA 2011 (Clause 73)
73.1 The Contractor may request an extension of the Intended Completion Date if he is or will be
delayed in completing the contract by any of the following causes:
(a) Exceptional weather conditions in the Federal Democratic Republic of Ethiopia;
(b) Artificial obstructions or physical conditions which could not reasonably have been foreseen
by an experienced Contractor;
(c) Compensation Event occurs or a change order for modification is issued which makes it
impossible for completion to be achieved by the Intended Completion Date;
(d) Administrative orders affecting the date of completion other than those arising from the
Contractor's default;
(e) Failure of the Public Body to fulfill his obligations under the Contract;
(f) Any suspension of the works which is not due to the Contractor's default;
(g) Force majeure;
(h) Any other causes referred to in these GCC which are not due to the Contractor's default.
2.8.2Compensation Events for Allowing Time Extension (PPA2011 Clause 74)
74.1 The following shall be Compensation Events allowing for time extension:
a) The Public Body does not give access to a part of the Site by the Site Possession Date
stated in the Contractor’s approved work program;
b)The Public Body modifies the Schedule of other Contractors in a way that affects the work of
the Contractor under the Contract;
c) The Engineer orders a delay or does not issue Drawings, Specifications, or instructions
required for execution of the Works on time;
d)The Engineer instructs the Contractor to uncover or to carry out additional tests upon work,
which is then found to have no Defects;
e)The Engineer unreasonably does not approve a subcontract to be let;
f)The Engineer gives an instruction for dealing with an unforeseen condition, caused by the
Public Body, or additional work required for safety or other reasons.
g)Other Contractors, public authorities, utilities, or the Public Body do not work within the
dates and other constraints stated in the Contract, and they cause delay;
h) The advance payment is delayed;
I) The Engineer unreasonably delays issuing Interim Payment Certificates; Other Compensation
Events described in the SCC or determined by the Public Body and force majeure.
74.2 If a Compensation Event would prevent the work being completed before the Intended
Completion Date, the Intended Completion Date shall be extended. The Engineer shall decide
whether and by how much the Intended Completion Date shall be extended.
74.3 The Contractor shall not be entitled to compensation to the extent that the Public Body’s
interests are adversely affected by the Contractor not having given early warning.
2.9Preparing evidences of delay
When change orders, delays, or relevant issues occur, a time impact analysis/delay analysis
should be prepared to document and record the facts and circumstances pertaining to each delay
event qualifying the delay and the impact on the project completion date. The time impact
analysis usually includes the current updated schedule, excusable delays for which time
extensions may still be pending, job conditions encountered, the progress achieved up to the
point in time when the present delay occurs and the mitigation action taken by the contractor.
The analysis should also include the pertinent facts associated with the proof required to support
the delay issue. The following procedure is proposed to be followed to illustrate a mechanism
for preparation of a time impact analysis and documenting the impacts.
2.10Proposed Checklist for Time Impact Analysis
1. Study the scope of the change/risk event, and the extent of the delay encountered.
2. Issue a notice of delay to the employer once the contractor comes to know about the
change/risk event. Submittal of such notice/s should be within the allowed period stipulated in
the contract clauses.
3. Review all reference materials, such as appropriate contract clauses, construction drawings,
sketches, specifications, vendor data, regulatory and administrative codes, field directives,
correspondence, and cost estimates.
4. Prepare an accurate description of the changed condition or the delay encountered.
5. Identify the contracting parties who are responsible for such change/risk event.
6. Identify all contracting parties who are affected by the direct or indirect delay and request
any participation or documentation assistance that may be necessary.
7. All verbal instructions or instructions received vide emails should be recorded and confirmed
by the employer in writing
.
AAU, AAIT, Construction Technology & Management 24
Review of Time Extension Delay Analysis Techniques and Trend with Selected Consulting Firms in Addis Ababa June, 2016
8. Determine which activity or activities on the project program is or are potentially impacted by
the added, delayed, changed work or any other risk event.
9. Review the program and determine the scheduled start and finish dates for all affected activities.
10. Establish the record-keeping systems and form contacts with key project staff, identify and
document the facts associated with the change and/or delay issue.
11. Update the project program, as of the date just before the change or the risk event. In case of
any delay exercised due to contractor’s risk events, the contractor is obliged to recover such delay
totally or partially if possible. The contractor should describe in detail the action taken to mitigate
or recover its delays.
Ian Wishart (2012) advised that the contractors are advised to establish and maintain a good
document control procedure in order to enable for the planning team and contract administrator the
huge quantities of both electronic and hard-copy records.
Also, the contractor has to submit all documents and records that support its claim for time and/or
money. The documents and records required to develop a properly substantiated claim are shown
herein below in Table 2.2:
Item
No Record description Frequency
Once in the project life cycle. Should be
1 Baseline schedule submitted within certain
Period from the project effective date.
2 Method of construction identifies the works that To be submitted with the baseline schedule.
are intended to be executed by subcontractors. Also, should be updated
and submitted with any new schedule revision
3 To be submitted with the Baseline schedule
Planned manpower and machinery resources
and its revisions.
4 Could be weekly or monthly based on the
Program updates
contract requirements(*)
Once the contractor knows about the event
and within certain period as stipulated in the
5 Notices for delay
contract documents.
Should be prepared for each event.
6 Program revisions indicating changes and its In case of major changes or the current
required resources and the impact on the program becomes out dated or misleading
contract completion date.
7 Delay analysis With each program update. It is recommended
to be done
8 Time impact analysis showing the potential Once the contractor knows about the event.
impact of the changes prior to carrying out the Should be done for each delay event.
changes.
9 Cause and effect analysis for each Once the contractor knows about the event.
delay/disruption event Should be done for each delay event.
10 Productivity analysis reports Weekly
11 Minutes of the daily, weekly, and meetings. Upon request
12 Minutes of any special meeting. Upon request
Within certain period, as defined in the
13 Change of work notices contract, from the date that contractor came to
know about the change
14 Daily progress reports Daily
15 Weekly progress reports Weekly
13 Monthly progress reports Monthly
17 Claim register Monthly
18 Delay events log Monthly
It is recommended for the contractor to perform the schedule updates on a weekly basis even when
the contract requires monthly updates. This will allow the contractor to keep a highly accurate
history that would enable the contractor to prepare a well-supported claim and the issue whether or
not there has been breach of contract by failure to complete
appropriate, the Contractor, grant such extension of the Intended Completion Date as may be
justified, either prospectively or retrospectively, or inform the Contractor that he is not entitled to
an extension.(PPA, 2011 Clause 73.3)
2.12.2 As per civil code of the Empire of Ethiopia (1960)
Time: 1. Principle.
(I) Each contracting party shall perform his obligations within the time fixed by the contract.
(2) Failing a specific provision in the contract, each contracting party shall perform his obligations
within a reasonable time. (Civil Code Art. 3174.)
2.13Assessment of claim by the Engineer
The engineer decides on the validity of claims. He may accept the claim in full or part or reject it
totally. If the contractor does not accept the engineer’s ruling on claim, then he is always able to
take the matter to arbitration if contractual or to litigation if extra contractual. Once claim is settled
it ceases to be a claim. There are two distinct stages in the assessment of claims.
i) Is the claim valid in principle?
If yes, then
ii) Is the evaluation and quantification correct?
Contractual claims must be based on contract document .It is important to see what the contract
says-not what one thinks it ought to say or what one would have liked it to say, or even what one
thinks is fair. The contract was agreed between both parties to the contract and it is taken to be a
statement of the terms of the contract. if the contract states that the contractor is to be responsible
for something, then the contractor is responsible however unfair it may seem later.
Claims are usually requested for:
i) An extension of time for completion of the work or,
ii) Extra payment, or
iii) An extension in time and extra payment
The majority of claims involve delay of some form. Time is particularly important since a
contractor is bound by the contract to construct the works in a specified time and is liable to pay
liquidated damages for late completion. Acceptance by the engineer of the validity of a claim for
extension of time means that the contract completion date is extended. (Abebe Dinku,et.al July
2000)
If delay occurs for which the client is not responsible, then the contractor will not be entitled to
compensation although he may be entitled to an extension of time. He may be entitled to an
extension of time in cases of strikes, bad weather, etc. He would not be entitled to an extension of
time because of his own incompetence, or break down of his plant since these are supposed to be
within his control.
2.14Evaluating claim for delay
Delay may be caused by the client(e.g. changing his requirement, late delivery of drawings ,etc)or
by the contractor(e.g. inadequate resources, use of unsuitable methods, etc)or be partially or totally
outside the control of either party.(e.g. political change, weather, national strike, etc)The contract
as previously stated ,classifies them in to those for which the client is responsible and those for
which he is not.
If a single cause makes a whole project stop, then it is reasonably to assess all the costs
unavoidably incurred. But if a single operation stops only some operations then it is more difficult
to assess the cost and or delay attributable. Was the operation on the critical path or did it come on
to it? There is not only the actual period of delay but there may well be some allowance for
regaining the tempo of the work. If an operation is slowed down rather than stopped, t may be
convenient to assess an equivalent delay (Abebe Dinku,et.al July 2000)
The various DATs have varying capabilities in providing sound answers to these questions.
In the English and Commonwealth jurisdictions there are very few cases setting out guidelines for
methodology or techniques that should be adopted when preparing or considering an extension of
time submission or claim.
Roger Gibson, (2007) stated that Most of the recognized extensions of time (EOT) assessment
techniques are:
A. impressionistic;
B. simplistic;
C .prospective analysis;
D. Retrospective analysis.
Only the latter two groups, prospective and retrospective analysis, are considered to be dynamic
analysis techniques.
2.15.1 Impressionistic
This group includes the following techniques.
2.15.1.1. Global impact
The global impact technique is a simplistic way to show the impact of employer-responsible
events. All such delays are plotted on a bar chart. The delay start and finish dates are determined
for each event. The total delay to the project is calculated to be the sum total of all durations of all
the individual delaying events.
The ‘global impact’ technique shows on a bar chart the as-planned and as-built programs in
summary format, with an additional summary bar representing the total of the delay for which the
employer is responsible. The contractor will probably argue that the difference between the
entitlement to an extension of time and the actual project overrun of was due to his acceleration.
Observations
The ‘global impact’ technique uses the as-planned program and therefore assumes the critical
path(s) on this program were constant throughout the project. This leads to delays potentially being
deemed as critical when in fact they were not.
There are many other problems with this technique, but the main issues that this technique ignores
or disregards, are that
it assumes every delay has an impact on the project’s date for completion;
It does not take into account the effect of concurrent delays.
The above shortcomings can and do lead to a gross overstatement of entitlement due to employer-
responsible delays. As in the example, in many cases the entitlement due can exceed the project’s
actual completion date; the rationale being that the difference between the entitlement completion
date and the actual completion date is the amount of time saved by the contractor through his
acceleration measures.
2.15.1.2 Net impact
This technique only depicts the net effect of all employer-responsible delays by plotting these on a
bar chart. The net effect of all delays is calculated and the overall time extension is taken to be the
difference between the contract completion date and the ‘net impact’ program completion date.
All delaying activities were considered but only the net effect, taking into account the concurrency
of the delays, was used. The as-planned and as-built programs appear in summary format as a
single bar, and the ‘net impact’ bar of all the employer-responsible delays is shown.
The difference between the as-planned and as-built completion dates was eight days; and the ‘net
impact’ bar is showing an extension of time entitlement of nine days.
Observations
As with the ‘global impact’ method, the ‘net impact’ technique uses the as planned program and
therefore assumes the critical path(s) on this program were constant throughout the project. This
leads to delays potentially being deemed as critical when in fact they were not.
Although this method attempts to deal with the issue of concurrent delays, it does not show how
concurrency has been established and scrutinized.
As a result, the amount of delays having an effect on the project’s completion date can be
overstated. The ‘net impact’ technique is neither accurate nor realistic in apportioning liability for
critical delays, but maybe suitable for quick approximate estimates, perhaps at the outset. The
absence of a CPM-based analysis camouflages the true effect of a delay on the overall project
completion date.
2.15.2 Scatter diagram
This technique indicates the timing of employer-responsible delaying events during the project.
The basis of the diagram is the as-planned bar chart, which is annotated with the incidence of
employer-responsible events affecting the project, such as variations, instructions and information
issues, etc. By supporting the scatter diagram with a narrative and detailed breakdown for each of
the events notified, the contractor is able to supply comprehensive information on each event and
argues its impact on the progress of the works and the date for completion.
Observations
Although a scatter diagram has little evidential value, it has a powerful visual impact in
negotiations.
However, with this technique it is impossible to investigate the impact of a single event or
combination of events within the overall period of the project.
2.15.3 Simplistic
This group includes the following techniques.
2.15.3.1 As-planned impacted (aka baseline adding impacts)
This technique requires the identification and insertion of employer responsible delays into the
original as-planned program. A schedule of employer-responsible delaying events is produced and
each of these is added to the as-planned program. The resultant scheme is the ‘as planned
impacted’ program.
Both programs should be in network format, i.e. a ‘CPM’, with the same logic links between
activities. A program time analysis is performed on the ‘as-planned impacted’ program and the
‘new’ date for completion is established.
The difference between the as-planned completion date and the ‘new’ completion date as shown
on the ‘as-planned impacted’ program is said to be the EOT entitlement as a result of the
employer-responsible delays.
Good practice
The methodology of this technique is as follows:
1. Make a copy of the as-planned program, and name this the ‘as planned impacted’ program.
2. For each of the employer-responsible delay events, identify the period of time which they would
be expected to take on site to carry out, e.g. the addition of suspended ceilings is estimated to take
two weeks.
3. Add the new work activity or activities to the ‘as-planned impacted’ program, allowing for any
off-site time constraints, e.g. procurement of suspended ceilings at four weeks.
4. Make the appropriate relationship logic links from the new activity or activities to the other
program activities, e.g. suspended ceilings to start four weeks after wall plastering commences.
5. Perform a time analysis (recalculate) on the ‘as-planned impacted’ program to establish the
‘new’ date for completion.
The employer-responsible delay events are then added to the as-planned program, the CPM re-
analyzed and the resulting ‘as-planned impacted’ program is then constructed.
2.15.3.2 As-built bar chart
A bar chart is produced showing the actual start, finish and duration of the work activities for the
project. It is common for the chart to be an overlay of the as-planned bar chart as at the start of the
project. In this way it is easy to identify which work activities deviated from the original plan.
Although the ‘as-built bar chart’ technique provides a simple visual statement of the difference
between what was expected to happen and what actually occurred, it suffers from the absence of
explicit logic.
In addition, it does not identify actual events that took place and the delays to the program and date
for completion that resulted.
Observations
The ‘as-built bar chart’ method can be carried out without the need for computerized planning
software, although such software is often used to present the results.
The method assumes that the as-built situation arises by reason of changes, late information, etc.
for which the contractor is entitled to an extension of time; and not due to its own culpability.
This method also assumes that the planned program was realistic and that the work was
appropriately resourced to enable the plan to be achieved. However, this method is well suited for
relatively simple projects where the main delays can be easily identified.
Observations
The main problem with the ‘as-built adjusted’ technique is that, although it utilizes the CPM
format, which affords an insight into the interrelationships between activities and delay events, it
gives very little supporting detail or analysis. It is not much better than the ‘net impact’ technique,
except that the CPM format creates a more sophisticated impression of an analysis.
Another problem is that contractors invariably tie the employer responsible delaying events to the
critical path. Conversely, contractor responsible delaying events may be shown, but are more
likely to be linked to work activities not on the critical path.
2.15.5 Prospective analysis
This group includes the following techniques.
2.15.5.1 Time impact
This technique examines employer-responsible delaying events and their effects at different times
during the progress of the project, i.e. events are analyzed contemporaneously with each event
being judged on its own merits and information available at that time.
This method takes the contractor’s planned program as the starting point for the analysis. The
likely impact of each specific delaying event on the program is determined at different
construction stages, the intention being to obtain a ‘stop action picture’ of the project before a
delay impact.
The expected impact of the delay event is then inserted into the program.
The difference between the two project completion dates, i.e. the ‘stop action picture’ before the
delay event is inserted and the one after it has been inserted is the likely delay to the project and
the EOT entitlement as a consequence of the delay event alone. Each delay event is analyzed
chronologically.
Good practice
The methodology of this technique is that, for each employer-responsible delay event, the
following should be done:
1. Update the as-planned program to show what had actually been achieved by the time of the
employer-responsible delay event.
2. Analyze the updated program that represents the position of the project at the time of the event.
The analyzed updated program will forecast whether the project is likely to be completed ahead of,
on or behind schedule.
3. Create an impacted program demonstrating, with supporting descriptions, the duration of new
activities flowing from the ‘delay event’, and their logical interface with the remaining contract
works. It is recommended that a subnet be created for this.
4. Add the subnet into the impacted program and link this to the existing program activities. Re-
analyze the impacted program.
5. If the project completion date is later than the project completion date on the current updated
program, then there is entitlement to an extension of time.
6. The extent of the EOT is the slippage between either the contract completion date or the
completion date shown on the current updated program and that shown on the impacted program.
Observations
This prospective method analyses the expected, or likely, effect of the delay event on the
completion of the project, and therefore shows a contractor’s entitlement to an extension of time.
The main criteria for this technique are a good as-planned program and reliable progress and as-
built data. However, care must be taken to ensure that the planned program to complete is
reasonable and any apparent errors in activity durations and logic are corrected.
2.15.6 Retrospective analysis
This group includes the following techniques:
Observations
On the face of it the ‘collapsed as-built’ technique appears accurate and difficult to refute. It uses
as-built information and is easy to understand.
The production of an as-built network demands considerable time and effort to show a model
where both the durations and the logic reflect what actually occurred.
However, supporters of the ‘collapsed as-built’ technique would argue that the data used is factual
and that the analyst interprets the data impartially.
This is simply not possible; as with the formulation of the as-built program, the other stages of the
‘collapsed as-built’ technique require the analyst to make decisions and form opinions. For
example, the analyst must decide matters such as the effect upon productivity of having to move
resources more frequently from one activity to another, and that of using inappropriate plant and
labour teams on an activity because of resource constraints. These decisions are necessarily
subjective and, due to the retrospective nature of the technique, are both theoretical and
speculative.
A further important matter is the linking, or relationship, between activities in formulating the as-
built program. These relationships are vitally important because in many cases they will determine
the criticality and length of delays. This calls for technical knowledge and experience of the
construction process.
A major drawback with this technique is that of ‘pacing’. It is not uncommon for a contractor,
knowing that he is being delayed by the employer, to take longer on a non-critical activity than he
would have done had the delay not occurred. In such a situation, when the employer’s delay is
collapsed out of the program, it appears as if the contractor is in default for his late and slow
completion of the non-critical activity.
Above all, the ‘collapsed as-built’ technique requires good and detailed as-built records and
contemporaneous information.
Good practice
The following guidelines are recommended:
1. An audit trail should be maintained as to how as-built progress information was determined in
formulating the as-built program.
2. All significant delays should be identified regardless of fault or liability.
3. Where possible, the analyst should identify and model delay activities as discretely identifiable
delay periods during the as-built modeling process.
4. The matter of ‘pacing’ must be addressed by the analyst, by hint of background information and
reasoned opinion.
5. For all subjective decisions and opinions, the analyst should record his source information and
detail his reasoning.
2.15.6.2 Windows (aka ‘time slice’, or ‘snapshot’) analysis
This technique functions to determine the amount of delay that has occurred on a project and when
the delay(s) occurred. By identifying the activities that were critically delayed, a more focused
investigation as to the causes and responsibility for the delays can take place. The technique is
based on as-planned, as-built and revised programs that have been used during the execution of the
project. The basis of the ‘windows’ technique is that the total life of the project is divided into a
number of consecutive time periods, or windows. It is based on the analysis of the effects of delays
within each window sequentially. Normally, this is the method adopted in the process of an update
of the as-planned program at monthly project meetings.
The project is updated at the end of each window, i.e. the current progress is recorded against each
activity and a time analysis carried out.
The ‘new’ forecast completion date for the project is compared with the forecast completion date
for the project as at the start of the window and any slippage between the dates is the delay to the
project as a result of delaying events during the window. This procedure is repeated for all
windows.
The amount of total delay represents the total extended duration of the project, which should then
be investigated for responsibility apportionment between the employer and the contractor.
The ‘windows’ technique is a systematic and objective method of quantifying the amount of delay
incurred in a project on a progressive basis.
The accuracy of this technique is a function of the size and number of windows used. It takes into
account concurrent delays and considers the effect of delays in the context of time.
Observations
An important aspect of this technique is that it recognizes that the critical path of the as-planned
program may, and often does, change during the life of a project. The ‘windows’ method tracks the
actual critical path and the impact on the date for completion. This technique also identifies any
contractor mitigation and/or acceleration during the construction of the project.
Only events that affect activities on or near the actual critical path will have an effect on the
project completion date. The effect of events is assessed against the critical path of the project at
the time the event occurred. This technique also recognizes and identifies concurrent delays.
With the project being divided into manageable parts for analysis, i.e. consecutive ‘windows’
usually of one-month duration, then the causes and responsibility for the delays highlighted can be
reviewed and researched more purposefully.
Good practice
The following guidelines are recommended:
1. The windows should be consecutive commencing at the project start date and ending at date of
practical completion of the project.
2. The windows can be weekly, fortnightly or monthly and will generally be defined by the
frequency of reports of actual site progress. For example, if progress on a project was recorded
monthly as of the last day of each month, then a ‘window’ would cover the period between 1
January and 31 January, and the next window would cover the period between 1 February and 28
February, and so on up to project completion.
3. It is recommended that the ‘baseline program’ established at the start of the project be used for
analysis of the first window. However, the program should be subject to a rigorous ‘reliability
exercise’, and any necessary modifications made, before being used for analysis.
4. If the ‘baseline’ program underwent a complete revision, was issued to the contract
administrator, and subsequent progress reports were related to the ‘revised program’, then this
revised program should replace the original baseline program for the windows analysis, as and
when it became the working program.
5. If further revised programs were issued during the life of the project, and became the working
program, then these also should be incorporated into the analysis, replacing the previous program,
again, as and when they became the working programs.
6. It is recommended that the project’s contemporaneous progress reports should be used, where
possible, as the basis for the ‘progress data’ for the analysis.
7. Progress data consist of actual start and finish dates and, where an activity’s actual duration
spans more than a single window, the percentage progress achieved as at the end of a window.
8. The collected progress data should be reviewed for apparent anomalies, e.g. an activity’s
reported actual progress achieved reduces in the subsequent window(s); an activity’s actual start
and finish dates are not consistent with the progress being reported.
contractor shall within 15 days of becoming aware that delay may occur, notify the engineer of his
intention to make a request for extension of the Intended Completion Date to which he may
consider himself entitled, and shall, unless otherwise agreed between the Contractor and the
Engineer, within 21 days from the notification deliver to the Engineer full and detailed particulars
of the request, in order that such request may be investigated at the time. (PPA, 2011 Clause
73.2)However, if the Contractor has failed to give early notification of a delay or has failed to
cooperate in dealing with a delay, the delay by this failure shall not be considered in assessing the
new Intended Completion Date. Despite of this, some contractors provide their time claim after the
project completion date expired.
4. It is known that there is a provision in general conditions of contract the causes that may lead
the contractor to request time extension.(PPA 2011 Clause 73 and 74) However some of them are
subjective and not clear. For instance:-
a). Exceptional weather conditions in federal democratic republic of Ethiopia. What is the method
to say it is exceptional or us usual? Most of the consultants approve time claim for weather even
with less intensity than usual.
b). The public body does not give access to a part of the site by the site possession date stated in
the contractors approved work program. What if 5% of the site has right of way problem or
obstruction? Does it mean the contractor didn’t hand over the site? Most of the contractors take
this provision as they are entitled not only for time but money compensation.
Thus, this clearly shows the construction industry in Ethiopia needs further detail studies to resolve
the problems in the industry.
5. Literatures forward most of the recognized time extension assessment techniques Like:-
A. impressionistic;
B. simplistic;
C .prospective analysis;
D. Retrospective analysis
However, most of the consultants in this research didn’t familiar with the techniques and most of
them evaluate the time extension requests in subjective and unrealistic way. They don’t have good
reason/justification for approval and rejection of the time claim.
Due to this, there is no consistency even in a single firm and this may lead the professionals in
consultant’s office for corruption. Some of the consultants evaluate the contractors request based
on the date that the contractor requests. There is also lack of special trained staff in the industry for
using, interpreting and communicating the scheduling techniques.
Most of the consultants grant time claim for variation and additional works based on project
amount and as it is clearly demonstrate on the case study in not logical and leads to dispute.
CHAPTER THREE
In addition to in-depth interviews, I will utilize questionnaire for the sake of obtaining, giving the
opportunity for respondents to vent and explain their thoughts towards the subject of inquiry.
Finally, same questionnaires will be distributed to respondents. Secondary sources will be
collected from clients. For the purpose of analyzing and buttressing what is gathered through
primary sources and in an effort of making it reliable, reviews of relevant books, journals, articles,
conditions of contracts will be conducted. The secondary sources will then be integrated with the
primary sources so that the research will be comprehensive enough to capture elements of the
phenomenon under study.
3.4Data Analysis
The data gathered from different sources analyzed using mixed approach. The data gathered from
the documents and questionnaire has transcribed into themes and analyzed from the perspective of
contract provisions and literatures. Tables and charts are used to clarify and substantiate
explanations. The data gained from differing sources will be put together or compared for the
purpose of critical examination of the various claims.
CHAPTERFOUR
ANALYSIS OF FINDINGS
The results from the desk study and questionnaire survey will be presented, interpreted and
analyzed in detail in this part. Finally discussions will be made on the basis of the findings and
conclusion and recommendation will be forwarded.
4.1Desk Study
Desk study No. 1
a) Description of cause of delay & Justification presented by the contractor
There were two electric poles which cross the site and the contractor requests the client to remove
the obstacles with a letter on 17/08/06 and the poles are removed after 33 days on 19/09/06.
2. Full structural drawings were delivered to the contractor after expiry of completion date.
Here, the respond of the consultant is much delayed i.e. more than project completion time.
The consultant’s approved the master schedule prepared by the contractor and the contractor
scheduled this structure up to end of project time.
Therefore, it is not logical and viable to enforce the contractor to complete the work, which has
nearly 11 story building height, within 16 days. On the other hand , though it is clear that this
structure needs extra one year time as per the approved schedule, the contractor’s request is not
also fair, because the contractor do not perform other structures as per the schedule and he
demands a one year extension for total project. But no evidence is provided for the effect of
absence of structural drawing for elevated water tank on the performance of other blocks. The
schedule for elevated water tank had prepared independently .Therefore both the contractor request
and the consultant evaluation method is not logical.
Desk study No. 3
a) Description of cause of delay & Justification presented by the contractor
Due to bad weather condition
b) Evidence provide by the contractor: -
Site diary prepared by the contractor and approved by the resident engineer
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Review of Time Extension Delay Analysis Techniques and Trend with Selected Consulting Firms in Addis Ababa June, 2016
The project completion time including the extended period had been expired. However, the status
of the work is:-
External and Internal two coats of plastering completed, Aluminium frames are delivered on site
for door and window production. This shows that this delay is concurrent. The contractor requests
60 extra days based on the subcontractor schedule for execution of both Aluminium windows and
the sun breakers. His justification was:-
Since the sun breakers are to be installed in parallel with the window frame works, it requires
same time which needed to carry out the frame works. In addition, the project completion time has
expired. On the other hand the consultant explains that even though this variation had been ordered
lately, the contractor didn’t start the Aluminium works till the variation issue date, besides the time
needed to mount the sun breakers with the frame is insignificant compared with the frame works.
Therefore based on project amount 4 days are granted.
Here, both the contractor request and the consultant evaluation techniques are not fair. The
reasonable technique to analyze the extra time demanding for this item of work is:-
Prepare a schedule for Aluminium windows as per the original design then again prepare a
schedule including the sun breakers. The difference between those schedules will be the extra time
required for the variation works.
Desk study No. 5
a) Description of cause of delay: -Payment delay.
b) Evidence provide by the contractor: -
Approved Payment cover letter
Invoice for the employer at payment effected date
c) Claimed amount in time: 94 days
d) Granted extension of time: 64 days
e) Contractor’s justification: The payment had been effected after 94 days and the contractor
requests time extension from payment approved date to payment effective date. He also explain
that though he has a right to terminate the project as per clause 59:2 (d) of the standard conditions
of contract PPA 2006,he prefers to keep the working relationship good for future and continue the
work by requesting the time extension.
How the claim was treated by the consultant: - The consultant deducted the permissible payment
delay (30 days) from the contractor’s request as per the standard conditions of contract PPA 2006,
clause 43:1 “The Employer shall pay the Contractor the amounts certified by the Engineer within
30 days of the date of each certificate”. Accordingly the consultant approved time extension for 64
days.
Assessment In view of contracts and acceptable evaluation techniques
The applicable low in the contract is Standard conditions of contract PPA 2011.As per this
contract: - “The Employer shall pay the Contractor the amounts certified by the Engineer within 30
days of the date of each certificate. If the Employer makes a late payment, the Contractor shall be
paid interest on the late payment in the next payment. Interest shall be calculated from the date by
which the payment should have been made up to the date when the late payment is made at the
prevailing rate of interest for commercial borrowing for each of the currencies in which payments
are made.” In addition payment delay can be taken as fundamental breach of contracts if the
approved payment is not paid by employer. According to clause 59:2 (d) “A payment certified by
the Engineer is not paid by the Employer to the Contractor within 90 days of the date of the
Engineer’s certificate” is stated as one of the fundamental breach of contract.
Thus ,though there is no ground to request time extension and allow this, the contractor had a right:-
to terminate the contract, since the approved payment delayed for more than 90 days and he had
also the right to request interest on the late payments. But he give up both and request time
extension.. Therefore, taking in to account the mess which had been occurs if the contractor
terminates the project, the time extension granted for the contractor can be taken as fair.
Desk study No. 6
a) Description of cause of delay & Justification presented by the contractor
Due to bad weather condition
b) Evidence provide by the contractor: -
Site diary prepared by the contractor and approved by the resident engineer
Meteorological data for 3 months.
c) Claimed amount in time: 90 days
d) Granted extension of time: 45
e) How the claim was treated:
The contractor stated that site hand over was made on April 17/2006.However he was forced to
keep the site plan and other drawings till 07/12/06. At this time the rainy season already begun and
he couldn’t perform excavation works as per the schedule since the nature of the compound is
swampy. Thus, as per his justification, even though the prolonged effect is gone up to five months,
he claimed only 90 days.
The consultant accepts that the drawings had been late delivered to the contractor and the rain had
already begun. But he believes that from the three rainy seasons 50% of the time is enough to
compensate the wasted time. So the contractor had granted 45 days.
However, the delay occurred here is serial delay. The project was delayed due to absence of
drawings till the rainy season. Then no work had been executed on the rainy season. Therefore the
contractor request should be start from site hand over date (April 17/2006) then extend up to rainy
season if the rain is the only cause not to start the excavation. The effect of the rain might be not
removed just the rain stopped. But if the area is swampy as it is described by the contractor it has
prolonged effect. This shows that the techniques used by the contractor to justify the problem are
very poor and his request didn’t include the actual time waste due to these serial delays. The
consultant hadn’t showed any justification while he deducts the contractor’s request. This shows
that professionals in consulting office, uses personal judgment for time extension evaluation.
Desk study No. 7
a) Description of cause of delay & Justification presented by the contractor
Due to absence of metal Truss drawing
b) Evidence provide by the contractor: - letters from contractor office
Request for metal truss drawing for roof
Letters from consulting office
Drawing received date
c) Claimed amount in time: 275days (The project duration is 540 days)
d) Granted extension of time: 35
e) How the claim was treated: The project is Basement +ground+12 floor building. The contractor
requests the metal truss drawing when he was doing at fourth floor. Then the consultant responds
after 9 months when the contractor becomes ready to cast the top tie beam concrete. Therefore,
even though the contractor requests 275 days, the consultant granted 35 days as a gift. Here, the
contractor didn’t perform the work as per the schedule. At project completion time he was doing
concrete works at 8th floor. But, the contractor requests extension of time from the design request
to design received date by taking as an advantage for the consultant’s delayed respond. Here the
consultants well know that these drawings didn’t delay the contractor. He gave a lot of warnings to
the contractor in order to overcome his problems and speed up the progress otherwise he will
advise the client to terminate the project. However, he granted 35 days without any justification.
Therefore both the contractor request and the consultant evaluation method is not logical
Desk study No. 8
a) Description of cause of delay & Justification presented by the contractor
Additional works.
b) Evidence provide by the contractor: -
Work order from consulting office
Schedule for the additional work
c) Claimed amount in time: 180 days
d) Granted extension of time: 90
e) How the claim was treated: The total project time was 420 calendar days. The additional work
order had given to the contractor after 143 days elapsed from the main contract. The contractor
provides a schedule for the additional work and he scheduled this work for 180 days and he
requests 180 days extension of time due to the additional work.
The consultant granted 90 days to the contractor. Here the additional work could be carried out
independently from the main contract works. Even the consultant accept the contractor’s schedule
for the additional work which is 180 days, since the total project time is 420 days and the order
was given after 143 days from the commencement date the remaining period will be 277 calendar
days. Therefore both the contractors and the consultants didn’t show how the additional work
affects the progress of the main contract works. But the contractor’s representative assures me that
the additional work didn’t have linkage with the main contract. Therefore, since the work could be
done in parallel with the main contract works, no time extension should not be allowed for such
kind of cases.
Desk study No. 9
a) Description of cause of delay & Justification presented by the contractor
Right of way problem
b) Evidence provide by the contractor: -
Letter to the consultant and client requests to remove the grave yards and the community
from the compound.
c) Claimed amount in time: 390 days
d) Granted extension of time: 105days
e) How the claim was treated: The total project time was 365 calendar days. The claimed area
which is occupied by the community and by grave yards is affecting a small portion of the fence
works which is about 4% of the total project cost. The time elapsed was 22 months at the time
when the contractors submit the 3rd claim for the extension of time. The consultant approved 154
days in time extension one and two for different reasons including the right of way problem. The
project is extremely delayed and the progress is 17.33%. The consultant and the client gave the
contractor final warning for termination. Then the contractor submits time claim for 390 days and
his justification was the client didn’t handover the site fully on the site hand over date. Therefore
the client is responsible for the delay and it is also one of the compensation events as per PPA
2011.
Desk study No. 10
a) Description of cause of delay & Justification presented by the contractor
Right of way problem, discrepancy between architectural and structural drawings and bad weather
condition.
b) Evidence provide by the contractor: -
Letter to the consultant
Site Diary
Meteorological data
c) Claimed amount in time: 340 days
d) Granted extension of time: 66 days
e) How the claim was treated: Here I will not go through the time extension evaluation techniques.
But, the approved time had given to the contractor after 7 months. Then after seeing the approved
time ,the contractor wrote a letter which explains his objection on the approved time and he also
explains that since the consultant didn’t respond the time claim within 21 days as per PPA 2011
clause 73:3 ”Within 21 days from receipt of the Contractor's detailed particulars of the request, the
Engineer shall, by written notice to the Contractor after due consultation with the Public Body and, where
appropriate, the Contractor, grant such extension of the Intended Completion Date as may be justified,
either prospectively or retrospectively, or inform the Contractor that he is not entitled to an extension.”
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Review of Time Extension Delay Analysis Techniques and Trend with Selected Consulting Firms in Addis Ababa June, 2016
It will be taken as the consultant’s accepted all the time claimed. Otherwise he warns that he will
terminate the contract. However, the consultant do not agree with the contractors idea and inform
to the contractor that there will no extra time to be grant for the contractor and the contractor can
take any action whichever he likes , but he will be liable for any damage occurred in related with.
f) What literature and Ethiopian civil code says?
Some literatures argue that, An EOT provision is inserted in a construction contract for the benefit
of both the employer and the contractor, its insertion is primarily for the advantage of the
employer. If there was no EOT provision, once the employer had caused delay to completion of
the works, it would no longer be able to reply on the liquidated damages provision in the contract.
In such circumstances, the contractor’s obligation would be to complete within a reasonable time
in all of the circumstances. (J. R. Knowles, 2005).
Further, even if there is an EOT provision, if the engineer, or the consultant, or employer fails to
grant an EOT, with in the period stipulated by the contract, the employer may lose its rights to
grant an EOT, and the result would be the same as if there had been no EOT provision, i.e. time
would be set at large and the employer could no longer rely on the liquidated and ascertained
damages provision on the contract.
But, here in Ethiopia time at large concept is not exercised both in contractors and consulting
offices even if it is stated in Ethiopian civil code(Civil Code Art. 3174.)”
“Time: 1. Principle.
(I) Each contracting party shall perform his obligations within the time fixed by the contract.
(2) Failing a specific provision in the contract, each contracting party shall perform his obligations
within a reasonable time.”
Therefore, this case shall be treated accordingly.
1 Client 6 5 83.33
2 Consultants 15 12 80
3 Contractors 15 11 73.33
4 Total 36 28 77.78
It is evident from the table that employers (83.33% of returned) have the highest percentage
followed by consultants (80%). Contractor have the least response rate (73.33%) compared to
employers and consultants. The percentages of returned questionnaires were also shown in the
figure below.
Figure 4-1:
1: Returned questionnaire response
4.2.2. Quality of Respondents
Professionals directly involved in contract administration activities were considered for
questionnaire survey. 54% of professionals are from organizations of more than 20 years of
establishment while 23% and 21% of them are from organizations of more than 15 and 10 years of
experience respectively. Accordingly 53.5% and 37.2% of them have more than ten years
experience in construction projects and contract administration respectively. Tables 6.2 and 6.3
illustrate respondent experiences in construction projects and contract administration.
Table 4.2:
.2: Experience of respondents in construction projects
Experience (yrs) Client Consultant Contractor
In No In % In No In % In Noo In %
<5 3 60 3 25 1 9.09
5-10 2 40 7 58.33 4 36.36
>10 2 16.67 6 54.55
Even though the majority of Employers organization have more than 20 years of establishment, a
higher percentage (60%) of professionals directly involved in contract management have less than
five years of experience compared to construction (9.09%) and consulting firms (15%). However,
46.43 % of professionals over all have five-ten years experience and 28.57% have greater than 10
years experience in contract administration and construction supervision.
Table 4.4: Projects completion period for the last Five year as per the respondent.
Projects Completed on the specified time Client Consultant Contractor
In No In % In No In % In No In %
<5 % of time Extension 2 3.39
5 to20% time extension 5 8.48 2 6.25
20 to 50 % time extension 2 8.70 7 11.87 3 9.38
50 to 100% time extension 4 17.39 9 15.25 12 37.50
100 to 200% time extension 3 13.04 17 28.81 8 25
200 to 300% time extension 8 34.78 11 18.64 5 15.62
300 to 400% time extension 4 17.39 7 11.86 2 6.25
> 400% time extension 2 8.70 1 1.70
1. According to the research (34.78%) of the clients agree projects are completed with 200-300% time
extension, (28.81%) of the consultants agree with 100-200% time extension and (37.50%) of the
contractors agree with50-100 % time extension.
Most of the respondents agree that on time completion of projects achieved by all parties’ good
performance.
From the above table 60% of client’s respondent agree the time extension request by contractor is
not fair and 75 % of consultant’s agree the request is partially fair.
Table 4.7: Causes for unfair time extension request
Table 4.8: Evaluating the Fairness of resident engineer’s salary in consulting office.
Table 4.9: Causes for unfair resident engineer’s salary in consulting office.
Table 4.10: Time extension claim respond by Consultant / engineer or the client, on the
contract specified time
Table 4.11: Accountability of clients and consultants for the delay of the project
Table 4.12: Submission of intent to time claim on the time stipulated on the contract.
Client Consultant Contractor
Yes No Yes No Yes No
In No 5 12 11
In % 100 100 100
From the above table recording claims related issues progressively is the problem of all
stakeholders, 100% of the clients, 75% of the consultants and 63.64 % of the contractors do not
registered claims on time.
Table 4.15: Extent for extension of time granted by employer and consultant due to their fault
Client Consultant Contractor
Time Limits
In No In% In No In% In No In%
Up to 100% of the original contract time
Up to 200% of the original contract time
Up to 300% of the original contract time
Up to 400% of the original contract time
Haven’t known limit 5 100 12 100 11 100
From the above table all stake holders agree that there is no limit for consultants and clients to
grant time extension to the contractor due to their faults.
Table 4.16:-Fairness of time extension evaluation by consultants, when the causes are their
office.
Client Consultant Contractor
Yes No Yes No Yes No
In No 3 2 10 2 3 8
In % 60 40 83.33 16.67 27.27 72.73
72.73% of the contractors blame that consultant do not evaluate time extension fairly when the
causes are their office.
Table 4.17:- Fairness of absence of force measure for the Employer. Though, it is stated in
PPA that he shall to respond time extension request from the contractor within 21 days.
Client Consultant Contractor
Yes/fair No/unfair Yes/fair No/unfair Yes/fair No/unfair
In No 2 3 4 8 11
In % 40 60 33.33 66.67 100
54.55% of the contractors prepared schedule by excel, which doesn’t show activity relationships.
Table 4.19 Paying over time fee for resident engineers at site.
Contractor
Yes No
In No In % In No In %
11 100
Table 4.20: Fixing monthly over time fee for resident engineers at site.
Contractor
Fixing Method
In No In %
As per the extra hour the resident engineer attend 1 9.09
Monthly constant fee by negotiation 7 63.64
As per the extra hour the contractor works even in
2 18.18
the absence of the resident engineer
As per the resident engineer estimate. 1 9.09
Table 4.21 Tax Deduction from resident engineers over time fee.
More than 50% of the respondent didn’t give reply for this question.
Table 4.22: Disclosing the resident engineer over time fee for the consulting office.
18.18% of the respondent didn’t give reply for this question. However, most of the respondent’s
(72.72%) states that they didn’t disclose the resident engineer over time fee for the consulting
office and 9.09% of the respondents disclose it.
Table 4.23:Reason for hiding the resident engineer over time fee for the consulting office.
Contractor
In No In %
Because it is unreasonable 5 45.45
To keep it secret and demand a favor from the
6 54.55
resident engineer
More than 63% of the contractors agreed that the over time fee for resident engineer’s affect time
extension evaluation.
Table 4.25: The reason behind Expansion of foreign construction companies now days in
Ethiopian building construction industry, especially in finance sector buildings.
Reasons for success Client Consultant Contractor
In No In % In No In % In No In %
Foreign companies’ perform good quality 2 40 6 50 3 27.27
Foreign companies’ perform with less cost
Foreign companies complete on the agreed time 2 40 4 33.33 7 63.64
Quality cost and time 1 20 2 16.67 1 9.09
CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATIONS
This chapter presents conclusions that conform to the research objectives stated in the introduction
part. Recommendations will also be forwarded to improve current practices for the benefit of all
stake holders in the industry and to point out and highlighting topics for future study.
5.1. Conclusions
The objective of the thesis, as clearly stated in section 1.5 of the introduction part, is to review the
time extension analysis techniques and trends in selected construction and consulting firms in
Addis Ababa. In light of this, the research is meant for to investigate the gap between the existing
time extension request and evaluation practices and the logical and scientifically acceptable
techniques. To achieve these objectives, the study use questionnaire survey, and desk study as a
research instrument. The result obtained in this processes have been presented and discussed in the
previous chapter. In this chapter the major findings of the research which have been discussed
before will be briefly summarized in accordance with the objectives of the research.
1. Most of the consultants /employer do not respond time claim on the time stipulated on the
contract. Besides no evidence is found that the consultant and the contractor have the concept
about time at large and exercising it in contract administration.
2. Most of the contractor’s in this research don’t submit intent to time claim on the time
stipulated in the contract. And 54.55% of the schedules prepared by the contractor didn’t show
the activity relationship. Thus, consultants evaluate their time claim in subjective and personal
manner.
3. Most of the time extension claims provided by the contractor are not logical and fair.
4. Almost all consultants didn’t give attention to concurrent delays. Most of them took the
contractors request date as a base line and some of them approved time claim based on the
contractor’s claimed date.
5. Most of the consultants approve time claim for bad weather as a bonus. No justification is
provided how much the weather affects the work. It is very clear that the Rain would come on
the rainy season. But, it is mentioned as a cause for delay in all claims and the consultants
treated it subjectively. According to PPA 2011 in order to take weather as a cause for project
delay it should be exceptional than the usual.
6. Now days it is common to see foreign construction companies in Ethiopian building construction
industry, especially in finance sector buildings. 55 % of the respondents agree that they serve good
quality, with reasonable cost and completed the work on the agreed time.
7. The monthly resident engineer salary fee in consultant’s office is not fair, according to the
research, 60% of the clients, 58.33% of the consultants and 81.82% of the contractors agree that
the fee is not fair and all contractors are paying unjustifiable over time fee for the resident
engineer and 45.46 % of the contractors didn’t deduct tax and the rest didn’t want to answer this
question.72.72 % didn’t disclose the fee for the consulting office. Thus paying unreasonable and
secret overtime fees to the resident engineer affects the time extension evaluation
8. According to the research most of the clients, consultants and contractors agree that projects are
completed with 200-300% time extension, with 100-200% time extension and with 50-100 %
time extension respectively.
9. Recording claims related issues progressively is the problem of all stake holders.100% of the
clients, 75% of the consultants and 63.64% of the contractors do not registered claim on time.
10. All stake holders agree that there is no limit for consultants and clients to grant time extension
for the contractor due to their faults and 72.73 % of the contractors blame that consultants do not
have interest to give time extension due to their fault and agree that the time extension evaluation
in consulting office is not consistent.
5.2. Recommendations
The objective of this research was to generate findings from the hypothesized problems addressed
in the literature review through questionnaire survey, and desk study. In addition, one of the
specific objectives of this thesis was to forward recommendations based on the finding of the
study. Therefore the recommendation will focus in addressing the major problems identified
through the research processes.
1. Conditions of contract should clearly state about enforcement for consultants/employers to
respond time claim on the specified time on the contract.
2. Both consultants and contractors should be aware about concurrent delays and Time at large
concepts and should exercise in time extension delay analysis as per applicable low.
3. Regulatory body and Educational institutions should provide continuous trainings for
professionals working in contract administration offices of the stakeholders and Professional
associations should prepare workshops to enable the professionals ethical and well mannered.
4. Consultants shall use modern management techniques to evaluate the time claims and they
should evaluate time claims in impartial, genuine, consistent and professionally accepted manner.
In addition they should have to pay reasonable fee for resident engineers in order to minimize
corruption in time extension evaluation.
5. All stake holders shall record claims related issues progressively.
6. Employers/Consultants need to work to achieve timely response for issues forwarded from the
Contractor and they should resolve unsettled right of way problem and design issues before
construction bid floats besides they should experience granting time extension even the cause was
their office.
6. Regulatory bodies with professional associations and educational institute shall investigate the
cause of delay on extremely extended projects. Detail case studies shall be carried on to alleviate
the current situation.
7. Contractors should submit intent for time claim on the time stipulated on the contract and the
time extension request provide by the contractors shall be fair and logical in order to enable them
to compete with international construction companies spreading in Ethiopian construction industry.
8. I believe a further work on the area is vital in order to investigate the core problems on
Ethiopian construction industry about time extension delay analysis preparation and evaluation
techniques and forwarding a standard guide manual to minimize the problems and guide the
construction industry through the proper utilization of contracts, applicable lows and
internationally accepted techniques.
9. Finally it is expected from the Regulatory bodies:-
a). Amend contract provisions after comprehensive discussions on Past researches about contract
provision with all stakeholders in construction industry, Educational institutes, Governmental and
nongovernmental offices which may have a contribution to resolve the problem on preparation and
evaluation techniques for time extension delay analysis in Ethiopian construction Industry.
b). Support and lead professional associations and higher education institutes to contribute their
roll for the industry to alleviate the current situation by collaborative research and development
with all stake holders involve in the industry.
References
Abdissa Dessa (2003), Claims in Ethiopian Construction Industry, Master’s Thesis, Addis Ababa
University.
Abdo Abatemam, (2006), Thesis on Delays in public building construction projects & their
consequences, Master’s Thesis, Addis Ababa University.
Abebe Dinku,et al(July2007), Fundamentals of Civil Engineering construction Management,
Addis Ababa University Press, Addis Ababa.
Abrham Aregawi et.al (June 2008),Reducing the impact of time overrun in road projects in
Ethiopia, B.Sc Thesis ,Addis Ababa University.
Act.Wort 1995 Civil engineering Supervision and Management
Ali Haidar and Peter Barnes (2011), Delay and Disruption Claims in Construction. Daniel
Atkinson, (April 2007), Time at large, adjudication, arbitration, and mediation by Atkinson-law
with articles on construction.
Ethiopian Economic Association (EEA) Sep 2008, Report on the Ethiopian economy Volume VI
2006/07 (The current state of the construction industry).
FIDIC (1987). Conditions of Contract for Works of Civil Engineering Construction, 4thed.
Fédération Internationale des Ingénieurs- Conseils.
FIDIC, International Federation of Consulting Engineers, Conditions of Contract for Construction,
for Building and Engineering Works Designed by the Employer, Red Book, Multilateral
Development Bank Harmonized Edition, 2010.
Girmay Kahsay (2003) Claims in International Projects in Ethiopia. Master’s Thesis, Addis Ababa
University.
Ian Wishart, (2012) Delay and Disruption - a separable duo, Construction Law J.
Ismaiel Ibrahim (2006) construction code, laws and principle lecture handout.
James. R. Knowles (2005) Extension of time and Claim for Delays and Disruption.
Khaled A.A. Alnaas, (2014), a systematic approach to prove disruption and delay in mega projects,
PhD Thesis Ain Shams University.
Khaled Ahmed et al Guide line for preparing comprehensive extension of time claim Housing and
Building National Research Center HBRC Journal Jan. 2014(Available online
http://ees.elsevier.com/hbrcj)
Appendix A - Questionnaire
Dear Participant,
I am undertaking a research study entitled “Review of Time Extension Delay Analysis Submission
and Evaluation Techniques and Trends with selected construction and consulting firms in Addis
Ababa” as part of my MSc. Study in Construction Technology and Management at Addis Ababa
University, Addis Ababa Institute of Technology.
As you well know there has been a remarkable construction boom in Ethiopia in the last decade
especially in recent years, due to complex Problems related to contract administration and
construction supervision, misunderstanding between stakeholders etc. the projects couldn’t
complete on the time specified in the contract. That is why most clients give building projects for
foreign companies. For instance Wegagaen, bank head quarter, Hibret bank head quarter,
Commercial bank of Ethiopia head quarter, Ethiopian Air Lines Hotel, e.tc This shows that unless
the main Ethiopian contractors problem ,Delay have got solutions Ethiopian construction fall in
foreign countries. The aim of this research is therefore to assess the practices causes of delays,
Submission and evaluation techniques in time extension delay analysis and show the gap between
internationally accepted techniques and in such a way to forward recommendations based on the
findings.
The questionnaire is developed to assess the practice of major stakeholders in a construction
project in using Time extension delay analysis preparation and evaluation methods. The name of
institutions and professionals participated will be recorded confidentially. The result of this survey
is intended to serve only of time constraints in such academic requirement researches; hence, I
sincerely request you to complete and return the questionnaire in a week time to enable me finalize
the research on time to meet the deadline.
Thank you for your invaluable time and cooperation.
Regards,
HabtemariamTesfaye/Researcher
The following survey questions are designed to assess Time extension delay analysis preparation
and evaluation techniques in construction industry. Please consider each question in terms of your
organization’s experience and/or your personal knowledge. Please indicate your response by
ticking (X or ) mark at the appropriate boxes or by filling the blank spaces provided, as
appropriate. You may kindly use the back side of the paper if the blank space (s) is/are not
sufficient.
1. Personal and Organization Profile
1.1. Name of Organization (Optional): _____________________________________________
1.2. Type of Organization:
Client/Employer Consultant Contractor Professional Institution
Other (Please specify) _______________________________________________________
1.3. Years since establishment:
<5 years 5-10 years 11-15 years 16-20years >20years
1.4. Organization’s area of specialization:
Building Highway Water Works All infrastructure
Other (Please specify)____________________________________________________
1.5. Your work experience in construction projects and construction project related works:
<5 years 5-10 years >10 years
1.6. Your participation in contract administration, construction supervision and project
Management:
<5 years 5-10 years >10 years
1.7. Your Name, title and contact address:
Name (Optional): ______________________________
Job Title: ______________________________
Contacts address (Optional):
E-mail: ________________________
Tel: ________________________
2. General Questions
2.1. In general, how do you describe the performance of the Ethiopian Construction Industry?
Very Good Good Bad Very Bad
Other (Please specify) ________________________________________________________
If your answer is bad, what challenges may have contributed in your opinion for the poor
competence?(Please check all that apply in your point of view)
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
____________________________________________________________________________
2.2. D0 you think the time Extension delay Analysis request provide by contractors is fair and
logical?
Yes No Partially
If it is partial or no,, what factor(s) do you believe behind the problem?
Lack of professional, technical and managerial skill
Negligence to provide the service as per the specified conditions
Corruption
Other (Please specify) ___________________________________________________________
____________________________________________________
2.3. D0 you think the time Extension delay Analysis evaluation technique by consultants is fair and
logical?
Yes No Partially
If it is partial or no,, what factor(s) do you believe behind the problem?
Lack of professional, technical and managerial skill
Negligence to provide the service as per the specified conditions
Corruption
Other (Please specify) ____________________________________________________
___________________________________________________________
______________________________________________________________________________
2.4. One of the protective methods for corruption is pay reasonable fee for professionals.D0 you
think consulting office’s pay reasonable salary for resident engineers?
Yes No Partially
If it is partial or no,, what factor(s) do you believe behind the problem?
If No, why?
Because it is unreasonable
To keep it secret and demand a favor from the resident engineer
2.8 Do you think the unregistered overtime fee for resident engineer will have an impact on time
extension delay analysis?
Yes No
2.9.. Contract administration is critical for smooth progress to execute the project according to the
planned schedule. Do youu feel contract administration meet the acceptable standard?
Strongly Agree Agree Disagree Strongly Disagree
If you are in disagreement, where do you think the problem arises?
The contract/contract forms used
Problems attributed to the Employer/Engineer
Problems attributed to the Contractor
Other (Please specify) ___________________________________________________________
____________________________________________________
2.10. Condition of contract is one of the main integral parts of contract document in construction
contracts.. Which contract form you/your firm use currently?
Ministry of Works and Urban Development, MoWUD 1994 contract form
Public Procurement Agency, PPA 2006,
2006 or 2011 contract form
Fédération Internationale des Ingénieurs-Conseils,
Ingénieurs Conseils, FIDIC Red Book contract form
FIDIC 1987 FIDIC 1999
Other (Please specify) ___________________________________________________________
__________________________________________________
2.11. Do you think the time extension analysis made by the engineer is Impartial??
Yes No
If No, what do you think the reason behind?
Because consultants get their income from the employer
Deliberately to bring the contractor to their interest
Because many contracts express that the consultants are agents for the employer
Other (Please specify) ___________________________________________________________
____________________________________________________
2.12. Do consultants treat all time extension causes equally like causes related to their office and to
employer?
Yes No
2.13. Do consultants and clients are accountable for the delay of the project?
Yes No
If No, is it fair? What is your opinion to hold the Engineer and Employer accountable?
______________________________________________________________________________
______________________________________________________________
___________________________________________________________________________
______________________________________________________________________________
2.14. To what Extent employer and consultant extend project completion time due to their fault?
Up to 1000 % of the original contract time
Up to 200 % of the original contract time
Up to 300 % of the original contract time
Up to 400 % of the original contract time
Haven’t known limit
2.15.Most of the time, Ethiopian Contractors abstain from requesting financial claims, though they
got approved time extension for extremely prolonged time. What possible reasons might be
behind?
Lack of awareness
Even though they understand their rights, they reserved in fear of risk their future work
relation with the Employer and consultants.
Fear the prolonged justice process
They believe that as the consultant and the employer favored them while approving the
time extension.
Other (Please specify) ___________________________________________________________
2.16. The contractor is given limited time frame to initiate claims; otherwise he is not entitled for
that claim.(PPA2011 and FIDIC1999 contract forms)Whereas even though it is stated that the
Employer shall be respond within 21 days no force measure is stated if he doesn’t reply
accordingly.. Do you think that, it is fair?
Fair Unfair
If it is unfair what do you suggest to make it balance?
___________________________________________________________________________
___________________________________________________________________________
2.17.It is known that good Construction management is become mandatory for completion of the
project on the contract specified time. How is the performance of domestic construction
management practices especially in light of contract administration?
Very Good Good Fair Poor
If it is poor, what are the reasons behind?
Lack of competent professionals in the field
Lack of conducive environment for practicing
Lack of awareness of stakeholders
Other (Please specify) ___________________________________________________________
What measures shall be taken to improve the current state of local construction management
Practices?
___________________________________________________________________________
___________________________________________________________________________
2.18. Did the consultant/Engineer or the client respond time claim on the time specified in the
contract?
Yes No
If no why________________________________________________________________
_______________________________________________________________
2.19. Did the client accept your claims after approved by the consultant? Yes No
If no why________________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
2.20. Did you have site diary file or site book for records? Yes No some times
2.22If yes did you use standard format to record these clams? Yes No
If no why_________________________________________________________________
__________________________________________________________________
2.23. Do you ever see a project completed within the contract time? Yes No
If Yes, how this attain?
Due to contractor’s good performance
Due to consultant’s good performance
Due to employer’s good performance
Due to all parties good performance
Due to the relaxed completion time fixed in the contract
2.24. Most projects carried out by local contractors do not completed on the contract time.
Would you please Categorize projects which are completed by your company for the last Five
years according the criteria listed below?
# Of Projects with < 5% time extension__________________
# Of Projects with 5 to 20% time extension _______________