There are numerous reasons why an EOT claim may be rejected by the Superintendent or Contract Administrator.
The provisions of the contract generally assists in the approach required to establish critical delay. Depending on the conditions of the contract it may be that either a prospective or retrospective approach is required. Far too often we see an inappropriate methodology adopted to support an EOT claim or no methodology at all. It is important to note that regardless of which methodology, a measure of the critical delay will be required.
It is important that a contractor familiarises itself with the particulars of the contract to ensure that the appropriate methodology to support an EOT claim is adopted.
Poor implementation of the methodology is another reason we see EOT claims rejected. In general the critical path of the project at the time of the delay (the contemporaneous critical path) will need to be established as the baseline to support an EOT claim. If a poorly statused program is adopted as the baseline program then questions will arise as to whether it accurately represents the status, sequence, timing and importantly the critical path of the project.
It is important that the person preparing the EOT claims has a sound knowledge of both the project and the methodology required to be implemented.
Insufficient substantiation of EOT claims is in our experience a major reason for rejection. Depending on the contract, substantiation will include; particulars of the delay event, support for the critical path, evidence that the delay has caused actual delay and demonstration of mitigation effort.
It is important that the contractor is familiar with the requirements of the contract to ensure that the required level of substantiation is met. In our experience maintaining site records such as daily site dairies, site photographs and regularly updated status programs will assist greatly in maximising the contractor’s ability to substantiate an EOT claim.
Authors:Chris Gould - Principal
cgould@hindsblunden.com.au
Nick Quinn - Senior Consultant
nquinn@hindsblunden.co.nz
