CONTRACTOR’S APPLICATION FOR AN EXTENSION OF TIME

NORHANA BINTI DANIAL

A project report submitted in partial fulfilment of

the requirements for the award of the degree of

Master of Science (Construction Management)

Faculty of Civil Engineering

Universiti Teknologi Malaysia

JUNE, 2007

iii

To my beloved mother and father

iv

ACKNOWLEGEMENT

In preparing this project, I was in contact with many people, researchers,

academicians and practitioners. Firstly and of course, I wish to express my sincere

appreciation to my project supervisor, Professor Dr. Muhd Zaimi Abdul Majid for

his encouragement, guidance and friendship during the writing of this project.

Secondly, to my fellow postgraduate student and also practitioner in the construction

industry, Aniza Abu Bakar, for her kind assistance, views and tips in this master

project. My other fellow postgraduate students should also be recognised for their

support. Thanks also due to my parents for their support, and all my colleagues past

and present who have offered numerous helpful suggestions.

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ABSTRACT

Invariably an evaluation of extension of time (EOT) will be made based on

the information submitted by the contractor such as work programme and architect’s

instructions. Lack of information of delay is one of the common mistakes by the

contractor in the application of EOT and this can lead to obstacles in prompt

settlement of claims for EOT. The objectives of this research are: to identify the

information that needs to be considered in evaluating extension of time application;

to identify the common mistakes by the contractor in the application of extension of

time; and to identify the ways to reduce the mistakes by the contractor in the

application of extension of time. The methodology of this study includes literature

reviews, data collection and analysis. Data is gathered from responses of

questionnaire survey with professionals involved in the construction project. The

research findings indicate that insufficient quality of information and poor

presentation of the application to show how the progress of the work has been

delayed remained as the highest common mistakes. This research highlights the

ways to reduce the mistakes to speed up the evaluation process in order to establish

the contractor’s entitlement for EOT and also to avoid disputes about contractor’s

entitlement for EOT. In conclusion, the mistakes could be best controlled or reduced

by the implementation of a document management system.

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ABSTRAK

Penilaian lanjutan masa biasanya dibuat berdasarkan maklumat yang

diserahkan oleh kontraktor seperti program kerja dan arahan arkitek. Kekurangan

maklumat kelambatan adalah salah satu kesilapan biasa oleh kontraktor dalam

permohonan lanjutan masa dan ini boleh membawa kepada halangan untuk

penyelesaian segera tuntutan lanjutan masa. Objektif-objektif kajian ini adalah:

mengenalpasti maklumat yang diperlukan dalam menilai permohonan lanjutan masa;

menenalpasti kesilapan-kesilapan biasa oleh kontraktor dalam permohonan lanjutan

masa; dan mengenalpasti cara-cara untuk mengurangkan kesilapan tersebut. Kaedah

kajian ini termasuklah kajian literatur, pengumpulan data dan analisis. Data

diperoleh daripada maklumbalas kajian soal selidik dengan professional yang terlibat

dalam industri pembinaan. Penemuan kajian menunjukkan bahawa ketidakcukupan

kualiti maklumat dan kekurangan dalam permohonan untuk menunjukkan bagaimana

kemajuan projek menjadi lewat adalah kesilapan-kesilapan yang tertinggi. Kajian ini

memfokuskan kepada cara-cara untuk mengurangkan kesilapan tersebut untuk

mempercepatkan proses penilaian dalam memberikan hak kontraktor terhadap

lanjutan masa dan juga untuk mengelakkan pertelingkahan tentang hak kontraktor

terhadap lanjutan masa. Kesimpulannya, kesilapan-kesilapan tersebut dapat

dikurangkan dengan melaksanakan sistem pegurusan dokumen.

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TABLE OF CONTENTS

CHAPTER TITLE PAGE

DECLARATION ii

DEDICATION iii

ACKNOWLEGEMENT iv

ABSTRACT v

ABSTRAK vi

TABLE OF CONTENTS vii

LIST OF TABLES xi

LIST OF FIGURES xiii

LIST OF APPENDICES xiv

1 INTRODUCTION

1.1 Introduction 1

1.2 Background 2

1.3 Problem Statement 4

1.4 Research Aims and Objectives 5

1.5 Research Scopes and Limitations 5

1.6 Importance of the Study 6

1.7 Research Methodology 7

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2 PROVISION OF EXTENSION OF TIME

IN CONSTRUCION CONTRACTS

2.1 Introduction 11

2.2 Contract Provision for Extension of Time 12

2.3 Purposes of Extension of Time 24

2.4 Benefits of Extension of Time 24

2.5 Procedures for Claiming an Extension of Time 25

2.6 Conclusion 28

3 THE REQUIREMENTS IN THE APPLICATION

FOR AN EXTENSION OF TIME

3.1 Introduction 29

3.2 Proof of Entitlement 30

3.2.1 Information That Needs to be

Considered in Evaluating Extension of

Time Application 32

3.2.1.1 Construction and Progress Records 33

3.3 Common Mistakes by the Contractor in the

Application of Extension of Time 36

3.3.1 Major Mistakes 37

3.3.2 Lack of Proper Baseline Schedule 37

3.3.3 Lack of Proper Site Records and

Insufficient Quality of Information 38

3.4 Practical Ways for Minimising Contractor’s

Mistakes in the Application of Extension of Time 39

3.5 Conclusion 41

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4 RESEARCH METHODOLOGY

4.1 Introduction 42

4.2 Literature Review 43

4.3 Selection of Respondents 43

4.4 Research Design 44

4.4.1 Questionnaire Survey Design 44

4.5 Analysis Method 47

4.5.1 Frequency Analysis 48

4.5.2 Average Index Analysis 48

4.6 Conclusion 51

5 RESEARCH ANALYSIS AND DISCUSSION

5.1 Introduction 52

5.2 Data Analysis for Questionnaire Survey 53

5.2.1 Analysis for General Information of the

Respondent 53

5.2.2 Analysis for Background of Project 56

5.2.3 Analysis for Information That Needs

to be Considered in Evaluating

Extension of Time Application 60

5.2.3.1 Information for Delays Relating

to Reason of Architect’s/

Superintending Officer’s Instructions 61

5.2.3.2 Information for Delays Relating

to Reason of Late Instructions,

Drawings or Level 62

x

5.2.3.3 Information for Delays Relating

to Reason of Delay by Nominated

Subcontractors or Suppliers 64

5.2.3.4 Summary of Information That

Needs To Be Considered in

Evaluating Extension of Time 65

5.2.4 Analysis for Common Mistakes by the

Contractor in the Application of

Extension of Time 66

5.2.5 Analysis for Ways to Reduce the

Mistakes by the Contractor in the

Application of Extension of Time 68

5.3 Conclusion 70

6 CONCLUSION AND RECOMMENDATION

6.1 Introduction 71

6.2 Conclusion 72

6.3 Recommendations 73

6.4 Limitation of the Study 75

6.5 Recommendation for Further Study 75

REFERENCES 76

BIBLIOGRAPHY 79

APPENDIX 80

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LIST OF TABLES

TABLE NO. TITLE PAGE

2.1 Reasons of delay that can entitle a contractor to claim

extension of time and loss and/or expense 13

2.2 Relevant events causing delay which extension of time

may be given 15-23

2.3 Procedure for an extension of time under PAM 98 and

PWD 203A standard form of contract 27

4.1 The classification of the rating scales in Section A

of the questionnaire 50

4.2 The classification of the rating scales in Section B

of the questionnaire 50

4.3 The classification of the rating scales in Section C

of the questionnaire 51

4.4 The classification of the rating scales in Section D

of the questionnaire 51

5.1 Respondent organization 54

xii

5.2 Respondent post 55

5.3 Respondent experience 56

5.4 Standard form of contract used in the construction

project that the respondents have experienced 57

5.5 Reasons of delay which EOT may be given 60

5.6 Information that needs to be considered for the

reason of architect’s/ superintending officer’s

instructions 62

5.7 Information that needs to be considered for

the reason of late instructions, drawings or level 63

5.8 Information that needs to be considered for the reason

of delay by nominated subcontractors or suppliers 65

5.9 Common mistakes by the contractor in the

application of EOT 67

5.10 Ways to reduce the mistakes by the contractor in the

application of EOT 69

xiii

LIST OF FIGURES

FIGURE NO. TITLE PAGE

1.1 Research methodology 10

5.1 Respondent organization 53

5.2 Respondent post 54

5.3 Respondent experience 55

5.4 Standard form of contract used in the construction

project that the respondents have experienced 57

5.5 Types of projects that the respondents have experienced 58

5.6 Application for extension of time in construction projects 59

xiv

LIST OF APPENDICES

APPENDIX TITLE PAGE

A Questionnaire form 80

CHAPTER 1

INTRODUCTION

1.1 Introduction

Provision of EOT is made in building contracts for architects/ S.O to grant

EOT for the completion of the work where delay due to certain specified causes has

occurred. The contractor should be compensated with the time he suffers loss due to

causes outside his control. The clause in the standard form requires the contractor to

inform the architect/ S.O in writing of the delay fact when he realizes that the

progress of the works is delayed. A contractor should be required to supply

information about the delay, including identifying the event that led to the delay in

order to take into account by the evaluator and to determine whether the contractor is

entitle to EOT or not. Lack of information of delays is one of the common mistakes

by the contractor in the application of EOT and this can lead to obstacles to prompt

settlement of claims for EOT. Besides that, there are other common mistakes that

need to be identified and after that knowing the ways to reduce the mistakes.

2

1.2 Background of the Study

The contractor’s obligation is to carry out and complete the works before or

on completion date (Nor Ainah, 2001). An employer could impose liquidated

damages for contractor’s failure to meet the completion date as a result of delaying

circumstances. Such delaying circumstances can be of three types which are delays

caused by the contractor, delays caused by neutral events and delays caused by the

employer or his agents (Sundra Rajoo, 1999).

A delay in the building work may arise from a number of causes as

mentioned before which may prevent completion by the agreed date. Some events

are beyond the control of the builder and it is considered not to take into accounts

would be unfair. Instead, the contractor should be compensated with the time that

has been lost and this compensation is what is termed as ‘extension of time’ (EOT) in

contract administration (Manson, 1968; Hashim, 2001).

Most building contracts contain express provisions for time extension to be

granted by the architect in the event of delay that permitted in the contracts.

Provision of EOT is stated in the standard form of contract, clause 23 PAM 98, and

clause 43 PWD 203A. The operation of EOT provision modifies the obligation of

the contractor to complete the works by the date for completion specified in the

appendix, and his liability to pay liquidated damages for late completion. EOT is

given with the view to extend the contract period and it is given solely to replace the

time lost to the contractor. EOT will not be given if the delay is caused by the

contractor. By this reasoning, EOT is not given on contractual ground to help the

contractor to complete the work because EOT is a right in the building contract and

not a privilege (Hashim, 2001). It imposes a duty on the architect to grant ‘a fair and

reasonable EOT for completion of the works’ in specified circumstances.

3

EOT shall be exercised by the architect upon the concurrence of the event,

upon knowledge of the contract programme and before the final certificate.

However, because the EOT clause comprehends delays due to causes of many kinds,

it may not be necessary to grant an EOT before completion, in exceptional cases

example a strike mean to last beyond the contract date and the extend delay could not

be known until after the contract time had expired (Lim, 1998).

The evaluation to derive at the EOT entitlement can indeed be a complex

subject especially when there is more than one delaying events (Entrusty Group,

2006). Invariably, an evaluation of EOT will be made based on the programmes

submitted by the contractor (Kevin, 2005). Besides the programmes, the contractor

is advisable to provide relevant information related to delays such as variations and

architect’s instruction for references, towards consideration for EOT (Lim, 1998).

The strength of the contractor’s case will depend on the quality of his information

(Brian, 1997).

A contractor should be required to supply facts about the delay, including

identifying the event that led to the delay. The contractor must also provide proof of

the events that were allegedly responsible for the delay. The matter of proof is one

frequently overlooked by potential litigants in their enthusiasm to formulate

arguments as commented by Keith Pickavance (Nicholas, 2005):

‘Poor quality of project documentation leads to poor factual evidence

and presents serious difficulties in identifying the rights of the

parties’.

Poor factual evidence such as lack of information of delays is one of the contractor’s

mistakes in the application of EOT and this can lead to obstacles to prompt

settlement of claims for EOT.

4

EOT needs serious deliberation and consideration when it is applied to

construction projects. There are risks that failure to accurately assess delays to

completion of a construction contract will result in unnecessary extensions to the

completion time, excessive delay-related costs, or disputes about a contractor’s

entitlement to EOT or delays costs. Therefore, it is important by the evaluator to

consider and refer all the information that related to delays, which can assist them in

evaluating EOT application (BLR, 1985). It will be prudent to seek advice about the

procedures and all the information that needs to be submitted for EOT application

from an architect, engineer or a quantity surveyor, who act as an evaluator when a

contractor wishes to apply EOT in relation to delays.

1.3 Problem Statement

The contractor’s duty is to give the architect as much information as he can

about the cause of delays and so assist the architect in performing his duty, as

mentioned in clause 23(1) PAM 98, ‘the notice (for extension of time) shall contain

sufficient information and reason why delay to completion will result’. The

contractor’s failure to provide information if requested is one of the contractor’s

mistakes in the application of EOT. No action would be taken by the employer if the

contractor failed to submit such information unless the actions are stated in the

contract. The contractor’s failure to provide related information of delays puts

himself at a disadvantage on proof of entitlement to EOT.

The next mistake is the submission of work programme by the contractor is

not detailed and unrealistic. In Malaysia, generally, the programme of works as

prepared by the contractor is usually not detailed, not realistic or not have the

activities properly linked to show the critical path. It is usually used for ‘show’ only

more than anything else which is the cause of many incidents where EOT was not

5

granted even when the contractor rightly has its entitlement to EOT if a proper

programme of works was presented and all the information related to delays was

provided (Entrusty Group, 2006).

1.4 Research Aims and Objectives

The aim of this study is to identify and recommend the best way to reduce the

common mistakes by the contractor in the application of extension of time. To

achieve this aim, the following objectives have been identified:

1. To identify the information that needs to be considered in evaluating

extension of time application.

2. To identify the common mistakes by the contractor in the application of

extension of time.

3. To identify the ways to reduce the mistakes by the contractor in the

application of extension of time.

1.5 Research Scopes and Limitations

Basically, this research project focuses on explaining provision of EOT in

PAM 98 and PWD 203A standard form of contract. Furthermore, several common

law cases related to EOT will be used to support explanation and arguments. The

scope of this research also will be focusing on the study of the information that needs

to be considered by the evaluator in evaluating EOT application. This research is

6

limited to professionals (evaluator) working in quantity surveying, architecture and

civil engineering firm located in Johor Bahru area. Besides, the study would be

made to determine the common mistakes by the contractor relating to the information

on the application for EOT. Hence, the view of the Quantity Surveyor, Architect and

Engineer to reduce the mistakes is essential towards improving the current mistakes

of the contractor in the application of EOT.

1.6 Importance of the Study

From the facts as mentioned before, it can be concluded that all the

information related to delays are very important to assist the evaluator to recommend

or grant EOT to the contractor. The contractor needs to provide sufficient

information in order to assist the evaluator in the evaluation process. It is important

to identify the information that needs to provide by the contractor in order to get ‘a

fair and reasonable extension of time’. This research is not only focused to the

information that related to the work programme, but it is also considered other

relevance information (supporting documents) that caused delays to take into account

by the evaluator and to determine whether the contractor is entitle to EOT or not.

One of the common mistakes that occurred in EOT application is when the

information related to delay was not provided by the contractor. Besides, there are

other mistakes that need to be identified to avoid risk of failure to accurately assess

delays in the application of EOT and after that knowing the ways to reduce the

mistakes. With this study, the contractor could indeed benefit from this study’s

outcome and have more knowledge about the improvement of the preparation for

EOT application in order to speed up the evaluation of the architect to establish

contractor’s entitlement for EOT and to avoid disputes about contractor’s entitlement

for EOT.

7

1.7 Research Methodology

A few stages of work need to be carried out in order to achieve the stated

objectives. Implementation of the stages of work is arranged to ensure the research

can easily be done and impressive. This approach is to ensure that all relevant

information can be collected and precisely analyzed. Stages of work for this research

are elaborated as follows:

1. Planning and pre-discussion

The process involved in this stage is survey need to be carried out to identify

area of study, for example the study in the aspect of construction contract and all the

relevant issues. Detail discussion with supervisor can assist to find out idea about the

area of study to be done. Next process is to determine project topic and objectives

and state the scope and limitation of project to achieve the objectives.

2. Pre-Study

Pre-study is carried out to get a clear description about the research. The

literature reviews provide useful guidelines and information on EOT provision in

construction contract. Those literature reviews were also used to guide the process

of extracting the idea and relevant issues, and to easily prepare the research process.

3. Identify Data

Data that needs to be identified is primary data and secondary data to fulfil

the research objectives.

8

4. Data Collection

This process is the most important process to do the research. All the data

collected is arranged into a form that can be studied easily. Data collection for this

research can be divided to two types:

a) Primary Data

Collection of primary data is an important process to get the source of

information and for the purpose of analysis. It has been obtained from

questionnaires of the quantity surveyor, architect and engineer as a practitioner, who

has extensive experience and knowledge in evaluating EOT.

b) Secondary Data

Secondary data has been obtained from reading and studying from printed

materials such as standard form of contract (PAM 98 and PWD 203A), books,

journals, articles, previous study, and seminar papers to study the information of

delay and EOT in construction contracts. Those literature reviews were also used to

guide the formation of questionnaire design.

5. Analysis of Data

Primary data is analyzed in order to achieve the research objectives. Besides,

summary and suggestion of the research are prepared based on the results from the

analysis. The methods to analyse the data are detailed elaborated in chapter 4 to ease

the process of analysing data.

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6. Writing and Completion

All the information will be arranged to understandable form for the purpose

of writing before submission to the supervisor. Next is correction process before

documentation process can be done. Finally, the complete project is ready to be

submitted on the submission date.

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1st Stage ……………………………………………………………………………………………………………………………………….

2nd Stage ……………………………………………………………………………………………………………………………………….

3rd & 4th Stage ……………………………………………………………………………………………………………………………………….

5th Stage ……………………………………………………………………………………………………………………………………….

Figure 1.1: Research Methodology

Detail review on thesis, articles and

books

Detail discussion with supervisor

Questionnaire survey

PRE-DISCUSSION

IDENTIFY AREA OF STUDY

SELECTION OF TOPIC

DISCUSSION WITH SUPERVISOR

IDENTIFY DATA & DATA SOURCES

DATA COLLECTION

LITERATURE REVIEW

Books, articles, seminar papers, journals,

PAM 98 & PWD 203A Standard Form

of Contract

SECONDARY DATA PRIMARY DATA

ANALYSIS & INTERPRETATION OF DATA

RESEARCH WRITING

REVISION & CORRECTION

DOCUMENTATION

SUBMISSION OF PROJECT

COMPLETION

CHAPTER 2

PROVISION OF EXTENSION OF TIME IN CONSTRUCION CONTRACTS

2.1 Introduction

The legal prevention is of general application in contracts and is to the effect

that one party cannot impose a contractual obligation on the other party where he has

impeded the other in the performance of that obligation. Given the complexity of

construction projects, the very real possibilities of variations, the difficulties of

coordination and other unforeseen issues it is, unless some relief is available, almost

impossible for the employer to avoid falling into the trap of prevention. Therefore,

extensions of time clauses provide this relief (Lawrence, 2001).

Extension of time provisions preserve the contractor’s obligation to complete

within a specified time and in doing so the provisions preserve the employer’s right

to liquidated damages, when by prevention, he has delayed the contractor and is

responsible in part for late completion. It is common to provide an express power for

the EOT for completion and if an extension has been granted it operates wholly or

partially as a defence to a claim for liquidated damages from the original completion

date. If there is no express power to extend for a delay which is not the fault of the

employer, the contractor takes the risk of that delay and will not avoid liquidated

damages (Lawrence, 2001).

12

A fundamental point is that the time for completion can only be extended

where the contract permits, and strictly in accordance with the contract provisions. If

delay is caused by some event which the contract does not cover, then the contractor

cannot claim an extension (Murdoch and Hughes, 1992). Time extensions may be

justified when the contractor experiences delay caused by the labour disputes, fire,

extremely unreasonable weather conditions, acts or neglect on the part of employer

or a nominated contractor, or other causes beyond the contractor’s control (Harold,

1976). Without an EOT clause, the contractor is under a strict obligation to complete

on time unless he is prevented from doing so by acts or breaches of the employer or

by operation of the law (Vincent; Michael, 1984).

2.2 Contract Provision for Extension of Time

All construction contracts usually contain provisions for time extension and

monetary claim in the event of delay. The relevant events causing delay which shall

be the ground for the contractor to apply for an EOT are detailed and stated under

PAM 1998, clause 23, PWD 203A clause 43. Any event falling outside the listed

events will not entitle the contractor to any EOT (Entrusty Group, 2006; PAM 1998,

JKR 203A). The events for delay can be categorized into three major groups, which

are the delays by the contractor, by the client, or by a third party or neutral events

(other than contractor and client) (Hashim, 2001; Sundra Rajoo, 1999).

The delaying events that are entirely due to the contractor itself are

commonly termed as culpable delay. It is sometimes called inexcusable or non-

qualifying (for EOT) delays. Strictly, culpable delay is the situation where the

contractor has failed to complete the works on completion date and has no

entitlement to an EOT let alone monetary compensation. Culpable delay is also

sometimes used to describe the situation prior to the date for completion where the

13

contractor has fallen behind programme of schedule without cause for extension

(Entrusty Group, 2006).

If the delaying events are due to defaults by the employer and/or his agents

(compensable delays), the contractor will be entitled for both time and monetary

claim (depends on the wording of the contract the parties have entered into).

Compensable delays occur when the owner or consultant has delayed the contractor

in the completion of the work. It entitles the contractor to additional compensation

and the contractor may be granted EOT and money. The examples for this event are

late decision or information of the Architect/Engineer/S.O, late site delivery,

compliance with the Architect/Engineer/S.O, delay by the employer’s agents, delays

by nominated subcontractors/suppliers, etc. For the delays due to a third party or

excusable delays, the contractor is entitled for time extension but no monetary claim.

The causes due a third party are those affecting a delay by those other than contractor

and the client, and by element of nature (Entrusty Group, 2006; Hashim, 2001;

Abdul Rahman, 2006).

The grant of an EOT does not carry any automatic entitlement to extra

money. The test for granting EOT and the consequential right to loss and/or expense

can be displayed in Table 2.1 (Basar, 1997). The clauses which related to relevant

events causing delay which EOT may be given, together with description and

explanation are indicated in Table 2.2 (PAM 98; PWD 203A; Lim, 2004, Vincent,

1990; Sundra Rajoo, 1999).

Table 2.1: Reasons of delay that can entitle a contractor to claim extension of

time and loss and/or expense

Reason of Delay Extension of Time Loss and/or Expense

Contractor’s fault (non-excusable) No No

Employer’s fault (compensable) Yes Yes

Nobody fault (excusable) Yes No

15

Table 2.2: Relevant events causing delay which extension of time may be given

Event Clause Description under PAM

98 Clause

Description under PWD

203A Explanation

1. Force Mejuere

23.7(i)

Force Mejuere

43(a)

Force Mejuere

Force mejuere is a term derive from French law

and is used with reference to all circumstances

independent of the will of man and which are not

in his power to control. It is unanticipated event

or an event that one cannot reduce to control (e.g.

earthquake).

2. Exceptionally

inclement

weather

23.7(ii)

Exceptionally inclement

weather

43(b)

By reason of any

exceptionally inclement

weather

Inclement weather means severe stormy, harsh or

merciless weather/ climate.

The emphasis is on the exceptional nature of the

inclement weather and the meaning has to be

applied considering two factors. The first factor is

the kind of weather that may be expected at the

site at the particular time when the delay occurs

and the second factor is the stage in which the

works have reached.

The reference to meteorological records of local

weather over a considerable period of time may

be helpful in showing that the weather is

exceptional for that area exceeding what may on

the evidence of past years be reasonably

expected.

16

Table 2.2: Relevant events causing delay which extension of time may be given

Event Clause Description under PAM

98 Clause

Description under PWD

203A Explanation

3. Insurance

Contingencies

23.7(iii)

Loss or damage occasioned

by one or more of the

contingencies referred to in

clause 20.A, 20.B.1 or

20.C.1 as the case may be.

43(d)

By reason of loss or damage

occasioned by anyone or more

of the contingencies referred to

in clause 36 hereof (provided

end to the extent that the same

is not due to any act,

negligence, default or breach

of contract by the contractor or

any subcontractor, nominated

or otherwise, whether in

falling to take reasonable steps

to protect the works or

otherwise).

This applies to extension of time granted for

rebuild or repair of damages or loss to the

works, caused by fire, storm, tempest,

lightning, flood, earthquake, aircraft and

other aerial devices or articles dropped

therefrom, riot, civil commotion and in

respect to claim from insurances.

4. Civil

commotion,

strikes, lockout

23.7(iv)

Civil commotion, strike or

lockout affecting any of the

trades employed upon the

works or any of the trades

engaged in the preparation,

manufacture or

transportation of any goods

or materials required for the

works.

43(h)

By reason of any action due

to local combination of

workmen, strike or lockout

affecting any of the trades

employed upon the works,

provided the same are not

due to any unreasonable act,

neglect or default of the

contractor or of any

subcontractor, nominated or

otherwise.

The events are limited to only local

combination of workers, strikes, or lockout

affecting the trade employed upon the works.

Local combination of workers probably

covers obstructive industrial activities short

of a strike.

It should be noted that the contractor must

not have the local combination, strike or lock

out, such as through a failure to pay the

workmen’s wages.

17

Table 2.2: Relevant events causing delay which extension of time may be given

Event Clause Description under PAM

98 Clause

Description under PWD

203A Explanation

5. Architect’s/

S.O.’s

instructions

23.7(v)

Compliance of architect’s

instructions under clauses

1.2, 11.2, 21.1 or 21.4.

43(e)

By reason of SO’s

instructions issued under

clause 5 hereof, provided

that such instructions are not

issued due to any default or

breach of contract by the

contractor or any

subcontractor, nominated or

otherwise.

The instructions referred to are summaries in

the stated clauses. The contractor’s

entitlement to an EOT is subject to the

proviso that the instruction is not issued due

to any default or breach of contract by the

contractor or by those for whom he is

responsible.

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Table 2.2: Relevant events causing delay which extension of time may be given

Event Clause Description under PAM

98 Clause

Description under PWD

203A Explanation

6. Late

instructions,

drawings or

level

23.7(vi)

Contractor not having

received in due time

necessary instructions,

drawings, details or levels

from the architect for which

he had specifically applied

in writing provided that the

application was made on a

date having regard to the

date for completion was

neither unreasonable close

to the date on which it was

necessary for him to receive

them.

43(f)

By reason of the contractor

not having received in due

time necessary instructions,

drawings, level or

instructions, in regard to the

nomination of

subcontractors and/or

suppliers provided in this

contract, from the SO due to

any negligence or default of

the SO and for which he

shall have specifically

applied in writing on a date

which having regard to the

date for completion stated in

the appendix to these

conditions or to any EOT

then fixed under this

conditions, was neither

unreasonably distant from

nor unreasonably close to

the date on which it was

necessary for him to receive

the same.

The failure of the architect/ SO to provide the

contractor with further reasonably necessary

information to amplify the drawings or bill of

quantities as and when necessary or in good

time puts the employer in breach of contract.

That notwithstanding, it is essential in order

to sustain a claim for an EOT for the

contractor to have made a specific written

application to the architect/ SO for the

information and this must have been done at

the right time.

19

Table 2.2: Relevant events causing delay which extension of time may be given

Event Clause Description under PAM

98 Clause

Description under PWD

203A Explanation

7. Delays on the

part of

nominated

subcontractors

or suppliers

23.7(vii)

Delays on the part of

nominated subcontractors

or nominated suppliers for

the same reasons as set out

in the sub-clauses 23.7(i) to

23.7(vi) and sub-clauses

23.7(viii) to 23.7( xii).

43(k)

By the delay on the part of

the nominated

subcontractors and/or

nominated suppliers of their

works and such delay shall

be caused by the same

reasons affecting their work

as stated above in sub-

clauses (a) to (f) inclusive

(provided that the same are

not due to any act,

negligence, default or

breach of contract by the

nominated subcontractor

and/or nominated supplier

and/or the contractor, or any

of the servants or agents of

such nominated

subcontractor or nominated

supplier or the contractor).

Delay on this ground is very common but it

does not include a situation where the

nominated subcontractor or nominated

supplier has ceased work altogether, for

example through receivership or liquidation.

The contractor is allowed EOT on account of

delays on the part of the nominated

subcontractors or nominated suppliers for the

same reason as set out in the clause 23.7,

PAM 98 and 43, PWD 203A. Essentially,

the contractor is entitled for an EOT if the

delays of the nominated subcontractors or

suppliers fall within the same relevant events

for which the contractor himself if in delay

would be given an EOT.

20

Table 2.2: Relevant events causing delay which extension of time may be given

Event Clause Description under PAM

98 Clause

Description under PWD

203A Explanation

8. Delay on the

part of artists,

tradesmen or

others engaged

by the

employer

23.7(viii)

Delay on the part of artists,

tradesmen or others

engaged by the employer in

executing work not forming

part of this contract.

43(i)

By delay on the part of

artists, tradesmen, or others

engaged by the Government

in executing work not

forming part of this

contract.

This provision permits the employer to carry

out the work not forming part of the contract.

The employer accepts responsibility for delay

on the part of such people. This is however

restricted to delay in the execution of their

work and does not extend to delay caused by

their returning to carry out remedial work

after purported completion.

9. Delay in the

supply of

material and

goods

23.7(ix)

Delay in the supply of

materials and goods which

the employer had agreed to

supply for the works

-

-

It must be noted that there is no express

provision in the conditions to allow for the

possibility of the works being carried out

using materials and goods which are to be

supplied by the employer. But such

circumstances do in reality exist and if there

is a delay caused by the employer in

supplying the materials and goods, the

contractor should be entitled to an

appropriate EOT. This could possibly

include instances where the delay is caused

by the employer having supplied the

materials and goods on time but they proved

defective either before use or after being built

into the works. In such situation, the

employer should indemnify the contractor.

21

Table 2.2: Relevant events causing delay which extension of time may be given

Event Clause Description under PAM

98 Clause

Description under PWD

203A Explanation

10. Testing and

inspection

23.7(x)

Opening up for inspection

any work covered up or the

testing of any work,

materials or goods in

accordance with clause 6.3

(including making work in

consequence of such

opening up or testing)

unless the inspection or test

showed that the work,

materials or goods were not

in accordance with the

contract.

-

-

This clause requires the contractor to provide

test report and samples before commencing

work. Generally, architect is reluctant to

open up, unless there is high degree of

suspect of the works and premature defects

arising. The contractor can recover the cost

and time of opening up, testing and making

good, unless this has been provided for in the

contract bills or unless the inspection or test

shows that the works, materials or goods are

not in accordance with the contract.

11. Act of

prevention or

breach of

contract by the

employer

23.7(xi)

Any act of prevention or

breach of contract by the

employer not mentioned in

this clause 23.7.

-

-

This is a useful clause, because of employer’s

agent, action of constant interruption, on

large projects these days. If the contractor

alleges that there has been an act of

prevention or breach of contract by the

employer, the architect can continue to

administer the contract and grant EOT as and

when he considers these appropriate.

22

Table 2.2: Relevant events causing delay which extension of time may be given

Event Clause Description under PAM

98 Clause

Description under PWD

203A Explanation

12. Disputes with

neighbouring

owner

-

-

43(c)

By reason of directions

given by the SO

consequential upon disputes

with neighbouring owners

provided the same is not due

to any act, negligence or

default of the contractor or

any subcontractor,

nominated or otherwise.

The delay must have arisen as a result of the

direction given by the SO consequential to a

dispute by the Government, or possibly the

contractor, and the neighbouring owner,

though not necessarily of the adjacent site.

The commonest dispute here is over the

boundary of the site as a result of the dispute,

the delay could be occasioned by the

reconstruction or suspension of the work or

by a restricted method of working as directed

by the SO.

There is however the proviso that the dispute

must not be due to any act, negligence or

default of the contractor or for those whom

he is responsible, the commonest being

erroneous setting out resulting in boundary

encroachment.

23

Table 2.2: Relevant events causing delay which extension of time may be given

Event Clause Description under PAM

98 Clause

Description under PWD

203A Explanation

13. Delay in giving

possession of

site

-

-

43(g)

By reason of delay in giving

possession of the site as

provided under clause 38(d)

hereof.

This is to be read in conjunction with clause

38(d), PWD 203A where the SO is

empowered to issue and so issue, an

instruction revising the date for possession

due to the inability or failure on the part of

the employer to give possession of the site on

the date for possession fixed in the letter of

acceptance.

14. Inability to

obtain

materials or

goods

-

-

43(j)

By the contractor’s inability

for reason beyond his

control and which he could

not reasonably have

foreseen at the date of

closing of tender of this

contract to secure such

goods and/or materials as

are essential to the proper

carrying out of the works.

This applies only if the securing of the goods

or materials are beyond the contractor’s

control, but the shortage must have been one

that could not have reasonably been foreseen

at the date of the closing of the tender. It

should be noted that this clause is not

applicable for shortage of labour even though

essential for the execution of the works.

24

2.3 Purposes of Extension of Time

The operation of EOT clause modifies the liability of the contractor to

complete the works by the date for completion specified in the appendix and to LAD

to the employer upon the failure of the contractor to meet the deadline. It imposes a

duty on the architect/ S.O to grant a fair and reasonable EOT for the completion of

the works in certain specified circumstances. The effect of extending the time for

completion prevents the architect/ S.O from issuing the Certificate of Non-

completion until and unless the revised completion date has passed (Lim, 2004).

Extension of time clauses, therefore have various purposes (Brian, 1997):

a) To retain a defined time for completion

b) To preserve the employer’s right to liquidated damages against acts of

prevention

c) To give the contractor relief from his strict duty to complete on time in

respect of delays caused by designated neutral events

2.4 Benefits of Extension of Time

The express provisions for EOT in building contracts obviously benefit the

contractor who will not be liable to pay damages for delay during the period for

which time is validly extended. In addition and less obviously, the power to extend

time is also for the employer’s benefit, for the following reason (Murdoch and

Hughes, 1992).

At common law, the contractor’s obligation to complete the works by the

specified date is removed of the employer delays the contractor in the execution of

the works. Thus if the contract administrator issues and instruction which increases

25

the amount of work to be done, or is late in giving the contractor necessary

instructions, the specified completion date no longer applies. In this situation, time is

said to be ‘at large’ and the contractor’s obligation is merely to complete the works

within a reasonable time. In order to fix what is reasonable, all the circumstances of

the particular project must be taken into account, but in many cases, it will simply

mean that the amount of delay for which the employer is responsible will be added to

the old completion date (Murdoch and Hughes, 1992).

The importance of losing the fixed date is that, a contractor who may be

liable to pay damages for delay which is his fault, can no longer be made liable for

liquidated damages. Even where the delay caused by the employer is a very small

part of the overall delay, the employer cannot simply discount this and claim

liquidated damages for the remainder. The liquidated damages provision fails

altogether, and the employer can claim only for losses actually due to the delay. It is

therefore very much in the employer’s interest to extend time for delays which are

his fault, thus enabling claims for liquidated damages from the revised completion

date (Murdoch and Hughes, 1992).

2.5 Procedures for Claiming an Extension of Time

In the usual course of events, the initiative for taking action under EOT

clause will come from the contractor when he realises that the progress of the works

is delayed. The contractor is not required to give notice of a delay which will be

caused by some expected future event. He has only to give notice when it becomes

apparent to him that the progress of the works is delayed. It seems clear that the

contractor is bound to notify the architect/ S.O of all delays to the progress and not

merely those caused by events listed in the clause (Brian, 1997). Nevertheless, the

architect is not prohibited to give EOT without received any notice of delays from

the contractor (Nor Ainah, 2001).

26

The clause in the standard form requires the contractor to inform the architect

in writing of the delay fact when he realizes that the progress of the works is delayed.

Basically, the contractors need to give a notice in reasonable time that stated relevant

causes that resulted to delays. The contractor also needs to explain about the

expected impact, and estimation of time extension needed, with the notice or

subsequently (Nor Ainah, 2001). The notice shall contain sufficient information and

reasons why delay to completion will result. The contractor’s failure to provide such

information can be a factor which the architect can consider in assessing the EOT

(Sundra Rajoo, 1999).

On receiving the written notice from the contractor, the architect, if he

satisfied that the cause of the delay comes within one of a number of ground listed, is

to grant an EOT. The architect is to consider making an EOT independently in the

light of his knowledge of the progress of the works and of other matters affecting or

likely to affect its progress (Sundra Rajoo, 1999). The architect must then fix a new

completion date which is fair and reasonable in the circumstances. The architect also

has power to fix a new completion date after the date of practical completion of the

building (Manson, 1968). If the architect/ S.O decides that the completion date will

not be affected, he should notify the contractor of his decision, although this is not

expressly stated. The contractor must seek recourse under clause arbitration if he

wishes to challenge that decision (Lim, 2004).

The standards form of contract used in Malaysia include a procedure relating

to the granting EOT. Variously, these procedures include the submission of an initial

notice concerning the delay, submission of back up details to support the initial

notice and further details to keep up to date the information previously submitted.

Table 2.3 indicates the procedure for an extension of time under PAM 98 and PWD

203A standard form of contract (Michael, 2001).

27

Table 2.3: Procedures for an extension of time under PAM 98 and PWD 203A standard form of contract

Clause Contractor’s Obligations Clause S.O’s / Architect’s Obligations

PA

M 9

8

23.1

23.1

23.3

23.4

If and when it become reasonably apparent that the

progress of the works is being or likely to be delayed,

forthwith of the occurrence of such event notify the

architect in writing identifying the relevant events

causing the delays, giving particular’s of the expected

effect and estimate of the EOT required.

The notice shall contain sufficient information and

reasons why delay to completion will result.

Submit to the architect his application for EOT complete

with particulars and estimates in a reasonable time

before the Date of Completion.

Constantly use his best endeavours to prevent delay.

23.2

23.3

23.5

Upon receipt a contractor’s notice, consider events causing delay

and by written notice to the contractor give a fair and reasonable

EOT.

He regard to the sufficiency of the particulars and estimates

submitted by the contractor, ascertain and fix such new date for

completion within a reasonable time form receipt of the notice.

Not fix a date for completion earlier that the Date of Completion

stated in the Appendix.

PW

D 2

03A

43

43

Upon it becoming reasonably apparent that the progress

of the works is delayed, forthwith give written notice of

delay to the S.O.

Constantly use his best endeavours to prevent delay.

43

If in his/ her opinion the completion of the works is likely to be

delayed or has been delayed by specified events so soon as he/

she is able to estimate the length of the delay.

28

2.6 Conclusion

The phrase ‘extension of time’ is common to most construction contracts.

Simply, the phrase means the postponement of the date by which completion of the

contract works is to be expected. One of the contractor’s obligations under the

building contract being the completion of the works on time usually expressly

specified within the contract terms.

The significance and effects of EOT provisions in construction contracts is

two folds. First, the EOT affect the extent to which the contractor is liable for

liquidated damages in the event of delays to the completion of the works within the

stipulated completion date. Second, EOT is granted to the contractor due to delay by

the employer. In addition, EOT provisions specified the events as grounds upon

which the contractor may be entitled to an EOT and serve to streamline the role of

architect/ S.O. in determining the contractor’s right to an EOT.

CHAPTER 3

THE REQUIREMENTS IN THE APPLICATION FOR AN EXTENSION OF

TIME

3.1 Introduction

An EOT is granted if a contractor has been delayed and the cause of the delay

is one that gives the contractor an entitlement under the contract. A contractor

should be required to supply facts about the delay, including identifying the event

that led to the delay. The contractor must also provide proof of the events that were

allegedly responsible for the delay, including the actions or inactions of the architect/

S.O or other events beyond his control, and to demonstrate that the delay affected the

critical path activities and hence delayed completion.

Invariably, an assessment or evaluation of EOT will be made based on the

programmes submitted by the contractor. It may seem surprising therefore that while

most contracts call for an as-planned programme, many do not expressly require

them to be taken into account when evaluating EOT. However, the courts, in tune

with practise, regularly make their decisions taking into account evaluation based on

as-planned programme.

30

3.2 Proof of Entitlement

All claims whether for loss and expense, extra cost, or for EOT, should meet

the legal requirement of linking damage with cause. A claim for loss and expense or

extra cost is not effective without a cause and a claim for EOT is not effective

without a relevant event. Standard forms of contract display the principle by

requiring each and every claim to stand on its own merits (Brian, 1997).

Standard forms of contract usually require the contractor to give notice of

delays or make his application within reasonable time of the happening of the

delaying event and to provide such details and particulars information as are

necessary to assist the architect/ S.O in making his decision (Brian, 1997).

The burden to prove the delays will directly rests on the contractor whether

the application is made before or after completion and whether the delaying event is

the employer’s fault or neutral. The contractor will have to produce evidence that

delay occurred and that the cause of the delay gave an entitlement to an EOT if the

contractor wishes to challenge liquidated damages by obtaining an EOT from the

contract administrator or arbitrator. Consequently, it is up to the contractor to keep

records as evidence of both delay and cause. The strength of the contractor’s case

will depend on the quality of his records (Brian, 1997).

It is not only important to the contractor to keep the records. A similar

burden rests with the architect/ S.O to protect the employer’s position. Ideally, both

parties have the same mind as the contract progresses on the causes and extents of

any delays. There is probably no effective substitute for the monthly progress

meeting at which the parties make their own report, and they jointly agree by

discussion what should be placed on record as the true state of affairs (Brian, 1997).

31

The records kept on construction projects will be the main source of

information on which claim for time or additional payments will be established by

the contractor or assessed by the contract administrator. The importance of

producing adequate delay documentation has been recognized for many years. There

is a multitude of different types of records including correspondence, meeting

minutes, delivery notes, progress records, site diaries, day work sheets, photographs

and invoices. However, if these are not related clearly to specific delaying events

they are unlikely to provide the required clarity of evidence needed to substantiate a

claim effectively. Therefore, separate and independent report will often be required

which are specifically aimed at documenting and substantiating a delay (Stuart,

2006).

Besides delay records and monthly progress meeting as information needed

to prove the delays, programme of work is also important as evidence to establish

contractor’s entitlement to EOT. A delay to a contract activity will not necessarily

cause delay to completion of the whole of the works or a milestone if the affected

activity is not on the critical path. However, instructing additional work to an

activity that was not on the critical path could change the programme relationship

such that the activity becomes part of the critical path. Further, a contractor may

claim that the variation instruction caused the contractor to take workers off a critical

activity and take longer time to construct the works.

The effectiveness of the contractor’s programme as a scale for the

measurement of delays is depend on how frequently of the contractor update his

programme. As the contractor updates the programme in regular basis to show

actual start dates, durations and completion dates, and completion dates of significant

activities, is at least a credible record of progress even if it says nothing on the actual

causes of any delays. The programme can provide a detailed picture which should

satisfy the tests of good evidence by referring to the programme indicators on when

variations, revisions and the like were ordered, instructions were given, and other

events were encountered (Brian, 1997).

32

The contractor who fails to produce an effective and realistic programme puts

himself at a disadvantage on proof of entitlement to EOT. The contractor must show

that he has suffered delay and that this delay has affected completion of the works.

Then, he must show that the delay was caused by a relevant event and not his own

deficiencies and difficulties (Brian, 1997).

3.2.1 Information That Needs to be Considered in Evaluating Extension of

Time Application

Upon receipt of the contractor’s notice, the architect is to consider making an

EOT independently in the light of his knowledge of the progress of the works and of

other matters affecting or likely to affect its progress. As part of his duty owed to

both the employer and the contractor, he should approach the task in a methodical

and systematic way. If necessary, he should explain how he has arrived at his

decision and the weight he has given to the various factors involved. Amongst the

sources of information which he may utilize to monitor and assess the delay are:

a) the contractor’s notice of delay and particulars (application letter)

b) the works programme

c) as-built works programme

d) records of when operations and activities actually began and finished

e) site progress meeting minutes and records

f) contractor’s day-work sheet

g) site staff reports and diaries

h) contractor’s progress reports

i) contractor’s method statements and working cycles

33

The information that needs to be submitted by the contractor in the

application of EOT is detail elaborated in the following topic. If the architect

concludes based on the sufficient information received from the contractor that the

cause of the delay is within the relevant events as listed in the contract, he must

decide whether completion of the works has been or likely to be delayed beyond the

current date for completion. The architect must then give a fair and reasonable EOT

subject to clauses 23.3, 23.4 and 23.7, PAM 98 and fix a new date for completion.

3.2.1.1 Construction and Progress Records

There are a multitude of different types of records kept on construction

projects, which are documented with varying degrees of rigour depending on who is

responsible for their completion, as well as being dependant on project management

effectiveness from one project to the next.

Progress records are commonly kept by the contractor and the architect/ S.O.

independently. If at all possible, these records should either be jointly taken or

agreed at the time of compilation. The following list of records should be considered

a minimum to be kept by the contractor that can be used as the main source of

information in quantifying delays (Michael, 2001; David, 1984).

1. A master programme together with subsequent updates

A programme should be updated on a regular basis to provide good

contemporaneous evidence of what happened in the project, in case of dispute.

2. A comparison of master programme with actual records

The contractor’s programme could be of relevance in considering rates of

progress and if there was a question of determination of the contractor’s

34

employment for lack of progress, under express terms or at common law, it could

be some interest as evidence.

3. Site diaries in a standard format

A daily diary should be maintained by each member of the field staff. The book

is a quasi-legal document and should be neatly and accurately recorded. An

entry should be made everyday, whether or not work was performed.

4. A drawing register kept up to date as new drawings are issued and incorporating

issue dates

Drawings of clarification or change, or drawings that contain supplemental

information should be filed at the field office, in addition to a complete set of all

contract drawings as bid. The evidence of a drawing is often crucial. If revisions

have taken place, the date and nature of the revision should be noted on drawing.

The drawings provide clear evidence of architect’s instructions to the contractor.

5. A weekly log of activities commenced and completed

6. A weekly log of those areas which were considered problematic

7. Progress meetings

Minutes meetings may provide a vast resource of information for claims

preparation. In order to have credibility the minutes must be approved by the

other various parties involved in the meeting who probably had no hand in the

preparation of the minutes contractor.

Other documents which are not listed from the previous list such as project

daily reports and tests of materials can also be used as information in quantifying

delays (David, 1984).

1. Project daily reports

A daily construction report containing a description of the work commenced,

new work started, status of work in progress, manpower and equipment at the

35

site, weather, and visitors to the site. If no work was performed at all, a daily

report should still be filed, stating ‘no work’. On projects where several

inspectors are involved, this report is compiled from each inspector’s daily record

of work progress.

2. Tests of materials

A record should be kept of all material samples sent out to laboratory for testing

as well as those tests performed at site. The report should include space for later

inclusion of the test results as well as the location of the structure where the

particular material was to be installed.

3. Correspondence

Correspondence, written by one person for the eyes of another, is potentially the

best sort of evidence save only for documents (such as the contract) agreed and

signed by both parties. Copies of all correspondence concerning the project that

have been sent to the resident project representative should be maintained and

filed by date.

Letters are an extremely valuable source of evidence because they indicate

intentions and attitudes at the time of writing. Letters must be read with care and

always in the context of other letters and documents. Written evidence is always

useful provided that it is clear. A letter from the contractor asserting that a

particular situation exists (for example, lack of drawings) is persuasive in the

absence of a letter from you refuting the assertion.

Records should be kept as to when particular works activities have been

carried out and what resources were used to carry the works. In situations where the

employer or his agents have breached the contract or instructed variations or taken

other actions that could entitle a contractor to additional time, the ‘marked up’ copy

of the contractor’s program maintained by the architect/S.O must clearly show when

such events occur, what work activity is affected, what effect the events may have on

the critical path, and whether the terms of the contract, the contractor has an

entitlement to an EOT.

36

3.3 Common Mistakes by the Contractor in the Application of Extension of

Time

Most contracts do not require the contractor to do more than give notice of

delays, maintain records and provide particulars. Provided that the contractor has

provided details of all events, dates, what work was affected and the like, it appears

that the contractual provisions have been satisfied and the obligation is then on the

architect to decide what extension is reasonable on the basis of the particulars

provided and/ or on the basis of further information obtained from other sources.

Many contractors only provide information (often insufficient) and rely on the

architect to make a reasonable EOT. This tactic can be successful, but there is a risk

that the extension made will be insufficient. Not all is lost, as the contractor can

always present his case at a later date, hoping to persuade the opposition that more

time is justified. The problems with this approach are (Thomas):

a) It is usually more difficult to persuade someone to change their mind after

they have made a written EOT unless there is additional evidence which

can be used to explain a change in the period of the extension.

b) There will almost certainly be a period of protracted discussion during

which the current (extended or otherwise) completion date and the

progress of the works are inconsistent with a realistic programme and a

subsequently revised extended completion date.

Claims for EOT probably cause more disputes than any other contractual or

technical issues. There are several mistakes done by the contractor in the application

of EOT which elaborated below.

37

3.3.1 Major Mistakes

Major mistakes which can lead to obstacles to prompt settlement of claims for

EOT applications are (Thomas):

a) Late, insufficient or total lack of notice of delay on the part of the contractor

b) Failure to recognise delay at the appropriate time or failure to describe the

cause of delay

c) Poor presentation of the application to show how the progress of the work has

been delayed

3.3.2 Lack of Proper Baseline Schedule

The first contractor’s mistake is the non-availability of proper programme

reflecting the actual site progress at the time of the event of the claim. It is common

fact that there is often a lack of a proper as planned baseline construction schedule

with which to aid comparison with an as-built construction schedule in times of delay

analysis or assessment or evaluation of EOT. Very real project pressures ‘to get the

work done’ usually result in the as-built construction schedule (if any in the first

place) not being updated periodically. Procedures of acceptance of the baseline as-

planned construction schedule are also not formalised as there is a tendency for

employer’s agent to request for several revisions of the contractor’s as-planned

schedule. Constant revisions of the baseline as-planned programme may sometimes

continue even though actual works may have commenced on site. This prevents any

meaningful analysis form being carried out.

38

3.3.3 Lack of Proper Site Records and Insufficient Quality of Information

Proving the extent of delays, especially delays which overlap to a delay

which is continuous and causes slowdown in the overall project progress is a

constant issue. Disputes over the calculation of time and the validity of the formulae

used in the calculation are the main reasons for prolonged negotiation. Records to

substantiate any calculations are usually not kept or not updated. Records or

information of the master programme, critical path networks, resources allocation,

site diaries and correspondence are given insufficient attention.

The production of information in proving delay is often of insufficient quality

to enable an effective investigation into issues of delays and disruption to be

undertaken in retrospect, as observed by Major and Ranson (1990):

‘It is all to common, when seeking to establish what actually happened

on a project, to find that even a considerable amount of investigation

will produce only an incomplete picture. It will often be necessary to

analyse minutes of progress meetings, valuations, diaries, and various

charts and programmes which neither individually nor collectively

enable an actual progress chart to be produced or a detailed history of

the project to be written. This is a common and substantial area of

failure in site and head office management’.

The quality and rigour with which records are kept varies widely

between different organizations. Many have different procedures for keeping

records and on many jobs quality procedures for record keeping are not

implemented effectively. Inadequate records as information to delays can

lead to delays in assessment of EOT claims (Stuart, 2006).

39

3.4 Practical Ways for Minimising Contractor’s Mistakes in the Application

of Extension of Time

Contracts conditions are clearly and unambiguously drafted to identify the

exact factors which constitute valid delays to the project. The procedural

requirement for applying EOT is set out clearly. Before signing the contract, the

contractor should fully comprehend what events the contact considers claimable

in terms of time. The contractor should also be aware of the notice requirements

for submitting claims for EOT (Lawrence, 2001).

There must be an agreement and acceptance of the baseline programme.

There should be in place a procedure for formal acceptance of the final as-planned

schedule. This schedule will serve as that all-important baseline, a record of the

contractor’s intent in carrying out the works. Subsequent evaluation or assessment of

EOT and delay will be facilitated with the baseline as-planned programme finalised

and accepted (Lawrence, 2001).

The contractor is considered investing in computerised scheduling systems

such as the Primavera Project Planner or Microsoft Project. The contractor need to

updated their work programme by using such software because such software speed

up the calculations and are versatile tools in comparing as planned and as-built

schedule (Lawrence, 2001). The contractor is required to regularly update work

programme to reflect project progress and changes. Then, the contractor should

keep reliable and accurate progress and programme records to assist

contemporaneous assessment of the cause and effect of project changes (Stuart,

2006). In addition, the contractor can refer previous common law cases which

related to entitlement to EOT to get an idea about the effective preparation of EOT

claim to eliminate their mistake. The judge in the English case of Balfour Beatty

Construction Ltd v The Mayor and Burgess of the London Borough of Lambeth

(2002), gave a good summary of the information a contractor should provide to

establish its entitlement to EOT:

40

a) A reliable original programme

b) The establishment of valid critical paths initially and at every later

material point in time

c) Sound revisions on the occurrence of every event to demonstrate cause

and effect

d) A means of demonstrating the effect of concurrent or parallel delays

The contractor also needs to implement a proper claim administration

system. An effective administration of the contract is of utmost importance in

minimising EOT disputes. The voluminous backload of data required to substantiate

a point claims clearly to the need for an established and efficient contract

administration system (Lawrence, 2001).

Besides, the implementation of a document management system must be

considered and done by the contractor. The key to effective documentation is that

the crucial data required are highlighted clearly and simply for recording. The

contractor’s management must identify the information pertinent to the substantiation

of claim for time due to the employer’s delay. As effective documentation is a key

principle of the ISO 9000 Quality Management Standards, contractor should consider

implementing the ISO Quality Standards for their company if they have. This

documentation system must also be extended to include the subcontractor’s to ensure

the timely documentation and furnishing the essential data to substantiate any claims

for time extension (Lawrence, 2001).

41

3.5 Conclusion

Where the notice form the contractor was clear and well supported with

relevant documents to demonstrate a possible or actual delay to the progress of the

works due to the particular events, not only was the assessment of the architect/ S.O

will sped up to establish contractor’s entitlement for EOT, the architect/ S.O was in a

position to quickly advice the employer and initiate pro-active measures to minimise

delays and ensure the timely progress of the works. It is therefore advisable for the

contractor to retain the information pertaining to work programme, which are a

master programme together with subsequent updates and a comparison of the

programme with actual as-built records. In addition, the contractor is also advisable

to keep the project’s factual record such as variations, correspondence, minutes of

meetings and progress reports.

CHAPTER 4

RESEARCH METHODOLOGY

4.1 Introduction

This chapter outlines a methodology that can be used to guide the research.

The information needed for this research was obtained from two principal sources

which are literature reviews and questionnaire survey. The method to analyse the

data also detailed elaborated in this chapter to ease the process of analysing data.

The questionnaires were analyzed in two methods, which are frequency analysis and

average index analysis.

43

4.2 Literature Review

For the second type of data in this study, it is based on comprehensive

literature review on the contract provision for extension of time in the standard form

of contract and text books. In addition, information related to the problem was

obtained from reliable sources which in this case were from the internet for recent

journals published and articles, and from the seminar paper on matters related to

delay and extension of time. The information was help in resuscitating the problem

at hand. Text books related to construction contract were used as well and the books

were available from the university library. The books were to give the general

overview of delay and extension of time and were to enhance the researcher to be

focused on the problem statement. The literature reviews in this study were also

used to guide the formation of questionnaire design.

4.3 Selection of Respondents

The targeted respondents were professionals from consultant organization

including quantity surveying, architecture and engineering consultants located in

Johor Bahru. Addresses of consultants for the survey are selected randomly from

The Professional Journal of The Institutions of Surveyors, Malaysia and list of

respondents in previous study.

In this study, the questionnaires were handed over manually to 50

respondents. This is to ensure that the questionnaire form will be received by the

target person and it is much easier to collect. The hand manual method is also target

to pass to the respondents such as the director and also those higher management

level person or project executive, who are more experienced to response the matter

of evaluating extension of time application.

44

4.4 Research Design

A questionnaire survey form has been prepared for this research as shown in

appendix A. It was base on the literature reviews from journal papers, seminar

papers, previous study, standard form of contract and also articles from internet. The

questionnaire survey is aimed to get the answer or opinion regarding to EOT

application from the construction practitioner who has experience in evaluating EOT.

The questionnaire survey will include the information in evaluating EOT application

and the common mistakes by the contractor in the EOT application. The ways to

reduce the mistakes by the contractor in the application for an EOT are also stated in

the questionnaire. The details of the preparation of the questionnaire survey are

discussed in the following section.

4.4.1 Questionnaire Survey Design

The steps required to design and administer a questionnaire include defining

the research objectives, determining the sampling group, writing the questionnaire,

administering the questionnaire and interpretation of the results. The discussion will

concentrate on how to formulate the questionnaire design for this research.

The questionnaire survey design were intended to be as simple as possible but

to be full of table in information gathering in 12 pages, double sided of paper. There

are rating scale technique and also fill in the blanks method for optional if the

respondents have any views or opinions to add for this research. The respondent are

oblige to tick at the appropriate box and the appropriate rating scale for each section.

45

The questionnaire has divided to four sections, which are Section A for

generally, Section B for information, Section C for common mistakes by the

contractor, and Section D for ways to reduce the mistakes. Section A is aim to get

general information of the respondents such as respondent’s name, post, year of

experience, and representing firm/ consultant. From this section, we may know the

view from variety consultants, different post and total experience of respondent.

Section A also aims to get the background of projects that have experienced by the

respondents such as standard form of contract that used in the project, type of

project, whether their project usually need application for EOT or not, and

significance of the reasons of delay which EOT may be given. The significance of

the reasons of delay needs to be answered with five rating scales as follows.

1 - Never

2 - Seldom

3 - Sometimes

4 - Often

5 - Very Often

Section B will state the information that needs to be considered in evaluating

EOT. There are 13 information summarized form the literature reviews and also

form the previous study, which are application letter (notice of delay), as-planned

schedule, as-built schedule, weather record, drawings, site diaries, site memo, project

daily report, variation order, architect’s instructions, minutes of meeting, test of

materials or operating test, and correspondence. The respondents can also add any

information in the provided space if they have any additional views. There are five

rating scales to be selected for this section as shown below.

1 - Not Considered

2 - Less Considered

3 - Moderately Considered

4 - Highly Considered

5 - Very Highly Considered

46

Next, the common mistakes by the contractor in the application of EOT are

described in Section C. There are 8 mistakes in this section that have to fill in. The

question is about the common mistakes by the contractor in the application of EOT

and the mistakes are simplified from the literature reviews and listed in the following

point.

a) Late or lack of notice from the contractor

b) Failure to recognise delay or failure to describe the cause of delay

c) Failure to stated the exact contractual provision which is being relied

upon

d) Failure to stated the date when the delay commenced and the period of

delay

e) Poor presentation of the application to show how the progress of the work

has been delayed

f) Lack of proper baseline schedule

g) Lack of proper site records and particulars relied upon

h) Insufficient quality of information (information is not kept and not

updated)

The question in Section C needs to be answered with rating from scale 1 to 5

as shown below.

1 - Never

2 - Seldom

3 - Sometimes

4 - Often

5 - Very Often

Last Section, Section D is aims to identify the ways to reduce the mistakes by

the contractor as listed in Section C. The ways to reduce the mistakes are listed as

follows.

47

a) Be aware of the notice requirements for submitting application for EOT

b) Fully comprehend what events the contract considers claimable in terms

of time

c) There must be an agreement and acceptance of the baseline programme

(or formal acceptance of the final as-planned schedule)

d) Keep reliable and accurate progress and programme records

e) Implement a proper claim administration system

f) Implementation a document management system

There are 5 rating scales for question in this section to know the degree of

contribution toward each of the way as listed above. The question in Section D also

needs to be answered with rating from scale 1 to 5 as shown below.

1 - Very Low Contributing

2 - Low Contributing

3 - Medium Contributing

4 - High Contributing

5 - Very High Contributing

4.5 Analysis Method

There are two methods that will be used in analysing the collected data which

are frequency analysis and average index. Frequency analysis is used in analysing

general information in Section A of the questionnaire and this method will show the

frequency, percentage and in certain questions in number. Next method is average

index and it is used in analysing Section B, C and D and this method will show the

average index and rating scale. The feedback from questionnaires will be analysed

through a computer program, Microsoft Excel. There are also other tools for

analysing technique such as SPSS, but the researcher used Microsoft Excel because

48

this research only involved not more than 50 data to be analysed and it can use a

simple computer program, Microsoft Excel.

4.5.1 Frequency Analysis

Frequency analysis is a method to decompose a function, wave or signal into

its frequency components so that it is possible to have a frequency spectrum. The

frequency analysis is used to represent results of data analysis of the number of

frequency of response that the respondent gives to different variables in the

questionnaire survey. The result will be tabulated in the form of frequency number

and percentage according to total respondents. The frequencies can also be

represented in the form of tables, pie charts and bar charts for graphic result.

4.5.2 Average Index Analysis

The average index analysis for each variable is calculated by using the

formula as shown below (Al- Hammad, 1996):

Average Index =

Where,

a1 = constant expressing the weight given to i

x = variable expressing the frequency of response for i = 1, 2, 3, 4, 5,……n

∑ a1x1

∑ xi

49

Based on the assumed values stated earlier,

(Section A & Section C)

x1 = frequency of the ‘Never’ and corresponding to a1 = 1

x2 = frequency of the ‘Seldom’ and corresponding to a2 = 2

x3 = frequency of the ‘Sometimes’ and corresponding to a3 = 3

x4 = frequency of the ‘Often’ and corresponding to a4 = 4

x5 = frequency of the ‘Very Often’ and corresponding to a5 = 5

(Section B)

x1 = frequency of the ‘Not Considered’ and corresponding to a1 = 1

x2 = frequency of the ‘Less Considered’ and corresponding to a2 = 2

x3 = frequency of the ‘Moderately Considered’ and corresponding to a3 = 3

x4 = frequency of the ‘Highly Considered’ and corresponding to a4 = 4

x5 = frequency of the ‘Very Highly Considered’ and corresponding to a5 = 5

(Section D)

x1 = frequency of the ‘Very Low Contributing’ and corresponding to a1 = 1

x2 = frequency of the ‘Low Contributing’ and corresponding to a2 = 2

x3 = frequency of the ‘Medium Contributing’ and corresponding to a3 = 3

x4 = frequency of the ‘High Contributing’ and corresponding to a4 = 4

x5 = frequency of the ‘Very High Contributing’ and corresponding to a5 = 5

Average index will be used in analysing each question in Section B, C, D,

and one question in Section A (Abdul Majid and McCaffer, 1997). In section A,

there is only one question that needs to use average index analysis. In order to

determine the significance of reasons of delay, the questionnaire rating scale for

reasons of delay in Section A can be classified as indicated in the following table.

50

Table 4.1: The classification of the rating scales in Section A of the

questionnaire

Rating Scale Average Index (AI)

Never 1.00 ≤ AI < 1.50

Seldom 1.50 ≤ AI < 2.50

Sometimes 2.50 ≤ AI < 3.50

Often 3.50 ≤ AI < 4.50

Very often 4.50 ≤ AI ≤ 5.00

In Section B, the classification of the rating scales to determine the levels of

consideration of information in evaluating EOT application are as follows.

Table 4.2: The classification of the rating scales in Section B of the

questionnaire

Rating Scale Average Index (AI)

Not considered 1.00 ≤ AI < 1.50

Less considered 1.50 ≤ AI < 2.50

Moderately considered 2.50 ≤ AI < 3.50

Highly considered 3.50 ≤ AI < 4.50

Very highly considered 4.50 ≤ AI ≤ 5.00

Next, in order to determine the common mistakes by the contractor (Section

C), in this study, the similar classification of the rating scales as indicated in Section

A have been used. The classification of the rating scales are indicated in table 4.3.

51

Table 4.3: The classification of the rating scales in Section C of the

questionnaire

Rating Scale Average Index (AI)

Never 1.00 ≤ AI < 1.50

Seldom 1.50 ≤ AI < 2.50

Sometimes 2.50 ≤ AI < 3.50

Often 3.50 ≤ AI < 4.50

Very often 4.50 ≤ AI ≤ 5.00

There is also classification for ways to reduce the mistakes in order to

determine the contribution of the ways in reducing the mistakes by the contractor as

described in Section D of the questionnaire.

Table 4.4: The classification of the rating scales in Section D of the

questionnaire

Rating Scale Average Index (AI)

Very low contributing 1.00 ≤ AI < 1.50

Low contributing 1.50 ≤ AI < 2.50

Medium contributing 2.50 ≤ AI < 3.50

High contributing 3.50 ≤ AI < 4.50

Very high contributing 4.50 ≤ AI ≤ 5.00

4.6 Conclusion

In order to achieve the objectives of the study, the research methodology has

been established. This study was carried out based on literature reviews and

questionnaire survey.

CHAPTER 5

RESEARCH ANALYSIS AND DISCUSSION

5.1 Introduction

This chapter analyses the data collected from the questionnaires and the

methods used to analyse are Frequency Analysis and Average Index Analysis. There

are four sections from the questionnaires to be analysed which are general

information (Section A), information in evaluating EOT (Section B), common

mistakes by the contractor in the application of EOT (Section C) and ways to reduce

the mistakes (Section D). The collected data from the questionnaires were tabulated

and analyzed according to their ranking on relative index. Tables created from their

rating scale shown to represent their ranking.

53

5.2 Data Analysis for Questionnaire Survey

The collected data from the questionnaires were analyzed in two methods.

There are frequency analysis and average index. Frequency analysis is used in

analysing general information in Section A of the questionnaire and this method will

show the frequency, percentage and in certain questions in number. The frequencies

are represented in the form of tables, pie charts and bar charts. Next method is

average index and it is used in analysing Section B, C and D and this method will

show the average index and rating scale. The researcher used Microsoft Excel in

order to generate the result.

5.2.1 Analysis for General Information of the Respondent

Analysis of the respondent for questionnaire survey will be divided in three

main categories, which are respondent organization, post, and experience. The total

number of respondents that completed and returned the questionnaire sets was 30.

Quantity

Surveying, 15,

50%

Engineering,

5, 17%

Architecture,

10, 33%

Figure 5.1: Respondent organization

54

Table 5.1: Respondent organization

Respondent Organization Frequency Percentage

Architecture Firm 10 33%

Engineering Firm

(Civil & Structural) 5 17%

Quantity Surveying Firm 15 50%

Total 30 100%

Figure 5.1 and table 5.1 show the respondent organization for questionnaire

survey. Most of the respondents was from quantity surveying firm, 50%, followed

by architecture firm, 33% and engineering firm (civil & structural), 17%. The

professional men from consultant or firm usually have experiences in evaluating

EOT especially those from Quantity Surveying firm because normally quantity

surveyor will act as an evaluator to evaluate EOT for government project and

architect for private project. Other than that, engineering firm (Civil & Structural)

may give their advice to S.O. or client about contractor’s entitlement for an EOT.

Quantity

Surveyor, 10,

33%

Architect, 9,

30%

Engineer, 2,

7%

Manager/

Director, 4,

13%

Project

Executive, 5,

17%

Figure 5.2: Respondent post

55

Table 5.2: Respondent post

Respondent Post Frequency Percentage

Quantity Surveyor 10 33%

Architect 9 30%

Project Executive 5 17%

Manager/ Director 4 13%

Civil and Structural Engineer 2 7%

Total 30 100%

Variable post represent by the questionnaire survey as shown in figure 5.2

and table 5.2 where the highest were quantity surveyor, 33% because Quantity

Surveyor is usually administrate the contract and evaluate EOT. 30% of the

respondents were Architect and they also have experience in evaluating EOT

especially for private project which used PAM 98 standard form of contract. The

next highest respondents by post were the Project Executive, 17%, followed by

Director 13%, and Civil Engineer, 7%. Project Executive is the post that manages

the duties in the construction project for the firm. Director from the quantity

surveying and engineering firm which have extensive knowledge and experiences

also participate in answering the questionnaire. The other post is civil and structural

engineer which usually monitor the progress of work in construction site, and can

identify the causes of delay in the project.

Less than 5

years, 13,

43%

5 to 10 years,

9, 30%

More than 10

years, 8, 27%

Figure 5.3: Respondent experience

56

Table 5.3: Respondent experience

Respondent Experience Frequency Percentage

Less than 5 years 13 43%

5 to 10 years 9 30%

More than 10 years 8 27%

Total 30 100%

Year of experience of the respondents can be classified to three categories as

shown in figure 5.3 and table 5.3. From the pie chart and table, 43% of the

respondent having less than five years of experience. Because of time constraints,

the researcher can only get more feedback from the respondents who have less than

five years of experience. Nevertheless, 30% of the respondents have five to ten years

of experience, and 27% of respondents have more than 10 years of experience. This

reflects that the answer is still reliable because most of the respondents have five and

more years of experiences which make the total value 57% from respondents which

having five to ten years and more than 10 years of experience.

5.2.2 Analysis for Background of Project

Analysis of the project which have experienced by the respondents can be

divided to four categories which are standard form of contract, types of project,

application for EOT and reasons of delay which EOT may be given.

57

26

10 12

30

5

10

15

20

25

30

PAM 98 PWD 203 PWD 203A Others

Standard form of contract

No

. o

f re

spon

den

ts

Figure 5.4: Standard form of contract used in the construction project that the

respondents have experienced

Table 5.4: Standard form of contract used in the construction project that the

respondents have experienced

Standard Form of Contract Number of Respondents/ User

PAM 98 26

PWD 203A 12

PWD 203 10

Others 3

Figure 5.4 shows the standard form of contract used in the construction

project by the respondents. The reasons of delays as stated in the next questions are

based on PAM 98 and PWD 203A standard form of contract. So, it would be easier

for the respondents to answer the questions when they have experienced in using the

contracts because of their knowledge and experienced. Most of the respondents have

experienced in using PAM 98 standard form of contract with 26 of the respondents

as indicated in table 5.4. This was followed by PWD 203A, 12 respondents, PWD

203, 10 respondents, and others 3 respondents. Basically, PWD 203A and PWD 203

have same provision for EOT and almost same with provision in PAM 98. Other

58

standard form of contract used in the construction project that the respondents have

experienced is FIDIC.

2726

22

19

1412

9

4

0

5

10

15

20

25

30

Types of project

No

. o

f re

spo

nd

ents

Residential

Commercial building

High storey building

Office building

Factory

School

Mosque

Others

Figure 5.5: Types of project that the respondents have experienced

Figure 5.5 shows the types of project that the respondents have experienced.

In general, it can be seen that there was a building project to be selected by the

respondent in the questionnaire. It is because all those building project as listed in

the questionnaire can be considered as a complex project and most probably can lead

to delay and thus application for an EOT by the contractor. 27 of the respondents

have experienced in residential project and this was followed by commercial building

with 26 respondents. High storey building and office building are also experienced

by more than half of the respondents with 22 and 19 of the respondents. It was

followed by factory and school project, with 14 and 12 of the respondents. Only 9 of

the respondents have experienced in mosque project. Others project include

clubhouse, landscape and infrastructure.

59

Yes, 23,

77%

No, 7, 23%

Figure 5.6: Application for extension of time in construction projects

77% of the respondents said that most of their construction projects usually

need application for EOT as shown in figure 5.6 and 23% said no application for

EOT. This reflects that the actual construction projects usually need application for

EOT and it means the project usually cannot be completed at the time originally

scheduled.

Next analysis is reasons of delays as stated in the standard form of contract.

There are 14 reasons of delay have been identified from PAM 98 and PWD 203A

standard form of contract. Table 5.5 shows the reasons of delay which EOT may be

given, ranked in order of average index. The data collected indicated that the

extremely often reason of delay which EOT may be given was architect’s/

superintending officer’s instructions. This was followed by late instructions,

drawings or level, and delay on the part of nominated subcontractors or suppliers,

under same category or rating scale. The findings indicated that the most often delay

usually come from the employer and this may result in the application for an EOT by

the contractor. The extremely seldom reasons of delay is force mejuere and this

shows that the contractor was rarely apply for an EOT based on reason of force

mejuere.

60

Table 5.5: Reasons of delay which EOT may be given

Rank Reasons of delay Average

Index

Rating

Scale

1 Architect’s/ S.O’s instructions 3.77 Often

2 Late instructions, drawings or level 3.63 Often

3 Delay on the part of nominated subcontractors

or suppliers 3.60 Often

4 Exceptionally inclement weather 3.10 Sometimes

5 Delay in the supply of materials and goods by

the employer 2.87 Sometimes

6 Delay in giving possession of site 2.77 Sometimes

7 Delay on the part of artists, tradesmen and

others engaged by the employer 2.73 Sometimes

8 Inability to obtain materials or goods 2.70 Sometimes

9 Testing and inspection 2.30 Seldom

10 Act of prevention or breach of contract by the

employer 2.17 Seldom

11 Insurance contingencies (loss and damage the

works) 2.17 Seldom

12 Disputes with neighbouring owner 1.80 Seldom

13 Civil commotions, strikes, lockout 1.67 Seldom

14 Force mejuere 1.60 Seldom

5.2.3 Analysis for Information That Needs to be Considered in Evaluating

Extension of Time Application

There are a lot of related documents or supporting documents which can be

used as information of delay or information to verify the delay that needs to be

considered by the evaluator in evaluating EOT application. Different reasons of

delay have different level of consideration for information in evaluating EOT.

61

This section analyses the data collected in Section B from the questionnaire

survey. Generally, there are 14 reasons of delay were listed in the questionnaire

form but only three reasons were selected to be analysed, which are architect’s/

S.O’s instructions, late instructions, drawings or level, and delay on the part of

nominated subcontractors or suppliers. The reasons of delay to be analysed were

selected because all of the respondents have experienced in facing such reasons and

they fully answered these three reasons, and the reasons are always happened in

construction project or directly said it is under ‘often’ category of the rating scale.

Not all of the respondents answered the other reasons of delay because they said that

they never experienced for such reasons and not able to answer the questions. They

skipped from answering the reasons of delay that they never experienced. In order to

maintain the uniformity of 30 respondents, the rest of the reasons have not been

analysed by the researcher.

5.2.3.1 Information for Delays Relating to Reason of Architect’s/

Superintending Officer’s Instructions

The result in table 5.6 shows that the architect’s/ S.O’s instructions was the

most highly considered in evaluating EOT application. This was followed by

variation order, minutes of meeting and other information as indicated in the table.

Architect’s/ S.O’s instructions can be used as a good information in verifying the

delay. Usually, the instructions are related to a variation. Therefore, the variation

order was in the second ranked of mean score for highly considered. Test of

materials and weather records are least considered in evaluating EOT application

because such information was not related and not provided any good information of

delays relating to reasons of architect’s/ S.O’s instructions.

62

Table 5.6: Information that needs to be considered for the reason of architect’s/

superintending officer’s instructions

Rank Information Average

Index Rating Scale

1 Architect’s/ S.O’s instructions 4.37 Highly Considered

2 Variation Order 4.27 Highly Considered

3 Minutes of Meeting 4.10 Highly Considered

4 Drawings 4.07 Highly Considered

5 Correspondence 3.97 Highly Considered

6 Application letter 3.90 Highly Considered

7 As-planned schedule 3.80 Highly Considered

8 Site memo 3.77 Highly Considered

9 As-built schedule 3.73 Highly Considered

10 Site diaries 3.70 Highly Considered

11 Project daily report 3.67 Highly Considered

12 Test of material/ operating test 1.83 Less Considered

13 Weather records 1.73 Less Considered

5.2.3.2 Information for Delays Relating to Reason of Late Instructions,

Drawings or Level

In general, drawings are the highest ranked for highly considered in

evaluating EOT due to reason of late instructions, drawings and level as shown in

table 5.7. The evidence of a drawing is often crucial. If revisions have taken place,

the date and nature of the revision should be noted on drawing. The drawings

provide clear evidence of architect’s instructions to the contractor which also put

together the architect’s/ S.O’s instruction under highly considered. Other

information also highly considered in showing that the contractor has specifically

applied in writing to the architect/ S.O for the necessary instructions, drawings or

63

levels. Variation order is moderately considered in this reason of delay in showing

that the late instruction or drawings is caused by late confirmation in writing for the

instructions that requiring a variation and also time to provide new revised drawings.

Test of materials and weather records are least considered because such information

was not related to this reason of delay.

Table 5.7: Information that needs to be considered for the reason of late

instructions, drawings or level

Rank Information Average

Index Rating Scale

1 Drawings 4.17 Highly Considered

2 Application letter 4.10 Highly Considered

3 As-planned schedule 4.10 Highly Considered

4 Architect’s/ S.O’s instructions 4.07 Highly Considered

5 As-built schedule 3.93 Highly Considered

6 Site memo 3.80 Highly Considered

7 Minutes of Meeting 3.77 Highly Considered

8 Site diaries 3.73 Highly Considered

9 Project daily report 3.63 Highly Considered

10 Correspondence 3.57 Highly Considered

11 Variation Order 3.33 Moderately Considered

12 Test of material/ operating test 1.63 Less Considered

13 Weather records 1.53 Less Considered

64

5.2.3.3 Information for Delays Relating to Reason of Delay by Nominated

Subcontractors or Suppliers

As-planned schedule, as built schedule, application letter, project daily report,

site memo and site diaries were found to be the information that highly considered in

evaluating EOT due to reason of delay by nominated subcontractors or suppliers as

indicated in table 5.8. As-planned and as built schedule remained as the highest and

second highest ranked of highly considered because the schedule or work programme

is very important to show how the delay by nominated subcontractor or suppliers can

affect the work progress and cause delay to completion of the whole of the works.

Correspondence, minutes of meeting, architect’s/ S.O’s instructions are moderately

considered in evaluating EOT for this reason. This could be due to the facts that

such information is not the best sort of evidence for this reason. But it can be used to

indicate the intentions and agreement by both parties which can cause delay on the

part of the nominated subcontractors or suppliers. Drawings, weather records, and

test of materials are not really helpful in evaluating EOT for reason of delay by

nominees, and therefore in can be categorized under less considered of the rating

scale.

65

Table 5.8: Information that needs to be considered for the reason of delay by

nominated subcontractors or suppliers

Rank Information Average

Index Rating Scale

1 As-planned schedule 4.03 Highly Considered

2 As-built schedule 4.00 Highly Considered

3 Application letter 3.90 Highly Considered

4 Project daily report 3.67 Highly Considered

5 Site memo 3.60 Highly Considered

6 Site diaries 3.53 Highly Considered

7 Correspondence 3.43 Moderately Considered

8 Minutes of Meeting 3.40 Moderately Considered

9 Architect’s/ S.O’s instructions 2.93 Moderately Considered

10 Variation Order 2.63 Moderately Considered

11 Drawings 2.47 Less Considered

12 Weather records 1.83 Less Considered

13 Test of material/ operating test 1.50 Less Considered

5.2.3.4 Summary of Information That Needs to be Considered in Evaluating

Extension of Time

The findings indicated that there was a lot of information that needs to be

considered in evaluating EOT. Amongst the source of information which the

evaluator may utilize and highly considered to assess or evaluate the delay for all

three reasons as mentioned previously are application letter, as-planned schedule, as-

built schedule, project daily report, site memo and site diaries. This could be due to

the fact that such information can provide useful and best evidence in presenting the

causes of delay in construction project.

66

A clear pattern which emerged from the study was the level of consideration

for information of delays is different relating to different reasons of delay. For

example, drawings are highly considered and remained as the highest ranked of

information for reason of late instructions, drawings or level, whereas drawings are

less considered for reason of delay by nominated subcontractors or suppliers.

5.2.4 Analysis for Common Mistakes by the Contractor in the Application of

Extension of Time

Insufficient quality of information and poor presentation of the application to

show how the progress of the work has been delayed remained as the highest

common mistakes by the contractor in the application of EOT. Both mistakes are

related to information of delays and this could most probably be due to poor

document management system. Late or lack of notice from the contractor remained

as the third ranked of the common mistakes. Lack of notice of delays from the

contractor reflects that there have been some tendencies for contractors to apply for

EOT nearing the completion of the works. This was followed by lack of particular

site records, failure to state the exact contractual provision, lack of proper baseline

schedule, and finally, failure to state when the delay commenced.

The findings indicated that all the common mistakes by the contractor were

‘often’ in the application of EOT as indicated in table 5.9. Both mistakes are related

to information of delays and this could most probably due to poor document

management system to keep and updated all the relevant information of delays. In

addition, it could also be due to poor organisation and lack of awareness of

contractors on the importance of presenting the evidence in EOT application.

67

Table 5.9: Common mistakes by the contractor in the application of EOT

Rank Common Mistakes By The Contractor Average

Index

Rating

Scale

1 Insufficient quality of information (information is

not kept and not updated) 4.00 Often

2 Poor presentation of the application to show how

the progress of the work has been delayed 4.00 Often

3 Late or lack of notice from the contractor 3.97 Often

4 Failure to recognise delay or failure to describe

the cause of delay 3.90 Often

5 Lack of particular site records and particulars

relied upon 3.90 Often

6 Failure to state the exact contractual provision

which is being relied upon 3.83 Often

7 Lack of proper baseline schedule 3.80 Often

8 Failure to state the date when delay commenced

and the period of delay 3.70 Often

Other than common mistakes as indicated in the table, there are also

additional views from the respondents about the common mistakes by the

contractors. First, the application is lack of supporting documents such as purchase

order and delivery order. Second, the contractor always submitting inappropriate

progress report and information given such as labour, material and machineries

schedule are not detailed and not updated. Nest mistake is submitting late

application with irrelevant information. The information provided by the contractor

in the EOT application usually not related to the cause of delay. Final view from the

respondents about the common mistakes by the contractor is normally the contractors

apply for EOT more than the actual or realistic EOT because they expecting that the

architect or consultant will reduce the time requested by the contractors.

68

5.2.5 Analysis for Ways to Reduce the Mistakes by the Contractor in the

Application of Extension of Time

Table 5.10 shows the ways to reduce the contractor’s mistakes in the EOT

application, ranked in order of average index. Main way ranked by the respondents

was implementation of a document management system. Keep reliable and accurate

progress and programme record was the second highest ranked way which

contributed in reducing the mistakes. This was followed by two ways in the same

ranked: fully comprehend what events the contract considers claimable in terms of

time, and implement a proper claim administration system. Be aware of the notice

requirements for an EOT and agreement of the as-planned schedule also tend to

highly contribute in reducing the mistakes. Be aware to give notice of delays is often

crucial because standard forms of contract usually require the contractor to give

notice of delays or make his application within reasonable time of the happening of

the delaying event. In short, the findings indicated that the respondents felt that all

those ways as listed in the questionnaire survey form were highly contributed in

reducing the mistakes.

As we know, the highest and second highest common mistakes by the

contractor were related to information of delay. Therefore, the highest and second

highest way to reduce or minimise the mistake also related to information system

which are document management system and keep accurate progress and programme

records. Both ways can justify application for an EOT to the contract due to

disruption of work progress.

69

Table 5.10: Ways to reduce the mistakes by the contractor in the application of

EOT

Rank Ways To Reduce The Mistakes Average

Index

Rating

Scale

1 Implementation of a document management

system 4.37

High

Contributing

2 Keep reliable and accurate progress and

programme records 4.30

High

Contributing

3 Fully comprehend what events the contract

considers claimable in terms of time 4.13

High

Contributing

4 Implement a proper claim administration system 4.13 High

Contributing

5 Be aware of the notice requirements for

submitting application for extension of time 4.03

High

Contributing

6

There must be an agreement and acceptance of the

baseline programme

(formal acceptance of the final as-planned

schedule)

4.03 High

Contributing

There are also other additional suggestions by the respondents in reducing the

contractor’s mistakes. First, it will be much easier to submit the application to

architect in report format with cover letter. Therefore, all the supporting documents

will be incorporated and can avoid further inquiry and longer time to evaluate EOT.

Next, the application must be submitted earlier with complete and relevant

supporting documents and information. Early submission of the application can

avoid longer time in evaluating EOT. Relevant information is necessary to assist the

evaluator in making his decision. Last view from the respondent is the

implementation of a proper site management in order to keep accurate delay

information and can identify the exact delay problems at construction site.

70

5.3 Conclusion

Based on the analysis presented in this chapter, it can be concluded that all

the information listed in the questionnaire survey form were considered in evaluating

EOT application but the level of consideration is different relating to different

reasons of delay. Insufficient quality of information in the EOT application is one of

the common mistakes by the contractor. This common mistake and other common

mistakes as listed in the questionnaire survey form were frequently happened in the

application of EOT. The mistakes can be reduced by applying ways as raised in the

questionnaire and comments given by the respondents. All those ways are highly

contributed in reducing the mistakes by the contractor in the application of EOT.

CHAPTER 6

CONCLUSION AND RECOMMENDATION

6.1 Introduction

This chapter is the last chapter of the study and it includes the

recommendations based on the findings and conclusions. The aim of this study is

identify and recommend the best way to reduce the common mistakes by the

contractor in the application of extension of time. Recommendations will be

described on how to reduce the mistakes in the application for an EOT. The study

has also help in identifying the most effective way of reducing mistakes in the

application of EOT.

72

6.2 Conclusion

Basically, it can be concluded that all objectives stipulated in Chapter 1 have

been successfully achieved. There are three objectives that had been set at the

beginning of this study. These three objectives are: to identify the information that

needs to be considered in evaluating extension of time application; to identify the

common mistakes by the contractor in the application of extension of time; and to

identify the ways to reduce the mistakes by the contractor in the application of

extension of time.

For the objective number one, the information that needs to be considered in

all three reasons of delays as mentioned previously are application letter, as-planned

schedule, as-built schedule, project daily report, site memo and site diaries. To sump

up, the findings for the objective number two indicated that insufficient quality of

information and poor presentation of the application to show how the progress of the

work has been delayed remained as the highest common mistakes. For the objective

number three, it can be concluded that the contractor’s mistakes in the application of

EOT could be best controlled or reduced by implementation of a document

management system and properly keep the accurate information for the reasons of

delay. In addition, the findings indicated that the respondents felt that all the ways to

reduce the mistakes by the contractor in the application for EOT were highly

contributed in reducing the mistakes.

73

6.3 Recommendations

Based on the findings, the recommendation to all contractors is to improve

the preparation of a proper EOT application for the consideration of the architect/

engineer/ quantity surveyor/. In any application for an EOT, and whether or not

there is a requirement to give details and particulars, it is good practice to include the

following:

a) A description of the cause of delay

b) The contractual provision which is being relied upon

c) The date when the delay commenced and the period of delay (giving

details of intermittent effects if appropriate).

d) The date of notice of delay, specifying the reference of the relevant

document

e) A summary of records and particulars relied upon

f) A description of the event and effects on progress

g) A diagrammatic illustration showing the status of the programme,

progress and current completion date prior to the commencement of the

delay

The main key to effective ways in reducing the contractor’s mistakes is a

proper documentation system in order to identify and properly keep the accurate

information for the reasons of delay. From the findings, implementation of a

document management system is a best way to control or reduce the common

mistakes by the contractor in the application of EOT. Procedures of ISO 9001:2000,

Quality Management System Requirement could be implemented in order to keep

accurate information of delays and identify the exact causes of delay. A documented

procedure can be established through the implementation of ISO to ensure that the

information is readily identifiable and retrievable. Electronic Document

Management system (EDM) can also be implemented by the contractor. The aim of

EDM is to create an environment within which disparate forms of information can be

linked together in the context of project to achieve easy access and control.

74

Computer systems keep track of revision and record to which documents have been

issued. These systems store and retrieve structured and unstructured information

electronically as well as updating as required. Proper documentation of information

can avoid the information from not being kept and not updated.

Other than documentation system, it was recommended that the application

for EOT must have been made by the contractor at the correct time in order to avoid

late or lack of notice of delay from the contractor. The contractor needs to submit

the notice earlier or when the delay becomes apparent to the contractor that the

progress of the works will be delayed.

Next recommendation is request must be made officially in order to keep all

site records and particulars related to delay. For example, in order to found an

application for EOT relating to reason of late instructions and drawings, the

contractor must have specifically applied in writing’ to the architect/ S.O for the

necessary instructions, drawings, details or levels. All requests for information from

the contractor shall be made officially and clearly specifying the details with

deadline of expected information required. Lack of particular site records can be

avoided by made the requests officially.

From the recommendations, we can concluded that notice, contemporary

records and programme are all practical matters which can only be addressed by

ensuring that adequate contract administration procedures are being followed from

the date of commencement of the works. Whilst the architect, engineer, or quantity

surveyor must do their best to evaluate the length of any EOT which may be due,

irrespective of the lack of notice and particulars given by the contractor, contractors

cannot complain if the extension made on the basis of inadequate information does

not live up to their expectation. Therefore, it will be prudent to seek advice from a

consultant who specialise in evaluating EOT when the contractor wish to apply EOT

in relation to delays.

75

6.4 Limitation of the Study

The research done has several limitations such as the information that needs

to be considered by the evaluator in EOT application is only focused on the reasons

of delay for architect’s instructions, late instructions, drawings or levels, and delay

on the part of nominated subcontractors or suppliers. Although this research only

focused to those three reasons of delay, it has reached and fulfilled the objective as to

identify the information that needs to be considered in evaluating EOT application.

6.5 Recommendation for Further Study

The contractor’s duty is to give the architect as much information as he can

about the cause of delay as so assist the architect in performing his duty. Other than

contactor’s duty, there is also architect’s duty to deal with requests for an EOT.

There is an issue about an architect/ engineer duty in exercising a duty to deal with

request for an EOT, whether he can reduce the period of time to which the contractor

is already entitled to reflect omissions which have reduced the work content on the

critical path. Clause 24.3(d), CIDB standard form of contract requires the S.O to

consider the effects of omissions or decrease in the provisional quantities when

deciding on any EOT. It does not, however, mention any entitlement to reduce the

contract period or any extended period already granted. It was recommended that

one study should be prepared about an architect’s/ engineer’s/ a quantity surveyor’s

duty to deal with request for an EOT in giving a fair and reasonable EOT to the

contactor. This research could indeed benefit the employer and contractor to gain

more knowledge about an architect’s/ engineer’s duty in exercising his power to

extend time in order to speed up the evaluation of the architect to establish

contractor’s entitlement for EOT and to avoid disputes about contractor’s entitlement

to EOT.

REFERENCES

Nor Ainah Abdullah (2001). Pengenalan Kepada Kontrak Binaan. Shah Alam: Unit

Penerbitan Akademik Universiti Teknologi Mara.

Manson, K. (1968). Building Law For Students. London: Cassell Ltd.

Murdoch, J.; Hughes, W. (1992). Construction Contracts: Law and Management.

London: E & FN Spon.

Haji Hashim Sikan (2001). Delay and Extension of Time In Construction Contract.

The Malaysian Surveyor. 3rd

Quarter: 34-40.

Lim, P.K. (1998). Evaluation of The Contractor’s Claim For Extension of Time.

PAM Continuing Professional Development Course. 25 April 1998; 1-21.

Entrusty Group (2006). Is The Contractor Still Entitled To Extension of Time When

There Is Concurrent Delay?. Master Builders Journal. 4th

Quarter: 101-103.

Kevin, R. (2005). Analysing Extension of Time: What The Courts Have To Say.

Master Builders Journal. 1st Quarter: 74-75.

Duncan Wallace, I.N. (1995). Hudson’s Building and Engineering Contract. Volume

2. London: Sweet & Maxwell.

Vincent, P.S. (1990). The Malaysian Standard Form of Building Contract. Kuala

Lumpur: Malayan Law Journal Sdn Bhd.

77

Vincent, P.S and Michael Furmston (1984). A Building Contract Casebook. Great

Britain: BSP Professional Books.

Lim, C.F. (2004). The Malaysian PWD Form of Construction Contract. Petaling

Jaya: Sweet & Maxwell Asia.

Brian, E. (1997). Liquidated Damages and Extensions of Time. UK: Blackwell

Science Ltd.

Martin, R. (2005). Delays and Extension of Time. 52 Contractual Issues Relevant To

Malaysia and Their Resolution. 27 January 2005. Kuala Lumpur: James R.

Knowles; Lecture 2, 13-16.

Harold, D.H. (1976). Building Contracts For Design and Construction. 2nd Edition.

USA: John Wiley & Sons, Inc.

Lawrence, T. (2001). Effective Measures For Minimising Disagreements Concerning

Extension of Time. Conference On Avoiding & Resolving Disputes In

Construction Contracts. 17 – 18 January 2001. JW Marriott, Kuala Lumpur: The

Asia Business Forum.

Michael, C. (2001). Formulation, Preparation & Presentation of Claims. Conference

On Avoiding & Resolving Disputes In Construction Contracts. 17 – 18 January

2001. JW Marriott, Kuala Lumpur: The Asia Business Forum.

Stuart, M. (2006). Record Keeping For Contemporaneous Delay Analysis: A Model

For Effective Event Management. Construction Management and Economics.

October – December 2006. 1007-1018.

Basar Juraimi (1997). Time Delays, Claims Procedures and Documentation.

Continuing Professional Development Course On Contracts. 12 – 13 August

1997. Crystal Crown Hotel, Petaling Jaya.

78

Abdul Rahman; Berawi, M.A; Berawi, A.R.; Mohamed, Othman and Yahya (2006).

Delay Mitigation in the Malaysian Construction Industry. Journal of

Construction Engineering and Management. February 2006. 125-132.

David, M.C. (1984). Contractor’s Claims: An Architect’s Guide. London: The

Architectural Press.

Sundra Rajoo (1999). The Malaysian Standard Form of Building Contract (The PAM

1998 Form). 2nd

Edition. Kuala Lumpur: Malayan Law Journal Sdn Bhd.

Nicholas, J,C. (2005). Causation and Delay In Construction Disputes. Oxford:

Blackwell Publishing Ltd.

Reg Thomas. Construction Contract Claims. Macmillan.

Al-Hammad, Al-Mohsen, and Assaf, S. (1996). Assessment of Work Performance of

Maintenance Construction in Saudi Arabia. Journal of Management in

Engineering, ASCE. Volume 16.

Majid, A.M.Z. and Mccaffer (1997). Non Excusable Delays In Construction.

Loughbourough: Phd Thesis.

Koo, C.K. (2003). The Assessment of Claims For Extension of Time In The

Construction Industry In Malaysia. Skudai: Universiti Teknologi Malaysia.

PAM 98 Standard Form of Contract.

PWD 203A Standard Form of Contract.

Assessing Extension of Time Claims. Availbale:

http://www.managingprocurement.commerce.nsw.gov.au. Last accessed:

1st April 2007.

79

BIBLIOGRAPHY

Cherry, I.S. (1985). JCT 80 and The Contractor. Great Britain: Butterworths.

Dennis, F.T. (1984). Standard Contracts For Building. New York: Longman Inc.

Hughes, G.A. (1985). Building and Civil Engineering Claims In Perspecctive. 2nd

Edition. New York: Longman Inc.

Burke, H.T. (1976). Claims and The Standard Form of Building Contract. The

Chartered Institute of Building.

APPENDIX A

Questionnaire Survey Form

QUESTIONNAIRE FORM

This questionnaire form consists of four sections:

Section A: Generally

Section B: Information

Section C: Common Mistakes by the Contractor

Section D: Ways to Reduce the Mistakes

Research Objectives:

1. To identify the information that needs to be considered in evaluating extension of

time application.

2. To identify the common mistakes by the contractor in the application of extension of

time.

3. To identify the ways to reduce the mistakes by the contractor in the application of

extension of time.

PREPARED BY:

NORHANA BINTI DANIAL

MASTER OF SCIENCE (CONSTRUCTION MANAGEMENT)

RESEARCH SURVEY

CONTRACTOR’S APPLICATION FOR AN EXTENSION OF

TIME

82

1.0 RESPONDENT

NAME OF RESPONDENT : _________________________________________

POST : _________________________________________

YEAR OF EXPEREINCE : _________________________________________

NAME OF COMPANY : _________________________________________

ADDRESS : _________________________________________

SIGNATURE : _________________________________________

2.0 BACKGROUND OF PROJECT

1. Standard form of contract used in the construction project that you have experienced

(Please tick (√) ALL option applicable)

2. Type of project that you have experienced (Please tick (√) ALL option applicable)

SECTION A: GENERALLY

COMPANY’S SEAL

Residential

School

Commercial Building

Office Building

High Storey Building

Mosque

Factory

Others: ___________________

PAM 98 PWD 203A

PWD 203 Others: ___________________

83

3. Most of your projects usually need application for extension of time (Please tick (√)

one option applicable)

4. In your opinion, please rate the significance reasons of delay which extension of time

may be given (Please (√) where applicable according to the appropriate scale)

Never Seldom Sometimes Often

Very

Often

No. Reasons That Could Justify Extension of

Time (1) (2) (3) (4) (5)

1. Force mejuere

2. Exceptionally inclement weather

3. Insurance contingencies (loss and damage to

the works)

4. Civil commotions, strikes, lockout

5. Architect’s/ S.O’s instructions

6. Late instructions, drawings or level

7. Delay by nominated subcontractors or

suppliers

8. Delay by artist, tradesmen and others

engaged by the employer

9. Delay in the supply of materials and goods

by the employer

10. Testing and inspection

11. Act of prevention or breach of contract by

the employer

12. Disputes with neighbouring owner

13. Delay in giving possession of site

14. Inability to obtain materials or goods

Yes No

84

This section of the survey aims to identify the information that needs to be considered in

evaluating extension of time application. Please tick (√) where applicable according to

the appropriate scale.

5. Based on your experiences, what are the documents which can be used as the main

source of information relating to different reason of delays that needs to be submitted

by the contractor in the application for an extension of time, and needs to be

considered by the evaluator in evaluating extension of time application?

Not

Considered

Less

Considered

Moderately

Considered

Highly

Considered

Very

Highly

Considered

No. Reasons Documents As The Main Source of

Information In Evaluating EOT (1) (2) (3) (4) (5)

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

1.

Force

Mejuere

Others:

SECTION B: INFORMATION

85

Not

Considered

Less

Considered

Moderately

Considered

Highly

Considered

Very

Highly

Considered

No. Reasons Documents As The Main Source of

Information In Evaluating EOT (1) (2) (3) (4) (5)

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

2.

Exceptionally

inclement

weather

Others:

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

3.

Insurance

contingencies

(loss and

damage to the

works

occasioned by

contingencies

as stated in

the contract)

Others:

* Cont’d. Please tick (√) where applicable according to the appropriate scale

86

Not

Considered

Less

Considered

Moderately

Considered

Highly

Considered

Very

Highly

Considered

No. Reasons Documents As The Main Source of

Information In Evaluating EOT (1) (2) (3) (4) (5)

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

4.

Civil

commotion,

strikes,

lockout

Others:

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

5.

Architect’s/

S.O’s

instructions

Others:

* Cont’d. Please tick (√) where applicable according to the appropriate scale

87

Not

Considered

Less

Considered

Moderately

Considered

Highly

Considered

Very

Highly

Considered

No. Reasons Documents As The Main Source of

Information In Evaluating EOT (1) (2) (3) (4) (5)

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

6.

Late

instructions,

drawings or

level

Others:

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

7.

Delay by

nominated

subcontractor

or suppliers

Others:

* Cont’d. Please tick (√) where applicable according to the appropriate scale

88

Not

Considered

Less

Considered

Moderately

Considered

Highly

Considered

Very

Highly

Considered

No. Reasons Documents As The Main Source of

Information In Evaluating EOT (1) (2) (3) (4) (5)

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

8.

Delay by

artists,

tradesmen and

others

engaged by

the employer

Others:

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

9.

Delay in the

supply of

materials and

goods by the

employer

Others:

* Cont’d. Please tick (√) where applicable according to the appropriate scale

89

Not

Considered

Less

Considered

Moderately

Considered

Highly

Considered

Very

Highly

Considered

No. Reasons Documents As The Main Source of

Information In Evaluating EOT (1) (2) (3) (4) (5)

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

10.

Testing and

inspection

Others:

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

11.

Act of

prevention or

breach of

contract by

the employer

Others:

* Cont’d. Please tick (√) where applicable according to the appropriate scale

90

Not

Considered

Less

Considered

Moderately

Considered

Highly

Considered

Very

Highly

Considered

No. Reasons Documents As The Main Source of

Information In Evaluating EOT (1) (2) (3) (4) (5)

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

12.

Disputes with

neighbouring

owner

Others:

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

13.

Delay in

giving

possession of

site

Others:

* Cont’d. Please tick (√) where applicable according to the appropriate scale

91

Not

Considered

Less

Considered

Moderately

Considered

Highly

Considered

Very

Highly

Considered

No. Reasons Documents As The Main Source of

Information In Evaluating EOT (1) (2) (3) (4) (5)

Application letter

As-planned schedule

As-built schedule

Weather record

Drawings

Site diaries

Site memo

Project daily report

Variation order

Architect’s/ S.O’s instructions

Minutes of meeting

Tests of materials/ operating test

Correspondence

14.

Inability to

obtain

materials or

goods

Others:

* Cont’d. Please tick (√) where applicable according to the appropriate scale

92

This section of the survey aims to identify the common mistakes by the contractor in the

application of extension of time. Please tick (√) where applicable according to the

appropriate scale.

6. Based on your experiences, what are the common mistakes by the contractor in the

application of extension of time?

Never Seldom Sometimes Often

Very

Often

No. Common Mistakes (1) (2) (3) (4) (5)

1. Late or lack of notice from the contractor

2. Failure to recognise delay or failure to

describe the cause of delay

3. Failure to stated the exact contractual

provision which is being relied upon

4. Failure to stated the date when delay

commenced and the period of delay

5. Poor presentation of the application to show

how the progress of the work has been

delayed

6. Lack of proper baseline schedule

7. Lack of proper site records and particulars

relied upon

8. Insufficient quality of information

(Information is not kept and not updated)

Others (please specify)

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

SECTION C: COMMON MISTAKES BY THE CONTRACTOR

93

This section of the survey aims to identify the ways to reduce the mistakes by the

contractor in the application of extension of time Please tick (√) where applicable

according to the appropriate scale.

7. In your opinion, what are the suggestions to improve the submission of extension of

time application in order to reduce the mistakes by the contractor?

Very Low

Contributing

Low

Contributing

Medium

Contributing

High

Contributing

Very High

Contributing

No. Ways To Reduce The Mistakes (1) (2) (3) (4) (5)

1. Be aware of the notice requirements

for submitting application for

extension of time

2. Fully comprehend what events the

contract considers claimable in terms

of time

3. There must be an agreement and

acceptance of the baseline

programme

(formal acceptance of the final as-

planned schedule)

4. Keep reliable and accurate progress

and programme records

5. Implement a proper claim

administration system

6. Implementation of a document

management system

Others (please specify)

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

SECTION D: WAYS TO REDUCE THE MISTAKES

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