First Draft 013 June 08 - Final

Polus Investments (Seychelles) Limited

Shangri-La Resort at Long IslandSeychelles

First Interim Request for Extension of Time for Completion and

Additional Payment

Island Construction (Pty) Ltd

June 2008

Island Construction (Pty) Ltd Shangri-La Resort DevelopmentInterim Request for Extension of Time and Additional Payment

Table of Contents

page

1. Introduction........................................................................................................5

1.1. Background.................................................................................................51.2. Purpose of this Document.........................................................................61.3. Scope of this Document.............................................................................7

2. The Structure of the Contract...........................................................................8

2.1. The Contract Existing.................................................................................82.1.1. Lump Sum Contract Price vis-à-vis Scope of Works.............................82.1.2. Provisional Sums.................................................................................12

2.1.2.1. Tender Provisions.........................................................................122.1.2.2. Contract Provisions......................................................................132.1.2.3. Current Situation...........................................................................152.1.2.4. Conclusions..................................................................................16

2.2. Relevant Contract Provisions..................................................................172.2.1. Sub-clause 1.9 – Delayed Drawings or Instructions............................172.2.2. Sub-clause 3.3 – Instructions of the Project Manager.........................182.2.3. Sub-clause 4.7 – Setting Out...............................................................192.2.4. Sub-clause 4.12 – Unforeseeable Physical Conditions.......................192.2.5. Sub-clause 8.3 – Programme..............................................................202.2.6. Sub-clause 8.4 – Extension of Time for Completion............................222.2.7. Sub-clause 8.8 – Suspension of Works...............................................222.2.8. Sub-clause 8.9 – Consequences of Suspension.................................232.2.9. Sub-clause 12.1 – Works to be Measured...........................................232.2.10. Sub-clause 12.3 – Evaluation..........................................................242.2.11. Sub-clause 13.1 – Right to Vary......................................................252.2.12. Sub-clause 13.3 – Variation Procedure............................................262.2.13. Sub-clause 20.1 – Contractor’s Claims............................................27

2.3. Original Planning and Cash-flow.............................................................292.3.1. The Clause 8 Programme....................................................................292.3.2. Planned versus Actual Turnover..........................................................30

2.4. First Revised Programme of Works........................................................322.5. Second Revised Programme of Works...................................................322.6. Actual Progress........................................................................................34

3. Valuation of Variations....................................................................................35

3.1. Explanation of Heads of Claim................................................................353.2. Specific Heads of Claim...........................................................................353.3. Methods of Valuation of the Variations...................................................36

3.3.1. Use of Costs as Basis..........................................................................363.3.2. Addition for Profit.................................................................................363.3.3. Profit as Part of the Value of Variations...............................................36

3.3.3.1. Three Types of Variations............................................................363.3.3.2. Changes in Design of the Works..................................................37

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3.3.3.2.1. Technical Variations.................................................................373.3.3.2.2. Changes to Specified Sequence and Timing...........................38

3.3.3.3. Summary......................................................................................383.3.4. The Effects on Unvaried Work.............................................................393.3.5. For Uneconomic Working....................................................................39

3.3.5.1. Loss of Anticipated Income..........................................................403.3.5.2. Wasted Monthly Costs..................................................................403.3.5.3. Financing Wasted Monthly Costs.................................................41

3.3.6. Profit as Part of ‘Costs’........................................................................413.3.6.1. Authorities on the Basis of ‘Costs’................................................41

3.3.6.1.1. Powell-Smith’s ‘Some Building Contract Problems’.................423.3.6.1.2. Hudson and Minter v. WHTSO.................................................423.3.6.1.3. Hudson on the Scope of ‘Costs’...............................................433.3.6.1.4. The First Part of the Rule in Hadley v. Baxendale....................443.3.6.1.5. The Basic Measure of Damages..............................................45

3.3.6.2. Authorities on the Recovery of Profit............................................463.3.6.2.1. General Principle as to Claims.................................................463.3.6.2.2. Wraight v. PH&T (Holdings) Ltd...............................................463.3.6.2.3. Powell-Smith and Sims on Building Contract Claims...............47

3.3.6.3. Summary......................................................................................483.4. The Contractor’s Summary......................................................................48

4. Circumstances Giving Rise to Claim.............................................................49

4.1. Contractual Basis – Notification of Changes.........................................494.2. Late and Inaccurate Survey Data............................................................654.3. Late Receipt of Final Design Information...............................................664.4. Additional and Varied Work.....................................................................66

4.4.1. Excavation in Hard Rock.....................................................................664.4.1.1. Change in Sequence and Increased Cost....................................674.4.1.2. Increased Quantity.......................................................................67

4.4.2. Increased Quantity in Reinforced Concrete.........................................704.4.2.1. Villa Type A3 (Example)...............................................................704.4.2.2. Villa Type B2 (Example)...............................................................71

4.4.3. Suspension of Works...........................................................................714.4.4. Variations to Design.............................................................................72

4.5. Material Procurement Programme..........................................................724.6. Conclusion of Effects of Variations........................................................74

5. Time Analysis...................................................................................................75

5.1. Method of Analysis...................................................................................755.1.1. Mitigation by Contractor.......................................................................765.1.2. Time for Completion............................................................................765.1.3. Impact on Time - Analyses..................................................................775.1.4. The Events that Impacted Progress....................................................77

5.1.4.1. Event No 1 – Setting Out..............................................................795.1.4.2. Event No 2 – Unforeseen Ground Conditions..............................825.1.4.3. Event No 3 – Later Receipt of Design Information.......................915.1.4.4. Event No 4 – Increased Scope of Works....................................1015.1.4.5. Event No 5 – Partial Suspension of Works.................................1145.1.4.6. Event No 6 – Design Variations (Stainless Steel Items).............119

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5.2. Conclusion..............................................................................................121

6. Financial Analysis..........................................................................................122

6.1. Consequences........................................................................................1226.1.1. Direct Cost.........................................................................................1236.1.2. Indirect Cost.......................................................................................1236.1.3. Consequential Cost...........................................................................123

6.2. Costs in Extended Contract Period.......................................................1236.2.1. Nature of Loss and Expense.............................................................1236.2.2. Contractor’s Entitlement to Reimbursement......................................124

6.3. Finance Cost...........................................................................................1246.4. Conclusions............................................................................................125

7. Extension of Time Entitlement......................................................................126

8. Additional Payment........................................................................................127

8.1. Introduction.............................................................................................1278.2. Evaluation of the Financial Consequences..........................................127

8.2.1. Wasted Costs Arising from Delay and Disruption..............................1288.2.1.1. Staff and Labour.........................................................................1288.2.1.2. Equipment..................................................................................1298.2.1.3. Site and Head Office..................................................................1308.2.1.4. Summary of Wasted Costs.........................................................132

8.2.2. Additional Costs Arising from Acceleration........................................1328.2.3. Additional Costs in Extended Contract Period...................................1338.2.4. Other Costs........................................................................................134

8.2.4.1. Procurement of Permanent Materials.........................................1348.2.4.2. Temporary Materials including Equipment.................................135

8.2.5. Finance Costs....................................................................................1358.2.6. Grand Summary................................................................................136

9. Statement of Claim.........................................................................................138

10. Appendices.................................................................................................139

10.1. Wasted Costs.......................................................................................13910.1.1. Record of Resources – Staff and Labour.......................................13910.1.2. Record of Resources – Equipment................................................13910.1.3. Direct and Indirect Costs................................................................139

10.2. RFI and RFA.........................................................................................14010.3. Correspondence....................................................................................141

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1. Introduction

1.1. Background

A Contract for Building and Engineering Works Designed by the Employer was entered into on 27 April 2007 between the Polus Investments (Seychelles) Limited (hereinafter called “the Employer”) and Island Construction (PTY) Limited (hereinafter called “the Contractor”).

During the course of both the Employer’s design and the construction phases of the Contract to date, a number of events and factors have affected progress of both the design and construction processes. The Contractor’s view is that the delays were not his fault. Consequently, the Contractor believes he should be allowed an Extension of Time and Additional Payment to complete the work which is the subject of the Contract. He seeks reimbursement of his additional costs incurred otherwise not allowed in his tendered rates and prices.

For the Contractor, this is an important matter. He needs the Project Manager’s agreement to an extension of time requested and to an interim determination of his additional costs, in order to allow earliest compensation and to off-set increasing finance costs.

The Contractor’s further view is that Site conditions are in variance to that anticipated as the positions of buildings and the significant increase in hard rock excavation. In addition the Project Manager suspended progress of the Works and he has received much of the design phase late. This design when received shows a significant increase in the quantities of work to be performed. These facts entitle him to an extension of time. It would also entitle him to additional payment for the delay and disruption caused to date.

As will be seen from the sections following this introduction, the Employer and/or the Project Manager also required the Contractor to carry out Construction work to a varied timing and sequence, as opposed to that anticipated by his programme of works. This was as a result of unforeseen ground conditions.

The issues became clear from the very start of the construction process. Once the setting out delays was over-come the Contractor encountered hard rock in excavation at almost all building locations. This unforeseen circumstance caused a varied order of construction to that planned together with numerous late instructions as design evolved.

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All of these factors have caused the Contractor to have to carry out work in a disrupted and disordered manner, and over a longer period, than he contracted to do. The Employer’s/the Project Manager’s errors have caused the Contractor to incur significant higher costs of construction and in addition, significant costs arising from delay and disruption.

As will be seen from the following sections of this claim, almost all areas of the site fell behind programme. In addition, it is of worthy note that the Contract Price awarded was inclusive of 30% allowance for Provisional Sums. That means the Project Manager must introduce these works as a Variation to the Contract. The design and construction work are both now a long way behind programme.

The Contractor has given notice that he will have to make claims to achieve the relief and payment to which he believes he is entitled.

1.2. Purpose of this Document

During the course of the work, the Contractor has suffered delay and disruption through a number of causes. The consequences of these causes are the contractual responsibility of the Employer.

The Contractor has made a number of notice submissions to the Project Manager with regard to these causes. The Contractor has thereafter, impacted the programme of works to reflect the effect of these events and changed circumstances.

We acknowledge receipt of the Employer’s letter dated 19 May 2008 and to the Project Managers letters dated 2, 9 and 12 May 2008 referenced E19-02.05.08, E20-09.05.08 and E21-12.05.08 respectively.

In summary we disagree entirely with all interpretations, conclusions and what appears to be a determination made prior to receipt of the Contractor’s detailed particulars. In such a situation you are making a prediction on changed events and circumstances and their consequences without benefit of the position one Party to the Contract. This is contrary to the duties and obligations stated at sub-clause 3.1 and 3.5 of the General Conditions of Contract.

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In our letter of 14 April 2008 we indicated a time to complete the detailed particulars. However, with consideration to your position now outlined in these letters, we require more time to complete this exercise. As such, we will make our full and detailed submission of claims on Monday 9 June 2008.

The purpose of this document is, therefore, to provide the Project Manager with an initial analysis so that he may make an evaluation of the additional payment based on:

The delays and disruption experienced to May 2008 and arising additional costs in the form of Wasted Costs, and

The extensions time for completion requested by the Contractor in respect of the cause’s notified and consequent recovery of arising prolongation costs.

for which the Employer is contractually liable.

1.3. Scope of this Document

This document describes the:

1. Causes of delay and disruption to the Works;

2. Impact of these causes on contract completion;

3. Contractual position regarding the Contractor’s entitlement to extension of time and additional payment, and

4. Consequences of delay and disruption in terms of the additional time and additional payment due to the Contractor.

The scope of this claim submission is limited to known events to May 2008. As many of the changed events and circumstances that have given rise to extensions of time and additional cost continue, the Contractor will be updating this detailed submission.

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2. The Structure of the Contract

2.1. The Contract Existing

2.1.1.Lump Sum Contract Price vis-à-vis Scope of Works

The Letter of Acceptance dated 7 March 2007 referenced SHAN/zk/ZK/LOA.01 states at paragraph 3.0:

“As per our agreement the lump sum contract price shall not be amended unless specifically agreed with the Employer and the Quantity Surveyor. No additional work (beyond the scope of the lump sum Contract Price) may be commenced prior to reaching agreement on the price thereof.”

In practice this is inoperable and this soon became evident at early stages of the Contract

In a letter dated 24 October 2007 the Contractor gave notice:

Two important matters require your confirmation:

First, we draw your attention to the changes and variations that are regularly being instructed as works proceed. Although they are acceptable to the Contractor we also wish to record that these changes and variations are made prior to reaching agreement on the price. This is as you are aware, contrary to the terms and conditions of the Contract. In the circumstances, because of this continuing departure from the Contract, it is understood that the price and consequent additional cost will be added to the Contract Price.

Secondly, we have reviewed the estimated quantities in the Bills of Quantity against actual work depicted on the drawings issued for construction. It is apparent significant disparity exists between the measure and provision made in the Contract. As a result, either the scope must be adjusted in order to retain the Contract Price or, we require your agreement to perform these works at the price contained in the contract which additional cost will be added to the Contract Price. If you require detail of the variations discussed here, please have your quantity surveyor consult with ours as quickly as possible.

In conclusion, we require the Employer’s agreement to payment of these variations as a matter of urgency.

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In a further letter dated 23 November 2007 the Contractor recorded:

This Contract contains specific conditions in regard to Variations that would increase or decrease the Lump Sum Contract Price. We wrote on this matter on 24 October 2007 to which a reply has not been received.

In particular it states that “the lump sum contract price shall not be amended unless specifically agreed with the Employer and the Quantity Surveyor. No additional work (beyond the scope of the lump sum Contract Price) may be commenced prior to reaching agreement on the price thereof.”

It further states that “Any changes in the design, which affect the lump sum Contract Price, must be specifically agreed by the Employer.”

Essentially this means a new or varied price or rate for all Variations must first receive agreement of the Employer together with, if relevant, a revised Contract Price prior to the issue of an instruction because they:

Introduce a design change;

Introduce additional works, and

Introduce an increase in the scope of work beyond the quantity stated in the Bills of Quantities.

As such, the purpose of this letter is to record several and significant Variations introduced since commencement where value and consequent Contract Price adjustment are not agreed despite the issue of an instruction. Consequently, we wish to schedule a “Variation Meeting” to discuss and agree a procedure that will ensure such increases in value are properly reported, valued and paid.

At this juncture we have identified the following Claims and Variations which have caused the Contract Price to increase:

1. Additional costs associated with delay and disruption not the responsibility of the Contractor;

2. Additional costs associated with the Project Manager’s instruction to accelerate the Works by working additional hours;

3. Additional costs arising from delays caused by late design information;

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4. Additional costs in excavation of hard rock and removal to spoil;

5. Additional costs that arise due to the construction of “mock-up” villas in a sequence that is in variance to original planning;

6. The increase in size of structural timber to roof structures where new rates need to be agreed prior to procurement;

7. Door timber type and finishing specifications have changed and new rates need to be agreed prior to procurement;

8. Window timber type and finishing specifications have changed and new rates need to be agreed prior to procurement;

9. Ironmongery specifications have changed and new rates need to be agreed prior to procurement;

10. Structural galvanised steel plates have changed to stainless steel and new rates need to be agreed prior to procurement.

11. Increased costs arising from additional site work described in Section B of the Principles of Measurement for Works of Construction.

This meeting must also acknowledge and agree the additional work being executed is in accordance with instructions and design details issued and that they are beyond the scope of the lump sum Contract Price. This presently includes:

Excavation in common material;

Excavation in rock;

Concrete in foundations to suit varied ground conditions; and

Reinforced concrete in columns, ring beams and suspended slabs.

In addition, all lump sums for works for which detailed bills of quantities do not exist need to be prepared and valued using detailed design drawings received in September 2007.

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Please confirm as soon as possible when a meeting can be convened as these Claims and Variations must be recorded and valued as a matter of priority.

The last letter with regards Variations and increased scope of Works was dated 6 December 2007 and recorded:

We acknowledge receipt of your letter dated 4 December 2007 referenced E-09-04-12-07 and wish to confirm our position by the following extract from the Contract:

The Letter of Acceptance dated 7 March 2007 referenced SHAN/zk/ZK/LOA.01 states at paragraph 3.0: “the lump sum contract price shall not be amended unless specifically agreed with the Employer and the Quantity Surveyor. No additional work (beyond the scope of the lump sum Contract Price) may be commenced prior to reaching agreement on the price thereof.”


The Contract Agreement dated 27 April 2007 lists the documents forming the Agreement and the Letter of Acceptance takes priority over the Conditions of Contract.

Consequently, your reference to sub-clause 12.3 and 13.1 of the Conditions of Contract, although interesting, is not relevant in the introduction of Variations on this project, particularly as sub-clause 3.1 has been amended by the quoted specific conditions above.

We would point out that although the amendment is impractical it is a significant revision to both Clause 12 and 13 of the Conditions of Contract. In practise it means that no Variation arising from additional work or by design change can commence prior to receiving the agreement of the Employer.

In conclusion, the purpose of our letter dated 23 November 2007 on this subject matter was to bring these special circumstances to your attention.

A further existing condition of the Contract relates to Provisional Sums and their inclusion in the Contract as Variations.

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2.1.2.Provisional Sums

Clause 13 empowers the Project Manager to issue instructions to the Contractor directing him how provisional sums are to be expended. Provisional sums are included in this Contract where the precise cost or extent of work is not known at time of tender. The purpose is to have the sum of money to cover the cost. When the instruction is issued, the sum inserted is omitted and the variation is then valued in accordance with the principles of Clause 12 and 13.

The “Building Contract Dictionary” written by Vincent Powell-Smith and David Chappell, explains the term provisional sum:

A term used to denote a sum of money included in the contract by the employer, normally as an amount in the bills of quantities. It is provided to cover the cost of something which cannot be foreseen or detailed accurately at the time tenders are invited. (Contractor’s profit is not added to this sum.) It may be expended as the architect instructs…

It is important that the Contractor receives proper valuation of variations measured in accordance with the provisions stated for Provisional Sums. In particular, all on-costs and overheads described and allowed in the existing Bill 1 will be equally relevant to any measured Variations valued under Clause 12 and 13 of the Contract conditions.

It is of worthy note that a very large percentage of the Contract Works and therefore, the Contract Price, had not been sufficiently designed at tender stage. The consequences of this situation will allow the Contractor to measure and value these works as an addition, within the provisions of Clause 12 and 13. As such, the value of items listed in Bill no 1 must be increased to include works falling under Variations. This would then allow the Contractor to be paid for the work performed.

2.1.2.1. Tender Provisions

At tender stage the value shown for Measured Work was (Bills 1 to 34 inclusive) SCR20,677,661.15, and the value of the Preliminaries (Bill 1) has been derived from this figure.

However, a value for Preliminary items is clearly not included as part of the Provisional Sum amount declared by the Employer at tender stage. The value of Provisional Sums included, amounts to SCR22,539,454.00, a figure which is greater than the value of the original Measured Works forming the Contract.

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2.1.2.2. Contract Provisions

The contract provides as follows:

Under Clause 13.5, Provisional Sums; Each provisional sum shall only be used in whole or in part in accordance with the Project Managers instruction and that the contract sum shall be adjusted accordingly. It further provides that when the Project Manager instructs work to be provided by the contractor such work shall be valued under Clause 13.3 (Variation Procedure).

Under Clause 13.3, Variation Procedure: Each variation will be valued in accordance with Clause 12. This has been amended in the Particular Conditions where the measure and value is made in accordance with the RICS Principles of Measurement for Works of Construction. Consequently, the full wording of Clause 12 is:

Under Clause 12.3, Evaluation: a new rate or price shall be appropriate for an Item of Work if:

(a)

the measured quantity of the item is changed by more than 10% from the quantity of this item in the Bill of Quantities or other Schedule,

this change in quantity multiplied by such specified rate for this item exceeds 0.01% of the Accepted Contract Amount,

this change in quantity directly changes the Cost per unit quantity of this item by more than 1%, and

this item is not specified in the Contract as a “fixed rate item";

or (b)

i. the work is instructed under Clause 13 [Variations and Adjustments],

ii. no rate or price is specified in the Contract for this item, and

iii. no specified rate or price is appropriate because the item of work is not of similar

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character, or is not executed under similar conditions, as any item in the Contract.

Each new rate or price shall be derived from any relevant rates or prices in the Contract, with reasonable adjustments to take account of the matters described in sub-paragraph (a) and/or (b), as applicable. If no rates or prices are relevant for the derivation of a new rate or price, it shall be derived from the reasonable Cost of executing the work, together with profit, taking account of any other relevant matters.

With regard to which part of sub-clause 12.3 above is relevant, it is obvious the measured quantity of the Works originally included as a value under Provisional Sums complies with those conditions stated in paragraph (a). As such, all rates and prices from which the varied works are valued to date, for those Works not forming part of the original Measured Works, must be appropriately adjusted.

The procedure in the Contract for the valuation of a variation is described under sub-clause 13.3 and states:

If the Project Manager requests a proposal, prior to instructing a Variation, the Contractor shall respond in writing as soon as practicable, either by giving reasons why he cannot comply (if this is the case) or by submitting:

a. a description of the proposed work to be performed and a programme for its execution,

b. the Contractor’s proposal for any necessary modifications to the programme according to Sub-Clause 8.3 [Programme] and to the Time for Completion, and

c. the Contractor’s proposal for evaluation of the Variation.

The Project Manager shall, as soon as practicable after receiving such proposal (under Sub-Clause 13.2 [Value Engineering] or otherwise), respond with approval, disapproval or comments. The Contractor shall not delay any work whilst awaiting a response.

Each instruction to execute a Variation, with any requirements for the recording of Costs, shall be issued by the Project Manager to the Contractor, who shall acknowledge receipt.

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Each Variation shall be evaluated in accordance with Clause 12 [Measurement and Evaluation], unless the Project Manager instructs or approves otherwise in accordance with this Clause.

The procedure adopted by the Project Manager would appear to be a submission of a “Drawing for Construction”. Therefore, the three stage process described and allowed above has not been observed. Nonetheless, it is apparent as a consequence of these variations, that the value of the Works flowing from the Provisional Sums has not been determined at time of tender.

2.1.2.3. Current Situation

The Preliminaries had originally been calculated based on the value of Measured Works identified at tender. A breakdown of the Preliminaries shown below demonstrates that though certain items and their related cost therein, is considered fixed, the majority are of a variable nature. Consequently, the Preliminaries and their value are directly proportional to the value of Measured Works to be executed.

Item Nature of Cost Fixed Variable

1 Insurance 250,000.002 Foreign Staff, Labour Repatriation 450,000.003 Facilities for Staff and Labour 170,000.004 Measures against Insect and Pect Nuisance 60,000.005 Supply of Foodstuffs 660,000.006 Supply of Water 80,318.007 Shop Drawings 10,000.008 As-Built Documents 5,600.009 Temporary Site Office for Employers Consultants 65,250.00

10 Site Signboard 3,275.0011 Access to Site 35,000.0012 Site to be Tidy 12,727.0013 Co-ordination 14,727.0014 Site Records 3,275.0015 Site Records 29,913.0016 Safety Procedures 5,700.0017 Security at Site 13,426.0018 Contractors Site Operations 7,485.0019 Site Radio Communication 11,725.0020 Environmental Impact Assessment 5,000.0021 Taking Delivery from NS 50,000.0022 Contractors Temporary Accommodation 35,000.0023 Superintendence 15,000.0024 Transport of People 125,475.0025 Contractors Equipment 365,000.0026 Scaffolding 105,000.00

Total 85,250.00 2,503,646.00

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It is important to define the difference between a “fixed” and a “variable” item;

Fixed items are to cover elements of a cost of work or their value, which are not to be considered as proportional to the quantities of the Permanent Works; whereas

Variable items are to cover for elements of a cost of work which are considered proportional to the quantities of Permanent Work performed.

The distinction is clear and as example, Shop Drawings and Site Records is a typical Variable item which scope will increase on introduction of the Variations brought by expenditure of the provisional sums.

These variable preliminaries items amount to about 12% of the value of Measured Works. As a result the current situation is:

The original value of known Measured Works has varied in quantity and therefore, value, considerably;

The instructed varied works (which is the value provision at tender and known as “Provisional Sums”) has or will considerably increase the value of Measured Works; and

As a result of a) and b) above, there is a significant under-recovery of costs on measured works that should naturally flow from items contained in the Preliminary Bill.

2.1.2.4. Conclusions

The table below shows the various value elements making up the Contract Price. The known scope of work had been priced and valued at SR20,677,661.15.

However, the value of Preliminaries is SR2,537,894.00 of which SR2,503,646.00 is the value of Variable Costs. Therefore, SR2,503,646.00 as a percentage of the known measured works at time of tender was 12%. It is this percentage, 12% that must be added to the value of Variations introduced under Clause 12 and 13.

This means the value adjustment on the original Provisional Sum amount of SCR22,539,454.00 equates to SCR2,729,071.00 or such other sum valued in accordance with the Contract. This sum is to be paid in addition to the Contract Price.

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This signifies that all the Works measured to date are under-valued. Accordingly, the Conditions of the Contract dictate the following actions:

Notwithstanding delay and disruption costs caused by events notified to the Project Manager, further additional costs must be captured because:

The Contractor has entitlement to a varied rate for all unvaried Works,

The Contractor has entitlement to new rates and prices for all Works introduced as a Variation in accordance with sub-clause 12.3, and

the contractor has entitlement to the addition of 12% to all his measured work to cover his Preliminary and general items.

Consequently, the Contractor intends to add 12% to the value of measured works arising from Instructed Variations. The Contractor asks the Project Manager to certify payment applications in accordance with the Contract Conditions and for the reasons stated in the foregoing.

2.2. Relevant Contract Provisions

2.2.1.Sub-clause 1.9 – Delayed Drawings or Instructions

The Contractor shall give notice to the Project Manager whenever the works are likely to be delayed or disrupted if any necessary drawing or instruction is not issued to the Contractor within a particular time, which shall be reasonable. The notice shall include details of the necessary drawing or instruction, details of why and by when it should be issued, and details of the nature and amount of the delay or disruption likely to be suffered if it is late.

If the Contractor suffers delay and/or incurs Cost as a result of a failure of the Project Manager to issue the notified drawing or instruction within a time which is reasonable and is specified in the notice with supporting details, the Contractor shall give a further notice to the Project Manager and shall be entitled subject to Sub-Clause 20.1 [Contractor's Claims] to:

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(a) an extension of time for any such delay, if completion is or will be delayed, under Sub-Clause 8.4 [Extension of Time for Completion], and

(a) payment of any such Cost plus profit, which shall be included in the Contract Price.

After receiving this further notice, the Project Manager shall proceed in accordance with Sub-Clause 3.5 [Determinations] to agree or determine these matters.

However, if and to the extent that the Project Manager's failure was caused by any error or delay by the Contractor, including an error in, or delay in the submission of, any of the Contractor's Documents, the Contractor shall not be entitled to such extension of time, Cost or profit.

2.2.2.Sub-clause 3.3 – Instructions of the Project Manager

The Project Manager may issue to the Contractor (at any time) instructions and additional or modified Drawings which may be necessary for the execution of the Works and the remedying of any defects, all in accordance with the Contract. The Contractor shall only take instructions from the Project Manager, or from an assistant to whom the appropriate authority has been delegated under this Clause. If an instruction constitutes a Variation, Clause 13 [Variations and Adjustments] shall apply.

The Contractor shall comply with the instructions given by the Project Manager or delegated assistant, on any matter related to the Contract. Whenever practicable, their instructions shall be given in writing. If the Project Manager or a delegated assistant:

(a) gives an oral instruction,

(b) receives a written confirmation of the instruction, from (or on behalf of) the Contractor, within two working days after giving the instruction, and

(c) does not reply by issuing a written rejection and/or instruction within two working days after receiving the confirmation,

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then the confirmation shall constitute the written instruction of the Project Manager or delegated assistant (as the case may be).

2.2.3.Sub-clause 4.7 – Setting Out

The Contractor shall set out the Works in relation to original points, lines and levels of reference specified in the Contract or notified by the Project Manager. The Contractor shall be responsible for the correct positioning of all parts of the Works, and shall rectify any error in the positions, levels, dimensions or alignment of the Works.

The Employer shall be responsible for any errors in these specified or notified items of reference, but the Contractor shall use reasonable efforts to verify their accuracy before they are used.

If the Contractor suffers delay and/or incurs Cost from executing work which was necessitated by an error in these items of reference, and an experienced contractor could not reasonably have discovered such error and avoided this delay and/or Cost, the Contractor shall give notice to the Project Manager and shall be entitled subject to Sub-Clause 20.1 [Contractor's Claims] to:

(a) an extension of time for any such delay, if completion is or will be delayed,under Sub-Clause 8.4 [Extension of Time for Completion], and

(b) payment of any such Cost plus profit, which shall be included in the Contract Price.

After receiving this notice, the Project Manager shall proceed in accordance with Sub-Clause 3.5 [Determinations] to agree or determine (i) whether and (if so) to what extent the error could not reasonably have been discovered, and (ii) the matters described in sub-paragraphs (a) and (b) above related to this extent.

2.2.4.Sub-clause 4.12 – Unforeseeable Physical Conditions

In this sub-clause, “physical conditions” means natural physical conditions and man-made and other physical obstructions and pollutants, which the Contractor

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encounters at the Site when executing the Works, including sub-surface and hydrological conditions but excluding climatic conditions.

If the Contractor encounters adverse physical conditions which he considers to have Unforeseeable, the Contractor shall give notice to the Project Manager as soon as practicable.

This notice shall describe the physical conditions, so that they can be inspected by the Project Manager, and shall set out the reasons why the Contractor considers them to be Unforeseeable. The Contractor shall continue executing the Works, using such proper and reasonable measures as are appropriate for the physical conditions, and shall comply with any instructions which the Project Manager may give. If an instruction constitutes a Variation, Clause 13 [Variations and Adjustments] shall apply.

If and to the extent that the Contractor encounters physical conditions which are Unforeseeable, gives such a notice, and suffers delay and/or incurs Cost due to these conditions, the Contractor shall be entitled subject to Sub-Clause 20.1 [Contractor's Claims] to:


(b) payment of any such Cost, which shall be included in the Contract Price.

After receiving such notice and inspecting and/or investigating these physical conditions, the Project Manager shall proceed in accordance with Sub-Clause 3.5 [Determinations] to agree or determine (i) whether and (if so) to what extent these physical conditions were Unforeseeable, and (ii) the matters described in sub-paragraphs (a) and (b) above related to this extent.

2.2.5.Sub-clause 8.3 – Programme

The Contractor shall submit a detailed time programme to the Project Manager within 28 days after receiving the notice under Sub-Clause 8.1 [Commencement of Works]. The Contractor shall also submit a revised programme whenever the previous programme is inconsistent with

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actual progress or with the Contractor's obligations. Each programme shall include:

(a) the order in which the Contractor intends to carry out the Works, including the anticipated timing of each stage of design (if any), Contractor's Documents, procurement, manufacture of Plant, delivery to Site, construction, erection and testing,

(b) each of these stages for work by each nominated Subcontractor (as defined in Clause 5 [Nominated Subcontractors]

(c) the sequence and timing of inspections and tests specified in the Contract, and

(d) a supporting report which includes:

(i) a general description of the methods which the Contractor intends to adopt, and of the major stages, in the execution of the Works, and

(ii) details showing the Contractor's reasonable estimate of the number of each class of Contractor's Personnel and of each type of Contractor's Equipment, required on the Site for each major stage.

Unless the Project Manager, within 21 days after receiving a programme, gives notice to the Contractor stating the extent to which it does not comply with the Contract, the Contractor shall proceed in accordance with the programme, subject to his other obligations under the Contract. The Employer's Personnel shall be entitled to rely upon the programme when planning their activities.

The Contractor shall promptly give notice to the Project Manager of specific probable future events or circumstances which may adversely affect the work, increase the Contract Price or delay the execution of the Works. The Project Manager may require the Contractor to submit an estimate of the anticipated effect of the future event or circumstances, and/or a proposal under Sub-Clause 13.3 [Variation Procedure].

If, at any time, the Project Manager gives notice to the Contractor that a programme fails (to the extent stated) to comply with the Contract or to be consistent with actual progress and the Contractor's stated intentions, the Contractor shall submit a revised programme to the Project Manager in accordance with this Sub-Clause.

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2.2.6.Sub-clause 8.4 – Extension of Time for Completion

The Contractor shall be entitled subject to Sub-clause 20.1 [Contractor’s Claims] to an extension of the Time for Completion if and to the extent that completion for the purposes of Sub-Clause 10.1 [Taking-Over of the Works and Sections] is or will be delayed by any of the following causes:

(a) a Variation (unless an adjustment to the Time for Completion has been agreed under Sub-Clause 13.3 [Variation Procedure]) or other substantial change in the quantity of an item of work included in the Contract,

(b) a cause of delay giving an entitlement to extension of time under a Sub-Clause of these Conditions,

(c) exceptionally adverse climatic conditions,

(d) Unforeseeable shortages in the availability of personnel or Goods caused by epidemic or governmental actions, or

(e) any delay, impediment or prevention caused by or attributable to the Employer, the Employer's Personnel, or the Employer's other contractors.

If the Contractor considers himself to be entitled to an extension of the Time for Completion, the Contractor shall give notice to the Project Manager in accordance with Sub-Clause 20.1 [Contractor's Claims]. When determining each extension of time under Sub-Clause 20.1, the Project Manager shall review previous determinations and may increase, but shall not decrease, the total extension of time.

2.2.7.Sub-clause 8.8 – Suspension of Works

The Engineer may at any time instruct the Contractor to suspend progress of part or all of the Works. During such suspension, the Contractor shall protect, store andsecure such part or the Works against any deterioration, loss or damage.

The Engineer may also notify the cause for the suspension. If and to the extent that the cause is notified

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and is the responsibility of the Contractor, the following Sub-Clauses 8.9, 8.10 and 8.11 shall not apply.

2.2.8.Sub-clause 8.9 – Consequences of Suspension

If the Contractor suffers delay and/or incurs Cost from complying with the Engineer’s instructions under Sub-Clause 8.8 [Suspension of Work] and/or from resuming the work, the Contractor shall give notice to the Engineer and shall be entitled subject to Sub-Clause 20.1 [Contractor’s Claims] to:


(b) payment of any such Cost, which shall be included in the Contract Price.

After receiving this notice, the Engineer shall proceed in accordance with Sub-Clause 3.5 [Determinations] to agree or determine these matters.

The Contractor shall not be entitled to an extension of time for, or to payment of the Cost incurred in, making good the consequences of the Contractor’s faulty design, workmanship or materials, or of the Contractor’s failure to protect, store or secure in accordance with Sub-Clause 8.8 [Suspension of Work].

2.2.9.Sub-clause 12.1 – Works to be Measured

The Works shall be measured, and valued for payment, in accordance with this Clause.

Whenever the Project Manager requires any part of the Works to be measured, reasonable notice shall be given to the Contractor's Representative, who shall:

(a) promptly either attend or send another qualified representative to assist the Project Manager in making the measurement, and

(b) supply any particulars requested by the Project Manager.

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If the Contractor fails to attend or send a representative, the measurement made by (or on behalf of) the Project Manager shall be accepted as accurate.

Except as otherwise stated in the Contract, wherever any Permanent Works are to be measured from records, these shall be prepared by the Project Manager. The Contractor shall, as and when requested, attend to examine and agree the records with the Project Manager, and shall sign the same when agreed. If the Contractor does not attend, the records shall be accepted as accurate.

If the Contractor examines and disagrees the records, and/or does not sign them as agreed, then the Contractor shall give notice to the Project Manager of the respects in which the records are asserted to be inaccurate. After receiving this notice, the Project Manager shall review the records and either confirm or vary them. If the Contractor does not so give notice to the Project Manager within 14 days after being requested to examine the records, they shall be accepted as accurate.

2.2.10. Sub-clause 12.3 – Evaluation

Except as otherwise stated in the Contract, the Project Manager shall proceed in accordance with Sub-Clause 3.5 [Determinations] to agree or determine the Contract Price by evaluating each item of work, applying the measurement agreed or determined in accordance with the above Sub-Clauses 12.1 and 12.2 and the appropriate rate or price for the item.

For each item of work, the appropriate rate or price for the item shall be the rate or price specified for such item in the Contract or, if there is no such item, specified for similar work.

For each item of work included in the Bill of Quantities for which no rate or price was specified shall be considered as included in other rates and prices in the Bill of Quantities and will not be paid for separately. However, a new rate or price shall be appropriate for an item of work if:

(a) (i) the measured quantity of the item is changed by more than 25% from the quantity of this item in the Bill of Quantities or other Schedule,

page 24


(ii) this change in quantity multiplied by such specified rate for this item exceeds 0.25% of the Accepted Contract Amount,

(iii) this change in quantity directly changes the Cost per unit quantity of this item by more than 1 %, and

(iv) this item is not specified in the Contract as a "fixed rate item";

Or

(b)(i) the work is instructed under Clause 13 [Variations and Adjustments],

(ii) no rate or price is specified in the Contract for this item, and

(iii) no specified rate or price is appropriate because the item of work is not of similar character, or is not executed under similar conditions, as any item in the Contract.


Until such time as an appropriate rate or price is agreed or determined, the Project Manager shall determine a provisional rate or price for the purposes of Interim Payment Certificates.

2.2.11. Sub-clause 13.1 – Right to Vary

Variations may be initiated by the Project Manager at any time prior to the issuing the Taking-Over Certificate for the Works, either by an instruction or by a request for the Contractor to submit a proposal.

Contractor shall execute and be bound by each Variation, unless the Contractor ptly gives notice to the Project Manager stating (with supporting particulars) that the Contractor cannot readily obtain the Goods required for the Variation. Upon receiving notice, the Project Manager shall cancel, confirm or vary the instruction.

page 25


Each Variation may include:

(a) changes to the quantities of any item of work included in the Contract (however, such changes do not necessarily constitute a Variation),

(b) changes to the quality and other characteristics of any item of work,

(c) changes to the levels, positions and/or dimensions of any part of the Works,

(d) omission of any work unless it is to be carried out by others,

(e) any additional work, Plant, Materials or services necessary for the Permanent Works, including any associated Tests on Completion, boreholes and other testing and exploratory work, or

(f) changes to the sequence or timing of the execution of the Works.

The Contractor shall not make any alteration and/or modification of the Permanent Works, unless and until the Project Manager instructs or approves a Variation.

2.2.12. Sub-clause 13.3 – Variation Procedure

If the Project Manager requests a proposal, prior to instructing a Variation, the Contractor shall respond in writing as soon as practicable, either by giving reasons why he cannot comply (if this is the case) or by submitting:

(a) a description of the proposed work to be performed and a programme for its execution,

(b) he Contractor's proposal for any necessary modifications to the programme according to Sub-Clause 8.3 [Programme] and to the Time for Completion, and

(c) the Contractor's proposal for evaluation of the Variation.

The Project Manager shall, as soon as practicable after receiving such proposal (under Sub-Clause 13.2 [Value Engineering] or otherwise), respond with approval,

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disapproval or comments. The Contractor shall not delay any work whilst awaiting a response.

Each instruction to execute a Variation, with any requirements for the recording of Costs, shall be issued by the Project Manager to the Contractor, who shall acknowledge receipt.

Each Variation shall be evaluated in accordance with Clause 12 [Measurement and Evaluation], unless the Project Manager instructs or approves otherwise in accordance with this Clause.

2.2.13. Sub-clause 20.1 – Contractor’s Claims

If the Contractor considers himself to be entitled to any extension of time for Completion and/or any additional payment, under any Clause of these Conditions or otherwise in connection with the Contract, the Contractor shall give notice to the Project Manager, describing the event or circumstance giving rise to the claim. The notice shall be given as soon as practicable, and not later than 28 days after the Contractor became aware, or should have become aware, of the event or circumstance.

If the Contractor fails to give notice of a claim within such period of 28 days, the Time for Completion shall not be extended, the Contractor shall not be entitled to additional payment, and the Employer shall be discharged from all liability in connection with the claim. Otherwise, the following provisions of this Sub-Clause shall apply.

The Contractor shall also submit any other notices which are required by the Contract, and supporting particulars for the claim, all as relevant to such event or circumstance.

The Contractor shall keep such contemporary records as may be necessary to substantiate any claim, either on the Site or at another location acceptable to the Project Manager. Without admitting the Employer's liability, the Project Manager may, after receiving any notice under this Sub-Clause, monitor the record-keeping and/or instruct the Contractor to keep further contemporary records. The Contractor shall permit the Project Manager to inspect all these records, and shall (if instructed) submit copies to the Project Manager.

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Within 42 days after the Contractor became aware (or should have become aware) of the event or circumstance giving rise to the claim, or within such other period as may be proposed by the Contractor and approved by the Project Manager, the Contractor shall send to the Project Manager a fully detailed claim which includes full supporting particulars of the basis of the claim and of the extension of time and/or additional payment claimed. If the event or circumstance giving rise to the claim has a continuing effect:

(a) this fully detailed claim shall be considered as interim;

(b) the Contractor shall send further interim claims at monthly intervals, giving the accumulated delay and/or amount claimed, and such further particulars as the Project Manager may reasonably require; and

(c) the Contractor shall send a final claim within 28 days after the end of the effects resulting from the event or circumstance, or within such other period as may be proposed by the Contractor and approved by the Project Manager.

Within 42 days after receiving a claim or any further particulars supporting a previous claim, or within such other period as may be proposed by the Project Manager and approved by the Contractor, the Project Manager shall respond with approval, or with disapproval and detailed comments. He may also request any necessary further particulars, but shall nevertheless give his response on the principles of the claim within such time.

Each Payment Certificate shall include such amounts for any claim as have been reasonably substantiated as due under the relevant provision of the Contract. Unless and until the particulars supplied are sufficient to substantiate the whole of the claim, the Contractor shall only be entitled to payment for such part of the claim as he has been able to substantiate.

The Project Manager shall proceed in accordance with Sub-Clause 3.5 [Determinations] to agree or determine (i) the extension (if any) of the Time for Completion (before or after its expiry) in accordance with Sub-Clause 8.4 [Extension of Time for Completion], and/or (ii) the additional payment (if any) to which the Contractor is entitled under the Contract.

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The requirements of this Sub-Clause are in addition to those of any other Sub-Clause which may apply to a claim. If the Contractor fails to comply with this or another Sub-Clause in relation to any claim, any extension of time and/or additional payment shall take account of the extent (if any) to which the failure has prevented or prejudiced proper investigation of the claim, unless the claim is excluded under the second paragraph of this Sub-Clause.

2.3. Original Planning and Cash-flow

2.3.1.The Clause 8 Programme

The programme of works that appears below is summary task format was issued and approved for construction in XX 2007.

This programme of works considers the original scope of works depicted in the bills of quantities, including time provision for provisional sums. The provisional sum value included in the Contract allowed for inclusion by Variation all works not defined at time of tender. The Contractor’s original cash-flow was produced using this data.

ID Task Name

1 SHANGRI-LA , Long Island Resort Seychelles

2 General Conditions and Preliminaries

17 Site establishment

41 Material/equipment procurement

182 Lot 1

183 A3 Villas ( 6 nos)

453 C311 Executive Villas ( 1 nos)

497 GM Villa ( subject to receipt of GFW drawings)

537 Employees Facilities ( subject to receipt of GFW drawings)

581 Laundry F& B service office ( subject to receipt of GFW drawings)

625 Health Club/ Medical Centre( subject to receipt of GFW drawings)

666 Administration Block ( subject to receipt of GFW drawings)

707 1 bedroom Villa ( Excom, 6 units)( subject to receipt of GFW drawings)

750 Main Lobby ( subject to receipt of GFW drawings)

791 Tennis Courts ( subject to receipt of GFW drawings)

807 External works ( subject to receipt of GFW drawings)

816 Drainage works ( subject to receipt of EME details)

819 Fuel Farm ( subject to receipt of EME details)

823 Sea water Storage Tank & Water Tanks( subject to receipt of EME details)

827 Desalination plant( subject to receipt of EME details)

831 MLV Panel( subject to receipt of EME details)

835 Step Up Transformer( subject to receipt of EME details)

839 Incinerator/ Garbage room( subject to receipt of EME details)

843 Sewer treatement plant( subject to receipt of EME details)

847 Lot 2

848 A3 Villas (17 nos)

1614 B223 Villas ( 7 nos)

1965 B4 Villa (2 nos.)

2056 Retail 1( subject to receipt of GFW drawings)



2170 Seafood resort( subject to receipt of GFW drawings)

2211 Greeting Pavillion( subject to receipt of GFW drawings)



2262 Lot 3



2808 B4 Standard Villas ( 2 nos)

2899 BC311 Executive Villa

3115 P3 Presidential suites ( 3 nos)

3245 Hilltop sunset deck( subject to receipt of GFW drawings)



3292 Lot 4

3293 Couple treatment room( subject to receipt of GFW drawings)

3334 Single treatment room( subject to receipt of GFW drawings)

3375 Dive Centre( subject to receipt of GFW drawings)

3413 Kid's club( subject to receipt of GFW drawings)

3452 Recreation House( subject to receipt of GFW drawings)

3491 Watersports rental( subject to receipt of GFW drawings)

3529 3 Meals restaurant( subject to receipt of GFW drawings)

3570 Beach Pool Bar( subject to receipt of GFW drawings)

3611 Signature Pool area( subject to receipt of GFW drawings)

3650 Wedding Chapel( subject to receipt of GFW drawings)

3685 BOH/Admin Building( subject to receipt of GFW drawings)

3726 Chi Sanctum( subject to receipt of GFW drawings)

3767 Yoga Pavillion( subject to receipt of GFW drawings)



3817 M&E Installations- External

3828 Sundries

3829 Site cleaning & demobilisation

3830 Project Commissioning

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct2007 2008

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2.3.2.Planned versus Actual Turnover

The chart below provides a comparison between planned cash-flow, based on the programme of works, and actual income.

It can be seen the period through to XX, the first X-months of the construction programme, both planned and actual cash-flow remain reasonably constant. This is to be expected.

However, thereafter the gap widens because:

Excavations took longer because of hard rock;

Sub-structure work took longer due to greater scope of work;

Work slowed down waiting information and detailed design, and

Works were suspended

-5,000,000.00

0.00

5,000,000.00

10,000,000.00

15,000,000.00

20,000,000.00

25,000,000.00

30,000,000.00

Feb-07

Mar-07

Apr-07

May-07

Jun-07

Jul-07

Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

Jan-08

Feb-08

Mar-08

Apr-08

May-08

PlanCumm ActualCumm

The following table provides the value of payment applications certified to end of May 2008.

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Month Planned PlanCumm Actual ActualCummFeb-07 3,100,000.00 3,100,000.00 0.00 0.00Mar-07 601,658.62 3,701,658.62 0.00 0.00Apr-07 1,352,295.74 5,053,954.37 0.00 0.00

May-07 1,852,720.48 6,906,674.85 3,100,000.00 3,100,000.00Jun-07 2,236,090.71 9,142,765.56 0.00 3,100,000.00Jul-07 2,684,335.78 11,827,101.34 682,032.85 3,782,032.85

Aug-07 2,189,910.64 14,017,011.97 351,989.15 4,134,022.00Sep-07 2,236,090.71 16,253,102.68 145,803.63 4,279,825.63Oct-07 2,258,038.74 18,511,141.42 357,556.62 4,637,382.25Nov-07 2,258,038.74 20,769,180.15 478,924.03 5,116,306.28Dec-07 1,754,288.50 22,523,468.65 0.00 5,116,306.28Jan-08 1,289,372.84 23,812,841.49 0.00 5,116,306.28Feb-08 1,040,280.70 24,853,122.19 274,355.16 5,390,661.44Mar-08 500,424.74 25,353,546.93 1,086,667.96 6,477,329.40Apr-08 2,575,212.46 27,928,759.39 0.00 6,477,329.40

May-08 0.00 27,928,759.39 0.00 6,477,329.40

It can be seen in the cumulative column how the gap widens as of almost the outset of the contract and has increased progressively in the period to date, May 2008. It is also of worthy note the “flatness” of the line showing cumulative income which results from:

A reduced income caused by the delays notified;

The fixed nature of the Advance repayment;

The value retained in retention.

The Contractor notified the financial imbalance being caused by the Advance repayment in his letters dated 19 November 2007:

Please refer to the Cash Flow Forecast dated 10 February 2007 included in the Contract Document Volume 1. As you are aware, this cash flow was preliminary and assumed payment of the Advance would occur in February 2007.

However, as payment of the Advance is the trigger to commencement of repayment, it is now necessary to amend this preliminary cash flow to reflect the actual date of receipt, which we record, was in May 2007.

Accordingly, please find attached the amended Cash Flow forecast adjusted to reflect the month the Advance was received and consequent 10-month repayment drawn-down against Interim Payments.

A further notice was issued on 21 November 2007:

Please refer to the amended Cash Flow Forecast submitted under cover of letter dated 19 November 2007.

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As you are aware, this cash flow was preliminary and assumed repayment of the Advance against projected income derived from the original programme of works.

However, the progress of works has been delayed and disrupted for reasons provided in separate notifications and as a result, income is significantly lower in the period to date.

Accordingly, please find attached an amended Cash Flow forecast adjusted to reflect a 15-month repayment drawn-down against Interim Payments consequent to the extended contract period shown on the revised programme of works.

2.4. First Revised Programme of Works

The Programme of Works above was issued under cover of letter dated 19 November 2007 in accordance with Clause 8 of the Contract Conditions.

In accordance with your request please find attached our revised programme reflecting actual progress achieved at 6 November 2007. This programme of works takes consideration of events and changed circumstances since commencement that caused original planned timing and sequence to vary.

Unless notice is received stating the extent to which it does not comply with the Contract, we shall proceed in accordance with this programme and will rely upon this programme when planning our activities.

Therefore, the Contractor’s timing, sequence are clearly explained in support of this programme. This programme of works indicated a revised completion date.

2.5. Second Revised Programme of Works

At the request of the Project Manager a second revised programme of works was issued on 14 March 2008.

In accordance with your recent request in the weekly progress meetings, please find attached revised programme of works for your consent.

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The revised programme takes into consideration the various events and changed circumstances since commencement up to 29 February 2008.

These events and changed circumstances, as separately notified to you and further illustrated in our situation report dated 29 February 2009, have caused the original planned timing and sequence of works to vary. They include the following;

Unforeseen hard rock excavation including spoiling;

Suspension of works, except for the mock up villas, for two months and associated acceleration measures;

Instructed design variations, e.g. exchange of galvanised steel with stainless steel components for installation in the roof resulting into delays in procurement;

Late Instructions, e.g. several changes to the location, position and orientation of buildings by revision in the setting out details have delayed and disrupted the works;

Late Design Information resulting into delays in procurement thus preventing timely arrival of materials at site;

Increased scope of works occasioned by unforeseen site conditions and instructed additional works;

Inclement weather condition; unexpected high amounts of rainfall currently being experienced at site is slowing down progress of works.

The overall effect of all the above has been to delay the completion date for the works up to 24 March 2009 as indicated in the attached revised programme.

We therefore request extension of time to completion of the works.

As stated in the last paragraph of this notice, an extension of time had been requested.

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2.6. Actual Progress

Since the outset of the Contract the Contractor suffered delay due to four major reasons;

Late and inaccurate survey data;

Unforeseen ground conditions;

Project Manager’s instruction to suspend Works (partial);

Late receipt of final design information, and

Additional and varied works.

As a result of Works did not commence as planned.

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3. Valuation of Variations

3.1. Explanation of Heads of Claim

In his various notifications the Contractor has made reference to at least three types of variations. One type is the changes to the scope of work, a second is the late receipt of design and the third is the changes to the sequence and timing of work. All of these have been sufficiently described and defined in these notifications.

During the currency of work, the first two types of change occurred simultaneously, as well as following consecutively. For example, design drawings which have been issued late, to allow the commencement of certain works, showed changes to the Contract drawings. Further these changes occurred when the Contractor encountered unforeseen ground conditions at most of the respective sites. That is simultaneous occurrence.

There were many instances of consecutive occurrence. For example, where drawings were revised a number of times over a period of several months and even over more than a year, those were consecutive.

3.2. Specific Heads of Claim

Where variations are the cause of delay, the costs associated with the delay have to be taken into account in the valuation of the variations. There are two types of cost to be taken into account. One is the cost of prolongation of work on site. This is the cost of (1) maintaining the site establishment and (2) off-site overheads.

The second type of cost is that of the uneconomic way of working, which results from incorporating the varied work into the Works. This includes the direct cost of the disrupted nature of work on site, and the loss of anticipated income at the times envisaged in the original cash-flow predictions.

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3.3. Methods of Valuation of the Variations

3.3.1.Use of Costs as Basis

In submitting these particulars of prolongation costs and particulars of slowdown Costs, the Contractor is providing what he is obliged to do by the Contract, which is to make use of contemporary records of costs. The costs were to be used as basis for valuing the variations.

3.3.2.Addition for Profit

It is evident that there are two generic types of claim. One is for ‘costs’ and the other is for value. Therefore, it is necessary to look at profit as a part of both value and cost. The Contractor’s entitlement to have profit added to his cost, to the extent that the costs claimed are included in variation valuations, profit must be added to those costs for inclusion in such valuations. It is noted that Clause 13 clearly indicates that all variations referred to shall be valued in accordance with Clause 12.

In compliance with this requirement of the Contract, the proposition that where the time related costs are indicative of loss of efficiency due to the variation in the timing and sequence of events and are used to formulate a new rate for a particular bill item, then they should include all expenditure, whether on or off the Site. Clause 12 states that the

a new rate or price shall be derived from the reasonable Cost of executing the work, together with reasonable profit

This clarifies that a valuation under Clause 12 must include profit on time related costs. Profit addition on this contract is 15%.

3.3.3.Profit as Part of the Value of Variations

3.3.3.1. Three Types of Variations

The three types of variation included in this submission:

1. Changes in design of parts of the Works,

2. Additional and Varied works, and

3. Changes in the timing and sequence

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As noted above, all such variations fall to be valued under Clause 13, with the possibility that Clause 12 can be invoked in respect of the effects of variations on unvaried work.

The Contractor confirms that costs claimed are the indirect costs of the delays to the Works, whilst the direct costs include the direct costs of performing the works. In other words, the Contractor’s claim is for the time-related costs to be rolled into the Clause 12 variation valuations.

It is helpful now to give some consideration to each type of variation in turn, so that the Employer can see how profit is included in the valuation of each.

3.3.3.2. Changes in Design of the Works

The first of those two speaks for itself. The claim is for the time-related costs of the variations to be included in the variation valuations. It is unnecessary to argue the point that any such valuation must include profit, under the valuation rules. All valuation rules, in Clauses 12, are founded in rates and prices. It is implicit that they already include profit. It follows that any new rate or price will also include profit.

Of the complaints notified, the first variation event relates to delayed setting out, the second to unforeseen ground conditions, the third to delayed and incomplete design drawings and the fourth to additional and varied Works. Those variations comprised:

1. The changes in the position of buildings, foundation design (partly arising from excavation in rock), unforeseen ground conditions, suspension of Works, late design information, and

2. The change to the specified sequence and timing of the Works

Again, it is helpful to consider each type separately.

3.3.3.2.1. Technical Variations

As example, the changes in design of the Works referred to immediately above; there can be no doubt that a valuation of this type of variation to the foundation works will have to include profit in any event. Similarly, changes in ground conditions must equally include profit.

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3.3.3.2.2. Changes to Specified Sequence and Timing

Clause 13.1 (f), Conditions of Contract Part I, confirms any change to the specified sequence or timing of construction of any part of the Works instructed by the Project Manager, constitutes a Variation.

In order to establish a Variation to sequence and time, it is therefore necessary to establish the specified sequence and timing of the Works. Clause 8.3, Conditions of Contract Part I, requires the Contractor to submit to the Project Manager for his approval, a program which illustrates the sequence and timing the Contractor intends on performing his Works.

Project Manager’s approval of the Contractor’s Clause 8.3 Program was received in XX 2007. Consequently, the Clause 8.3 Program approved by the Project Manager represents the specified sequence and timing of the Works and any change to this sequence and timing instructed by the Project Manager in writing represents a Variation in accordance with Clause 12.3 (b) (iii).

The Employer will agree that the late receipt of design information is a specified sequence or timing of work as envisaged by Clause 13.1(f) of the General Conditions of Contract. Similarly, the suspension of the works must be treated in the same manner.

Consequently, the Employer will agree that the Project Manager has changed those sequences or timings, and that the Contractor is entitled to have the change treated as variation within the meaning of the said Clause.

The Contractor’s claim to have the changes of sequence and timing brought within Clause 13.1(f) means that those changes also fall to be valued under Clause 12.3. As with the previous types of variation valuation, it must include profit.

3.3.3.3. Summary

When considering profit as part of the valuation of variations, the matters affected are:

1. Changes in the Design of the Works

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2. Variations to foundations, which splits into two further sub-divisions, namely (1) technical variations and (2) changes to the sequence and timing of work.

It is evident from the foregoing that all of the valuations of the variations referred to must include profit. Therefore, to the extent that the costs claimed are included in variation valuations, profit must be added to those costs.

Clearly, as the foundation work was one of the earliest site operations, the amount of costs, to which profit must be added, is considerable.

3.3.4.The Effects on Unvaried Work

As can be seen from the claims referred in this submission, numerous variations have either been issued or arisen as a consequence of unforeseen ground conditions. In addition, design drawings have generally been received much later than required as depicted on the programme of works. The extent of the variations is such that the original scope of the work included in the Contract has been changed considerably.

So profound have the effects of the changes to both the scope of work and to the sequence and timing of work been, that the relatively few areas of work, which were not varied, have been affected by those variations. The effects fall into the basic categories of (1) prolongation and (2) disruption of the unvaried work.

Clause 12.3 provides the mechanism for including the effects of prolongation and disruption of the unvaried work:

No rate or price is appropriate because the item of work is not of similar character, or is not executed under similar conditions, as any item in the Contract.

This term of the Contract provides an indemnity to the Contractor for all costs reasonably incurred in carrying out variations.

3.3.5.For Uneconomic Working

From the foregoing discussion and analysis, it is evident that a claim for uneconomic working comes within the ambit of Sub-clause 12.3, when the costs are caused directly by performing variations under Clause 13.1, when costs arise from carrying out

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the work described in the Contract. In practice, it is not possible to separate uneconomic working from the effects on unvaried working, due to the close proximity of site operations, and the continual interchange of resources between varied and unvaried work.

The types of costs of uneconomic working are:

1. The loss of anticipated income, by way of financing.

2. Wasted monthly costs.

3. Financing wasted monthly costs.

Each of those heads of claim is dealt with in turn.

3.3.5.1. Loss of Anticipated Income

This is the cost to the Contractor of financing the shortfall between the income he reasonably expected to receive, and what he actually received, in Interim Payment Certificates.

As to the suspension or slowdown costs, the Contractor claims in respect of lost income for the period from commencement in March 2007 to May 2008. That is because the Particulars included in this submission also relate to the delays in that period.

3.3.5.2. Wasted Monthly Costs

This is a measure of the waste of resources, caused by the disruption, dislocation and re-sequencing of work.

In this document the Contractor describes the cause which resulted in suspension or slowdown of the works. At this section he describes the effect of the cause that is what he means by wasted monthly costs:

One of the types of damage incurred by the Contractor would be the idle time, and/or reduced output, of resources. It is not possible to sever the damage incurred by reason of the delayed setting out of sites, unforeseen ground conditions, changes in scope of works, from that incurred by reason of the delayed design drawings.

The schedules showing the monthly labour and plant levels are evidence that the Contractor not only mobilised, but also maintained, levels of each, which should have ensured outputs

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at the level of anticipated monthly income referred to above. The schedules showing the amounts certified for each month are evidence that, notwithstanding the level of resources on site, the Contractor’s turnover was far less than he reasonably anticipated.

In order to arrive at a measure of the cost of idle time, and the reduced output, the Contractor has calculated the percentage, which the loss of income represents for each month, of the anticipated income. The Contractor has then applied the same percentage to the monthly cost of labour, equipment, both site and head office overheads, to arrive at the cost on which he has had no return.

The Contractor believes this is the most sensible way of approaching this head of claim. It uses evidence, as opposed to estimates, or supposition.

3.3.5.3. Financing Wasted Monthly Costs

This should be self-explanatory. However, a few words of explanation will help. The Contractor’s entitlement relies on the following:

The Employer should agree that the Contractor is entitled to either the financing charges for the wasted monthly costs if either these are agreed, in the form of interest on late payment in accordance with Clause 14.8 of the conditions of contract or finance charges incurred, whichever is the greater.

The application of finance charges as compensation for the Contractor being kept out of his money replaces interest on late payments. Accordingly, the Contractor claims to be entitled to financing charges on the wasted costs included in the valuation of the Variations.

3.3.6.Profit as Part of ‘Costs’

To the extent that profit on costs could become an issue, the Contractor’s contentions are as follows.

3.3.6.1. Authorities on the Basis of ‘Costs’

In order to appreciate what should be included in a determination of costs, it is necessary to grasp the concept of

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the expression as used in the contract claims machinery. There are a number of helpful authorities, which explain this.

3.3.6.1.1. Powell-Smith’s ‘Some Building Contract Problems’

The following passage from ‘Some Building Contract Problems’ (page 141), by the late Dr Vincent Powell-Smith, who was a well-known international lecturer, commentator and author, illustrates the purpose of what some construction contracts call ‘direct loss and/or expense’. The parallel in the Contract is ‘costs’:

The purpose of the contract claims machinery is to put the contractor back into the position he would have been but for the delay or disruption, and various cases establish that the term ‘direct loss and/or expense’ means in effect that what is recoverable is substantially the same as the damages recoverable at common law under the first rule in the old case of Hadley v. Baxendale (1854)

This fits directly with the criterion used in the Robinson v. Harman case (see below).

3.3.6.1.2. Hudson and Minter v. WHTSO

In the extract from Hudson’s Building and Project Managering Contracts, Eleventh Edition, Volume 1, on page 1020, there is a summary of the ruling in the case of F G Minter v. Welsh Health Technical Services Organisation (1980) 13BLR1:

By Clauses 11(6) and 24(1) respectively of the 1963 RIBA/JCT forms of contract, the contractor was entitled to be paid ‘direct loss and expense’ not reimbursable under the preceding variation valuation rules, in the one case, or as a result of disturbance of progress due to late receipt of drawings and information from the architect on the other. The contractor claimed financing charges on the additional expenditure in each case as sums due and to be certified by the architect under the two clauses.

Held, by the Court of Appeal, on preceding judicial authority the words ‘direct loss and expense’ meant such damages as would be recoverable as naturally flowing from a breach of contract under the first branch of the rule in Hadley v. Baxendale.

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Again, although the extract refers to the expression ‘loss and/or expense’, it is the equivalent of the ‘costs’ suffered by the Contractor under the Contract.

The discussion of the judgment following the passage quoted from it in Hudson is at the heart of this issue in this Claim. In paragraph 8-096, the learned author says:

The wider importance of the Minter and Rees and Kirby cases in the Construction field cannot be ignored. The reasoning of the Court of Appeal in the Minter case was that previous authority showed that the contractual “direct loss and expense” expression meant the same as the measure of damage “arising naturally in the usual course of things” under the first branch of the Hadley v. Baxendale rule. The contract therefore expressly applied that test to both the Clause 11(6) basis of claim (variations and not, therefore, a breach of contract) and to the Clause 24(1)(a) basis (late information and, therefore, a breach of contract). [Author’s emphasis.]

The author’s discussion draws attention to the importance of the comparison of direct loss and expense, or, as in the Contract, ‘cost’, with damages envisaged by Hadley v. Baxendale. The costs referred to have been incurred as a result of denial of possession of parts of the site, and of late and varied information.

3.3.6.1.3. Hudson on the Scope of ‘Costs’

From the two foregoing authorities, it is evident that the more widely used expression ‘loss and expense’ is a direct parallel to the word ‘costs’ as used in the instant Contract. Underpinning this is the breadth of coverage given to the expression ‘loss and expense’. This is illustrated by the following extract from page 1096 of Hudson, paragraphs 8.213 to 8.216. In paragraph 8.213, the author draws attention to the coverage of ‘loss and expense’:

a. ‘Direct’ or ‘consequential’ damage provisions

… In this context, ‘consequential’ damage will sometimes be contrasted with ‘direct’ damage as the subject of exclusion, or sometimes used on its own to indicate an intended class of compensation. Thus, since 1963 the English standard forms, and in particular the RIBA/JCT forms, have employed the expression ‘direct loss and expense’ in the context of positive provisions for

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additional payment expressly permitted by these contracts. …

He then draws the parallel with Hadley v. Baxendale for the type of damage to be included in loss and expense, and what he calls ‘wording of this kind’, in paragraph 8.215:

These strict interpretations in the case of exclusions clauses have been paralleled by a correspondingly generous interpretation of ‘direct loss and expense’. Wording when used positively in compensation provisions. It has already been seen that interest in the form of financing charges has been held to be recoverable by contractors under this wording under Clauses 11(6) and 24 of the 1963 RIBA/JCT forms. Wording of this kind will include any damage recoverable under the first branch of the Hadley v. Baxendale rule, which it has been seen will include a wide range of heads of damage which might otherwise in a loose sense be described as ‘consequential’ or ‘indirect’.

It should be noted that, on page 1098 of the extract, in the reference to the second case, Wraight v. PH&T (Holdings) Ltd (1968), it says that it was held that a contractor was entitled to his loss of profit. This case is referred to specifically below.

This extract is included as Appendix 4.

3.3.6.1.4. The First Part of the Rule in Hadley v. Baxendale

The case of Hadley v. Baxendale is at the very heart of damages for breach of contract, and need not be quoted at length. Having established that a contractor’s claim for loss and expense, or cost, or indeed for anything covered by ‘wording of this kind’, it is helpful to refer to the judgment in Hadley v. Baxendale, to see exactly what the first part of the rule allows.

The Contractor reproduces here an extract from ‘Contract Cases and Materials’ by Hugh Beale, William Bishop and the very well-known and respected Prof Michael Furmston, who is also the author of the classic work on contract law, ‘Furmston, Cheshire and Fifoot’. The extract is in fact part of the judgment in the case, at page 395:

We think that there ought to be a new trial in this case; but, in so doing, we deem it to be expedient and necessary to state explicitly the rule which the Judge, at

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the next trial, ought, in our opinion, to direct the jury to be governed by when they estimate the damages. …

Now we think the proper rule in such a case as the present is this: - Where two parties have made a contract, which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract should be such as may fairly and reasonably be considered either arising naturally, i.e. according to the usual course of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties, at the time they made the contract, as the probable result of the breach of it.

Thus, the first part of the rule is that:

… the damages which the other party ought to receive … should be such as may fairly and reasonably be considered … arising naturally, i.e. according to the usual course of things, from such breach of contract itself …

In the case of the matters claimed, the Contractor is therefore entitled to reimbursement of costs, which include costs, which arose naturally from the breach.

3.3.6.1.5. The Basic Measure of Damages

Having established that the Contractor is entitled to have his costs determined on the basis of what flowed naturally from the breach, it is necessary to alight upon the correct measure of damage. There is precise authority for this in the case of Robinson v. Harman (1848) 1Exch850, 855. The relevant passage is as follows:

The rule of the common law is, that where a party sustains loss by reason of a breach of contract, he is, so far as money can do it, to be placed in the same situation, with respect to damages, as if the contract had been performed.

The quoted passage is taken from page 11 of Beale, Bishop and Furmston’s book.

This the truly prescriptive rule for what should be in the determination of costs. It has been shown by logical steps that ‘costs’ in their generic sense equate to common law damages. From that, it is the common law rule that damages must put the offended party back in the same position he would have been in, but for the events complained of.

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It follows from this that a contractor, who suffers as a result of an act or omission of the employer or his agents, is entitled to recover his profit.

3.3.6.2. Authorities on the Recovery of Profit

Now that the basic premise for using the criterion applicable to common law damages for breach of contract has been presented, the Contractor will show that the recovery of profit comes within that criterion.

3.3.6.2.1. General Principle as to Claims

The general rule that claims for loss and expense or costs are to be treated as claims for damages at common law is expounded by Dr Powell-Smith on page 143 of ‘Some building Contract Problems’:

Claims under clause 26 can be equated with claims for damages at common law, and are governed by the same principles. On that basis, the consequences of the late instruction must have been within the reasonable contemplation of the contracting parties at the time the contract was made. The additional cost arises as a direct and natural result of the architect’s default and is thus claimable under the contract terms: see Hadley v. Baxendale (1854)

3.3.6.2.2. Wraight v. PH&T (Holdings) Ltd

In the case of Wraight v. PH&T (Holdings) Ltd (1968), a contractor pursued a claim for loss of profit, as a result of his own determination of his employment under a building contract.

The contractor in the case put his argument as summarised in the judgment on page 284, near the bottom:

It is said here on behalf of the [contractors] that quite plainly the loss of profit to the [contractors] was, in any ordinary sense of the word, a direct consequence of the determination of the contract. If the contract had not been determined, they would have gone on and done the work, continued their legal obligations thereunder and would have had their legal right to obtain their full contractual remuneration at the end of it, and therefore they have, by this determination, lost the right to receive that sum of

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money which they would have received if the contract had not been determined: what can be more direct than that?

Obviously, the event complained of in the case is determination of the contractor’s employment. However, that is not of importance. It is a type of event, which entitles the offended contractor to reclaim his losses, just as the denial of possession and late information in the Contract do.

The important thing is that the contractor in the case was looking to recover the sum of money he would have recovered, but for the event complained of. It is natural that such sum of money included profit.

The judge concluded, on page 285:

In my judgment, there are no grounds for giving to the words ‘direct loss and/or damage caused to the contractor by the determination’ any other meaning than that which they have, for example, in a case of breach of contract or other question of the relationship of a fault to damage in a legal context. Therefore it follows … that the [contractors] are, as a matter of law entitled to recover that which they would have obtained if this contract had been fulfilled in terms of the picture visualised in advance but which they have not obtained.

It was held (page 284) that:

The words direct loss and/or damage in clause 26 must be given the same meaning as they would have in the case of a breach of contract. The loss of profit was the direct and natural consequence of the determination of the contract, and the contractors were entitled to succeed.

3.3.6.2.3. Powell-Smith and Sims on Building Contract Claims

The authors of ‘Building Contract Claims’, Vincent Powell-Smith and John Sims, state unequivocally on page 110 of their book that:

Loss of profit, which the contractor would otherwise have earned but for the delay or disruption, is an allowable head of claim. It is recoverable under the rule in Hadley v. Baxendale (1854).

Pages 110 to 113 of the book are included in Appendix 9.

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It is worth noting that the authors refer to the Wraight case on page 111, and that they make a distinction between the profit normally to be expected, and exceptionally high profit. The Contractor is only claiming here the level of profit allowed for in his tender.

The extract also mentions the possibility of claiming for profit lost on other contracts. The Contractor is not claiming for that. He is only claiming for his profit on the Contract, which is much more direct than that lost on other projects.

3.3.6.3. Summary

There are plenty of authorities to show that:

1. A claim for payment of ‘costs’ is to be treated as a claim for common law damages.

2. Such damages should put the complaining party back into the position he would have been in, but for the event complained of.

3. Profit is an allowable head of claim under common law damages.

The Contractor’s claim is only for profit on the Contract work, not for other work, so it is within the first rule in Hadley v. Baxendale, and should be allowed.

3.4. The Contractor’s Summary

For all of the foregoing reasons, the Contractor contends that the profit claimed by him is allowable. It should be treated in the same way as damage within the meaning of the first rule in Hadley v. Baxendale, and fulfil the criterion in Robinson v. Harman.

There is no prohibition of it as a head of claim. If the Project Manager were to have the power to deprive the Contractor of profit on any claim he chose to treat as one for ‘costs’, then all contractors could be placed in the unacceptable position of doing a large proportion of work at cost. This is clearly not what the Contract stipulates, nor could it have been the intention of the parties.

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4. Circumstances Giving Rise to Claim

Performance of the construction activities required the availability of final setting out details and foundation design information (arising from unforeseen ground conditions) to permit execution of the Works. Records show that setting out was delayed and information with respect to rock excavation was neither evident from records available. These two initial events seriously impacted progress and caused significant delays. It was further and seriously compounded by the Project Manager’s instructions to suspend the Works which lasted 2 months.

Furthermore, it is a fundamental requirement of the Contract that detailed design information is made available in the times consistent with the Contractor’s programme of works. In the event, such information was late, and aggravated by incomplete and inconsistent design details that naturally caused a change in the planned methods of working. This is particularly evident at the two “Mock-up” villas that underwent numerous changes as works proceeded.

In addition to the above, payment for varied work performed was not fully received by the Contractor in accordance with the procedures and time stated in the contract.

4.1. Contractual Basis – Notification of Changes

The Contractual basis of the heads of claim is described in subsequent sections of this document. That is, the Contractor gave notice of the difficulties existing at the Site arising from delays and disruptions.

The Contractor issued notice of the following issues on

We acknowledge receipt of your letter dated 4 December 2007 referenced E-09-04-12-07 and wish to confirm our position by the following extract from the Contract:

The Letter of Acceptance dated 7 March 2007 referenced SHAN/zk/ZK/LOA.01 states at paragraph 3.0: “the lump sum contract price shall not be amended unless specifically agreed with the Employer and the Quantity Surveyor. No additional work (beyond the scope of the lump sum Contract Price) may be commenced prior to reaching agreement on the price thereof.”

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The Contract Agreement dated 27 April 2007 lists the documents forming the Agreement and the Letter of Acceptance takes priority over the Conditions of Contract.

Consequently, your reference to sub-clause 12.3 and 13.1 of the Conditions of Contract, although interesting, is not relevant in the introduction of Variations on this project, particularly as sub-clause 3.1 has been amended by the quoted specific conditions above.

We would point out that although the amendment is impractical it is a significant revision to both Clause 12 and 13 of the Conditions of Contract. In practise it means that no Variation arising from additional work or by design change can commence prior to receiving the agreement of the Employer.

In conclusion, the purpose of our letter dated 23 November 2007 on this subject matter was to bring these special circumstances to your attention.

A further notice was issued on XX relating to the instruction to suspend the works:

Please refer to your letter dated 23 November 2007 referenced E-01-23.11.07 to which we wish to clarify this situation with regards to the cause for suspension of works.

First, the suspension of the Works, other than the two Mock-up villas occurred between 29 August 2007 and 29 November 2007. The reason for your suspension relies on work covered prior to inspection, but not with our site organisation. We have covered this aspect in our previous letter and pointed out remedies in the Contract available to the Engineer in these situations.

Secondly, although it was suggested in our email dated 28 August 2007 that concrete work would stop, in reality it did not and work continued until your instruction to suspend Works on 29 August 2007. This is all a matter of record and should be common ground.

Consequently, we disagree with contentions raised in your letter and reiterate our entitlement to extensions of time and additional payment arising from your instructions.

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A notice was issued in regards to several of the delaying events on XX

We acknowledge receipt of your letter dated 23 November 2007 referenced E-07-23.11.07 regarding records of meeting No. 27 held on 9 November 2007. We disagree with your position on the 3 points for the following reasons:

Point 3 – minute 6.2: It is impossible for the Project Manager to have knowledge of the Contractor’s management and manpower with respect to their ability to handle the complete site. This is complete conjecture and only the Contractor can have that knowledge. In any event, it is not a contractual provision to suspend work based upon the Project Manager’s perceived knowledge of the Contractor’s planning and operations. Even if this is your reason for suspension the provisions of sub-clause 8.9 remain relevant.

The facts are recorded in our letter dated 29 October 2007 where reasons for suspension were indeed because work was covered up prior to inspection and approval. Once again, if this is your remedy in these circumstances, then the same provisions at sub-clause 8.9 are relevant.

Point 4 – minute 6.2: We have recorded severally delays caused by setting-out, increased scope of work for normal excavation, rock excavation and fixing steel reinforcement, shuttering and volume of concrete. The combination of these issues had caused a delay to progress at the time of this meeting (which is in the same period the works were suspended) by at least 3 weeks.

Normally, the Project Manager would give notice to the Contractor in accordance with sub-clause 8.3 which last paragraph, states:

If, at any time, the Engineer gives notice to the Contractor that a programme fails (to the extent stated) to comply with the Contract or to be consistent with actual progress and the Contractor’s stated intentions, the Contractor shall submit a revised programme to the Engineer in accordance with this Sub-Clause.

This revised programme is issued in accordance with the provisions of sub-clause 8.6, which states:

If, at any time:

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(a) actual progress is too slow to complete within the Time for Completion, and/or

(b) progress has fallen (or will fall) behind the current programme under Sub-Clause8.3 [Programme],other than as a result of a cause listed in Sub-Clause 8.4 [Extension of Time for Completion], then the Engineer may instruct the Contractor to submit, under Sub-Clause 8.3 [Programme], a revised programme and supporting report describing the revised methods which the Contractor proposes to adopt in order to expedite progress and complete within the Time for Completion. (Emphasis added)

Unless the Engineer notifies otherwise, the Contractor shall adopt these revised methods, which may require increases in the working hours and/or in the numbers of Contractor’s Personnel and/or Goods, at the risk and cost of the Contractor. If these revised methods cause the Employer to incur additional costs, the Contractor shall subject to Sub-Clause 2.5 [Employer’s Claims] pay these costs to the Employer, in addition to delay damages (if any) under Sub-Clause 8.7 below.

Please confirm if you intend to give a notice in accordance with this sub-clause? If that does remain your intention, then we must draw your attention to sub-clause 8.4, to paragraphs (a) and (b).

In the alternative, we confirm having issued a compliant notice in accordance with sub-clause 8.4 and provision of claims under sub-clause 20.1.

In conclusion, as we are not responsible for the delay and disruption to date, and the extended time to completion at 8 December 2007, we will not adopt any acceleration measures to recover earlier delays unless and until instructed.

At the request of the Project Manager a second revised programme of works was issued on 14 March 2008. In this notice the Contractor clearly indicated the various delays effecting impacting progress:

In accordance with your recent request in the weekly progress meetings, please find attached revised programme of works for your consent.

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The revised programme takes into consideration the various events and changed circumstances since commencement up to 29 February 2008.

These events and changed circumstances, as separately notified to you and further illustrated in our situation report dated 29 February 2009, have caused the original planned timing and sequence of works to vary. They include the following;

Unforeseen hard rock excavation including spoiling;

Suspension of works, except for the mock up villas, for two months and associated acceleration measures;

Instructed design variations, e.g. exchange of galvanised steel with stainless steel components for installation in the roof resulting into delays in procurement;

Late Instructions, e.g. several changes to the location, position and orientation of buildings by revision in the setting out details have delayed and disrupted the works;

Late Design Information resulting into delays in procurement thus preventing timely arrival of materials at site;

Increased scope of works occasioned by unforeseen site conditions and instructed additional works;

Inclement weather condition; unexpected high amounts of rainfall currently being experienced at site is slowing down progress of works.

The overall effect of all the above has been to delay the completion date for the works up to 24 March 2009 as indicated in the attached revised programme.

We therefore request extension of time to completion of the works.

The Contractor wrote again on 21 April 2008 with a notice stating the events that delayed progress:

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Reference is made to your letter dated 7 April 2008, E17-07.04.2008 to which this letter relates.

The purpose of this letter is to seek approval to accelerate progress to Completion in solution to recovery of earlier delays experienced which is made without prejudice to our current contractual position.

Progress To Date and Causes of Delay

We have written on several occasions about various events that caused delay and disruption to the regular progress of the work since the outset of this Contract. Some of these events and changed circumstances are described below and are significant by either their impact on time to completion or cost or both:

Late Design Information

Both survey data and final construction design are being issued late and this has naturally caused delay. As example, drawings for construction are required at commencement in order to allow procurement; however, drawings are still being issued or remain outstanding 12 months after commencement. The lateness of such information prevents rapid conclusion and timely arrival of materials at Site.

The Contractor also records he has not received any structural drawings that must in the first instant, be approved by the Ministry of National Development.

A further complication arises from having two structural engineers engaged to design different parts of the Contract. This has led to disruption in the design process.

Provisional Sums

Almost 30% of the Contract Price is derived from lump sum provisions for works not sufficiently detailed or identified at time of tender. The subsequent introduction of these works requires an instruction in accordance with the conditions stated in the Contract. As such, they are not works necessarily envisaged as forming part of the Works until and unless the Project Manager issues an instruction.

A further complication is that for these particular works neither detailed bill of quantities exists nor design drawings, although almost 12-months of the Contract period have elapse. In practise the Quantity Surveyor

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should have prepared these Bills for submission to the Contractor to enable pricing and material procurement. As a result, their value is not defined and detailed programming is not possible and that indicates the Contract Price and the time of Completion must change.

Material Procurement

In the absence of complete design information procurement has not proceeded as planned. Delays in procurement will undoubtedly cause delay to completion. In addition, prices quoted at tender stage cannot be secured because orders are confirmed much later than planned.

Suspension of work

The Works were suspended in the period from 29 August 2007 through to 29 October 2007 as recorded in minutes of monthly meeting No 27 held 9 November 2007. The reason for this suspension by the Project Manager relies on work covered-up before inspection (at one villa column base).

The Conditions of Contract contain provisions for breaking out and exposing work and this would have been the sensible solution, not suspension. As to progress, it is evident from the photographs taken of the site at that date excellent progress was being made at several locations. The impact of 2 months suspension has had on progress was significant.

Re-measurement Contract vis-à-vis Fixed Lump Sum

The Conditions of Contract adopted on this project is a standard form and allows re-measurement however, all Clauses that allow Variations have not been revised or amended as one would expect in order to suit a Fixed Lump Sum Contract.

In addition, the Letter of Acceptance states that:

“the lump sum contract price shall not be amended unless specifically agreed with the Employer and the Quantity Surveyor. No additional work (beyond the scope of the lump sum Contract Price) may be commenced prior to reaching agreement on the price thereof.” [Emphasis added]

It further states that:

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“Any changes in the design, which affect the lump sum Contract Price, must be specifically agreed by the Employer.”

Clearly, any alteration to the scope of work, introduction of additional work or design change, is very likely to influence a change in the Contract Price and the time to Completion. On this contract three areas of change will cause the Contract Price to vary and the time to Completion to extend, namely:

Variations to Scope of Works

Changes in the scope of work do arise by virtue of drawings issued for construction that automatically increase quantities shown in the Bills of Quantities. This is for two reasons; a) the correlation between substructure design and actual ground conditions are at variance, and b) a general enhancement of the reinforced concrete structure designed.

Flowing from variations generally introduced by final design drawings or drawings issued for construction, the scope of work has increased considerably, as example:

A significant increase in excavation of hard rock for which a small provision was made in the Contract;

A significant increase in the quantity of normal excavation to that indicated in the Contract, which is dictated by the topographic site conditions;

A significant increase in volume of reinforced concrete placed to that indicated in the Contract;

A significant increase in associated temporary works such as shuttering to that indicated in the Contract; and

A significant increase in steel reinforcement to that indicated in the Contract.

All these changes are not within the control of the Contractor, they are instructed Variations and naturally have time and cost considerations.

Instructed Design Variations

Mainly changes brought by a) interior design requirements, and b) because of superstructure variations. Once again, these variations are not within the control of the Contractor, they are instructed Variations.

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One example of a design change relates to the exchange of galvanised steel with stainless steel components for installation in the roof. Notwithstanding the delay in making procurement of this specialist item, the additional cost is significant.

Lump Sums

The values of many of the structures included in the Contract Price are based on a square-metre rate in the absence of a detailed bill of quantity. As design drawings are now issued (September 2007) these works need to be measured and valued. The outcome of this evaluation will undoubtedly cause the Contract Price to vary. In addition, the time required to complete these structures can only be evaluated once detailed design drawings are made available. At that juncture, the details of these structures can be introduced in the programme of works.

Other Factors Impacting Progress

Although the following issues were known and considered at time of tender and therefore, allowed in our programme of works, they clearly have an influence on progress. They are mentioned here because with the prevailing delays described in Points 1 and 2 above, their very existence compounds a situation that is already impacting progress.

Tidal Movement

Each and every day/month typical low-tide conditions exist that prevent movement of vessels delivering material to Long Island. This is not a situation that can change and such time considerations are incorporated in the programme of works. The situation is compounded as the immediate area to Long Island is a protected Marine Park.

Transport of Materials to Long Island

All materials are brought by sea via one large barge in deep water which off-loads to two small barges at shallower water. At times it is not uncommon for a barge to suffer mechanical failure and there is possibility of disruption in the material supply. There are no other methods available that allows bulk supply of materials to the island, so although these difficulties are present all efforts are made to ensure these operations are limited.

Procurement of Local Raw Materials

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The level of construction in the Seychelles is quite substantial and demands for natural quarry materials places a considerable strain on the local supplier. The supply of quarry materials in the Seychelles are a monopoly and alternate sources are not available. Occasionally, a quarry product is in short supply, usually because of demand, and this will cause disruption in placement of concrete at site.

Wet Weather Conditions

The weather patterns are fairly regular and wet seasons can cause considerable difficulty at site, particularly prior to establishment of all-weather access roads. Once again, this is not a situation that can change and such time considerations are incorporated in the programme of works.

Suspension of Quarry Operations

In parallel with wet weather seasons all quarry operations do not function, particularly when rainfall is persistent over several days. As a consequence quarry products such as dust and aggregates and composite items as concrete blocks are not produced which interrupts the regular supply to Site.

Financial Considerations

The events and changed circumstances described in the foregoing have directly impacted the Contractor’s income which, together with Advance repayments has caused a negative cash flow.

Reduced Income

Regular progress of the works has been reduced significantly because of the delays occasioned by Variations, additional works and suspension of the whole Site (except the two mock-up villas). As a consequence, the value of work performed is significantly lower than anticipated and as indicated on the original cash flow chart. Therefore, costs are constantly greater than income derived for work performed.

Also, during these periods of delay and disruption direct and indirect costs are not fully recovered because planned progress has not been achieved. In addition, and as a result of a continuous shortfall in income, the value of the Advance to the Contractor has diminished at a rate

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greater than anticipated as it’s been consumed in loss and expense.

Repayment of Advance Loan

The repayment of the Advance is directly linked to projected income which is derived from the programme of works. However, because progress has not been achieved income is considerably lower and the time for completion has extended. As a result, the monthly value of repayment has to be adjusted in light of the change in income flowing from an extended time to completion.

Proposed Remedy

The revised programme of works issued under cover of our letter dated 14 March 2008 shows a revised completion date of 24 March 2009. This is the date substantial completion can be achieved and is based on two important criteria; a) an adjustment to the value and period of the initial Advance repayment and, b) the payment of a second Advance.

The programme considers delays experienced to date, which principally is the setting out, excavation in hard rock, delays in receipt of detailed design drawings and delayed arrival of major material components to site.

It is anticipated that with the measures to recover earlier delays explained below, this continuing delays will be halted and in some respects, time will be recovered.

For reasons provided in the foregoing, this situation with respect to cash flow is not sustainable. In order to rapidly and affectively halt escalation of this situation the Contractor proposes the following solutions:

Adjusting Repayment of Advance

The cash flow estimate has been adjusted once to date to meet changed circumstances on site and this must be done again. The monthly value and period of repayment will need to be aligned with the revised durations shown on the programme of works. A proposed revised recovery on this Advance is shown in the table below:

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Cert. No. Month AdvancePayment Certified AdvanceRepayment

Advance May-07 3,100,000.00 1 Jun-07 682,032.852 Jul-07 351,989.15 200,000.00 3 Aug-07 145,803.63 200,000.00 4 Sep-07 357,556.62 200,000.00

Oct-07 0.00 357,142.86 5 Nov-07 478,926.03 214,285.71 6 Dec-07 0.00 214,285.71

Jan-08 0.00 214,285.71 7 Feb-08 1,276,534.91 100,000.00 8 Mar-08 1,276,534.91 100,000.00 9 Apr-08 1,276,534.91 100,000.00

10 May-08 1,276,534.91 100,000.00 11 Jun-08 1,276,534.91 100,000.00 12 Jul-08 1,276,534.91 100,000.00 13 Aug-08 1,276,534.91 100,000.00 14 Sep-08 1,276,534.91 100,000.00 15 Oct-08 1,276,534.91 100,000.00 16 Nov-08 1,276,534.91 100,000.00 17 Dec-08 1,276,534.91 100,000.00 18 Jan-09 1,276,534.91 100,000.00 13 Feb-09 1,276,534.91 100,000.00 14 Mar-09 1,276,534.91 100,000.00 15 Apr-09 1,276,534.91 100,000.01 16 May-09 1,276,534.9117 Jun-09 1,276,534.9118 Jul-09 1,276,534.9117 Aug-09 1,276,534.9118 Sep-09 1,276,534.9113 Oct-09 1,276,534.9114 Nov-09 1,276,534.91

Total 3,100,000.00 30,100,076.26 3,100,000.00

Measures to Recover Earlier Delays

To facilitate measures to accelerate progress the Contractor will enhance existing resources. This will involve bringing to site additional equipment and staff and labour resource over and above that planned at tender.

The table below lists planned additional staff and labour and equipment that will be deployed at Site. It also includes the delay and disruption costs arising during the 2-month period of suspension.

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ID Designation Value UD$ Amount

Staff and Labour

1 Senior Project Manager 168,630.002 Quality Assurance Manager 168,630.003 Senior Quantity Surveyor 107,250.004 Assistant Quantity Surveyor 99,000.005 Expatriate Workers 880,000.00 1,423,510.00

Equipment

1 Potain tower crane (2Nr) 131,400.002 Scaffolding 105,791.003 Merlo Car-Mix 62,500.004 JCB 70,000.005 Concrete Paver 45,000.006 Rock Breaker 32,000.007 Mini Excavator (15 Tonne) 88,500.00 535,191.00

Delay and Disruption Costs 565,714.29

Total additonal resources 2,524,415.29

In recognition of the additional cost flowing from deploying additional resources and loss and expense suffered during periods of delay and disruption, the Contractor requests reimbursement of a portion of these direct costs. These have been established in the above table and amounts to US$2,524,415.29. The Contractor asks payment in nine (9) equal interim Certificates starting from April 200 with the last in December 2008.

Second Secured Advance Payment

The major and immediate expense typically flows from material and equipment procurement. A subsidiary of that is increased staff and labour over and above that originally planned.

The first component, materials, is the critical element to achieving sustained progress and once 80% has been secured and delivered at Site, a major obstacle is overcome. This is particularly significant with respect to the geographic location of the Seychelles and the difficulties this presents for material procurement.

Material not ordered is either because design details have not been availed or that Bills of Quantities and respective designs flowing from Provisional Sums is still in abeyance.

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The second component, equipment, dictates the methods and pace at which the works proceed. In other words, by increasing the number of certain pieces of equipment and by changing methods, progress can be improved significantly.

The last element considered is staff and labour, the major change will be deployment of two European Site Agents well experienced in this type of work. In addition, we will deploy further expatriates of all trades in order to meet the demands of a revised programme of works, which we will submit shortly.

As shown in the impacted programme issued 14 March 2008, because of earlier delays many operations have been delayed, therefore, commencement of most buildings have been compressed on the original programme of works. This means that site operations are not working sequentially but simultaneously and this is a major planning problem existing today. Consequently, all these resources will allow expansion of operations to many areas of site allowing work to proceed simultaneously and therefore achieve earliest completion.

To meet additional and immediate costs in this recovery program and to meet the changed circumstances, the Contractor requires a minimum Advance payment amounting to US$3,500,000.00. The proposed recovery on this Advance is shown in the table below:

Month Value Repaid

May-08 250,000.00Jun-08 250,000.00Jul-08 250,000.00Aug-08 300,000.00Sep-08 300,000.00Oct-08 350,000.00Nov-08 400,000.00Dec-08 550,000.00Jan-09 400,000.00Feb-09 450,000.00

Total 3,500,000.00

The next table is the projected combined recovery on both Advance payments:

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Month FirstAdvance SecondAdvance Combined

May-07 0.00 0.00Jun-07 0.00 0.00Jul-07 200,000.00 0.00 200,000.00

Aug-07 200,000.00 0.00 200,000.00Sep-07 200,000.00 0.00 200,000.00Oct-07 357,142.86 0.00 357,142.86Nov-07 214,285.71 0.00 214,285.71Dec-07 214,285.71 0.00 214,285.71Jan-08 214,285.71 0.00 214,285.71Feb-08 100,000.00 0.00 100,000.00Mar-08 100,000.00 0.00 100,000.00Apr-08 100,000.00 0.00 100,000.00

May-08 100,000.00 250,000.00 350,000.00Jun-08 100,000.00 250,000.00 350,000.00Jul-08 100,000.00 250,000.00 350,000.00

Aug-08 100,000.00 300,000.00 400,000.00Sep-08 100,000.00 300,000.00 400,000.00Oct-08 100,000.00 350,000.00 450,000.00Nov-08 100,000.00 400,000.00 500,000.00Dec-08 100,000.00 550,000.00 650,000.00Jan-09 100,000.00 400,000.00 500,000.00Feb-09 100,000.00 450,000.00 550,000.00Mar-09 100,000.00 100,000.00Apr-09 100,000.01 100,000.01

Total 3,100,000.00 3,500,000.00 6,600,000.00

The revised Organisation Chart is attached to which has been added the additional management staff. Evidence of projected expenditure for staff, labour and materials is provided in the table below and is likely to exceed US$5 million.

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Staff and Labour (one month)

1 Senior Project Manager 15,330.002 Quality Assurance Manager 15,330.003 Senior Quantity Surveyor 9,750.004 Assistant Quantity Surveyor 9,000.005 Expatriate Workers 80,000.00 129,410.00

Equipment


Materials

1 Balau timber (special size) 1,764,705.882 Stainless steel roof components 2,559,900.003 Shingles 333,600.00 4,658,205.88

Total Second Advance 5,322,806.88

Conclusion

It is evident from the foregoing the considerable difficulties encountered on this project since the outset are not the responsibility of the Contractor.

The majority of changes and consequent difficulties exist because a significant portion of design was not developed at tender. Of worthy note, after expiry of almost 12 months of the Contract period close to 30% of the scope of works has not been identified through detailed Bills of Quantities; an essential requirement outwith prevents material procurement and disrupts planning.

Recent suggestions to engage other contractors to perform portions of the scope of works will have little effect because constraints imposed by operational logistics and design development are unlikely to diminish.

Consequently, with the valuable knowledge and experience gained it is our considered opinion drastic measures must be implemented by both the Contractor and Employer’s design teams. The respective responsibility of each party is important and the

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Contractor has in this letter, set-out under paragraph 5 above, what he feels is required to bring this project to earliest completion.

First, the Contractor looks forward to receiving proposals from the Employer’s design team indicating what measures will be taken to address outstanding design issues. Secondly, the scope of works must be defined in order to establish the revised Contract Price outwith the Contract Completion date will remain at large.

Finally, payment of the Contractor’s acceleration costs and the Second Secured Advance is of paramount importance in the measures required to conclude this Contract thus allowing a reduction of the Contractor’s extended costs and indeed, the Employer’s losses.

We look forward to receiving approval in principle of the foregoing and subsequent instructions.

Accordingly, the Contractor is entitled to receive, under Sub-Clause 20.1, extensions of time and additional payment as described under Sub-Clause 8.4, 1.9 and 2.1 of the Contract Conditions.

4.2. Late and Inaccurate Survey Data

The completeness, accuracy and timely issue of survey information remain the responsibility of the Project Manager. Sub-clause 4.7 of the Contract Conditions is clear on this subject and it should be common ground as to the consequences of the Contractor being provided information inconsistent with design and site conditions.

The table below provides dates when setting-out was performed and reasons why for many the exercise was repeated. In most instances it was because the position and orientation were varied to suit site conditions.

Villa

Baseline Programme Setting Out Finish date Initial Setting Out Revised Setting Out

Delays due to Changes in Setting Out Details & Orientation (days)

A3/30 29-Mar-07 25-Apr-07 26-Jun-07 62.00A3/20 13-Apr-07 25-Apr-07 20-Jul-07 86.00A3/11 10-Apr-07 25-Apr-07 03-Jun-07 39.00A3/07 03-Apr-07 25-Apr-07 04-Jun-07 40.00

It can be seen in the table above critical delays occurred at four villas of between 40 and 86 calendar days. These delays are considered and included in the extension of time request.

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4.3. Late Receipt of Final Design Information

In addition to receiving design information late, the Contractor has had the inconvenience and time-consuming problem of dealing with design drawings issued that are either late or are revised.

Structure/Villa

Commencement Completion

Drwgs Required 120 days prior POW Start Date Structural Architectural Delay (Days)

A3 Pool Villa 02-Apr-07 15-Mar-08 28-Feb-07 14-Mar-07 09-Mar-07 14.00B223 Standard Villa 28-May-07 15-Mar-08 28-Feb-07 14-Mar-07 09-Mar-07 14.00B4 Standard Villa with Pool 16-Apr-07 15-Mar-08 28-Feb-07 14-Mar-07 09-Mar-07 14.00C311 Executive Villas 12-Apr-07 15-Mar-08 28-Feb-07 14-Mar-07 09-Mar-07 14.00P3 Presidential Villas 20-Jun-07 20-Mar-08 28-Feb-07 19-Oct-07 09-Mar-07 233.00Sunset Deck 23-Jul-07 14-Mar-08 25-Mar-07 09-Apr-08 22-Aug-07 381.00Employees Facilities Complex 14-Jun-07 19-Mar-08 28-Feb-07 31-Aug-07 22-Aug-07 92.00Excom Villa 14-Jun-07 17-Mar-08 28-Feb-07 19-Oct-07 22-Aug-07 233.00GM Villa 14-Jun-07 15-Mar-08 28-Feb-07 19-Oct-07 22-Aug-07 233.00Health club 14-Jun-07 15-Mar-08 28-Feb-07 11-Jun-07 28-May-07 103.00Single Treatment room 02-Jul-07 17-Mar-08 04-Mar-07 10-Jun-07 28-May-07 98.00Couple treatment room 02-Jul-07 19-Mar-08 04-Mar-07 25-Jun-07 28-May-07 113.00Sanctum 02-Jul-07 15-Mar-08 04-Mar-07 19-Oct-07 28-May-07 229.00Yoga Pavilion 02-Jul-07 14-Mar-08 04-Mar-07 19-Oct-07 28-May-07 229.00BOH Building 02-Jul-07 17-Mar-08 04-Mar-07 19-Oct-07 28-May-07 229.00Wedding chapel 02-Jul-07 14-Mar-08 04-Mar-07 09-Apr-08 28-May-07 402.00Seafood Resort 18-Jun-07 19-Mar-08 28-Feb-07 11-Jun-07 28-May-07 103.00Retail Pavilion 18-Jun-07 14-Mar-08 28-Feb-07 11/06/2007 28-May-07 103.00Kid's club 02-Jul-07 14-Mar-08 04-Mar-07 20-Dec-07 08-Jan-08 291.00Recreation House 02-Jul-07 14-Mar-08 04-Mar-07 20-Dec-07 08-Jan-08 291.00Water sport Rental 02-Jul-07 14-Mar-08 04-Mar-07 20-Dec-07 08-Jan-08 291.00Dive Center 02-Jul-07 14-Mar-08 04-Mar-07 20-Dec-07 08-Jan-08 291.00Mechanical Area 22-Oct-07 09-Apr-08 24-Jun-07 Not Received Yet 08-Jan-08 326.003 Meal Restaurant 02-Jul-07 26-Mar-08 04-Mar-07 Not Received Yet 08-Jan-08 438.00Signature Pool 02-Jul-07 15-Mar-08 04-Mar-07 Not Received Yet 08-Jan-08 438.00Beach Pool Bar 02-Jul-07 17-Mar-08 04-Mar-07 Not Received Yet 08-Jan-08 438.00

Drawing Receipt ScheduleBaseline Programme

The table above shows the timing of receipt of design drawings and is evidence of continuing delays. In some instances structural drawings are still outstanding where in others they have been issued late by between 14 and 438 calendar days.

Due to the lateness in receipt of design drawings, not only construction delayed but also procurement. Delays in procurement cause the Contractor to incur greater costs because prices secured at tender either expired or prices in the period increased.

4.4. Additional and Varied Work

4.4.1.Excavation in Hard Rock

Due to the nature of the ground and the topography of the Site, it was important to adhere to the Contractor’s original planning in terms of construction sequence.

Furthermore, the scope of this work was restricted to a) the numbers of buildings identified at tender stage and, b) the position of the buildings. Obviously, with a major part of the

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Contract Price falling under Provisional Sums, both these factors had to change and, with that change (Variation), brought a number of unforeseen difficulties.

One such consequent change involved significant increase in excavation in hard rock. Furthermore, the change in timing and sequence exacerbated the difficulty in extraction and the method in which the work could be performed.

4.4.1.1. Change in Sequence and Increased Cost

Although the sequence change was caused by survey work, rock excavation and more specifically the suspension of Works, work at each site then became in variance to the contractor’s original planning, the conversion and expenditure of Provisional sums exacerbated its impact.

4.4.1.2. Increased Quantity

In addition to the complications of performing controlled blasting, the quantity of rock excavated to date has increased between 20% and over 300% to that anticipated. In these conditions the Contractor has entitlement to the additional time to perform these varied works.

The following tables are recorded evidence of the significant increased volume of rock excavation found at almost every villa site. The tender provision was clearly too low and that has been reflected in the Contractor’s planning.

As example, the first table below illustrates the quantities of rock excavated using blasting methods otherwise not foreseen. At villa B2/01 the volume of hard rock excavated has already reached close to 240m3 whereas the allowance in the Contract was zero. The time taken to remove this rock to date, as it is not finished, is already close to 200 calendar days. Consequently, the duration taken for this activity at this villa is already 200 calendar days and delay is considered critical.

The following table lists volume of rock excavated at each villa which, as stated above, is all unforeseen. As such at each villa the delay caused in performing this activity is critical and prevents commenced of subsequent dependant activities.

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Villa Rock Blasting (m3) Increase

A3/02 95.00 100%A3/03 97.85 100%A3/04 23.00 100%A3/05 1.14 100%A3/06 12.69 100%A3/08 11.41 100%A3/09 54.50 100%A3/10 171.68 100%A3/11 139.00 100%A3/19 47.97 100%A3/20 65.10 100%A3/21 42.13 100%A3/28 4.17 100%A3/29 4.18 100%A3/31 2.31 100%B2/01 239.14 100%B2/04 147.55 100%B2/05 13.87 100%B2/06 48.40 100%B2/07 7.73 100%B2/08 5.04 100%B2/09 28.50 100%B2/10 52.50 100%

The next table provides a summary of volumes of hard rock excavated at the various sites. Once again it is apparent that the tender provision represents only between 8% and 55% of the actual quantity excavated. Once again with such a significant change it is obvious removing over 60m3 of rock takes significantly longer than 5m3.

Villa Rock Exc without blasting BOQ quantity Change

A3/01 9.05 5.00 81%A3/03 8.75 5.00 75%A3/04 18.75 5.00 275%A3/05 22.50 5.00 350%A3/06 19.50 5.00 290%A3/08 25.88 5.00 418%B2/01 60.62 5.00 1112%B2/02 64.28 5.00 1186%B2/04 60.45 5.00 1109%B2/07 4.74 5.00 -5%

The next table summarises excavated material volumes in common material. It can be seen volumes have increased significantly

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Villa Exc other than rock BOQ quantity Change

A3/04 124.54 38.00 228%A3/05 141.12 38.00 271%A3/09 37.81 38.00 0%A3/30 112.02 38.00 195%A3/31 122.80 38.00 223%A3/32 75.82 38.00 100%B2/01 191.68 70.00 174%B2/02 345.02 70.00 393%B2/03 383.36 70.00 448%B2/04 230.02 70.00 229%B2/05 191.68 70.00 174%B2/06 191.68 70.00 174%B2/07 345.02 70.00 393%B2/08 191.68 70.00 174%

The next table consolidates all the changed quantities of all materials excavated at each villa. Comparing anticipated durations based on bills of quantities and actual, it can be seen in the extreme right hand column the significant variance in time.

The durations shown which range from 26 to 354 calendar days are considered critical, as all subsequent activities that follow excavation are equally delayed.

Villa Rock Blasting (m3)Rock Excavation without

Blasting (m3)Excavation, other than

rock (m3)Duration Taken To Date (Days)

Baseline Duration based on BQ quantities (Days) Critical Delay

Commencement Completion A3/01 9.05 15 October 2007 25 December 2007 71.00 3.00 68.00A3/02 95.00 20 December 2007 on progress 90% 147.00 3.00 144.00A3/03 97.85 8.75 11 September 2007 on progress 95% 247.00 3.58 243.42A3/04 23.00 18.75 124.54 04 June 2007 22 July 2007 48.00 2.00 46.00A3/05 1.14 22.50 141.12 07 June 2007 25 July 2007 48.00 2.63 45.38A3/06 12.69 19.50 09 June 2007 18 December 2007 192.00 2.08 189.92A3/08 11.41 25.88 05 May 2007 16 January 2008 256.00 1.04 254.96A3/09 54.50 37.81 01 January 2008 on progress 90% 135.00 1.04 133.96A3/10 171.68 16 April 2007 15 August 2007 121.00 1.04 119.96A3/11 139.00 14 June 2007 on progress 40% 336.00 1.04 334.96A3/19 47.97 15 June 2007 on progress 20% 335.00 1.04 333.96A3/20 65.10 19 November 2007 on progress 45% 178.00 1.04 176.96A3/21 42.13 14 June 2007 on progress 45% 336.00 1.04 334.96A3/26 120.00 18 April 2007 05 March 2008 322.00 322.00A3/27 125.00 27 August 2007 28 November 2007 93.00 93.00A3/28 4.17 25 June 2007 22 November 2007 150.00 2.08 147.92A3/29 4.18 23 June 2007 10 August 2007 48.00 2.08 45.92A3/30 112.02 04 June 2007 23 July 2007 49.00 2.00 47.00A3/31 2.31 122.80 09 June 2007 24 July 2007 45.00 2.08 42.92A3/32 75.82 04 June 2007 02 July 2007 28.00 2.00 26.00B2/01 239.14 60.62 191.68 20 October 2007 on progress 50% 208.00 1.04 206.96B2/02 64.28 345.02 09 July 2007 18 November 2007 132.00 1.04 130.96B2/03 383.36 11 June 2007 24 July 2007 43.00 1.00 42.00B2/04 147.55 60.45 230.02 11 May 2007 06 March 2008 300.00 1.04 298.96B2/05 13.87 191.68 25 May 2007 on progress 95% 356.00 1.04 354.96B2/06 48.40 191.68 03 December 2007 on progress 65% 164.00 1.04 162.96B2/07 7.73 4.74 345.02 27 May 2007 20 November 2007 177.00 1.04 175.96B2/08 5.04 191.68 24 December 2007 on progress 65% 143.00 1.04 141.96B2/09 28.50 21 November 2007 on progress 75% 176.00 1.04 174.96B2/10 52.50 15 November 2007 on progress 75% 182.00 1.04 180.96

Actual excavation schedule

Note: it has not been possible to separate the delays resulting from blasting and those arising out of increased quantities of other excavated materials. The works are executed at the same time. The table above therefore shows the combined delays arising from the above 3 changed events.

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4.4.2.Increased Quantity in Reinforced Concrete

The two examples below show changes in scope to standard villa, A3 and B2. The increase in quantities indicated relate to these two villas only. However, the Contract includes a further 32 number of type A and 10 number of Type B and the same change in scope is applicable to all villas. As a consequence, an equal or similar additional time will be required to perform the changed scope of work.

4.4.2.1. Villa Type A3 (Example)

Steel reinforcement, shuttering and the concrete volume has increased considerably and the example below is for one villa only. As detailed in the table, the duration to perform these works has extended from 12 calendar days as planned to 45 calendar days. Once again, the additional time is critical and has delayed dependant and subsequent activities shown on the programme of works.

Villa Type Item Unit Tender Quantity Design Quantities

A3 Frame Reinforcement kg 3,040.00 5,130.00

Concrete m3 32.00 43.00Formwork m2 305.85 351.00

Baseline duration for Tender Quantity 12 Days Actual Duration due to increased quantity 45 Days

The following table compares the planned and actual durations for completing various other concrete components of the building structure.

A3 Type Frame Baseline Duration Revised Duration

set kickers 1.00 2.00Conc. Columns & shear walls 2.00 11.00Conc. G. F Beams 2.00 6.00Conc. Plantroom 2.00 5.00Conc. Floor slab & swimming pool base 2.00 10.00Blockwork 2.00 9.00Conc. Swimming pool sides & overflow channels 3.00 7.00Conc. Ring & tie beams 2.00 7.00

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4.4.2.2. Villa Type B2 (Example)

Villa Type Item Unit Tender Quantity Design Quantities

B2 FrameReinforcement kg 5,826.00 9,645.00Concrete m3 84.00 102.00Formwork m2 727.00 730.00

Baseline duration based on Tender Quantity 70 Days Actual Duration due to increased quantity 80 Days

B2 Type Frame Baseline Duration Revised Duration

set kickers 1.00 2.00Conc. Columns & shear walls to GF 8.00 6.00Conc. Plantrooms 6.00 8.00Conc. GF slab and beams 4.00 10.00Blockwork up to FF slab 7.00 6.00set kickers on GF 1.00 2.00Conc. Columns & shear walls to FF 8.00 8.00Conc. FF slab & beams 8.00 10.00Blockwork up to roof 7.00 6.00set kickers on FF 1.00 2.00Conc. Columns & shear walls to roof 8.00 8.00Conc. Ring & tie beams 7.00 7.00

In the circumstances, these variations dictate significant divergence from original designs. Therefore, in order to comply with these variations the Contractor’s construction duration for this activity has increased significantly, from an estimated 17 days (substructure) to 37 days for column construction, an increase of 22 working days for each villa.

4.4.3.Suspension of Works

The Contractor was instructed to suspend the works, which suspension lasted 61 days and directly effected progress of the villas listed. This period of suspension is considered a critical delay.

The following table summarises the delay at each villa in progress at the time of the instruction to suspend. However, it should be noted that the effect of this instruction is to delay all the Works on the whole project (except mock-up villas for this particular event).

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Villa Works Suspended From To Delay (Days)A3/03 Excavation 29-Aug-07 29-Oct-07 61.00A3/04 Concrete foundation 29-Aug-07 29-Oct-07 61.00A3/05 Concrete foundation 29-Aug-07 29-Oct-07 61.00A3/06 Excavation 29-Aug-07 29-Oct-07 61.00A3/08 Excavation 29-Aug-07 29-Oct-07 61.00A3/10 Concrete casting for foundation 29-Aug-07 29-Oct-07 61.00A3/27 Excavation 29-Aug-07 29-Oct-07 61.00A3/28 Excavation 29-Aug-07 29-Oct-07 61.00A3/29 Concrete works 29-Aug-07 29-Oct-07 61.00A3/30 Blinding 29-Aug-07 29-Oct-07 61.00A3/31 Blinding 29-Aug-07 29-Oct-07 61.00B2/02 Excavation 29-Aug-07 29-Oct-07 61.00

4.4.4.Variations to Design

The design drawings issued for construction show all steel roof members as stainless steel although the bill of quantities, as priced at tender, show galvanised steel. As a result the sourcing and procurement time consumed an additional 81 calendar days. This delayed roof construction at the 2 Mock-up Villas and is considered a critical delay.

Description Commenced Completion Delay (Days)Procurement, Fabrication & Installation of Stainless Steel Plates to complete roof structure 26-Nov-07 15-Feb-08 81

4.5. Material Procurement Programme

A critical feature of this project is timely supply of materials to site as most are being sourced off-shore. The timely arrival of materials is an integral part of his planning and any delay in the design and procurement process will automatically have a detrimental impact on his programme of works.

The current situation relative major material procurement is shown in the table below:

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Des c ription of MaterialsQuantity Ordered Date Ordered Amount rec eived B alanc e C omments

F OR AL L 55 VIL L AS

50K G bags P ortland C ement 2,800.00 04/04/07 300.00 2,500.00 B alance on order subject to payment to supplierP lywood for S huttering/R oofing 6,000.00 14/11/07 1,800.00 4,200.00 B alance on order subject to payment to supplierC rusher Dust 6,000.00 23/06/07 1,565.13 4,434.87 B alance on order subject to payment to supplierAggregate 8,000.00 25/06/07 1,222.64 6,777.36 B alance on order subject to payment to supplierP las tering S and 1,000.00 16/07/07 80.00 920.00 B alance on order subject to payment to supplier150mm S oild concrete B locks 125,000.00 05/07/07 31,975.00 93,025.00 B alance on order subject to payment to supplier100mm Hollow concrete B locks 15,000.00 15/07/07 2,340.00 12,660.00 B alance on order subject to payment to supplierA252 Weld Mesh (R oadworks ) 912.00 14/05/07 162.00 750.00 B alance on order subject to payment to supplierHigh tens ile s teel-8,10,12,16,25mm (tons) 500.00 14/01/07 158.00 342.00 B alance on order subject to payment to supplierC edar S hingles (sqm) 12,757.64 03/05/07 3,712.00 9,045.64 B alance on order subject to payment to supplierIroko timber (external cladding) L M 54,198.00 07/05/07 1,548.00 52,650.00 B alance on order subject to payment to supplier12mm G ypsum boards (S HE E T S ) 5,600.00 03/02/07 5,600.00 0.00 Awaiting for other building from I.DS tainless s teel threaded rods 12,16mm 16,300.00 09/11/07 8,110.00 8,190.00 B alance on order subject to payment to supplier (Not B .O .Q item)S tainless s teel gusset plates (variation) 450.00 09/11/07 50.00 400.00 B alance on order subject to payment to supplier (Not B .O .Q item)B alau T imber (L M) 169,074.50 08/06/07 6,148.16 162,926.34 B alance on order subject to payment to supplierT reated P ine T imber (L M) 94,148.50 20/04/07 43,225.50 50,923.00 B alance on order subject to payment to supplier

The following table summarises the dates drawings have been received. It is clear many drawings were not issued at commencement and therefore, complete procurement of all major materials was not possible.

It is also clear that drawings have been issued progressively throughout the Contract period; again this is contrary to planning expectations. Finally, it is also clear the majority of Interior Design drawings have yet to be issued.

Item Structure/Villa Structural Architectural Interior Design

1 A3 Pool Villa 14-Mar-07 09-Mar-07 09-Apr-072 B223 Standard Villa 14-Mar-07 09-Mar-07 09-Apr-073 B4 Standard Villa with Pool 14-Mar-07 09-Mar-07 09-Apr-074 C311 Executive Villas 14-Mar-07 09-Mar-07 09-Apr-075 P3 Presidential Villas 19-Oct-07 09-Mar-07 09-Apr-076 Sunset Deck 09-Apr-08 22-Aug-07 Not received 7 Employees Facilities Complex 31-Aug-07 22-Aug-07 "8 Excom Villa 19-Oct-07 22-Aug-07 "9 GM Villa 19-Oct-07 22-Aug-07 "

10 Health club 11-Jun-07 28-May-07 "11 Single Treatment room 10-Jun-07 28-May-07 "12 Couple treatment room 25-Jun-07 28-May-07 "13 Sanctum 19-Oct-07 28-May-07 "14 Yoga Pavilion 19-Oct-07 28-May-07 "15 BOH Building 19-Oct-07 28-May-07 "16 Wedding chapel 09-Apr-08 28-May-07 "17 Seafood Resort 11-Jun-07 28-May-07 "18 Retail Pavilion 11-Jun-07 28-May-07 "19 Kid's club 20-Dec-07 08-Jan-08 "20 Recreation House 20-Dec-07 08-Jan-08 "21 Water sport Rental 20-Dec-07 08-Jan-08 "22 Dive Center 20-Dec-07 08-Jan-08 "23 Mechanical Area Not Received Yet 08-Jan-08 "24 3 Meal Restaurant Not Received Yet 08-Jan-08 "25 Signature Pool Not Received Yet 08-Jan-08 "26 Beach Pool Bar Not Received Yet 08-Jan-08 "

Drawing Receipt Register

page 73


For all the foregoing reasons stated above, the Contractor could not have progressed major material procurement because he was constrained by two issues:

First. Cash flow prevented completion of orders to allow shipment, and

Second. Design drawings were not available at the times consistent with his programme of works.

4.6. Conclusion of Effects of Variations

Additional work is, under the Contract provisions, is also caused by Provisional Sums converted to Variations under Clause 13, by comparison with the value of work envisaged at tender. Nevertheless, additional work executed to date is certain to affect progress because the scope of such variations has only been defined post tender.

The degree of change reflects the changed requirements of the Employer after the award of the project. Although the Contractor received instructions throughout the project to include work anticipated under the Provisional Sums, this has been compounded by the delaying events described even for known works defined at award.

With so many variations, it is not possible to make an attribution of the overall delay to each item. It is true to say that the earlier variations were critical to the Contractor’s progress, and that any delays caused by them are subsumed into the latter period.

However, the delays caused by the changes to the setting out and rock excavation together with suspension of Works, and to other areas of the Works as all the design information, as listed in the tables above, are evident and the primary cause for remaining on site longer.

All the issues described above generally run consecutively, despite late information relative design is continuing simultaneously together with rock excavation. The factual matrix of variation instructions and late information is one of interwoven facts and events. It is not possible to disconnect them. However, the latest programme of works is evidence that work to most of the buildings and villas is in progress at the time of compiling this claim.

page 74


5. Time Analysis

5.1. Method of Analysis

As some of the effects of unforeseen events are concurrent, not all of them will carry an automatic extension of time entitlement. The purpose of the form of analysis described below is to demonstrate which events have contributed to the project over-run and the precise amount of time attributable to each event. At time of preparing this document a Second Request for an Extension of Time has been submitted.

Furthermore, additional costs have arisen as a result of various notified delay and disruption events. The loss and expense are recoverable as:

direct costs in the period when resources suffered delay and disruption, and

indirect costs that will arise in the extended period of the Contract.

The time analysis has been carried out in three stages for each claimable event:

1. At the date immediately prior to the event, the progress status of the project has been established from the progress records. The Programme of Works has been updated with this information, to give a project completion date that was likely to have been achieved if the delay had not occurred. This element of the analysis takes into account and eliminates any delays that might have occurred before the point in time in question, for which the Contractor might be responsible.

2. Next, the effect of the claimable event on the scheduled activities has been calculated. These effects have been inserted into the time scheduled and the network re-analysed. This gives a revised project completion date, assuming that the work proceeds in the same sequence and with the same resources as were originally planned. The difference between this completion date and the progress completion date is the extension of time for the event if it is not reasonably possible to achieve any mitigation of its delaying impact.

3. Finally, there is an obligation on a contractor to attempt to mitigate the effects of any delaying event, if it is reasonably feasible. Accordingly, such opportunities for

page 75


mitigation have been considered in the evaluation of extension of time entitlement.

Any mitigation measures that the Contractor took, such as additional resources, re-sequencing of work etc., has been detailed and inserted into the schedule. The re-analysis of this programme gives the final assessment of additional time that the Contractor is entitled to claim for the cause under consideration.

These three stages have been repeated for each of the events in turn and the results are reflected in the Contractor’s two requests made to date for an extension of time.

5.1.1.Mitigation by Contractor

The Contractor mitigated the effects of the late supply of design information by starting work on a particular activity without waiting for the whole of the design needed for a particular piece of work. This was particularly noticeable at the Mock-up villas where architectural details were constantly revised as works progressed. The success in taking this phase-advanced approach to work has not produced the results anticipated.

These mitigation measures will be shown in the Programme of Works analysis by changing the logic links between design activities and construction activities.

5.1.2.Time for Completion

It is shown in the subsequent sections of this submission the impact of the changed events and circumstances of the various parts of the Site has caused to the planned progress. In addition, the failure by the Project Manager to provide the necessary design details in due time and the subsequent alterations in mode and manner of execution has also caused the Contractor, because of these events, to be delayed to such an extent that completion of the Contract Works has been unavoidably prolonged and will extend the date set for its completion.

Accordingly, the Contractor is entitled to treat the date for completion as no longer being fixed. That is to say, he is entitled to be allowed such additional time for completion as is reasonably necessary for him to accommodate and deal with the

page 76


Project Manager’s and Employer’s fault to discharge the remainder of his obligations.

5.1.3.Impact on Time - Analyses

The purpose of this exercise is to determine the overall delay to the contractual completion date as indicated in the approved base programme of works. The impacted programme of works will establish the contractor’s entitlement to a delayed completion date for the project. This can then be used to evaluate the financial loss incurred by the contractor and the amount of acceleration required in the event that the client requires the project to be completed earlier.

Events are impacted on the programme according to chronological order to determine the effect in the sequence that the delays took place. When the Event is impacted correctly only the activity is affected and those which are dependent on its completion are delayed. If this activity falls in the critical path of the project then the completion date of the project is also delayed. The critical path of a project may change due to delay in a particular set of activities.

5.1.4.The Events that Impacted Progress

There has been initial delay in receipt of final setting out details for various parts of the project without which it was not possible for the contractor to start construction of that relevant section of the works. Additionally it will be seen that unforeseen ground conditions, the partial suspension of Works caused severe disruption to the contractors planned sequence of execution of the works. Initial events impacted will show the effect that these delays had on the execution of the works.

Furthermore there has been a substantial change to the scope of works as originally anticipated as shown on drawings and what the Contractor encountered on site. A significant variance is attributed to unknown site conditions, as for example, quantity of rock excavated required achieving foundation depth.

The rest of the changes will be attributed to changes in original design other than depicted on tender drawings such as the increased quantities of reinforced concrete. Needless to say the extra volume requires more time to secure placement of steel reinforcement, timber shuttering and concrete placement to columns and slabs, hence more time being required to

page 77


completion of activity and an overall delay experienced on this section.

The overall effect of these delays and disruptions can be evidenced by a reduced cash flow, and by his current position on site with regards completion of the works. It can be clearly evidenced that not only has the contractor taken steps to mitigate the delays experienced he has also in his eagerness to recover lost time already taken acceleration measures into account and deployed extra resources over and above his planned and contractually required resources.

This exercise serves to establish the contractor’s entitlement to additional time for completion of the project and the cause and effect on his progress to date.

The order of the impacted charts that follow are in the sequence each event occurred at Site.

page 78


5.1.4.1. Event No 1 – Setting Out

ID Task Name





182 Lot 1


184 Villa A3/01

228 Villa A3/02

273 Villa A3/03

318 Villa A3/04

363 Villa A3/05

408 Villa A3/06


454 Villa C3/01


















847 Lot 2


849 Villa A3/07

850 substructure

851 set out

852 Excavate

853 Conc. Foundation

854 Backfill

855 termite treatment

856 DPC (where applicable)

857 M&E inlet/outlet works - first fix

858 frame

859 set kickers

860 Conc. Columns & shear walls

861 Conc. G. F Beams

862 M&E first fix

863 Conc. Plantroom

864 Conc. Floor slab & swimming pool base

865 Blockwork

866 Conc. Swimming pool sides & overflow channels

867 Conc. Ring & tie beams

868 Roof & Ceiling

869 Fix wall plate & truss

870 Fix purlins and rafters

871 Fix shingles ( subject to receipt of timber)

872 Fix ceiing battens & joists

873 Fix ceiling boards

874 M&E first fix

875 Finishes

876 Wall plaster (internal & External)

877 M&E 1st fix

878 Floor finishes

879 Fix windows & doors

880 Swimming pool finishes

881 M&E final fix

882 Fix fittings and Fixtures

883 M&E Installations

884 Cable Tray, Conduit and Wiring

885 Electrical boards and connections

886 Electrical accessories

887 Light fittings and ceiling fans

888 Hot and cold water

889 Waste and sewage incl. biobox

890 Electric water heater

891 Swimming pool

892 Split unit installation

893 Toilet ventilation, grilles

894 Villa A3/08

939 Villa A3/09

984 Villa A3/10( mock up)

1029 Villa A3/11

1030 substructure

1031 set out

1032 Excavate


1034 Backfill




1038 frame

1039 set kickers



1042 M&E first fix

1043 Conc. Plantroom


1045 Blockwork



1048 Roof & Ceiling






1054 M&E first fix

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov2007 2008

page 79


ID Task Name

1055 Finishes


1057 M&E 1st fix

1058 Floor finishes



1061 M&E final fix










1071 Swimming pool



1074 Villa A3/12

1119 Villa A3/13

1164 Villa A3/18

1209 Villa A3/19

1254 Villa A3/20

1255 substructure

1256 set out

1257 Excavate


1259 Backfill




1263 frame

1264 set kickers



1267 M&E first fix



1270 Blockwork



1273 Roof & Ceiling






1279 M&E first fix

1280 Finishes


1282 M&E 1st fix

1283 Floor finishes



1286 M&E final fix










1296 Swimming pool



1299 Villa A3/21

1344 Villa A3/22

1389 Villa A3/23

1434 Villa A3/24

1479 Villa A3/25

1524 Villa A3/26

1569 Villa A3/27


1615 Villa B2/01

1665 Villa B2/02

1715 Villa B2/04 (mock up villa)

1765 Villa B2/05

1815 Villa B2/06

1865 Villa B2/07

1915 Villa B2/08


1966 Villa B4/01

2011 Villa B4/02








2262 Lot 3


2264 Villa A3/14

2309 Villa A3/15

2354 Villa A3/16

2399 Villa A3/17

2444 Villa A3/28

2489 Villa A3/29

2534 Villa A3/30

2535 substructure

2536 set out

2537 Excavate


2539 Backfill




0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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0%

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0%

0%

0%

0%

0%

0%

0%

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0%

0%

0%

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0%

0%

0%

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0%

0%

0%

0%

0%

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan2007 2008 2009

page 80


ID Task Name

2543 frame

2544 set kickers



2547 M&E first fix



2550 Blockwork



2553 Roof & Ceiling






2559 M&E first fix

2560 Finishes


2562 M&E 1st fix

2563 Floor finishes



2566 M&E final fix










2576 Swimming pool



2579 Villa A3/31

2624 Villa A3/32


2665 Villa B2/03

2708 Villa B2/09

2758 Villa B2/10


2809 Villa B4/03

2854 Villa B4/04


2900 Villa C3/02

2943 Villa C3/03

2986 Villa C3/04

3029 Villa C3/05

3072 Villa C3/06


3116 Villa P3/01

3159 Villa P3/02

3202 Villa P3/03




3292 Lot 4

















3828 Sundries



0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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0%

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0%

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb2007 2008 2009

The following table provides a summary of the delay caused by late setting out at each of the buildings.

Villa commencement completion commencement completion Baseline duration Revised Duration A3/07 25-Apr-07 07-Jan-08 02-Apr-07 12-Nov-07 224.08 257.08A3/11 09-Apr-07 02-Jun-08 09-Apr-07 15-Mar-08 341.13 420.08A3/20 25-Apr-07 23-Jun-08 12-Apr-07 15-Mar-08 338.13 425.08A3/30 25-Apr-07 29-Mar-08 28-May-07 15-Mar-08 292.13 339.13

Baseline ProgrammeImpacted Programme

As a result of this delaying event the time for completion has been extended from 16 May 2008 to 9 August 2008, a period of 85 calendar days.

page 81


5.1.4.2. Event No 2 – Unforeseen Ground Conditions

ID Task Name





182 Lot 1


184 Villa A3/01

185 Substructure

186 set out

187 Excavate


189 Backfill




193 Frame

203 Roof & Ceiling

210 Finishes


228 Villa A3/02

229 substructure

230 set out

231 Excavate


233 Backfill




237 frame

247 Roof & Ceiling

254 Finishes


273 Villa A3/03

274 substructure

275 set out

276 Excavate


278 Backfill




282 frame

292 Roof & Ceiling

299 Finishes


318 Villa A3/04

363 Villa A3/05

408 Villa A3/06

409 substructure

410 set out

411 Excavate


413 Backfill




417 frame

427 Roof & Ceiling

434 Finishes




















847 Lot 2


849 Villa A3/07

894 Villa A3/08

895 substructure

896 set out

897 Excavate


899 Backfill




903 frame

913 Roof & Ceiling

920 Finishes


939 Villa A3/09

940 substructure

941 set out

942 Excavate


944 Backfill




948 frame

958 Roof & Ceiling

965 Finishes


0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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0%

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0%

0%

0%

0%

0%

0%

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov2007 2008 2009

page 82


ID Task Name

984 Villa A3/10

985 substructure

986 set out

987 Excavate


989 Backfill




993 frame

1003 Roof & Ceiling

1010 Finishes


1029 Villa A3/11

1030 substructure

1031 set out

1032 Excavate


1034 Backfill




1038 frame

1048 Roof & Ceiling

1055 Finishes


1074 Villa A3/12

1119 Villa A3/13

1164 Villa A3/18

1209 Villa A3/19

1210 substructure

1211 set out

1212 Excavate


1214 Backfill




1218 frame

1228 Roof & Ceiling

1235 Finishes


1254 Villa A3/20

1255 substructure

1256 set out

1257 Excavate


1259 Backfill




1263 frame

1273 Roof & Ceiling

1280 Finishes


1299 Villa A3/21

1300 substructure

1301 set out

1302 Excavate


1304 Backfill




1308 frame

1318 Roof & Ceiling

1325 Finishes


1344 Villa A3/22

1389 Villa A3/23

1434 Villa A3/24

1479 Villa A3/25

1524 Villa A3/26

1525 substructure

1526 set out

1527 Excavate


1529 Backfill




1533 frame

1543 Roof & Ceiling

1550 Finishes


1569 Villa A3/27

1570 substructure

1571 set out

1572 Excavate


1574 Backfill




1578 frame

1588 Roof & Ceiling

1595 Finishes



1615 Villa B2/01

1616 substructure

1617 set out

1618 Excavate


1620 Backfill




1624 frame

1640 Roof & Ceiling

1647 Finishes


0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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0%

0%

0%

0%

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0%

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0%

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0%

0%

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0%

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0%

0%

0%

0%

0%

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0%

0%

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0%

0%

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan2007 2008 2009 2010

page 83


ID Task Name

1665 Villa B2/02

1666 substructure

1667 set out

1668 Excavate


1670 Backfill




1674 frame

1690 Roof & Ceiling

1697 Finishes


1715 Villa B2/04

1716 substructure

1717 set out

1718 Excavate


1720 Backfill




1724 frame

1740 Roof & Ceiling

1747 Finishes


1765 Villa B2/05

1766 substructure

1767 set out

1768 Excavate


1770 Backfill




1774 frame

1790 Roof & Ceiling

1797 Finishes


1815 Villa B2/06

1816 substructure

1817 set out

1818 Excavate


1820 Backfill




1824 frame

1840 Roof & Ceiling

1847 Finishes


1865 Villa B2/07

1866 substructure

1867 set out

1868 Excavate


1870 Backfill




1874 frame

1890 Roof & Ceiling

1897 Finishes


1915 Villa B2/08

1916 substructure

1917 set out

1918 Excavate


1920 Backfill




1924 frame

1940 Roof & Ceiling

1947 Finishes



1966 Villa B4/01

1967 substructure

1968 set out

1969 Excavate


1971 Backfill




1975 frame

1976 set kickers



1979 M&E first fix



1982 Blockwork



1985 Roof & Ceiling






1991 M&E first fix

1992 Finishes


1994 M&E 1st fix

1995 Floor finishes



1998 M&E final fix


0%

0%

0%

0%

0%

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page 84


ID Task Name









2008 Swimming pool



2011 Villa B4/02

2012 substructure

2013 set out

2014 Excavate


2016 Backfill




2020 frame

2021 set kickers



2024 M&E first fix



2027 Blockwork



2030 Roof & Ceiling






2036 M&E first fix

2037 Finishes


2039 M&E 1st fix

2040 Floor finishes



2043 M&E final fix










2053 Swimming pool




2057 substructure

2058 set out

2059 Excavate (Drill in rock to anchor steel rods)


2061 Backfill ( where applicable )



2064 M&E inlet/outlet works

2065 frame

2066 set kickers




2070 Conc. Floor slab

2071 Blockwork


2073 Roof & Ceiling






2079 Finishes


2081 M&E 1st fix

2082 Floor finishes


2084 M&E final fix









2093 Fan coil unit


2095 substructure

2096 set out







2103 frame

2104 set kickers





2109 Blockwork


0%

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page 85


ID Task Name

2111 Roof & Ceiling






2117 Finishes


2119 M&E 1st fix

2120 Floor finishes


2122 M&E final fix









2131 Fan coil unit


2133 substructure

2134 set out







2141 frame

2142 set kickers





2147 Blockwork


2149 Roof & Ceiling






2155 Finishes


2157 M&E 1st fix

2158 Floor finishes


2160 M&E final fix









2169 Fan coil unit


2171 substructure

2172 set out







2179 frame

2180 set kickers





2185 Blockwork


2187 Roof & Ceiling






2193 Finishes


2195 M&E 1st fix

2196 Floor finishes


2198 M&E final fix









2207 Kitchen extraction duct

2208 Chilled water piping

2209 Fan coil unit



2212 substructure

2213 set out







2220 frame

2221 set kickers





2226 Blockwork


0%

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Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May2008 2009 2010 2011

page 86


ID Task Name

2228 Roof & Ceiling






2234 Finishes


2236 M&E 1st fix

2237 Floor finishes


2239 M&E final fix









2248 Fan coil unit



2251 Infrastructures

2252 Set out road (cabbies), vehicular

2253 Set out Pedestrian walkways

2254 Set out main water pipe alignment

2255 Set out main electricity network

2256 landscaping

2257 Villas milieu

2258 Main access road milieu


2260 Set out/implement main sewerage network

2261 Set out/implement main rain water drainage alignment

2262 Lot 3


2264 Villa A3/14

2309 Villa A3/15

2354 Villa A3/16

2399 Villa A3/17

2444 Villa A3/28

2445 substructure

2446 set out

2447 Excavate


2449 Backfill




2453 frame

2463 Roof & Ceiling

2470 Finishes


2489 Villa A3/29

2490 substructure

2491 set out

2492 Excavate


2494 Backfill




2498 frame

2508 Roof & Ceiling

2515 Finishes


2534 Villa A3/30

2535 substructure

2536 set out

2537 Excavate


2539 Backfill




2543 frame

2553 Roof & Ceiling

2560 Finishes


2579 Villa A3/31

2624 Villa A3/32

2625 substructure

2626 set out

2627 Excavate


2629 Backfill



2632 frame

2641 Roof & Ceiling

2647 Finishes



2665 Villa B2/03

2666 substructure

2667 set out

2668 Excavate


2670 Backfill



2673 frame

2686 Roof & Ceiling

2692 Finishes


2708 Villa B2/09

2709 substructure

2710 set out

2711 Excavate


2713 Backfill




2717 frame

2733 Roof & Ceiling

0%

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0%

0%

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page 87


ID Task Name

2740 Finishes


2758 Villa B2/10

2759 substructure

2760 set out

2761 Excavate


2763 Backfill




2767 frame

2783 Roof & Ceiling

2790 Finishes



2809 Villa B4/03

2810 substructure

2811 set out

2812 Excavate


2814 Backfill




2818 frame

2819 set kickers



2822 M&E first fix



2825 Blockwork



2828 Roof & Ceiling






2834 M&E first fix

2835 Finishes


2837 M&E 1st fix

2838 Floor finishes



2841 M&E final fix










2851 Swimming pool



2854 Villa B4/04

2855 substructure

2856 set out

2857 Excavate


2859 Backfill




2863 frame

2864 set kickers



2867 M&E first fix



2870 Blockwork



2873 Roof & Ceiling






2879 M&E first fix

2880 Finishes


2882 M&E 1st fix

2883 Floor finishes



2886 M&E final fix










2896 Swimming pool




2900 Villa C3/02

2943 Villa C3/03

2986 Villa C3/04

3029 Villa C3/05

3072 Villa C3/06

0%

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0%

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May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb2007 2008 2009 2010

page 88


ID Task Name


3116 Villa P3/01

3159 Villa P3/02

3202 Villa P3/03




3290 Set out/implement main sewerage network

3291 Set out/implement main rain water drainage alignment

3292 Lot 4

















3828 Sundries



0%

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Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar2008 2009 2010 2011

The following table provides summary of the current delay caused by unforeseen ground conditions at each of the buildings. This change involved significant delay and difficulty excavating hard rock.

Villa commencement completion commencement completion Baseline duration Revised Duration A3/01 28-Feb-07 09-Jul-08 23-Jul-07 15-Mar-08 236.13 497.13A3/02 12-Apr-07 09-Dec-08 23-Jul-07 15-Mar-08 236.13 607.08A3/03 12-Apr-07 30-Dec-08 23-Jul-07 15-Mar-08 236.13 628.08A3/06 09-Apr-07 02-Jul-08 23-Jul-07 15-Mar-08 236.13 450.13A3/08 02-Apr-07 22-Dec-08 02-Apr-07 15-Mar-08 348.13 630.08A3/09 02-Apr-07 06-May-09 02-Apr-07 15-Mar-08 348.13 765.08A3/10 09-Apr-07 02-Jul-08 09-Apr-07 15-Mar-08 341.13 450.13A3/11 09-Apr-07 18-May-09 09-Apr-07 15-Mar-08 341.13 770.08A3/19 12-Apr-07 13-Jun-09 12-Apr-07 15-Mar-08 338.13 793.13A3/20 25-Apr-07 29-May-09 12-Apr-07 15-Mar-08 338.13 765.13A3/21 12-Apr-07 29-May-09 12-Apr-07 15-Mar-08 338.13 778.13A3/26 16-Apr-07 06-Jan-09 16-Apr-07 15-Mar-08 334.13 631.08A3/27 16-Apr-07 29-Sep-08 16-Apr-07 15-Mar-08 334.13 532.08A3/28 28-May-07 06-Aug-08 28-May-07 15-Mar-08 292.13 436.08A3/29 28-May-07 23-Apr-08 28-May-07 15-Mar-08 292.13 331.13A3/30 25-Apr-07 15-May-08 28-May-07 15-Mar-08 292.13 386.13A3/32 28-May-07 16-Nov-07 28-May-07 16-Nov-07 172.04 172.04B2/01 16-Apr-07 04-Feb-09 03-Jul-07 15-Mar-08 256.13 660.08B2/02 16-Apr-07 24-Jun-08 03-Jul-07 15-Mar-08 256.13 435.08B2/03 28-May-07 25-Dec-07 28-May-07 04-Dec-07 190.17 211.13B2/04 16-Apr-07 10-Oct-08 03-Jul-07 15-Mar-08 256.13 543.13B2/05 16-Apr-07 08-Jan-09 03-Jul-07 15-Mar-08 256.13 633.13B2/06 23-Apr-07 16-Jan-09 03-Jul-07 15-Mar-08 256.13 634.13B2/07 23-Apr-07 07-Jun-08 03-Jul-07 15-Mar-08 256.13 411.13B2/08 23-Apr-07 16-Jan-09 03-Jul-07 15-Mar-08 256.13 634.13B2/09 28-May-07 12-Mar-09 28-May-07 15-Mar-08 292.13 654.13B2/10 28-May-07 18-Mar-09 28-May-07 15-Mar-08 292.13 660.13

Impacted Programme Baseline Programme

The next table records the delays to other buildings as a consequence of the delays to the current to preceding tasks. In retaining the original planned sequence depicted on the original programme of works, the completion date is extended to 9 September 2009.

page 89


Villa commencement completion commencement completion Delay P3 Presidential Villas 21-Jun-08 23-Mar-09 20-Jun-07 20-Mar-08 367.00Sunset Deck 24-Jul-08 17-Mar-09 23-Jul-07 14-Mar-08 367.00Employees Facilities Complex 30-Mar-08 03-Jan-09 14-Jun-07 19-Mar-08 290.00Excom Villa 30-Mar-08 01-Jan-09 14-Jun-07 17-Mar-08 290.00GM Villa 30-Mar-08 31-Dec-08 14-Jun-07 15-Mar-08 290.00Health club 30-Mar-08 31-Dec-08 14-Jun-07 15-Mar-08 290.00Single Treatment room 03-Jul-08 19-Mar-09 02-Jul-07 17-Mar-08 367.00Couple treatment room 03-Jul-08 21-Mar-09 02-Jul-07 19-Mar-08 367.00Sanctum 03-Jul-08 18-Mar-09 02-Jul-07 15-Mar-08 367.00Yoga Pavilion 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 367.00BOH Building 03-Jul-08 19-Mar-09 02-Jul-07 17-Mar-08 367.00Wedding chapel 08-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 372.00Seafood Resort 31-Aug-08 02-Jun-09 18-Jun-07 19-Mar-08 440.00Retail Pavilion 31-Aug-08 28-May-09 18-Jun-07 14-Mar-08 440.00Kid's club 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 367.00Recreation House 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 367.00Water sport Rental 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 367.00Dive Center 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-08 367.00


It should be noted that rock excavation is continuing at various sites where excavation activities is yet to start. Consequently, the delay attributed to this event is continuing.

As a result of the current delay caused by this event the time for completion has been further extended from 9 August 2008 to 9 September 2009, a period of 396 calendar days.

However, in recognition of more rock excavation at other areas of the Site it is anticipated further delays will be experienced. Accordingly, the Contractor gives notice of further delays likely at the remaining areas of the site where buildings will be positioned.

The revised completion date is now 9 September 2009.

page 90


5.1.4.3. Event No 3 – Later Receipt of Design Information

ID Task Name





182 Lot 1




498 substructure

499 set out ( subject to receipt of GFW dwg by Mid June 07)

500 Excavate (Drill in rock to anchor steel rods as required)






506 frame

507 set kickers

508 Conc. Columns & shear walls upto roof


510 Conc. Floor slab GF

511 Blockwork upto roof


513 Roof & Ceiling






519 Finishes


521 M&E 1st fix

522 Floor finishes


524 M&E final fix










534 Swimming pool




538 substructure

539 set out

540 Excavate






546 frame

547 set kickers

548 Conc. Columns & shear walls upto GF floor level


550 Conc. G.F Floor slab

551 Conc. Columns & shear walls upto FF level

552 Blockwork upto FF level

553 Conc. F. Floor slab

554 Conc. Columns & shear walls upto roof level



557 Roof & Ceiling






563 Finishes


565 M&E 1st fix

566 Floor finishes


568 M&E final fix









577 Boiler

578 Chiller

579 Fan coil unit




626 substructure

627 set out







634 frame

635 set kickers



638 Conc. substructure


640 Blockwork


0%

0%

0%

0%

0%

0%

0%

0%

0%

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page 91


ID Task Name

642 Roof & Ceiling






648 Finishes


650 M&E 1st fix

651 Floor finishes


653 M&E final fix









662 Boiler

663 Chiller

664 Fan coil unit




708 substructure

709 set out

710 Excavate






716 frame

717 set kickers

718 Conc. Columns & shear walls upto GF floor level


720 Conc. G.F Floor slab

721 Conc. Columns & shear walls upto FF level

722 Blockwork upto FF level

723 Conc. F. Floor slab

724 Conc. Columns & shear walls upto roof level



727 Roof & Ceiling






733 Finishes


735 M&E 1st fix

736 Floor finishes


738 M&E final fix























847 Lot 2





2057 substructure

2058 set out







2065 frame

2066 set kickers





2071 Blockwork


2073 Roof & Ceiling






2079 Finishes


2081 M&E 1st fix

2082 Floor finishes


2084 M&E final fix


0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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page 92


ID Task Name








2093 Fan coil unit


2095 substructure

2096 set out







2103 frame

2104 set kickers





2109 Blockwork


2111 Roof & Ceiling






2117 Finishes


2119 M&E 1st fix

2120 Floor finishes


2122 M&E final fix









2131 Fan coil unit


2133 substructure

2134 set out







2141 frame

2142 set kickers





2147 Blockwork


2149 Roof & Ceiling






2155 Finishes


2157 M&E 1st fix

2158 Floor finishes


2160 M&E final fix









2169 Fan coil unit


2171 substructure

2172 set out







2179 frame

2180 set kickers





2185 Blockwork


2187 Roof & Ceiling






2193 Finishes


2195 M&E 1st fix

2196 Floor finishes


2198 M&E final fix


0%

0%

0%

0%

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Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May2008 2009 2010 2011

page 93


ID Task Name








2207 Kitchen extraction duct

2208 Chilled water piping

2209 Fan coil unit





2262 Lot 3






3116 Villa P3/01

3117 substructure

3118 set out

3119 Excavate






3125 frame

3126 set kickers





3131 Blockwork



3134 Roof & Ceiling






3140 Finishes


3142 M&E 1st fix

3143 Floor finishes



3146 M&E final fix










3156 Swimming pool



3159 Villa P3/02

3160 substructure

3161 set out

3162 Excavate






3168 frame

3169 set kickers





3174 Blockwork



3177 Roof & Ceiling






3183 Finishes


3185 M&E 1st fix

3186 Floor finishes



3189 M&E final fix










3199 Swimming pool



3202 Villa P3/03

3203 substructure

3204 set out

3205 Excavate






0%

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page 94


ID Task Name

3211 frame

3220 Roof & Ceiling

3226 Finishes









3242 Swimming pool




3246 substructure

3247 set out

3248 Excavate






3254 frame

3255 set kickers





3260 Blockwork


3262 Roof & Ceiling






3268 Finishes


3270 M&E 1st fix

3271 Floor finishes


3273 M&E final fix









3292 Lot 4


3294 substructure

3295 set out

3296 Excavate






3302 frame

3303 set kickers





3308 Blockwork


3310 Roof & Ceiling






3316 Finishes


3318 M&E 1st fix

3319 Floor finishes


3321 M&E final fix










3331 Water feature




3335 substructure

3336 set out

3337 Excavate






3343 frame

3344 set kickers





3349 Blockwork


3351 Roof & Ceiling






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Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr2008 2009 2010 2011

page 95


ID Task Name

3357 Finishes


3359 M&E 1st fix

3360 Floor finishes


3362 M&E final fix










3372 Water feature




3376 substructure

3377 set out

3378 Excavate






3384 frame

3385 set kickers





3390 Blockwork


3392 Roof & Ceiling






3398 Finishes


3400 M&E 1st fix

3401 Floor finishes


3403 M&E final fix











3414 substructure

3415 set out

3416 Excavate






3422 frame

3423 set kickers





3428 Blockwork


3430 Roof & Ceiling






3436 Finishes


3438 M&E 1st fix

3439 Floor finishes


3441 M&E final fix












3453 substructure

3454 set out

3455 Excavate






3461 frame

3462 set kickers





3467 Blockwork


3469 Roof & Ceiling




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page 96


ID Task Name



3475 Finishes


3477 M&E 1st fix

3478 Floor finishes


3480 M&E final fix












3492 substructure

3493 set out

3494 Excavate






3500 frame

3501 set kickers





3506 Blockwork


3508 Roof & Ceiling






3514 Finishes


3516 M&E 1st fix

3517 Floor finishes


3519 M&E final fix











3530 substructure

3531 set out

3532 Excavate






3538 frame

3539 set kickers





3544 Blockwork


3546 Roof & Ceiling






3552 Finishes


3554 M&E 1st fix

3555 Floor finishes


3557 M&E final fix









3566 Boiler

3567 Chiller

3568 Fan coil unit

3569 Ducting and fans


3571 substructure

3572 set out

3573 Excavate






3579 frame

3580 set kickers





3585 Blockwork


0%

0%

0%

0%

0%

0%

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page 97


ID Task Name

3587 Roof & Ceiling






3593 Finishes


3595 M&E 1st fix

3596 Floor finishes


3598 M&E final fix










3608 Beach Pool




3612 substructure

3613 set out

3614 Excavate






3620 frame

3621 set kickers





3626 Blockwork


3628 Roof & Ceiling






3634 Finishes


3636 M&E 1st fix

3637 Floor finishes


3639 M&E final fix










3649 Signature Pool


3651 substructure

3652 set out

3653 Excavate






3659 frame

3660 set kickers





3665 Blockwork


3667 Roof & Ceiling






3673 Finishes


3675 M&E 1st fix

3676 Floor finishes


3678 M&E final fix








3686 substructure

3687 set out

3688 Excavate






3694 frame

3695 set kickers





3700 Blockwork


0%

0%

0%

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page 98


ID Task Name

3702 Roof & Ceiling






3708 Finishes


3710 M&E 1st fix

3711 Floor finishes


3713 M&E final fix










3723 Pond




3727 substructure

3728 set out

3729 Excavate






3735 frame

3736 set kickers





3741 Blockwork


3743 Roof & Ceiling






3749 Finishes


3751 M&E 1st fix

3752 Floor finishes


3754 M&E final fix










3764 Pond




3768 substructure

3769 set out

3770 Excavate






3776 frame

3777 set kickers





3782 Blockwork


3784 Roof & Ceiling






3790 Finishes


3792 M&E 1st fix

3793 Floor finishes


3795 M&E final fix













3828 Sundries



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page 99


The following table summarises the timing of receipt of design drawings and information. It has been shown that although these drawings are significantly late, it has not affected progress at site.

The reason for this is the earlier delays caused by setting out and unforeseen ground conditions extended and revised the original start dates of many activities. Consequently, as the buildings revised schedule start date is much later than originally planned drawings issued for construction had no impact.

However, as a consequence of the lateness in receipt of detailed drawings, procurement of materials could not proceed as originally planned.

Item Building commencement completion commencement completion 1 P3 Presidential Villas 21-Jun-08 23-Mar-09 20-Jun-07 20-Mar-082 Sunset Deck 24-Jul-08 17-Mar-09 23-Jul-07 14-Mar-083 Employees Facilities Complex 30-Mar-08 03-Jan-09 14-Jun-07 19-Mar-084 Excom Villa 30-Mar-08 01-Jan-09 14-Jun-07 17-Mar-085 GM Villa 30-Mar-08 31-Dec-08 14-Jun-07 15-Mar-086 Health club 30-Mar-08 31-Dec-08 14-Jun-07 15-Mar-087 Single Treatment room 03-Jul-08 19-Mar-09 02-Jul-07 17-Mar-088 Couple treatment room 03-Jul-08 21-Mar-09 02-Jul-07 19-Mar-089 Sanctum 03-Jul-08 18-Mar-09 02-Jul-07 15-Mar-0810 Yoga Pavilion 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-0811 BOH Building 03-Jul-08 19-Mar-09 02-Jul-07 17-Mar-0812 Wedding chapel 08-Jul-08 17-Mar-09 02-Jul-07 14-Mar-0813 Seafood Resort 31-Aug-08 02-Jun-09 18-Jun-07 19-Mar-0814 Retail Pavilion 31-Aug-08 28-May-09 18-Jun-07 14-Mar-0815 Kid's club 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-0816 Recreation House 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-0817 Water sport Rental 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-0818 Dive Center 03-Jul-08 17-Mar-09 02-Jul-07 14-Mar-0819 Mechanical Area 24-Oct-08 09-Jan-09 22-Oct-07 19-Feb-0820 3 Meal Restaurant 04-Sep-08 28-Mar-09 02-Jul-07 26-Mar-0821 Signature Pool 04-Sep-08 18-Mar-09 02-Jul-07 15-Mar-0822 Beach Pool Bar 04-Sep-08 19-Mar-09 02-Jul-07 17-Mar-08


Delays’ resulting from hard rock excavation is a parallel delay to design drawings.

Items 1 - 18 relates to critical delays caused by hard rock excavation for preceding structures. Items 19 – 22 relates to delay arising from late design drawings, which is critical. More delays will be encountered once excavation works proceed at remaining locations.

As a result of the current delay caused by this event the time for completion has not extended the current revised date of 9 September 2009.

Consequently, the revised completion date remains at 9 September 2009.

page 100


5.1.4.4. Event No 4 – Increased Scope of Works

ID Task Name





182 Lot 1


184 Villa A3/01

185 Substructure

193 Frame

194 set kickers



197 M&E first fix

198 Conc. Plantroom


200 Blockwork



203 Roof & Ceiling

210 Finishes


228 Villa A3/02

229 substructure

237 frame

238 set kickers



241 M&E first fix

242 Conc. Plantroom


244 Blockwork



247 Roof & Ceiling

254 Finishes


273 Villa A3/03

274 substructure

282 frame

283 set kickers



286 M&E first fix

287 Conc. Plantroom


289 Blockwork



292 Roof & Ceiling

299 Finishes


318 Villa A3/04

319 substructure

320 set out

321 Excavate


323 Backfill




327 frame

328 set kickers



331 M&E first fix

332 Conc. Plantroom


334 Blockwork



337 Roof & Ceiling






343 M&E first fix

344 Finishes


346 M&E 1st fix

347 Floor finishes



350 M&E final fix










360 Swimming pool



363 Villa A3/05

364 substructure

365 set out

366 Excavate


368 Backfill




372 frame

373 set kickers



376 M&E first fix

377 Conc. Plantroom

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page 101


ID Task Name


379 Blockwork



382 Roof & Ceiling






388 M&E first fix

389 Finishes


391 M&E 1st fix

392 Floor finishes



395 M&E final fix










405 Swimming pool



408 Villa A3/06

409 substructure

410 set out

411 Excavate


413 Backfill




417 frame

418 set kickers



421 M&E first fix

422 Conc. Plantroom


424 Blockwork



427 Roof & Ceiling

434 Finishes




















847 Lot 2


849 Villa A3/07

850 substructure

851 set out

852 Excavate


854 Backfill




858 frame

859 set kickers



862 M&E first fix

863 Conc. Plantroom


865 Blockwork



868 Roof & Ceiling






874 M&E first fix

875 Finishes


877 M&E 1st fix

878 Floor finishes



881 M&E final fix










891 Swimming pool



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page 102


ID Task Name

894 Villa A3/08

895 substructure

896 set out

897 Excavate


899 Backfill




903 frame

904 set kickers



907 M&E first fix

908 Conc. Plantroom


910 Blockwork



913 Roof & Ceiling

920 Finishes


939 Villa A3/09

940 substructure

941 set out

942 Excavate


944 Backfill




948 frame

949 set kickers



952 M&E first fix

953 Conc. Plantroom


955 Blockwork



958 Roof & Ceiling

965 Finishes


984 Villa A3/10

985 substructure

986 set out

987 Excavate


989 Backfill




993 frame

994 set kickers



997 M&E first fix

998 Conc. Plantroom


1000 Blockwork



1003 Roof & Ceiling

1010 Finishes


1029 Villa A3/11

1030 substructure

1031 set out

1032 Excavate


1034 Backfill




1038 frame

1039 set kickers



1042 M&E first fix



1045 Blockwork



1048 Roof & Ceiling

1055 Finishes


1074 Villa A3/12

1075 substructure

1076 set out

1077 Excavate


1079 Backfill




1083 frame

1084 set kickers



1087 M&E first fix



1090 Blockwork



1093 Roof & Ceiling






1099 M&E first fix

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page 103


ID Task Name

1100 Finishes


1102 M&E 1st fix

1103 Floor finishes



1106 M&E final fix










1116 Swimming pool



1119 Villa A3/13

1120 substructure

1121 set out

1122 Excavate


1124 Backfill




1128 frame

1129 set kickers



1132 M&E first fix



1135 Blockwork



1138 Roof & Ceiling






1144 M&E first fix

1145 Finishes


1147 M&E 1st fix

1148 Floor finishes



1151 M&E final fix










1161 Swimming pool



1164 Villa A3/18

1165 substructure

1166 set out

1167 Excavate


1169 Backfill




1173 frame

1174 set kickers



1177 M&E first fix



1180 Blockwork



1183 Roof & Ceiling






1189 M&E first fix

1190 Finishes


1192 M&E 1st fix

1193 Floor finishes



1196 M&E final fix










1206 Swimming pool



1209 Villa A3/19

1210 substructure

1211 set out

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page 104


ID Task Name

1212 Excavate


1214 Backfill




1218 frame

1219 set kickers



1222 M&E first fix



1225 Blockwork



1228 Roof & Ceiling

1235 Finishes


1254 Villa A3/20

1255 substructure

1256 set out

1257 Excavate


1259 Backfill




1263 frame

1264 set kickers



1267 M&E first fix



1270 Blockwork



1273 Roof & Ceiling

1280 Finishes


1299 Villa A3/21

1300 substructure

1301 set out

1302 Excavate


1304 Backfill




1308 frame

1309 set kickers



1312 M&E first fix



1315 Blockwork



1318 Roof & Ceiling

1325 Finishes


1344 Villa A3/22

1345 substructure

1346 set out

1347 Excavate


1349 Backfill




1353 frame

1354 set kickers



1357 M&E first fix



1360 Blockwork



1363 Roof & Ceiling






1369 M&E first fix

1370 Finishes


1372 M&E 1st fix

1373 Floor finishes



1376 M&E final fix










1386 Swimming pool



1389 Villa A3/23

1390 substructure

1391 set out

1392 Excavate


1394 Backfill




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page 105


ID Task Name

1398 frame

1399 set kickers



1402 M&E first fix



1405 Blockwork



1408 Roof & Ceiling






1414 M&E first fix

1415 Finishes


1417 M&E 1st fix

1418 Floor finishes



1421 M&E final fix










1431 Swimming pool



1434 Villa A3/24

1435 substructure

1436 set out

1437 Excavate


1439 Backfill




1443 frame

1444 set kickers



1447 M&E first fix



1450 Blockwork



1453 Roof & Ceiling






1459 M&E first fix

1460 Finishes


1462 M&E 1st fix

1463 Floor finishes



1466 M&E final fix










1476 Swimming pool



1479 Villa A3/25

1480 substructure

1481 set out

1482 Excavate


1484 Backfill




1488 frame

1489 set kickers



1492 M&E first fix



1495 Blockwork



1498 Roof & Ceiling






1504 M&E first fix

1505 Finishes


1507 M&E 1st fix

1508 Floor finishes



1511 M&E final fix


0%

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page 106


ID Task Name









1521 Swimming pool



1524 Villa A3/26

1525 substructure

1526 set out

1527 Excavate


1529 Backfill




1533 frame

1534 set kickers



1537 M&E first fix



1540 Blockwork



1543 Roof & Ceiling

1550 Finishes


1569 Villa A3/27

1570 substructure

1571 set out

1572 Excavate


1574 Backfill




1578 frame

1579 set kickers



1582 M&E first fix



1585 Blockwork



1588 Roof & Ceiling

1595 Finishes



1615 Villa B2/01

1616 substructure

1617 set out

1618 Excavate


1620 Backfill




1624 frame

1625 set kickers

1626 Conc. Columns & shear walls to GF

1627 Conc. Plantrooms

1628 M&E first fix GF

1629 Conc. GF slab and beams

1630 Blockwork up to FF slab

1631 set kickers on GF

1632 Conc. Columns & shear walls to FF

1633 M&E first fix FF

1634 Conc. FF slab & beams

1635 Blockwork up to roof

1636 set kickers on FF

1637 Conc. Columns & shear walls to roof

1638 M&E first fix roof


1640 Roof & Ceiling

1647 Finishes


1665 Villa B2/02

1666 substructure

1667 set out

1668 Excavate


1670 Backfill




1674 frame

1675 set kickers















1690 Roof & Ceiling

1697 Finishes


1715 Villa B2/04

1716 substructure

1717 set out

1718 Excavate

0%

0%

0%

0%

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page 107


ID Task Name


1720 Backfill




1724 frame

1725 set kickers















1740 Roof & Ceiling

1747 Finishes


1765 Villa B2/05

1766 substructure

1767 set out

1768 Excavate


1770 Backfill




1774 frame

1775 set kickers















1790 Roof & Ceiling

1797 Finishes


1815 Villa B2/06

1816 substructure

1817 set out

1818 Excavate


1820 Backfill




1824 frame

1825 set kickers















1840 Roof & Ceiling

1847 Finishes


1865 Villa B2/07

1866 substructure

1867 set out

1868 Excavate


1870 Backfill




1874 frame

1875 set kickers















1890 Roof & Ceiling

1897 Finishes


1915 Villa B2/08

1916 substructure

1917 set out

1918 Excavate


0%

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page 108


ID Task Name

1920 Backfill




1924 frame

1925 set kickers















1940 Roof & Ceiling

1947 Finishes










2262 Lot 3


2264 Villa A3/14

2265 Substructure

2266 set out

2267 Excavate


2269 Backfill




2273 Frame

2274 set kickers



2277 M&E first fix



2280 Blockwork



2283 Roof & Ceiling






2289 M&E first fix

2290 Finishes


2292 M&E 1st fix

2293 Floor finishes



2296 M&E final fix










2306 Swimming pool



2309 Villa A3/15

2310 substructure

2311 set out

2312 Excavate


2314 Backfill




2318 frame

2319 set kickers



2322 M&E first fix



2325 Blockwork



2328 Roof & Ceiling






2334 M&E first fix

2335 Finishes


2337 M&E 1st fix

2338 Floor finishes



2341 M&E final fix





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page 109


ID Task Name






2351 Swimming pool



2354 Villa A3/16

2355 substructure

2356 set out

2357 Excavate


2359 Backfill




2363 frame

2364 set kickers



2367 M&E first fix



2370 Blockwork



2373 Roof & Ceiling






2379 M&E first fix

2380 Finishes


2382 M&E 1st fix

2383 Floor finishes



2386 M&E final fix










2396 Swimming pool



2399 Villa A3/17

2400 substructure

2401 set out

2402 Excavate


2404 Backfill




2408 frame

2409 set kickers



2412 M&E first fix



2415 Blockwork



2418 Roof & Ceiling






2424 M&E first fix

2425 Finishes


2427 M&E 1st fix

2428 Floor finishes



2431 M&E final fix










2441 Swimming pool



2444 Villa A3/28

2445 substructure

2446 set out

2447 Excavate


2449 Backfill




2453 frame

2454 set kickers



2457 M&E first fix

0%

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page 110


ID Task Name



2460 Blockwork



2463 Roof & Ceiling

2470 Finishes


2489 Villa A3/29

2490 substructure

2491 set out

2492 Excavate


2494 Backfill




2498 frame

2499 set kickers



2502 M&E first fix



2505 Blockwork



2508 Roof & Ceiling

2515 Finishes


2534 Villa A3/30

2535 substructure

2536 set out

2537 Excavate


2539 Backfill




2543 frame

2544 set kickers



2547 M&E first fix



2550 Blockwork



2553 Roof & Ceiling

2560 Finishes


2579 Villa A3/31

2624 Villa A3/32

2625 substructure

2626 set out

2627 Excavate


2629 Backfill



2632 frame

2633 set kickers


2635 Conc. Ground Beams



2638 Blockwork



2641 Roof & Ceiling

2647 Finishes



2665 Villa B2/03

2666 substructure

2667 set out

2668 Excavate


2670 Backfill



2673 frame

2674 set kickers












2686 Roof & Ceiling

2692 Finishes


2708 Villa B2/09

2709 substructure

2710 set out

2711 Excavate


2713 Backfill




2717 frame

2718 set kickers






0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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0%

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0%

0%

0%

0%

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0%

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0%

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0%

0%

0%

0%

0%

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page 111


ID Task Name










2733 Roof & Ceiling

2740 Finishes


2758 Villa B2/10

2759 substructure

2760 set out

2761 Excavate


2763 Backfill




2767 frame

2768 set kickers















2783 Roof & Ceiling

2790 Finishes








3292 Lot 4

















3828 Sundries



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0%

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0%

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The following table summarises the revised durations to perform a significantly revised scope of work depicted on the design drawings issued for construction. It should be noted the delay indicated on the extreme right column also includes the earlier delays caused by the setting out, unforeseen ground conditions and design drawings.

Once again, the revised durations are not critical to completion but activities typically take longer than planned.

page 112


Villa commencement completion commencement completion Baseline duration Revised Duration DelayA3/01 28-Feb-07 09-Jul-08 23-Jul-07 15-Mar-08 236.13 497.13 261.00A3/02 12-Apr-07 09-Dec-08 23-Jul-07 15-Mar-08 236.13 607.08 370.96A3/03 12-Apr-07 30-Dec-08 23-Jul-07 15-Mar-08 236.13 628.08 391.96A3/04 09-Apr-07 15-Mar-08 23-Jul-07 15-Mar-08 236.13 341.13 105.00A3/05 09-Apr-07 15-Mar-08 23-Jul-07 15-Mar-08 236.13 341.13 105.00A3/06 09-Apr-07 02-Jul-08 23-Jul-07 15-Mar-08 236.13 450.13 214.00A3/07 25-Apr-07 07-Jan-08 02-Apr-07 12-Nov-07 224.08 257.08 33.00A3/08 02-Apr-07 22-Dec-08 02-Apr-07 15-Mar-08 348.13 630.08 281.96A3/09 02-Apr-07 06-May-09 02-Apr-07 15-Mar-08 348.13 765.08 416.96A3/10 09-Apr-07 02-Jul-08 09-Apr-07 15-Mar-08 341.13 450.13 109.00A3/11 09-Apr-07 18-May-09 09-Apr-07 15-Mar-08 341.13 770.08 428.96A3/12 09-Apr-07 15-Mar-08 09-Apr-07 15-Mar-08 341.13 341.13 0.00A3/13 09-Apr-07 15-Mar-08 09-Apr-07 15-Mar-08 341.13 341.13 0.00A3/14 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00A3/15 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00A3/16 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00A3/17 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00A3/18 12-Apr-07 15-Mar-08 12-Apr-07 15-Mar-08 338.13 338.13 0.00A3/19 12-Apr-07 13-Jun-09 12-Apr-07 15-Mar-08 338.13 793.13 455.00A3/20 25-Apr-07 29-May-09 12-Apr-07 15-Mar-08 338.13 765.13 427.00A3/21 12-Apr-07 29-May-09 12-Apr-07 15-Mar-08 338.13 778.13 440.00A3/22 12-Apr-07 13-Sep-08 12-Apr-07 15-Mar-08 338.13 520.33 182.21A3/23 16-Apr-07 16-Sep-08 16-Apr-07 15-Mar-08 334.13 519.38 185.25A3/24 16-Apr-07 16-Sep-08 16-Apr-07 15-Mar-08 334.13 519.38 185.25A3/25 16-Apr-07 16-Sep-08 16-Apr-07 15-Mar-08 334.13 519.38 185.25A3/26 16-Apr-07 06-Jan-09 16-Apr-07 15-Mar-08 334.13 631.08 296.96A3/27 16-Apr-07 29-Sep-08 16-Apr-07 15-Mar-08 334.13 532.08 197.96A3/28 28-May-07 06-Aug-08 28-May-07 15-Mar-08 292.13 436.08 143.96A3/29 28-May-07 23-Apr-08 28-May-07 15-Mar-08 292.13 331.13 39.00A3/30 25-Apr-07 15-May-08 28-May-07 15-Mar-08 292.13 386.13 94.00A3/31 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00A3/32 28-May-07 10-Dec-07 28-May-07 16-Nov-07 172.04 196.38 24.33B2/01 16-Apr-07 04-Feb-09 03-Jul-07 15-Mar-08 256.13 660.08 403.96B2/02 16-Apr-07 24-Jun-08 03-Jul-07 15-Mar-08 256.13 435.08 178.96B2/03 28-May-07 17-Jan-08 28-May-07 04-Dec-07 190.17 234.17 44.00B2/04 16-Apr-07 10-Oct-08 03-Jul-07 15-Mar-08 256.13 543.13 287.00B2/05 16-Apr-07 08-Jan-09 03-Jul-07 15-Mar-08 256.13 633.13 377.00B2/06 23-Apr-07 16-Jan-09 03-Jul-07 15-Mar-08 256.13 634.13 378.00B2/07 23-Apr-07 07-Jun-08 03-Jul-07 15-Mar-08 256.13 411.13 155.00B2/08 23-Apr-07 16-Jan-09 03-Jul-07 15-Mar-08 256.13 634.13 378.00B2/09 28-May-07 12-Mar-09 28-May-07 15-Mar-08 292.13 654.13 362.00B2/10 28-May-07 18-Mar-09 28-May-07 15-Mar-08 292.13 660.13 368.00


As a result of the extended durations caused by this event the time for completion has not been extended and the revised completion date remains at 9 September 2009.

The revised completion date remains at 9 September 2009.

page 113


5.1.4.5. Event No 5 – Partial Suspension of Works

ID Task Name





182 Lot 1


184 Villa A3/01

228 Villa A3/02

273 Villa A3/03

274 substructure

275 set out

276 Excavate


278 Backfill




282 frame

283 set kickers



286 M&E first fix

287 Conc. Plantroom


289 Blockwork



292 Roof & Ceiling

299 Finishes


318 Villa A3/04

319 substructure

320 set out

321 Excavate


323 Backfill




327 frame

328 set kickers



331 M&E first fix

332 Conc. Plantroom


334 Blockwork



337 Roof & Ceiling






343 M&E first fix

344 Finishes


346 M&E 1st fix

347 Floor finishes



350 M&E final fix










360 Swimming pool



363 Villa A3/05

364 substructure

365 set out

366 Excavate


368 Backfill




372 frame

373 set kickers



376 M&E first fix

377 Conc. Plantroom


379 Blockwork



382 Roof & Ceiling






388 M&E first fix

389 Finishes


391 M&E 1st fix

392 Floor finishes



395 M&E final fix








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Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep2007 2008 2009

page 114


ID Task Name



405 Swimming pool



408 Villa A3/06

409 substructure

410 set out

411 Excavate


413 Backfill




417 frame

418 set kickers



421 M&E first fix

422 Conc. Plantroom


424 Blockwork



427 Roof & Ceiling

434 Finishes




















847 Lot 2


849 Villa A3/07

894 Villa A3/08

895 substructure

896 set out

897 Excavate


899 Backfill




903 frame

904 set kickers



907 M&E first fix

908 Conc. Plantroom


910 Blockwork



913 Roof & Ceiling

920 Finishes


939 Villa A3/09

984 Villa A3/10

985 substructure

986 set out

987 Excavate


989 Backfill




993 frame

994 set kickers



997 M&E first fix

998 Conc. Plantroom


1000 Blockwork



1003 Roof & Ceiling

1010 Finishes


1029 Villa A3/11

1074 Villa A3/12

1119 Villa A3/13

1164 Villa A3/18

1209 Villa A3/19

1254 Villa A3/20

1299 Villa A3/21

1344 Villa A3/22

1389 Villa A3/23

1434 Villa A3/24

1479 Villa A3/25

1524 Villa A3/26

1569 Villa A3/27

1570 substructure

1571 set out

1572 Excavate


0%

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0%

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0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov2007 2008 2009

page 115


ID Task Name

1574 Backfill




1578 frame

1579 set kickers



1582 M&E first fix



1585 Blockwork



1588 Roof & Ceiling

1595 Finishes



1615 Villa B2/01

1665 Villa B2/02

1666 substructure

1667 set out

1668 Excavate


1670 Backfill




1674 frame

1675 set kickers















1690 Roof & Ceiling

1697 Finishes


1715 Villa B2/04

1765 Villa B2/05

1815 Villa B2/06

1865 Villa B2/07

1915 Villa B2/08









2262 Lot 3


2264 Villa A3/14

2309 Villa A3/15

2354 Villa A3/16

2399 Villa A3/17

2444 Villa A3/28

2445 substructure

2446 set out

2447 Excavate


2449 Backfill




2453 frame

2454 set kickers



2457 M&E first fix



2460 Blockwork



2463 Roof & Ceiling

2470 Finishes


2489 Villa A3/29

2490 substructure

2491 set out

2492 Excavate


2494 Backfill




2498 frame

2499 set kickers



2502 M&E first fix



2505 Blockwork



2508 Roof & Ceiling

2515 Finishes


0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%


page 116


ID Task Name

2534 Villa A3/30

2535 substructure

2536 set out

2537 Excavate


2539 Backfill




2543 frame

2544 set kickers



2547 M&E first fix



2550 Blockwork



2553 Roof & Ceiling

2560 Finishes


2579 Villa A3/31

2580 substructure

2581 set out

2582 Excavate


2584 Backfill




2588 frame

2589 set kickers



2592 M&E first fix



2595 Blockwork



2598 Roof & Ceiling






2604 M&E first fix

2605 Finishes


2607 M&E 1st fix

2608 Floor finishes



2611 M&E final fix










2621 Swimming pool



2624 Villa A3/32


2665 Villa B2/03

2708 Villa B2/09

2758 Villa B2/10







3292 Lot 4

















3828 Sundries



0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%


The following table shows the individual delays arising at each villa suspended which also incorporates the delays described in Event 1 through to 4.

page 117


Villa commencement completion commencement completion Baseline duration Revised Duration DelayA3/03 12-Apr-07 30-Dec-08 23-Jul-07 15-Mar-08 236.13 628.08 391.96A3/04 09-Apr-07 15-Mar-08 23-Jul-07 15-Mar-08 236.13 341.13 105.00A3/05 09-Apr-07 15-Mar-08 23-Jul-07 15-Mar-08 236.13 341.13 105.00A3/06 09-Apr-07 05-Aug-08 23-Jul-07 15-Mar-08 236.13 484.38 248.25A3/08 02-Apr-07 22-Dec-08 02-Apr-07 15-Mar-08 348.13 630.08 281.96A3/10 09-Apr-07 02-Jul-08 09-Apr-07 15-Mar-08 341.13 450.13 109.00A3/27 16-Apr-07 29-Sep-08 16-Apr-07 15-Mar-08 334.13 532.08 197.96A3/28 28-May-07 06-Aug-08 28-May-07 15-Mar-08 292.13 436.08 143.96A3/29 28-May-07 23-Apr-08 28-May-07 15-Mar-08 292.13 331.13 39.00A3/30 25-Apr-07 15-May-08 28-May-07 15-Mar-08 292.13 386.13 94.00A3/31 28-May-07 15-Mar-08 28-May-07 15-Mar-08 292.13 292.13 0.00B2/02 16-Apr-07 13-Sep-08 03-Jul-07 15-Mar-08 256.13 516.33 260.21


As a result the delay caused by this event is not critical and the time for completion has not extended the revised date of 9 September 2009.

Consequently, the revised completion date remains at 9 September 2009.

page 118


5.1.4.6. Event No 6 – Design Variations (Stainless Steel Items)

ID Task Name





182 Lot 1


184 Villa A3/01

228 Villa A3/02

273 Villa A3/03

318 Villa A3/04

363 Villa A3/05

408 Villa A3/06



















847 Lot 2


849 Villa A3/07

894 Villa A3/08

939 Villa A3/09

984 Villa A3/10

1029 Villa A3/11

1074 Villa A3/12

1119 Villa A3/13

1164 Villa A3/18

1209 Villa A3/19

1254 Villa A3/20

1299 Villa A3/21

1344 Villa A3/22

1389 Villa A3/23

1434 Villa A3/24

1479 Villa A3/25

1524 Villa A3/26

1569 Villa A3/27


1615 Villa B2/01

1665 Villa B2/02

1715 Villa B2/04

1765 Villa B2/05

1815 Villa B2/06

1865 Villa B2/07

1915 Villa B2/08









2262 Lot 3


2264 Villa A3/14

2309 Villa A3/15

2354 Villa A3/16

2399 Villa A3/17

2444 Villa A3/28

2489 Villa A3/29

2534 Villa A3/30

2579 Villa A3/31

2624 Villa A3/32

2625 substructure

2626 set out

2627 Excavate


2629 Backfill



2632 frame

2633 set kickers


2635 Conc. Ground Beams



2638 Blockwork



2641 Roof & Ceiling






2647 Finishes


2649 Floor finishes









0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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0%

0%

0%

0%

0%

0%

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0%

0%

0%

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0%

0%

0%

0%

0%

0%

0%

0%

0%

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep2007 2008 2009

page 119


ID Task Name




2661 Swimming pool




2665 Villa B2/03

2666 substructure

2667 set out

2668 Excavate


2670 Backfill



2673 frame

2674 set kickers












2686 Roof & Ceiling






2692 Finishes


2694 Floor finishes











2705 Swimming pool ( not applicable)



2708 Villa B2/09

2758 Villa B2/10







3292 Lot 4

















3828 Sundries



0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

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0%

0%

0%

0%

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0%

0%

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2007 2008 2009

Similarly, the following table shows the delay which occurred at the Mock-up Villas. Again, this delay is not critical to completion because of the earlier delays.

Villa commencement completion commencement completion Baseline duration Revised Duration DelayA3/32 28-May-07 19-Mar-08 28-May-07 16-Nov-07 172.04 296.17 124.13B2/03 28-May-07 12-May-08 28-May-07 04-Dec-07 190.17 350.38 160.21


page 120


5.2. Conclusion

At the outset of the Contract the Contractor suffered delays in setting out the works. This was followed by significant disruption caused by excavation in hard rock and partial suspension of Works. With respect to the Contract and the Contractor’s Programme of Works to which consent has been given, such departure from his original planning has caused significant increased cost. In addition, significant increases in quantities of work caused the Contractor to fall further behind his programme.

The Project Manager also required the Contractor to perform his work in accordance with the Programme of Works. In addition, he has the duty to provide correct design details, in conformance with site conditions, to the Contractor in good time for him to be able to perform his material procurement and construction work in accordance with that programme.

By altering the sequence, timing and quality of the design details supplied to the Contractor, the Project Manager has acted outside the boundaries of the existing Contract provisions.

In failing to provide final survey data, unnecessarily suspending Works, failing to have identified and have taken account site conditions, and not providing design information to the Contractor in accordance with the Programme of Works, the Employer is in breach of his obligations (through the Project Manager in respect of design information) under the terms of the Contract.

Furthermore, by altering the sequence, timing and quality of the design information, when it was eventually provided to the Contractor, the Project Manager has required the Contractor to operate in a manner different from, slower and more expensive than had been shown on the Programme of Works than he had reasonably anticipated at the time of tender.

The consequences of this breach and variance of the Contract, in terms of time for completion and financial compensation, are explained in previous and subsequent sections of this submission.

page 121


6. Financial Analysis

6.1. Consequences

During the periods of delay and disruption which results directly from the varied site circumstances, varied scope of work, piece-meal work or an adverse condition, the Contractor has incurred costs of reduced and non-productive work necessitated by retaining levels of resources, which otherwise would have been decreased or deployed elsewhere. The Contractor would maintain that it was not reasonable to discharge Staff and Labour and remove equipment off Site for those periods. These costs include idle equipment and labour and other direct costs, and are recoverable under the terms and conditions of contract.

Furthermore, in response to the change in timing and sequence of the Works, the Contractor has reorganised his resources to meet the varied circumstances. As a consequence of such measures to improve his production, loss of efficiency costs caused by overtime, extra crews, larger crews, crowding or stacking of trades, are recoverable costs under the terms and conditions of contract. These additional costs are Wasted Costs (in order to use one title to capture all delaying events) and are recoverable as a Variation under the terms of the Contract.

Finally, because of the delays, which are not the fault of the Contractor, substantial completion of the whole Works can only be achieved beyond the original date. Consequently, the Contractor will incur additional costs in the extended period that is not recovered through the rates and prices of the contract.

An aspect of delay-induced expense is the cost of continuing work on a project over a longer time than first anticipated. Additional costs of labour, equipment and overhead has been incurred due to the fact that performance had to be spread out, sometimes leaving the Contractor’s resources idle or forced personnel and equipment to remain thus postponing other work sites.

Therefore, the amount of recovery is based on the total amount of cost expended during the period the contract was delayed. At the time of preparing this claim submission, delays and disruption continue and consequently, additional costs.

The Contractor is entitled to recover the cost of his resources, overheads and profit for this period. The additional costs will fall under three categories:

page 122


6.1.1.Direct Cost

The direct cost of this event, delay and disruption, is the cost of labour, staff and equipment directly employed at the Site including profit.

6.1.2.Indirect Cost

Indirect cost flows from on-site establishments such as the Contractor’s head and site offices and yard, which overheads are only partially recovered during the periods of planned construction operations when extended.

6.1.3.Consequential Cost

The consequential cost is the effect on the work in terms of disruption to the various activities and prolongation of the Contractor’s time related resources arising from re-sequencing the planned work.

This cause occurred at the outset of the project and disruption has been assessed as significant. The change, impacts planned logic and links of many tasks shown on his Programme of Works on which, the Contractor is heavily dependant if he is to retain his original tender cost provisions.

6.2. Costs in Extended Contract Period

6.2.1.Nature of Loss and Expense

The loss and expense flowing from the causes described in this Document are time-related. The loss and expense attributable to these causes has been incurred over all of the Periods identified in this claim. However, the major period in which variations have caused loss and expense is:

In the period of construction to date, May 2008, and

In the extended construction period.

page 123


6.2.2.Contractor’s Entitlement to Reimbursement

Instructions issued are covered by the first paragraph of Clause 13.1 of the Conditions. This refers to Instructions in regard to:

Revised setting out details;

Suspension of Work;

Design drawings issued for construction; and

Additional and varied works.

The criteria for allowing the Contractor reimbursement are given in the penultimate paragraph of Clause 12.3:


The loss and expense were not provided for, nor reasonably contemplated by, the Contract. The Instructions did not result from a breach by the Contractor. Accordingly, the loss and expense must be added to the Contract Price.

6.3. Finance Cost

As this is a claim for breach of contract, the Contractor’s approach to the quantum, or the measure of damage, is to follow the common law rule. This is that the damages should put the complaining party in the position he would have been, had the breach not taken place, insofar as damages can do that.

In order to attain this, the Contractor has approached the calculation of the quantum of the damages by asking what would have happened, had the breach not taken place, and comparing that with what did actually happen. The measure of the damage is the financial consequences flowing from the difference between the two positions.

There is one generic type of potential direct damage suffered while the other is the financing of the work. Those two aspects are summarised in the two points below:

page 124


1. Loss of anticipated income by way of financing. This is the cost to the Contractor of financing the shortfall between the income he reasonably expected to receive, and what he actually received.

2. The idle time, and/or reduced output, of resources from the outset of the contract to the present date.

In addition, for the purpose of satisfying the Employer’s requirements for identifying additional costs, the Contractor has also included additional costs anticipated to January 2010. This date is the latest the Contractor anticipates reaching substantial completion given all the varying circumstances existing at site.

6.4. Conclusions

In failing to provide final survey data and all the various design details, the unforeseen ground conditions, instructing suspension of the Works and subsequently altering the sequence, timing and logic of his original planning, the Employer has caused the Contractor to unavoidably incur greater costs, loss and expense than would have been the case had the failure not occurred. These costs are evaluated in subsequent sections of this submission.

Since these costs, losses and expense have flowed directly from the Employer’s failure and subsequent deviation from the terms of the Contract, the Contractor is entitled to be compensated for them by the Employer paying a fair value for the different type of work that has been performed.

page 125


7. Extension of Time Entitlement

The Project Manager is requested to refer to the Contractor’s two separate submissions for extensions of time and the detailed analysis included in those submissions.

The Contractor had planned that all his resources would be deployed at Site from 7 March 2007 through to 31 May 2008. In the event, because of circumstances beyond his control and not his responsibility, it is anticipated resources of the Contractor will be delayed at Site until 31 January 2010.

Therefore, in order to complete the whole Works, the Contractor requires a further 20 months to reach substantial completion. This includes the first and second requests for an interim extension of the period to Completion, whereas:

First. Requested on 21 November 2007 for an extension of time amounting to 191-calendar days from 31 May 2008 to 8 December 2008. The Project Manager’s determination has not been issued at time of compiling this submission;

Second. Requested on 14 March 2008 for an extension of time amounting to 106-calendar days from 8 December 2008 to 24 March 2009. The Project Manager’s determination has not been issued at time of compiling this submission.

The Contractor on 19 November 2007 had also updated his programme of works showing progress achieved at 6 November 2007. In the final paragraph he stated:

Unless notice is received stating the extent to which it does not comply with the Contract, we shall proceed in accordance with this programme and will rely upon this programme when planning our activities.

The Project Manager has not responded to this notice at time of compiling this submission or to making an interim determination for an extension of time requested in neither the Contractor’s First request nor his Second Request.

Consequently, the Extension of Time to which the Contractor is now fairly entitled to receive amounts to 20 months from 31 May 2008 to 31 January 2010 as substantiated in this submission. This is the date on which it is anticipated substantial Completion will be achieved.

page 126


8. Additional Payment

8.1. Introduction

Each of the sections in this document briefly describes the events that have occurred that are contrary to those envisaged at time of tender. Therefore, allowance for the event so described has not been made in the tender rates and prices. This Chapter of the document contains the financial details, demonstrating the reimbursable additional value or cost of these disruptive events.

This unforeseen difficulty has impacted all the Contractor's resources that were on site during the periods of delay and disruption. In addition, the same resources are, as a consequence of the varied circumstances, to be retained on Site for a further 20 months. That is from the original Completion date to 31 January 2010.

8.2. Evaluation of the Financial Consequences

The delay and disruption has been caused by late survey data, unforeseen ground conditions, suspension of works, varied scope of work and to incomplete and late design information.

Although the Contractor continued to perform as much work as possible in these periods, the unforeseen conditions and changed circumstances will cause the original time to completion to extend from 31 May 2008 to 31 January 2010.

The extension of time and associated loss and expense the Contractor has suffered falls into five categorises:

In the original construction period when equipment and labour resources were under-utilised and recovery of overheads were not secured because of a reduced income;

In an extended period when again the equipment and labour resources will be retained on Site for longer than planned and overheads are not recovered;

In measures taken to recover earlier delays by the addition of resources and working longer hours; and

Other Direct and Indirect Costs

page 127


In the original and extended period of construction where the cost of financing construction increased due to the longer period to completion.

8.2.1.Wasted Costs Arising from Delay and Disruption

These costs arise in the period from commencement to May 2008.

8.2.1.1. Staff and Labour

The following table provides a summary of planned revenue against actual. The fourth column records the shortfall value which is expressed as a percentage on planned.

Forecast Actual Shortfall as aMonth Monthly Monthly Shortfall % of Forecast

Feb-07 3,100,000.00 0.00 3,100,000.00 100%Mar-07 601,658.62 0.00 601,658.62 100%Apr-07 1,352,295.74 0.00 1,352,295.74 100%

May-07 1,852,720.48 3,100,000.00 -1,247,279.52 -67%Jun-07 2,236,090.71 0.00 2,236,090.71 100%Jul-07 2,684,335.78 682,032.85 2,002,302.93 75%

Aug-07 2,189,910.64 351,989.15 1,837,921.49 84%Sep-07 2,236,090.71 145,803.63 2,090,287.08 93%Oct-07 2,258,038.74 357,556.62 1,900,482.12 84%Nov-07 2,258,038.74 478,924.03 1,779,114.71 79%Dec-07 1,754,288.50 0.00 1,754,288.50 100%Jan-08 1,289,372.84 0.00 1,289,372.84 100%Feb-08 1,040,280.70 274,355.16 765,925.54 74%Mar-08 500,424.74 1,086,667.96 -586,243.22 -117%Apr-08 2,575,212.46 0.00 2,575,212.46 100%

May-08 0.00 0.00 0.00 0%

The next table provides a summary of the actual cost of labour from commencement to end of May 2008. Against these values the percentage calculated representing the shortfall on revenue has been applied to arrive at the value of wasted costs. To this figure 15% profit has been added in order to properly value the Variation.

page 128


Month LabourCost % Wasted AmountWasted 15%Profit Total

Mar-07 26,831.00 100% 26,831.00 4,024.65 30,855.65Apr-07 47,046.00 100% 47,046.00 7,056.90 54,102.90

May-07 52,890.00 -67% -35,606.35 -5,340.95 -40,947.30Jun-07 60,384.00 100% 60,384.00 9,057.60 69,441.60Jul-07 60,984.00 75% 45,489.26 6,823.39 52,312.65

Aug-07 61,812.00 84% 51,876.82 7,781.52 59,658.34Sep-07 61,812.00 93% 57,781.57 8,667.24 66,448.80Oct-07 67,056.00 84% 56,437.80 8,465.67 64,903.47Nov-07 80,944.00 79% 63,775.99 9,566.40 73,342.39Dec-07 86,068.00 100% 86,068.00 12,910.20 98,978.20Jan-08 86,709.00 100% 86,709.00 13,006.35 99,715.35Feb-08 85,629.00 74% 63,045.90 9,456.89 72,502.79Mar-08 90,629.00 -117% -106,171.08 -15,925.66 -122,096.75Apr-08 90,629.00 100% 90,629.00 13,594.35 104,223.35

May-08 115,007.00 0% 0.00 0.00 0.00

Total 683,441.44

8.2.1.2. Equipment

The following table provides a summary of planned revenue against actual. The fourth column records the shortfall value which is expressed as a percentage on planned.

Forecast Actual Shortfall as aMonth Monthly Monthly Shortfall % of Forecast

Feb-07 3,100,000.00 0.00 3,100,000.00 100%Mar-07 601,658.62 0.00 601,658.62 100%Apr-07 1,352,295.74 0.00 1,352,295.74 100%

May-07 1,852,720.48 3,100,000.00 -1,247,279.52 -67%Jun-07 2,236,090.71 0.00 2,236,090.71 100%Jul-07 2,684,335.78 682,032.85 2,002,302.93 75%

Aug-07 2,189,910.64 351,989.15 1,837,921.49 84%Sep-07 2,236,090.71 145,803.63 2,090,287.08 93%Oct-07 2,258,038.74 357,556.62 1,900,482.12 84%Nov-07 2,258,038.74 478,924.03 1,779,114.71 79%Dec-07 1,754,288.50 0.00 1,754,288.50 100%Jan-08 1,289,372.84 0.00 1,289,372.84 100%Feb-08 1,040,280.70 274,355.16 765,925.54 74%Mar-08 500,424.74 1,086,667.96 -586,243.22 -117%Apr-08 2,575,212.46 0.00 2,575,212.46 100%

May-08 0.00 0.00 0.00 0%

The next table provides a summary of the actual cost of equipment from commencement to end of May 2008. Against these values the percentage calculated representing the shortfall on revenue has been applied to arrive at the value of wasted costs. To this figure 15% profit has been added in order to properly value the Variation

page 129


Month EquipCost % Wasted AmountWasted 15%Profit Total

Mar-07 262,545.19 100% 262,545.19 39,381.78 301,926.96Apr-07 262,545.19 100% 262,545.19 39,381.78 301,926.96

May-07 262,545.19 -67% -176,749.40 -26,512.41 -203,261.81Jun-07 262,545.19 100% 262,545.19 39,381.78 301,926.96Jul-07 262,545.19 75% 195,838.02 29,375.70 225,213.72

Aug-07 262,545.19 84% 220,345.72 33,051.86 253,397.58Sep-07 262,545.19 93% 245,426.01 36,813.90 282,239.91Oct-07 262,545.19 84% 220,971.60 33,145.74 254,117.34Nov-07 262,545.19 79% 206,860.05 31,029.01 237,889.06Dec-07 262,545.19 100% 262,545.19 39,381.78 301,926.96Jan-08 262,545.19 100% 262,545.19 39,381.78 301,926.96Feb-08 269,952.60 74% 198,757.50 29,813.62 228,571.12Mar-08 293,656.30 -117% -344,015.79 -51,602.37 -395,618.16Apr-08 293,656.30 100% 293,656.30 44,048.44 337,704.74

May-08 293,656.30 0% 0.00 0.00 0.00

Total 2,729,888.31

8.2.1.3. Site and Head Office

The following table provides the wasted costs associated with the indirect staff and labour costs arising from the Site Office overheads. The value of overheads is estimated to be at 3%.


Mar-07 26,831.00 3% 804.93 120.74 925.67Apr-07 47,046.00 3% 1,411.38 211.71 1,623.09

May-07 52,890.00 3% 1,586.70 238.01 1,824.71Jun-07 60,384.00 3% 1,811.52 271.73 2,083.25Jul-07 60,984.00 3% 1,829.52 274.43 2,103.95

Aug-07 61,812.00 3% 1,854.36 278.15 2,132.51Sep-07 61,812.00 3% 1,854.36 278.15 2,132.51Oct-07 67,056.00 3% 2,011.68 301.75 2,313.43Nov-07 80,944.00 3% 2,428.32 364.25 2,792.57Dec-07 86,068.00 3% 2,582.04 387.31 2,969.35Jan-08 86,709.00 3% 2,601.27 390.19 2,991.46Feb-08 85,629.00 3% 2,568.87 385.33 2,954.20Mar-08 90,629.00 3% 2,718.87 407.83 3,126.70Apr-08 90,629.00 3% 2,718.87 407.83 3,126.70

May-08 115,007.00 3% 3,450.21 517.53 3,967.74

Total 37,067.84

Similarly, the table below provides the wasted costs associated with indirect staff and labour costs arising from the Head Office overheads. The value of overheads is estimated to be 9%.

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Mar-07 26,831.00 9% 2,414.79 362.22 2,777.01Apr-07 47,046.00 9% 4,234.14 635.12 4,869.26

May-07 52,890.00 9% 4,760.10 714.02 5,474.12Jun-07 60,384.00 9% 5,434.56 815.18 6,249.74Jul-07 60,984.00 9% 5,488.56 823.28 6,311.84

Aug-07 61,812.00 9% 5,563.08 834.46 6,397.54Sep-07 61,812.00 9% 5,563.08 834.46 6,397.54Oct-07 67,056.00 9% 6,035.04 905.26 6,940.30Nov-07 80,944.00 9% 7,284.96 1,092.74 8,377.70Dec-07 86,068.00 9% 7,746.12 1,161.92 8,908.04Jan-08 86,709.00 9% 7,803.81 1,170.57 8,974.38Feb-08 85,629.00 9% 7,706.61 1,155.99 8,862.60Mar-08 90,629.00 9% 8,156.61 1,223.49 9,380.10Apr-08 90,629.00 9% 8,156.61 1,223.49 9,380.10

May-08 115,007.00 9% 10,350.63 1,552.59 11,903.22

Total 111,203.51

The following table provides the wasted costs associated with the indirect Equipment costs arising from the Site Office overheads. The value of overheads is estimated to be at 3%.


Mar-07 262,545.19 3% 7,876.36 1,181.45 9,057.81Apr-07 262,545.19 3% 7,876.36 1,181.45 9,057.81

May-07 262,545.19 3% 7,876.36 1,181.45 9,057.81Jun-07 262,545.19 3% 7,876.36 1,181.45 9,057.81Jul-07 262,545.19 3% 7,876.36 1,181.45 9,057.81

Aug-07 262,545.19 3% 7,876.36 1,181.45 9,057.81Sep-07 262,545.19 3% 7,876.36 1,181.45 9,057.81Oct-07 262,545.19 3% 7,876.36 1,181.45 9,057.81Nov-07 262,545.19 3% 7,876.36 1,181.45 9,057.81Dec-07 262,545.19 3% 7,876.36 1,181.45 9,057.81Jan-08 262,545.19 3% 7,876.36 1,181.45 9,057.81Feb-08 269,952.60 3% 8,098.58 1,214.79 9,313.36Mar-08 293,656.30 3% 8,809.69 1,321.45 10,131.14Apr-08 293,656.30 3% 8,809.69 1,321.45 10,131.14

May-08 293,656.30 3% 8,809.69 1,321.45 10,131.14

Total 139,342.69

Similarly, the table below provides the wasted costs associated with indirect staff and labour costs arising from the Head Office overheads. The value of overheads is estimated to be 9%.

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Mar-07 262,545.19 9% 23,629.07 3,544.36 27,173.43Apr-07 262,545.19 9% 23,629.07 3,544.36 27,173.43

May-07 262,545.19 9% 23,629.07 3,544.36 27,173.43Jun-07 262,545.19 9% 23,629.07 3,544.36 27,173.43Jul-07 262,545.19 9% 23,629.07 3,544.36 27,173.43

Aug-07 262,545.19 9% 23,629.07 3,544.36 27,173.43Sep-07 262,545.19 9% 23,629.07 3,544.36 27,173.43Oct-07 262,545.19 9% 23,629.07 3,544.36 27,173.43Nov-07 262,545.19 9% 23,629.07 3,544.36 27,173.43Dec-07 262,545.19 9% 23,629.07 3,544.36 27,173.43Jan-08 262,545.19 9% 23,629.07 3,544.36 27,173.43Feb-08 269,952.60 9% 24,295.73 3,644.36 27,940.09Mar-08 293,656.30 9% 26,429.07 3,964.36 30,393.43Apr-08 293,656.30 9% 26,429.07 3,964.36 30,393.43

May-08 293,656.30 9% 26,429.07 3,964.36 30,393.43

Total 418,028.07

8.2.1.4. Summary of Wasted Costs

Item Category Amount

Staff and Labour 683,441.44Equipment 2,729,888.31Site Overheads Staff and Labour 37,067.84

Equipment 139,342.69Head Office Overheads Staff and Labour 111,203.51

Equipment 418,028.07

Total 4,118,971.85

8.2.2.Additional Costs Arising from Acceleration

In order to recover part of the earlier delays the Contractor has already implemented steps to improve and increase his staff, labour and equipment.

At this juncture the Contractor has ordered and organised the following additional resources shown in the table below.

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Staff and Labour

1 Senior Project Manager 168,630.002 Quality Assurance Manager 168,630.003 Senior Quantity Surveyor 107,250.004 Assistant Quantity Surveyor 99,000.005 Expatriate Workers 880,000.00 1,423,510.00

Equipment


Total additonal resources 1,958,701.00

8.2.3.Additional Costs in Extended Contract Period

The Contractor has entitlement to recovery of his indirect costs arising in the extended contract period. These costs arise in the period the Contract is extended as a result of critical delays.

Consequently, this allowance has no relation to additional expenditure arising in the original contract period as a result of non-critical delays. That is to say, those costs that are attributed to delay and disruption, the first period, are separate to costs flowing in an extended period, the second period.

The Contractor has entitlement to payment of additional indirect costs in the period they arise. However, this recovery would exclude his indirect costs not paid through his rates and prices for doing the work which remain recoverable in the extended period. These costs are detailed below:

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Item Nature of Cost Fixed Variable PlannedCost ExtendedPeriod

1 Insurance 250,000.00 17,857.14 321,428.572 Foreign Staff, Labour Repatriation 450,000.00 32,142.86 578,571.433 Facilities for Staff and Labour 170,000.00 12,142.86 218,571.434 Measures against Insect and Pect Nuisance 60,000.00 4,285.71 77,142.865 Supply of Foodstuffs 660,000.00 47,142.86 848,571.436 Supply of Water 80,318.00 5,737.00 103,266.007 Shop Drawings 10,000.00 714.29 12,857.148 As-Built Documents 5,600.00 400.00 7,200.009 Temporary Site Office for Employers Consultants 65,250.00 0.00 0.0010 Site Signboard 3,275.00 0.00 0.0011 Access to Site 35,000.00 2,500.00 45,000.0012 Site to be Tidy 12,727.00 909.07 16,363.2913 Co-ordination 14,727.00 1,051.93 18,934.7114 Site Records 3,275.00 233.93 4,210.7115 Site Records 29,913.00 2,136.64 38,459.5716 Safety Procedures 5,700.00 407.14 7,328.5717 Security at Site 13,426.00 959.00 17,262.0018 Contractors Site Operations 7,485.00 534.64 9,623.5719 Site Radio Communication 11,725.00 0.00 0.0020 Environmental Impact Assessment 5,000.00 0.00 0.0021 Taking Delivery from NS 50,000.00 3,571.43 64,285.7122 Contractors Temporary Accommodation 35,000.00 2,500.00 45,000.0023 Superintendence 15,000.00 1,071.43 19,285.7124 Transport of People 125,475.00 8,962.50 161,325.0025 Contractors Equipment 365,000.00 26,071.43 469,285.7126 Scaffolding 105,000.00 7,500.00 135,000.00

Total 3,218,973.43

8.2.4.Other Costs

The following activities caused the Contractor to incur additional costs because of the changed events described in this document. At time of preparing this submission these costs have yet to be ascertained and will therefore, be part of future claim submissions.

8.2.4.1. Procurement of Permanent Materials

The following table provides a summary of all major materials ordered on the project to date. It will be noted that all major materials required for 55 number villas are ordered although the constraint to receiving the complete order is payment.

The inability to complete full payment to the supplier has been explained in various notifications, particularly the Advance recovery which is disconnected from progress payments. This compounded an existing reduced income generated each month because progress could not be achieved as planned due to as example, unforeseen ground conditions.

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Des c ription of MaterialsQuantity Ordered Date Ordered Amount rec eived B alanc e C omments

F OR AL L 55 VIL L AS

50K G bags P ortland C ement 2,800.00 04/04/07 300.00 2,500.00 B alance on order subject to payment to supplierP lywood for S huttering/R oofing 6,000.00 14/11/07 1,800.00 4,200.00 B alance on order subject to payment to supplierC rusher Dust 6,000.00 23/06/07 1,565.13 4,434.87 B alance on order subject to payment to supplierAggregate 8,000.00 25/06/07 1,222.64 6,777.36 B alance on order subject to payment to supplierP las tering S and 1,000.00 16/07/07 80.00 920.00 B alance on order subject to payment to supplier150mm S oild concrete B locks 125,000.00 05/07/07 31,975.00 93,025.00 B alance on order subject to payment to supplier100mm Hollow concrete B locks 15,000.00 15/07/07 2,340.00 12,660.00 B alance on order subject to payment to supplierA252 Weld Mesh (R oadworks ) 912.00 14/05/07 162.00 750.00 B alance on order subject to payment to supplierHigh tens ile s teel-8,10,12,16,25mm (tons) 500.00 14/01/07 158.00 342.00 B alance on order subject to payment to supplierC edar S hingles (sqm) 12,757.64 03/05/07 3,712.00 9,045.64 B alance on order subject to payment to supplierIroko timber (external cladding) L M 54,198.00 07/05/07 1,548.00 52,650.00 B alance on order subject to payment to supplier12mm G ypsum boards (S HE E T S ) 5,600.00 03/02/07 5,600.00 0.00 Awaiting for other building from I.DS tainless s teel threaded rods 12,16mm 16,300.00 09/11/07 8,110.00 8,190.00 B alance on order subject to payment to supplier (Not B .O .Q item)S tainless s teel gusset plates (variation) 450.00 09/11/07 50.00 400.00 B alance on order subject to payment to supplier (Not B .O .Q item)B alau T imber (L M) 169,074.50 08/06/07 6,148.16 162,926.34 B alance on order subject to payment to supplierT reated P ine T imber (L M) 94,148.50 20/04/07 43,225.50 50,923.00 B alance on order subject to payment to supplier

Consequently, it is likely initial materials ordered and not secured by full payment will attract a different cost at a later date. The additional cost arising is not the responsibility of the Contractor. These costs will be identified and evidenced at a later date as they arise.

8.2.4.2. Temporary Materials including Equipment

A similar situation exists with temporary materials whereby orders could not be made to enhance productivity at Site.

8.2.5.Finance Costs

The additional costs defined within the preceding sections of this chapter on claim for additional payment have been borne and financed by the Contractor. The Contractor has paid the costs by obtaining bank loans or overdrafts, or by the use of working capital that would have been employed in profitable work. These financing costs are an additional cost incurred as a consequence of the circumstances herein and, become part of the reimbursable sum.

The Contractor has carried this additional cost since the outset of the Contract to the present date, end of May 2008, a period of about 14 months.

Compound interest over this period is against the heads of cost amount to:

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Month Labour Equipment Sub-total SiteO/H H/Q Total Sub-total Total

Mar-07 26,831.00 262,545.19 289,376.19 3.00% 9.00% 12.00% 34,725.14 324,101.33 Apr-07 47,046.00 262,545.19 309,591.19 3.00% 9.00% 12.00% 37,150.94 346,742.13 May-07 52,890.00 262,545.19 315,435.19 3.00% 9.00% 12.00% 37,852.22 353,287.41 Jun-07 60,384.00 262,545.19 322,929.19 3.00% 9.00% 12.00% 38,751.50 361,680.69 Jul-07 60,984.00 262,545.19 323,529.19 3.00% 9.00% 12.00% 38,823.50 362,352.69 Aug-07 61,812.00 262,545.19 324,357.19 3.00% 9.00% 12.00% 38,922.86 363,280.05 Sep-07 61,812.00 262,545.19 324,357.19 3.00% 9.00% 12.00% 38,922.86 363,280.05 Oct-07 67,056.00 262,545.19 329,601.19 3.00% 9.00% 12.00% 39,552.14 369,153.33 Nov-07 80,944.00 262,545.19 343,489.19 3.00% 9.00% 12.00% 41,218.70 384,707.89 Dec-07 86,068.00 262,545.19 348,613.19 3.00% 9.00% 12.00% 41,833.58 390,446.77 Jan-08 86,709.00 269,952.60 356,661.60 3.00% 9.00% 12.00% 42,799.39 399,460.99 Feb-08 85,629.00 293,656.30 379,285.30 3.00% 9.00% 12.00% 45,514.24 424,799.53 Mar-08 90,629.00 293,656.30 384,285.30 3.00% 9.00% 12.00% 46,114.24 430,399.53 Apr-08 90,629.00 293,656.30 384,285.30 3.00% 9.00% 12.00% 46,114.24 430,399.53 May-08 115,007.00 0.00 115,007.00 3.00% 9.00% 12.00% 13,800.84 128,807.84

Interest Finance TotalMonth/Year Days Monthly Cummulative Gross Rate Value Amount

Mar-07 31.00 324,101.33 324,101.33 324,101.33 11.00% 3,027.91 327,129.23Apr-07 30.00 346,742.13 327,129.23 673,871.36 11.00% 6,092.54 679,963.90May-07 31.00 353,287.41 679,963.90 1,033,251.31 11.00% 9,653.11 1,042,904.42Jun-07 30.00 361,680.69 1,042,904.42 1,404,585.11 11.00% 12,698.99 1,417,284.10Jul-07 31.00 362,352.69 1,417,284.10 1,779,636.79 11.00% 16,626.20 1,796,262.98Aug-07 31.00 363,280.05 1,796,262.98 2,159,543.03 11.00% 20,175.46 2,179,718.49Sep-07 30.00 363,280.05 2,179,718.49 2,542,998.54 11.00% 22,991.49 2,565,990.03Oct-07 31.00 369,153.33 2,565,990.03 2,935,143.36 11.00% 27,421.48 2,962,564.84Nov-07 30.00 384,707.89 2,962,564.84 3,347,272.73 11.00% 30,263.01 3,377,535.74Dec-07 31.00 390,446.77 3,377,535.74 3,767,982.51 11.00% 35,202.25 3,803,184.76Jan-08 31.00 399,460.99 3,803,184.76 4,202,645.74 11.00% 39,263.07 4,241,908.82Feb-08 28.00 424,799.53 4,241,908.82 4,666,708.35 11.00% 39,379.35 4,706,087.70Mar-08 31.00 430,399.53 4,706,087.70 5,136,487.23 11.00% 47,987.46 5,184,474.69Apr-08 30.00 430,399.53 5,184,474.69 5,614,874.22 11.00% 50,764.62 5,665,638.84May-08 31.00 128,807.84 5,665,638.84 5,794,446.68 11.00% 54,134.42 5,848,581.10

Total Amount 415,681.34

Period Principle Amount

Finance Costs will continue on this amount and in the remaining contract period unless these additional costs are paid.

8.2.6.Grand Summary

The additional costs defined within the preceding sections of this chapter are summarised below:

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Gategory of Additional Cost Amount

Wasted Monthly Costs in Original Contract Period 4,118,971.85Acceleration Costs 1,958,701.00Finance Costs in Period 415,681.34Extended Costs 3,218,973.43

Total Additional Costs to May 2008 9,712,327.62

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9. Statement of Claim

During the course of performing the Contract Works to May 2008, the Contractor has drawn the Project Manager’s attention to the fact that the Employer has deviated from certain of the contractual requirements established in the Contract. He has required the Contractor to perform the Contract Works in a manner significantly different from that laid down in the Contract Conditions and Specifications. These deviations are:

1. The Project Manager failed to provide setting out data in variance to the Contract or the timing depicted on the Programme of Works;

2. The Project Manager unnecessarily instructed a partial suspension of the Works;

3. The Project Manager did not issue construction design details in accordance with the Contract or the Contract Programme of Works;

4. The discovery of significant had rock at many of the Villa locations, which occurrence is an unforeseen condition as allowed and described in the Contract;

5. The Project Manager did not issue construction design details free from significant errors in accordance with the Contract; and

6. The Project Manager has not properly measured, valued, or paid for changes to the scope of work in respect of additional time and cost.

The Contractor is entitled to payment, in respect of the above matters for the reasons stated. In addition he is also entitled to an extension of time all as summarised below:

Head of Claim EOT Months ValueExtension of time (31 May 08 – 31Jan 09) 20 3,218,973.43Wasted Costs to May 2008 In period 4,118,971.85Acceleration Costs In extended period 1,958,701.00Finance Costs To May 2008 415,681.34Total Entitlement USD 9,712,327.62

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10.Appendices

10.1. Wasted Costs

10.1.1. Record of Resources – Staff and Labour

10.1.2. Record of Resources – Equipment

10.1.3. Direct and Indirect Costs

The following table provides figures from the Contractor’s audited accounts.

The next table shows the average indirect costs for the head office (Victoria, Mahe) and site office expressed as a percentage. The Contractor expects to recover as a return on turnover, approximately 9% on the head office costs and 3% for the site office costs.

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10.2. RFI and RFAID Date Reference From To Subject EventType Location EventDescription Notes

001 10-Mar-08 RFI-001 Island Construction Polus Investments

Roof trusses - Stainless steel plates - Detailed drawings required

Request for Information Villas & Buildings

Contractor requested for detailed designs for stainless steel plates for all the remaining buildings

PM stated the designs shall follow those of the mock up villas already constructed

002 10-Mar-08 RFI-002 Island Construction Polus Investments Thermal Roof Insulation - Design details required

Request for Information

Mock up villas and other buildings

Contractor requested the detailed design and insulation details for thermal roof insulation

PM provided the required information on 16 Mar '08. Information was required by 15 March 2008

003 12-Mar-08 RFI-003 Island Construction Polus Investments A3 Villas - Decking Span - Clarification Required

Request for Information A3 Villas

Contractor requested clarification on the span of the timber decking

PM provided clarification on 13 March 2008. Information was required by 15 March 2008

004 10-Mar-08 RFI-004 Island Construction Polus Investments Request for clarification on socket position at B2/03

Request for Information B2/03

Contractor requested clarification on the socket position at B2/03 Clarification provided

005 12-Mar-08 RFI-005 Island Construction Polus Investments A3 Villas - Lanai screens - designs required

Request for Information A3 Villas

Contractor requested design for lanai screens

Clarification provided on 13 Mar '08. Information was required by 15 Mar '08


All Villas – Bathroom Entrance Door Type DO.02 – Infill Bamboo Resin Panel – Discrepancy in Size

Request for Information Villas

Clarification required on the descrepancy in sizes of the bamboo resing panel Clarification provided


Mock Up Villas – Window Sill & Lining Details – Cut Stone Cladding – Discrepancy in Size

Request for Information

Mock up villas A3/32 and B2/03

Clarification required on the desrepancy in sizes of window sill shown in the desgn and the one supplied

Clarification provided on 16 Mar '08. Information was required by 16 Mar 08

008 14-Mar-08 RFI-008 Island Construction Polus Investments Ironmongery – Supplier – Other Contact Details Required

Request for Information Villas

Further contact details of ironmongery supplier required Not yet provided

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10.3. CorrespondenceID Date Reference From To Subject EventType Location EventDescription Notes

001 05-Jul-07 FIN/PS/POLUS/83PS, Ministry of

Finance Polus Investments Concessions Granted for the Project Information

Shangri-La Resort Project

Concessions granted during the construction phase of the project

002 11-Jul-07 LIHRD/env/05 Island Construction Polus Investments Environment Visit Report - 10 July 2007 Environmental


Contractor's response to Environmental visit report

003 30-Aug-07 LIHRD/VO/01 Island Construction Polus Investments

Quotation for Retaining Wall along CHI-SPA area/Restaurant Area Quotation


Quotation for Retaining wall along CHI-SPA area/Restaurant area

004 30-Aug-07 LIHRD/VO/02 Island Construction Polus Investments List of Variations Variations Shangri-La Resort Project

PM requested to approve the list of variations

005 03-Sep-07 Angel Fish Island Construction New Rates for Boat Transport Information Shangri-La Resort Project

New rates for boat transport as a result of increased fuel prices

006 12-Sep-07 Island Construction Angel Fish Transfer Boat to Long Island Information Shangri-La Resort Project

Schedules for boat transport from Mahe to Long Island and back

007 19-Sep-07 Island Construction Polus Investments Inquiry from Independent Engineer Information


Submission of the company's technical profile

008 24-Oct-07 Island Construction Polus Investments

Lump Sum Contract Price - Variations to Scope of Works - Instructions Variations


Request for Employer's agreement to payment of changes and variations

Instructed variations and changes are being made prior to reaching agreement on the price contrary to terms and conditions of the contract. There exists disparities between BQ quantities and quantities measured from construction drawings.

009 24-Oct-07 Island Construction Polus Investments Mock-up Villas - Variation Instruction - Additional Costs

Variation & Notification


The requirement to complete Mock up villas is a variation. Detailed particulars of associated delays and additional costs shall be submitted once ready

Timing and sequence for the mock up villas is not allowed in the POW, material procurement and labour requirements are in variance to original planning, advance construction of the mock-up villas continues to be an impediment on the rate of progress for other parts of works.


Minutes of Meeting No.23 - Recorded Minutes - Not Approved Information


Disagreement to Minutes of meeting No. 23 and all previous minutes. Proposal by the Contractor to verify and comment on the minutes before circulation

The minutes are in Contractor's view inaccurate and have not received Contractor's concurrence.


Suspension of Works-Extension of Time & Additional Payment-Notice Notification


Notification of Contractor's entitlement to time extension and additional costs occassioned by suspension of works.

In addition, the Contractor awaits PM's instruction to proceed with all the works affected by the suspension notice

012 26-Oct-07 Island Construction Polus Investments Setting Out - Late Instructions & Variations - Additional Costs

Notification & Variation


Notification of delay and disruption occassioned by varied location, position and orientation of buildings

The changes constiture variation. Associated delays and costs to be submitted once ready


Advance Payment - Unfixed Materials & Goods - Payment Application Payment


Request for PM's concurrence with Contractor's intention to raise a separate statement for payment of Unfixed Materials and Goods

014 26-Oct-07 Island Construction Polus Investments Earth Filling to CHI-SPA area QuotationShangri-La Resort Project

Quotation for earth filling to CHI-SPA area

page 141


015 26-Oct-07 Island Construction Polus Investments Quotation for Rock Excavation QuotationShangri-La Resort Project Quotation for rock excavation

016 29-Oct-07 Island Construction Polus Investments Setting Out - Late Instructions & Variations - Additional Costs Variation


Contractor maintains changes in the location, position and orientation of buildings constitute variation, hence delays and additional costs, detailed particulars of which will be submitted once available


Suspension of Works-Extension of Time & Additional Payment-Entitlement Determination


Contractor maintains he has entitlement to extensions of time and recovery of costs due to suspension. Awaiting PM's determination

018 19-Nov-07 Island Construction Polus Investments

Programme - Revision 1 Dated 6th Nov 2007 - Progress of Works

Programme of Works


Submission of Revised Programme of Works


Interim Statement No. 3 - Issue of Interim Payment Certificate - Contract Procedure Payment


Undercertification shall subsequently attract finance costst

020 19-Nov-07 Island Construction Polus Investments Cash Flow Forecast - Advance Repayment - Ammendment Cash Flow

Shangri-La Resort Project Ammended cash flow forecast

021 20-Nov-07 LIHRD/PC/05 Island Construction Polus Investments Interim Statement No. 3 Statement Shangri-La Resort Project Application for Payment for works


Extension of Time for Completion-First Interim Entitlement-Claim Claim


The Contractor claims extension of time for completion up to 8 Dec 08 and additional costs amounting to US$ 857,145.00


Cash Flow Forecast - Advance Repayment - Proposed Revisions Cash Flow


Ammeded cash flow forecast consequent to the extended contract period as per the revised programme of works

024 21-Nov-07 Island Construction Polus Investments Minutes of Meeting Nr. 27 - Clarification - Notice

Clarification & Notice


Clarification on time and money issues contained in the minutes and notification of intention to submit additional costs for acceleration of works


Variations & Adjustments - Instructed Changes & Additions - Measurement & Evaluation

Claims & Variations


Contractor requests a Variation Meeting to discuss and agree on all the variations and claims on the project to date

The Variations and claims identified so far are listed

026 23-Nov-07 E-01-23.11.07 Polus Investments Island Construction Suspension of works Claim Shangri-La Resort Project

PM states it is the Contractor who suspended the works hence refuse to approved any Extension of time and Additional Costs

The PM encloses previous email correspondences with the Contractor over the issue

027 23-Nov-07 E-01-23.11.07 Polus Investments Island Construction Minutes of Meeting Information Shangri-La Resort Project

PM will endeavour to issue meeting minutes by every Wednesday

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028 23-Nov-07 E-03-23.11.07 Polus Investments Island Construction Measurement and Payment for Variations Variations


Instruction to vary any part of the works whether for the specification or quantities is additional work entitled to additional payment

PM agrees to have mutual measurement of variation and payment thereof

029 23-Nov-07 E-04-23.11.07 Polus Investments Island Construction Mock-up Villas Variations Shangri-La Resort Project

The PM states mock up villas do not comprise variation

030 23-Nov-07 E-05-23.11.07 Polus Investments Island Construction Clients Address AddressShangri-La Resort Project

All communications must be addressed to the Project Manager

031 23-Nov-07 E-06-23.11.07 Polus Investments Island Construction Setting out at Site - Changes in Positions, Orientation

Variation & Claim


PM requires detailed particulars for associated delays and costs

032 23-Nov-07 E-07-23.11.07 Polus Investments Island Construction Minutes of Meeting Clarification & Notice


PM awaits detailed document regarding Variations and claims so far identified

033 04-Dec-07 E-09-04.12.07 Polus Investments Island Construction

Variations & Adjustments - Instructed Changes & Additions - Measurement & Evaluation Variations


PM agrees to value changes in design and quantities as Variations

034 04-Dec-07 E-08-04.12.07 Polus Investments Island Construction

Interim Statement No.3 - Issue of Interim Payment Certificate - Contract Procedure Payment


The Invoice required is not contractual but solely for accounting purposes

035 07-Dec-07 Island Construction Polus Investments

General Contractor's Obligations-Performance Security-Reduction of Amount

Performance Security


Contractor proposes the amount in the Performance Security is reduced equal to the amount of cover included in the EME's performance security


Variations & Adjustments - Instructed Changes & Additions - Measurement & Evaluation Variations


The Letter of Acceptance takes priority over the conditions of contract. As such, in practice it means that no variation arising from aditional work or design change can commence prior to receiving the agreement of the Employer

037 19-Dec-07 E-13-19.12.07 Polus Investments Island Construction List of Plants for A3/32 - B2/03 LandscapingShangri-La Resort Project Enclosed list of plants


Interim Statements for Payment - Issue of Interim Payment Certificate-Payment Payment


The PM can still issue a payment certificate even when the amount falls below the minimum payable by the Employer

039 24-Dec-07 Island Construction Polus Investments Mock-up Villas - Variation Instruction - Additional Costs Variation


Contractor maintains Mock-up villas is a variation because the procurement process is in complete variance to original planning

040 15-Jan-08 Polus Investments Island Construction Specification for Door panelling SpecificationShangri-La Resort Project Specification for door panelling

041 17-Jan-08 E-14-17.01.08 Polus Investments Island Construction Environment Visit Report - 13 Dec 2007 Environmental


Contractor required to take necessary measures to improve the situation

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042 21-Jan-08 Island Construction Polus Investments

Environmental - Monitoring visit for Class 1 Project and SPA at Long Island Environmental


Steps being taken to address the environmental issues

043 22-Jan-08 Island Construction Polus Investments Roof structure gusset plate design Design


The proposed 4.5mm thick gusset plate is appropriate for use

044 29-Jan-08 Polus Investments Island Construction Revised cash flow Cash FlowShangri-La Resort Project PM forwards a revised cashflow

045 29-Jan-08 E-14-29.01.08 Polus Investments Island Construction Mock-up Villas - Variation Variation Shangri-La Resort Project

PM requires the mock-up villas completed as per original programme

046 30-Jan-08 E-15-30.01.08 Polus Investments Island Construction Certification and Payment Payment Shangri-La Resort Project

Payment has been made to the Main Contractor

047 30-Jan-08 Polus Investments Island Construction Approved Balustrade Design Shangri-La Resort Project Pictures of approved balustrade

048 04-Feb-08 E-16-04.02.08 Polus Investments Island Construction Statement Statement Shangri-La Resort Project

2 Hard copies of the statement required

049 06-Feb-08 Polus Investments Island Construction Site Issues General Shangri-La Resort Project

Minutes of meeting between Zsolt and Wilson. Action by Contractor required

050 07-Feb-08 Island Construction Polus Investments Site Issues General Shangri-La Resort Project Response to issues raised above

051 13-Feb-08 E-18-13.02.08 Polus Investments Island Construction Revised Programme of works Programme of Works


Contractor required to submit revised programme of works

052 13-Feb-08 E-19-13.02.08 Polus Investments Island Construction Payment Certificate & Rate of Progress Certificate


The negative amount reflects very slow progress at site. Submit revised POW and supporting report outlining methods to expedite progress

053 26-Feb-08 Island Construction Polus Investments

Nominated Subcontractor EME Overseas Ltd - Design and Build Subcontract Conditions - Objection to Nomination Subcontract


Existing contractual matters that prevent execution of agreement between Island Construction Pty ltd and EME overseas

054 27-Feb-08 Island Construction Polus Investments

Suspension of Works - Extension of time and Additional Payment - Entitlement

Suspension of Works


Entitlement to Extensions of time and additional payment arising from instruction to suspend works

055 01-Mar-08 Island Construction Polus Investments Situation ReportDelaying Events Details


Delaying Events and Proposed Financial Arrangements

057 14-Mar-08 Island Construction Polus Investments

Delaying Events & Changed Circumstances - Revised Programme of works - Extension of time for completion

Request for Extension of Time


Request for extension of time for completion to 24 March 2009

058 19-Mar-08 Island Construction Polus Investments

Cash Flow Forecast - Advance Repayment - Proposed Revision

Revision of Advance Recovery


Proposed amendment of cashflow with revised advance recovery

059 07-Apr-08 Island Construction Polus Investments Extension of time Time Extension Shangri-La Resort Project Detailed particulars required

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056 08-Apr-08 Island Construction Polus Investments Interim Report on Programme of Works, Progress & Valuation

Programme & Valuation Report


Report on Programme of Works and Request for Time Extension

060 09-Apr-08 E-18-09.04.08 Polus Investments Island Construction Nominated Subcontractor Subcontract Shangri-La Resort Project

PM responds to ICCL's objection to enter into nominated subcontract with EME

061 14-Apr-08 E-17-07.04.2008 Polus Investments Island Construction

Nominated Subcontract - Subcontract Agreement - Reason for Objection Subcontract


Reason for Objection of nominated subcontract agreement

062 15-Apr-08 Island Construction Polus Investments

Extension of Time for Completion - First Interim Entitlement - Detailed Particulars

Detailed particulars for Extension of time


Request for approval to submit detailed particulars within 45 days from 15 April 2008

063 15-Apr-08 Island Construction Polus Investments Interim Statement Nr. 08 Statement Shangri-La Resort Project

Statement for works done up to End of March 2008


Interim Statement Nr. 08 - Materials On & Off site - Amendment Statement


Amended statement incorporating off site Balau timber

065 17-Apr-08 Island Construction Polus Investments Landscaping - Additional Work - Confirmation of Oral Instruction Additional Works


Confirmation of oral instruction to execute landscaping works


Delay to Completion - Recovery Programme - Approval to Accelerate Programme


Request for approval to accelerate works

067 02-May-08 E19-02.05.08 Polus Investments Island Construction Delays Extension of Time


PM states ICCL has not demonstrated entitlement to time extension

068 05-May-08 E-21-05.05.08 Polus Investments Island Construction Valuation Certificate Payment Shangri-La Resort Project Valuation certificate No. 08

069 06-May-08 Island Construction Polus Investments Interim Payment - Invoice No. 7 Payment Shangri-La Resort Project Invoice for Interim Payment

070 07-May-08 Island Construction Polus Investments

Valuation No. 8 - Cession of Right for Material On and Off Site Materials On Site


Cession of right for materials on and off site

071 09-May-08 E20-09.05.08 Polus Investments Island Construction Accelerative measures Programme of Works


The Employer is contemplating engaging others to expedite progress of works

072 12-May-08 E21-12.05.08 Polus Investments Island Construction Recovery Measures Programme of Works


PM outlines ways of putting the recovery measures into effect

073 19-May-08 Polus Investments Island Construction Delays and Completion of works Delays


Employer proposes the contractor engages in discussions with PM on the ammendment of the contract and the remedial measures

074 28-May-08 Island Construction Polus Investments

Claim for Time and Additional Payment - Entitlement - Determination Claim


ICCL informs PM detailed particulars will be submitted on 09 June 2008

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