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INTRODUCTION

This session will deal with two contractual areas frequently encountered when administrating a

contract and which if not properly dealt with might result in a great lost to the Contractor in

terms of both money and time (which incidentally also translates back to money).These areas arethe provisions of the Contract, which deal with: -a) Extension of time b) Loss & Expense (as often referred to by us)The best kept secret about

these Clauses are that they are provided to provide assistance to client and their removal will

actually result in great difficulty to the Client (sometimes the removal of these Clause would trap

the client in a very uncomfortable position, contractually). Therefore if ever the client impliesthat the extension of time or loss and expense are for the contractorsadvantage, he should be

reminded that the actual case is otherwise. However the importance of these Clauses to us, are

that they provide a contractual avenue to claim additional time and money without actuallyresorting to litigation. The reason both these Clauses are being dealt together is because the claim

arising would normally lead to a claim in the other especially in the case of an extension of time

claim. Therefore let us proceed with the examination of the various different standard contractforms and the provisions dealing with extension of time and loss andexpense.The examinations

of these Clauses are

to:a) identify the notification requirement b) set up Claim Action Plan and Proceduresc) set up Cl

aim Substantiationd) set up Record Keeping and Filinge) create Standard Correspondence and Form

FIDIC FORM OF CONTRACT CONDITIONS44.1 EXTENSION OF TIME FOR

COMPLETIONIn the event of: -

a) the amount or nature of extra or additional work, or b) any cause of delay referred to in theseConditions, or c) exceptionally adverse climatic Conditions, or d) any delay, impediment or prev

ention by the Employer, or e) other special circumstances, which may occur, other than through a

default of or breach of contract by the Contractor or for which he is responsible, being such as

fairly to entitle the Contractor to an extension of the Time for Completion of the Works, or anySection or part thereof, the Engineer shall, after due'consultation with the Employer and the

Contractor, determine the amount of suchextension and shall notify the Contractor accordingly,

with a copy to theEmployer.44.2 CONTRACTOR TO PROVIDE NOTIFICATION & DETAILEDPARTICULAR

SProvided that the Engineer is not bound to make any determination unless theContractor has: -

a) within 28 days after such event has first arisen notified the Engineer with acopy to theEmployer,

and b) within 28 days, or such other reasonable time as may be agreed by theEngineer, after such

notification submitted to the Engineer detailed particularsof any extension of time to which he

may consider himself entitled in order that such submission may be investigated at the time

44.3 INTERIM DETERMINATION OF EXTENSIONProvided also that where an event has a

continuing effect such that it is not practicablefor the Contractor to submit detailed particulars

within the period of 28 days referredto in Sub-Clause 44.2(b), he shall nevertheless be entitled to

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an extension of time provided that he has submitted to the Engineer interim particulars at

intervals of notmore than 28 days and final particulars within 28 days of the end of the

effectsresulting from the event. On receipt of such interim particulars, the Engineer shall,without

undue delay, make an interim determination of extension of time and, onreceipt of the final

particulars, the Engineer shall review all the circumstances andshall determine an overall

extension of time in regard to the event. In both such cases,the Engineer shall make hisdetermination after due consultation with the Employer and the Contractor and shall notify the

Contractor of the determination, with a copy tothe Employer. No final review shall result in a

decrease of any extension of timealready determined by the Engineer.

THE FIDIC FORM (FOURTH EDITION OF THE FIDIC FORM)Currently enjoying wideusage among internationally financed project and other largecivil project and also is similar to

Civil Engineering Works Form used by JKR.The above Clause allows for extension of time to be

claimed for the reason stated.However, any other event arising due to reasons beyond the controlof the Contractor would also entitle him to an extension of time, the main reasons

area) extra or additional work arisen a result of a variationorder. b) change in quality, kind or character of any such work.c) inclement of weather.d) delay in providing information or instructionby theclient/representative.e) unforeseen physical or artificial obstruction.f) delay in clarifying di

screpancies or ambiguities in the contract document.g) delay as a result of an Engineer's instructi

on which - couldnot have been reasonably foreseen at the time of

tender.h) change in construction method from that which would have been reasonablyused forthe said works as would have been contemplated at the time of

tender.i) delay from independent contractors or caused by additionalwork related to the said

contractors. j) delay from Nominated Subcontractor or Nominated Suppliers.k) delay due to the suspension of work.1) failure to give full and vacant, possession on time.m) act of God.n) force m

ajeure.o) strike. p) lockout or civil commotion.r) other reason beyond the control of Contractor.