RICS Professional Guidance, UK Extensions of time 1st RICS professional guidance International standards RICS is at the forefront of developing international standards, working in

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    RICS Professional Guidance, UK

    Extensions of time

    1st edition

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    Acknowledgments

    Technical author: Christopher M Linnett FRICS Co-authors: Camilla de Moraes (K&L Gates LLP) (co-author of subsection on FIDIC Contracts 1999)

    Stephen Lowsley (Driver Trett) (co-author of subsections on Methods of delay analysis and Strengths and weaknesses of delay analysis methods) Matthew Smith (K&L Gates LLP) (co-author of subsection on FIDIC Contracts 1999) Working group: Chair: Andrew Smith MRICS (Laing ORourke) John G Campbell (BAM Construction Limited) David Cohen (Amicus Development Solutions) Alan Cripps (RICS, Built Environment Professional Group) Stuart Earl FRICS (Gleeds Cost Management) Roland Finch FRICS (NBS) Christopher Green (Capita Symonds Ltd) William Hall MRICS (Lend Lease) Roy Morledge (Nottingham Trent University) Michelle Murray (Turner & Townsend plc) Michael T OConnor (Carillion Construction Limited) Matthew Saunders (RICS, Built Environment Professional Group) Kevin Whitehead (McBains Cooper Consulting Limited)

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    Contents

    Acknowledgments

    RICS professional guidance

    1 Introduction

    2 General principles (Level 1 - Knowing)

    2.1 Costs of delay

    2.2 Background to extension of time clauses

    2.3 Extensions of time under standard forms of contract

    3 Practical application (Level 2 - Doing)

    3.1 Submission of delay notices

    3.2 Measurement of delay

    3.3 Methods of delay analysis

    3.4 Delay assessments using building information modelling

    4 Practical considerations (Level 3 Doing/Advising)

    4.1 Which method of delay analysis should be adopted?

    4.2 Strengths and weaknesses of delay analysis methods

    4.3 Concurrent liability for delays

    5 Summary

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    RICS professional guidance

    International standards

    RICS is at the forefront of developing international standards, working in coalitions with organisations around the globe, acting in the public interest to raise standards and increase transparency within markets. International Property Measurement Standards (IPMS - ipmsc.org), International Construction Measurement Standards (ICMS), International Ethics Standards (IES) and others will be published and will be mandatory for RICS members. This guidance note links directly to and underpins these standards and RICS members are advised to make themselves aware of the international standards (see www.rics.org) and the overarching principles with which this guidance note complies. Members of RICS are uniquely placed in the market by being trained, qualified and regulated by working to international standards and complying with this guidance. RICS guidance notes This is a guidance note. Where recommendations are made for specific professional tasks, these are intended to represent best practice, i.e. recommendations which in the opinion of RICS meet a high standard of professional competence. Although members are not required to follow the recommendations contained in the note, they should take into account the following points. When an allegation of professional negligence is made against a surveyor, a court or tribunal may take account of the contents of any relevant guidance notes published by RICS in deciding whether or not the member had acted with reasonable competence. In the opinion of RICS, a member conforming to the practices recommended in this note should have at least a partial defence to an allegation of negligence if they have followed those practices. However, members have the responsibility of deciding when it is inappropriate to follow the guidance. It is for each member to decide on the appropriate procedure to follow in any professional task. However, where members do not comply with the practice recommended in this note, they should do so only for a good reason. In the event of a legal dispute, a court or tribunal may require them to explain why they decided not to adopt the recommended practice. Also, if members have not followed this guidance, and their actions are questioned in an RICS disciplinary case, they will be asked to explain the actions they did take and this may be taken into account by the Panel. In addition, guidance notes are relevant to professional competence in that each member should be up to date and should have knowledge of guidance notes within a reasonable time of their coming into effect. This guidance note is believed to reflect case law and legislation applicable at its date of publication. It is the member's responsibility to establish if any changes in case law or legislation after the publication date have an impact on the guidance or information in this document. Document status defined RICS produces a range of professional guidance and standards products. These have been defined in the table below. This document is a guidance note.

    Type of document Definition Status

    Standard

    International Standard An international high level principle based standard developed in collaboration with other relevant bodies

    Mandatory

    Practice Statement

    RICS practice statement

    Document that provides members with mandatory requirements under Rule 4 of the Rules of Conduct for members

    Mandatory

    Guidance

    RICS Code of Practice Document approved by RICS, and endorsed by another professional body / stakeholder that provides users with recommendations for accepted good practice as followed by conscientious practitioners

    Mandatory or recommended good practice (will be confirmed in the document itself)

    http://www.rics.org/

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    RICS Guidance Note (GN)

    Document that provides users with recommendations for accepted good practice as followed by competent and conscientious practitioners

    Recommended good practice

    RICS Information Paper (IP)

    Practice based information that provides users with the latest information and/or research

    Information and/or explanatory commentary

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    1. Introduction

    Delays occur on most construction projects, and always have done. At some point during a

    project, particular parts of the works, or the works as a whole, will not progress as quickly as

    planned, with the risk that the contractual completion date will not be met. Sometimes, the

    lack of progress will be due to events that are the employers responsibility under the

    contract; sometimes, the lack of progress will be due to events that are the contractors

    responsibility.

    For example, where traditional methods of procurement have been adopted, most

    construction contracts provide that delays caused by labour shortages or late delivery of

    materials will be the responsibility of the main contractor (or the subcontractor under a

    subcontract agreement), while delays caused by variations and/or the late provision of

    design information will be the responsibility of the employer (or the main contractor under a

    subcontract agreement).

    If a delay has been caused by an event that is the employers responsibility, then in general,

    the contractor will be entitled to an extension of time. An extension of time defers the

    contract completion date and thereby gives the contractor a longer period within which to

    complete the works. In order to decide whether a contractor is entitled to an extension of

    time, it is necessary to establish the cause of the delay and the period of delay. In some

    cases this will be very easy but, in many cases, it will be very difficult and, not infrequently,

    controversial.

    Few contracts expressly make the quantity surveyor responsible for the assessment of an

    extension of time claim; the task more commonly falls on the architect, contract

    administrator, engineer or project manager. However, in practice, it is likely that quantity

    surveyors will be asked at least to assist with the preparation or assessment of a delay

    claim. The quantity surveyors analytical training and methods of working are well suited to

    dealing with the complexities of delay analysis.

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    2. General principles (Level 1 - Knowing)

    2.1 Costs of delay If a project is delayed, it is likely that both the employer and the contractor will incur

    additional costs. The employer may incur additional finance costs and/or lost rent and/or

    additional fees for professional services and/or a variety of other additional costs. The

    contractor may incur additional costs of site supervision, site offices and facilities, site

    security, head office management and overheads, general plant hire, insurance and other

    costs. The contractors delay costs are sometimes referred to as prolongation costs or

    time-related costs.

    In the vast majority of cases, the employers additional costs will be estimated, prior to

    tender enquiries going out, and will be expressed in the contract as a rate for liquidated

    damages. Damages are amounts awarded by a court as compensation for loss or injury

    suffered by one party due to a breach of contract or breach of duty by another party;

    liquidated damages are amounts for damages that are ascertained and fixed in advance.

    The benefit of having a set rate for liquidated damages is that the parties know, in advance,

    the level of damages that will be applied in the event of a project overrun. This allows the

    contractor to assess risk, prior to submitting its tender for the works, and it allows the

    employer to recover damages without having to go to the time and trouble of proving the

    amount of damages actu

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