Quick Guide to extension of time claims (EOT Claims) · Quantity Surveyor
Preparation of Extension of time claims is usual responsibility of a Quantity surveyor. There are three types (categories) of claims in the construction industry including the EOT claims. They are,
- Prolongation claims (Extension of time Claims)
- Acceleration claims
- Disruption claims
In this article, we give you a quick guide about prolongation claims or extension of time claims (EOT claims).
Delays are common in the construction industry. In our previous article, we have categorised and discussed possible reasons for project delays. Always these delays can affect the contractor’s cash flow, mainly time-related costs can be increased along with the extended timeline of the project.
What are time-related costs for Extension of time claims?
Mainly preliminary costs are estimated based on the project time frame. As an example- A project was planned to complete within six months. So the value of the site management (supervision) team was calculated as below,
As shown above, all supervised personal cost is 348,000 and calculated for 06 months. But some actions of the client caused a delay in the timeline. The completion date rescheduled due to this delay, and the client has extended the project program by another 02 months. Now Complete time frame of the project is (06+02) = 08 months. Additional cost occurred due to this change is 106,000.
In such cases, the contractor can claim an EOT claim. (Unless the root of the delay event is not related to the contractor)
Before we moved to EOT claims, Below are the three main reasons or cause for the project delays. (all the reasons can be divided in to below categories)
Three types of delay events
- Delays caused by the contractor
- Delays prompted by the client or his consultants
- External delays which not expected and uncontrollable
Read our previous article, which we discussed more details about the above three categories.
To claim an EOT, claim contractor should identify and calculate exact time impacted due to delay events. So There are few delay analysis methods used in the construction industry to calculate and present the precise impact of the delay events. Read more
Originally published at https://quantitysurveyor.blog on October 26, 2019.
