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Application and Assessm en t of Extension

of Time Cl aim: Fin dings of Case Stud ies


Conducted in M alaysia
M .S. Mo hd Da uuri, M. Othman, H. Abdul-Ra hman and C. C. Lim

Ce n tre for Project and Facilities Man agem ent (CPFM)


Facult y of the Built Environme nt
Un ivers ity of Ma la ya

A b stract:
It is a co mmon phe nomeno n for cons truction projects to have ap plica tions fo r extensio n o f time .
Ma ny proble ms are enco un tered in pra ctice in the a p p lica tion .1I1d prcpnrn uon o f extens io n o f
time claims. A stud y wa s cond ucted to id entify the main probl em s enco untered in the a p p lica tion
and assessmen t of e xtension o f tim e claim in selected co ns truc tion projects ill Maln ysia . Three (3)
case s tud ies ha ve been used 10 Investt get c the exten sio n o f lime issues. Plndings fro m the s tudy
revealed that local con trac tors us ua lly fnil 10 co mply wi th the con trac t p roced ur al req uiremen ts to
!It1hl1lil IIl1wl)' llu llfiL'llliun uf llL·I,I)' 'Uld luwu dlrrlculty 111 l-!l..-' llIoI1HlI',,1I116 IJwl 1' onuucmom Ior
extens ion of lime. The main problem faced by contract ad minlstrntors is that contractors tend to
"inflate" their extension of time entitlement with the intention to ma ximise their claims. Adherence
to the agreed pro cedure in prepa ring an d eval ua ting of delay cla ims an d the implemen tation of a
se t of agreed s tandardised d elay ana lysis may help to mi ni mi ze the frequency and impact of such
prob lems ,

Key w ords: cons truction cla ims, assessment, contractors, extens ion of titne, va litlity

In troduc tion con tracto r w ill only be excused and enti tled
In any co ns truct ion co n tract, the con tra cto r for ex tensio n o f time if the dela y is caused by
ha s the lega l obliga tion to co mplete a p roject the e mp loye r or neu tral e ven ts. Excusable
by the da te for com p le tion or wit h in the dale d e la ys tha t ma y a llow reco very of b o th
for completion. Ho w ever, d e lays always time a nd moncy arc nor mally dela y caused
disrupt the p e rformance of con trac to r's by the emp loyer suc h as delay in giv ing
work. A delay may be caused e ither by the po sses s ion o f s it e, delay in g iv ing
co n trac tor or e mp loyer, o r even ts for which inst ru ct ions, dra w ings, va ria tio n, e tc. In
neither party is at fault (or commonly known con tras t, excusable d elays that may allow
a s neut ra l even ts) . Th e ge ne ra l p rincipl e so lely on ex tens ion of tim e ar e delay s n ot
in la w is th at th e co n trac to r w ill no t be ca used by eithe r pa rt y or neu tral even ts such
entitled to cla im for extension of tim e or as strikes, force majeu re, incle ment wea ther,
loss and expense if the d elaying e ven t is etc . Most co ns truc tion con trac ts speci fically
ca used .by h is own fau lt. In th is rega rd , list the excusab le del a y for which ex tension
Willia ms (200 3) ca te go r ised dela ys int o o f time and, loss and expense call be g ranted.
e xc usab le / co m pensa ta b lc, excu sab le / Ext ensi on of Li m e is a ve ry importa n t
non-compensat a bl e a n d non-e xcu sabl e / pr ovision in any construct ion co n trac t. Th is
n o u- compcn sa tnb lc . Ge ne ra lly , th e p rovision affects the exte n t of con tracto r's

15
JOllmol of D(,s(~11 al/d tha Built Elwirollll/t'lll

liability to pay for liquidated damages if cover the topi c of entitlemen t for loss and /
there is a delay to the completion of works. If or expense as a result of ex tension of time
the provision is clea rly d rafted it w ill also gra nted in a project.
provide the contract administrator w ith the
power to extend the time for completion due Lit era ture R evi ew
to an act of pr evention by the em ployer. For Mos t s tandard fnr rns of co ns truct ion
instance, in the case of Ttiameso Design« contrac ts require the contractor to provide
Scil/. 1311ci. v. Kl/c1lil/g Hotels Scil/. B1Ici. (1993) notice for applicatio n of extension of tim e.
3 MLJ 25, it was he ld that if the contract The common problem encountered is where
administrator has no power to extend the a con tractor fails to se rve a no tice of delay
date fo r co mp le tio n due to a n a c t of although the con trac t stip ulates that it is a
pr evention by the emp loyer, the time for co nd itio n p recede n t to the co n trac to r's
comple tion will be at large and the employer entitlement to extension of time. The topic of
los t h is righ t to en force the liquidated cond ition pr eced ent is di scussed at leng th
damages provisions, by Pickavance (2000). In s uc h instan ce, is
Cla ims by cont rac tors for ex tensio n the contrac t administra tor still obliged to
of time are almost inev itable in any eva luate and/or g rant an ex tensio n of time
cons truc tion proj ect. Much effort has been to the contractor? If a con tract stipulates that
put in by con tractors, s ub -contractors, servi ng of no tice by the contractor is a
con trac t adm inistrntors, profess ional condition precedent to extension of time, a
consu lta n ts an d employers in provi ng s tric t interpret ati on of s uc h cla uses w ill
entitlemen t or assessing ex tension of time mean that the contract o r w ill lose his right
on cons truction projects (Turner and Turner to extension of tim e sho uld he fail to serve a
1999). For exam ple, wh en ther e is a de lay delay noti ce to the employe r.
to prog re ss of work in a co ns truc tio n Usu a lly, co ns truc tio n co n tracts
project, it mayor may not have an effect on require the con tractor to no tify the employer
the pr oject completio n date. According to or contract administra tor of delays which
Ad ria n (1988), wher e a de lay to p rog ress are likely to affec t the comp letion da te as
does no t a ffec t the cr it ica l pa th, the soon as th e de lays occur o r within a
completion date of a project will not be reasonable time. The contractor is required
affected. to apply for an exte nsion of time and prepa re
Whil e the ge ne ral p rinciple is that a the releva nt suppor ting doc ume nta tion to
con tractor sho uld be g ive n more time to be submitted to the contract administrator
complete a project for delays on critical pa th for ev aluation. Whil e this ma y ap pear to be
wh ich are beyond the con tractor's control, a s traight-forward procedural requirement,
there have been many probl ems encountered there have been various problems identified
in practice with regard to the application as follow (Turner & Turner 1999, Pickava nce
and pre para tio n of ex te ns io n of tim e 2000):
claim by contractors and analysis o f claims a) Whe ther a no tice of claim by th e
and proof of e ntitlemen t by contract contractor is a no tice precedent to
ad ministra to rs (Pickavance 2000, Bramble entitlement to exten..sio n of time;
an d Callaha n 1992). b) The e ffec t of the co n t rac t
This pape r presen ts find ings of a administrato r's fail u re to grant
study aim ed to id en tify common problems ex te nsio n of time for e mployer's
encount ered in the application o fex tension default;
of tim e by contract o rs and to a ss ess c) The effect of the contrac tor's failure to
contractor 's claim by the co ntract admi- serve a proper no tice o f delay;
nis trator in co nstruction projec ts in the
Malaysian cons truc tion ind us try. It does not

16
Applicatio1l nlld Assessl/lent of Extension ofThneClain:

d) Non-agreement as to the ca us e and even ts. Becau se o f the importance of tim ely
cffcct of delays; notice by co ntracto r in allowing the contract
e) Non-agree men t on u pd a ted ma ster administrator suffi cient time to mitigate any
p rogramlnc which form s the bas is of delaying ev ent s, most s tandard form s o f
establishing entitlement to extension cons truction con trac ts require the contractor
o f time; an d to s ubmit a notice of delay wit h in a
Q Su fficiency of sup porting infor mation reasonable time .
provided by contra ctor. In LOlldoll Borougl:ofMertoll v. StOllley
HllgII Leacu Ltd (1985) 32 BLR 51, Vine lott J.
The co mmo n probl em in the cons truction w as ask ed to consider wh at wo u ld
ind us t ry is th a t con trac to rs d o n ot co ns titu te a "w ritten notice" wi thin the
su fficie n tly u n d e rs ta n d thc ir ob ligations mea ning of clau se 23 of JCT form 1963. Whiie
unde r the no tice p ro v ision s. As a res ult o f taking the view that the question of w hether
the contrac tor 's failure to adhere to specific any particular document was or was no t a
notice procedures there have been IlMllY "w ritten notice" was clear ly a questi on of
d isputes arising from non -giving of notic e fact, the court accep ted the arbi trator's view
or late notification. A change in project that :
requiremcnt m ay b e ca use d by thc a) A notice mus t be in writing;
e mployer's act s of prevention, for e xample, b) It must specify a ca us e of d elay;
lat e pos session of s it e or variatio n c) The progres s of the Works mus t
in s truc tions by e m ploye r gi ving rise to already have been affec ted ; and
delays. The con tractor 's arg ument in s uch a d) It need not ta ke a ny special form of
case wo u ld be th at w here th e delays arc words p rov ided it is s u ff ici e n tly
ca used by " ac ts o f p reve n tio n" by the p recise to put th e con trac t
emp loyer, it wou ld be u n fair to expec t the adminis trator on notice of the de lay.
contractor to raise a notification of de lay so
as to safeguard the con tractor's en titleme nt T he co ntractor is gene ra lly req uired to
to e x tens io n o f ti me for Stich acts o f p rovid e cer tain relevan t de tails in his no tice
pre vention arc beyond the contracto r's of cla im in cl uding identif yi ng rel e vant
control (Robinson, et.al. 1996). The employer events giving rise to delays, the da te and time
sho uld n o t be allowed to benefit from his of d elay, the cause of d elay and its duration,
ow n "default". In such circumstances, eve n and the impact on progress of wor k (O 'Brien,
if the contract administrator has not received 1976). Non-provision of such information
a timely notice, he 111\.1St con sider w he the r ma y result in lat e g ra n ting of extension of
an exc usable event has occurred. time or even rejecti on o f the contractor's
TIle rationale for the contractor to raise ex tension of time claim. The contra cto r is
a noti ce of d elay is to allow thc employer req uired to id en tify each de lay ing event an d
and contract adminis trator to know of the the an ticipa ted effec t of eac h event on the
even ts that have affected or is likely to affcct comple tion date rath er than to submit a
the con tracto r's progress of work. Even if the global claim for de lays d ue to many events.
con tract ad minis trator has knowledge of the If the con trac tor's reco rd keeping is poor, as
circu ms tances giving rise to an en titlemen t in ma ny cases, he may n ot be ab le to
to an e x tens io n of time, w it ho u t th e s ubs ta n tiate ea ch delay but on ly ab le to
contractor's advice, he may be ignorant of subm it a global claim. Dispute w ill mo st
the impact on the contracto r's progrcss of often arise since the e mp loyer is inclined to
w ork. Timely notification of delays o r rejec t the con tra c to r's cla im ev en if the
potential delays w ill all ow sufficien t time employer recogni ses that the contractor has
for the con tract ad minis trator to find wa ys a valid rea son for dela y.
to m inimise or o verc ome any delaying

17
Journal of Design and tIm Buill Enoironment

501ne co ntrac t administrators a rc such inst an ces, the con trac tor's right to
of th e v iew th a t submi ssio n o f a we ll ex tens ion o f time as well as los s and /or
docume nted ex tensio n of time claim is a expense is being co mpromised. Eve ntually,
co n d it io n precede nt to th e co n trac t the con trac tor may end up s pe nd ing a lot
administrator' s oblig ation to g ran t an more ex penses in de fendi ng his rights and
ex tension of time. If the co ntrac tor fails to substa nt iating his cla ims.
s ubm it rel e vant det ail s to the co ntrac t Both the Ma laysian PAM 1998 a nd
admi nistra tor then the la tter is not oblige d CIOB 2000 forms req uire the con trac tor to
to evaluate the contractor's claim or at the give a notice of delay within a reasonable
very least delays in gran ting an extens ion of time of the ev en t giv ing rise to delay and
time until the releva nt in forma tion has been to provide such de tails and particulars as
submitted. Co ntractors often view this as a a re ne ces sary to as si st th e con trac t
delaying tactic by the contract admini strator administrator in making his decision. When
or even accusing the con tract administrator submitting an exten sion of time claim, the
o f n ot ca rry ing ou t h is impartial duty to con trac tor should id entify de tails rega rdi ng
ev aluate for the contracto r's entit lement to the event, inclu d ing in fo rma tion on: the
extension o f time especially whe re d elays delaying even t, w hen the date the event took
are ca used by the employer. This problem is place, material circums tances giving rise to
addressed by the Malaysian PAM 1998 form the dela y, th e durat ion o f delay, and its
w hic h stip u la tes that even if the co n tractor impac t on progress of wor k
fa ils to sub m it rel e vant d et ail s, it is th e While I' AM 1998 and C IDB 2000
architect's duty to form his own op inion and contain expressed provision s requiring the
grant a 'fair and reasonable' ex tens ion of co ntractor to su bm it detailed particulars of
time to the contractor. their d elay claims, the Malaysian PWO 203A
Comprehensive records to prove the and !EM 1989 a re silen t w ith rega rd s to this
entitlement to ex tension of time must support ob ligat ion. This leaves room for d isp utes
a valid claim . Too of ten, co ntractors are able whereby the contractor w ill argue tha t he
to sho w that so me thing w en t w rong on a has no obligation to submit any details but
p roject but unable to p rove the time loss as a that the con tract adminis trator is under a
resu lt of a pa rticula r p roblem main ly because d u ty to g ran t a 'fai r an d rea s on ab le '
there is a lack o f records to identify the exac t ex tension of time.
ca use of the problem (Powe ll-Smith & Sims, The contract admi nis trator is on ly
1989). Good con tempora ry recor d keeping requ ired to asce rt ain w hether the cause
by the con tractorhelps a void confu sion and s tated by the contractor in the notice is a
ass ist in reaching agreements by defi ning relevant ev ent and whe ther as a result o f the
facts, roles and responsibiliti es o f the par ties. re leva n t even t the co m pletion o f the works
In practice, it is far too often in Malays ia that is like ly to be dela yed. While it appears tha t
con trac tors tend to under- v alu e th e the burd en o f p rov ing e n ti tl e me n t to
importance of good record kee ping. Poor ex tension of time rests with the contractor,
quali ty pro ject docum en tation reduces the co ntrac to rs ha ve o ften argued that the
chance of getting an extension o f time claim contract ad mi nis tra tor also ha s a duty to
of being app ro ved by th e co n tra c t g ra n t a 'fair and rea sonab le' ex tens io n
administrator and increases the like lihood o f tim e notwithst and ing in suffici ent
ofa d isp u te (Collier, 2001). Whil e contractors information submitted by the contracto r in
w ho do not keep good site records may have pa rti cul ar w here de lays a re caused by
saved some administration cost, poor project em p loyer's default (Adrian, 1988).
do cumentation present s se rious d ifficulties Due to aforem entioned rea sons, it is
in id en tifyin g causes of delays es pec ially an ticipa ted that the problem s enco untered
where the em ployer ca uses the d elays. In in the a p p li cat io n and as se ss me n t of

18
Applimfio ll andAssessl1I f.'nt of Extension ofTime Claim

extension of time claim may also cause delay und erstand some particul ar problem or
to the completion of p ro ject. A s ur ve y situation in great depth, and where one can
co nd uc ted by Fa ridi a nd El-Say eg h (2005) id enti fy cases rich in inform a tion' . Most of
sho w s th at apa rt from prepara tio n a n d the res e arch q ues ti ons arc "w ha t"
app rova l of drawings, inadequate early (ex p lora tory) a nd " ho w" (ex p la na to ry)
pl anning of the project a nd slo w ness of the q ues tions , For instance, whatare the common
o w ner's decision makin g process which pr oblems enco un tered by contrac ting parties
hav e been ranked h igh by the Contractors in dealing with extensions of time issu e
and Consultan ts, lack uf co m m u n ica tion and, ho w co n trac to rs and con trac t
and co -ord inat ion be twe en the pa rties admini s trat or s app ly and as s es s the
invo lved in cons truction, conflict betw een extension of time claim, respectively.
the contractor and consultant, lack of data A case s tudy will generate em p irica l
in es tima ting the ac tivity d ura tion and data through investigation on contemporary
resources and inadequa te progress review phenomena w i th in its re a l- li fe co n tex t,
have also been identified as causes of project ref er red to as " rea lity" (Wh ite 2000). As the
delay. intention of this research work is to examine
Accord ing to Ng, e t a l, (200 4), th e the current extensions of time issues in
results obtained by using the delay analysis construction industry, case s tudies wou ld
techniques w ill d ep end on th e amount of enable the research to look a t the whole
information, tim e and resources available for situation and obse rve the inter-relationship
the analysis. Therefore, contractor's prope r of parameters during the claims process.
re cord ke epin g and tim e ly appli cat ion Accord in g to Yin (1984), in case
are esse n tial to e na b le the co n trac t s tu d ies, triangulati on cou ld be cond ucte d
ad ministrator in providing the necessary by using multipl e so u rces of d a ta. The need
le vel o f fee d b a c k o n th e a p p lic a tion of for triangulation arises from the ethical need
ex tens ion of time. It ha s been s ug gested tha t to co n fir m th e va lidi ty of the research
in assessing the extens ion time claim 'the proces s. Thus, thi s s tu dy used multiple
most imp or tant asp ect of the wo rk is to bring sources of evidence consisting of relevant
so me transparen cy int o the so mew ha t correspondences, wo rk programm e, other
negl e ct ed asp ect o f uncertainties relevant project do cuments, and structured
surro u n d ing th e pl an nin g p ro ce s s, interview s w ith releva nt pa rties for the
providing a better u ndersta nding o f the se lec te d projects. Such evidence w oul d
iss ues involv ed and, hopefully, a basis for enabl e the researcher to sc rutinise and
negoti ati on a nd im proved interdisciplinary add ress a broad e r ra nge of cur rent
rela tion s' (Ng, e t a l, 2004) . ex tens io ns of time issu es. Sub s equent
in terviews w ith relev ant p ro ject perso nne l
M e thodology were co nd uc ted to va lida te the case stud y
Accor ding to Yin (1984), the type of research findings.
methodology to be ad opted b y a research er
d epends on th e type o f research q uesti on Tnl'geted Cnse St udies
posed, the ex tent of control a resea rcher has Case studies are ge neralizable to theoretical
ove r actual behavioural ev ents and the proposition a nd n ot to populations o r
degree of focus on existing against historical universes. A case study does not represent a
e ve n ts. The case study m ethod w as se lec ted 'sample', and the researchers' goa l is to
as it provides real information required to expand and ge neralize theories (analytical
un derstan d the und erlying ca us es and ge ne rali za tio n) and not to e nu me ra te
effects of the topi c un d er study. Accord ing frequencies (s ta tist ica l genera liza tio n) (Yin
to Pa tto n (1987) , 'ca se s tu d ie s become 1984). Three (3) case s tudies have been
particularly useful w here one needs to selected for analysi s and eval uation .

19
[ournol of Design and tim Buill EJl v;rollltJellt

The subjects of case s tudies were for com pletion as stip ulated in the contrac t
completed construction projects in Kuala was 18110 Oc tob er 2002 . The Co n tra c tor
Lump ur utilising d ifferent standard form s claimed an extension of time on the grounds
of contract. The projec ts we re selected based of late s tart, late issuance o f instructions by
on the willingness of the contractors to sha re Engineer, variation works and unsuitability
information. A balanced representation w as of designed p iles. The Cont ractor submitted
th ought to b e ob ta ined by using three the notice of delay on 19110 July 2001 for items
different p rojects, each with a different form summarised in Tabl e 1. The Co n tractor had
of contract. One project used the Malays ian provided tes t rep orts, mi nutes of me etings,
Institute of Arch itects (MIA or PAM) 1998 fax transm ittals, ins tructions an d other
form of con trac t, th e s eco n d used th e re le van t do cuments, s uc h as cont rac t
Institution of Eng ineers Malaysia (lEM) 1989 documents, original work programm e and
form, and the third used the Public Works updated wo rk programme in the application
Depa rtm ent (PWD) 203A form. In general, for an ex tensio n of time.
PAM 1998 form of co n tr ac t is used for
building projects, !EM form is used for Case S tu d y No.2
engineering projects, while PWD form is This seco nd case s tudy is on a sewerage
ma in ly u s ed fo r b u ildi ng a s we ll a s project that used the !EM 1989 for m of
engineering projects. Therefore, the types of con tract. The Co n trac to r's claims for
cons tructio n projects used for the case ex tens ion of time were mostl y related to
s tud ies cover the building and enginee ring infrastructureworks.TIle date forcompletion
projects as Can be deduced from the detailed as s tipulated in the contract was 20th May
background of the case stud ies. To overcome 2000. Th e Contractor claims were based on
the obsolescence issue the se lected projects his entitlement on the grounds of de lay of
sho uld be beyond the year 1995. wo rk caused by objections from ad jacent lan d
All three case s tudies were based on owners, objections from residents and the
inf or mati on ob tain ed from pro ject bus ines s co nu n u n ity, variation works,
doc uments including ex tracts o f relevant inability to sec ure materials due to reasons
records such (IS contract doc uments, notice beyond the contractor's control and poo r soil
of delay, work programlllC, correspondence cond ition on site. The chrono logy of eve nts
and records relating to ex tension of time is summarised in Table 2.
issues, minutes of meeti ngs, progress reports, It is no ted that th e extended
rainfall records and other da ta furn ished by comp let ion date remained o n 3"-1 January
the relevant co mpanies . The case s tudies 2002 a n d the la st exten sion of time
and ana lysis ar e presented to highlight bot h applica tio n wa s to be determined by the
the legal and technical as pec ts of cla ims Enginee r.This case s tudy focuses on events
submitted by contractors, validity of the lead ing up to delay on the las t exten ded
grounds claimed , sufficiency of the metho ds completion date.The Contractor's claims are
used in arriving at the number of d ays summarised in Table 3. The Con tractor
claimed and the met hods which contract claimed for an extension of time totalling 92
ad minis tra to rs used in eva lua ting days (after taki ng into considera tion of
contra ctors ' claims as recommended by concurre nt dela ys) fro m the last extended
Egglestone (1997) in the process ofapplying da te of completion, i.e , 3'" January 2002 to
and ev aluating ex tension o f time. S ilo April 2002.

Th e Co n tr ac to r h a d pro v id ed
Case S tu dy N o.1 docurnen ts and inform a t io n in the
This case study was on the construction of 3 application for extens ion of time incl uding:
blocks of 16-storey apartmen ts tha t used the the releva nt clauses from the conditions of
PAM 1998form of con tract. The original date contrac t, letters from consu ltants regarding

20
Application and Assl'ssmeut of EXII!IJsiOll afTime Cla;m

ba ckground and sy nops is of the relevant mon ths of extens ion of tim e, bringing the
eve nts and the Engineer's Instructions on completi on da te from 5'h May 2001 to 5'h
temporary co nnectio n of existing force main Sep tember 2002.
to newly laid mild steel pip e, constru ction In the applica tion for the exten sion of
of rece iving pi t at pu mpi ng s ta tio n, tim e th e Co n tra c to r h a d provided
reinstatem ent of damaged property during informa tion based on the project method
pipe jacking works and remova l of temporary sta teme nt, original as planned programme,
co nnection. as-built programme, rainfall records (daily
ra in fall records from 1998 to 2001 from
Case S tudy No.3 Meteorological Departm ent), haze records,
The third case study is on the cons truction deta ils o f Gov ern me n t instruction to cease
of a lO-storey administration building. The works during periods of ha ze, relevant
date for completion was s tip ulated to be 5" correspo nde nce and minutes of meetin gs,
Aug nst 2000. Th e Contra ctor had claimed cor resp ondence relating to delays in su pply
fo r an extension of time by re asons of and sources of alterna tive ma terials, copies
excep tionally incle men t w eath er, variation of instructions issu ed , progress reports and
w orks, and finan cial cash flow problem as a relevant drawings.
result of econo mic crisis in Asia and non-
payment by the Public Wor ks Dep ar tment A n alys is a nd Dis cu s si ons
(PWD) on the "ag reed" va riation wo rks. The follow ing di scussion of the case s tud ies
Prior to the applicati on of ex tension will focu s o n the following aspec ts:
of time No. 2, the Co n tractor had submitted a) Admissibility of contractor's claim-
an applica tio n for extensi on of time No.1 in to obs e r ve whet her th e re is any
June 2000 on the gro unds of force majeure con tractual provisions enti tlin g the
ha ze, (s u spens io n of works u p o n con tractor to claim
cn v iro n mc n ta l impa ct analysis) and b) Valid ity of the grounds claimed by
excep tionally inclement weather (from 6'" contractor - to observe whet her the
Ma y 199 7 to 3 1" March 2000) . In th e g rounds for claim are justifiable
ap plica tion for extension of time No .1, the c) Suffici en cy of contractor's claim - to
Contrac tor highli gh ted that the tota l de lay obser ve whethe r s u bs tan tia tio n
was 11 Y, mon ths b ut that he only applied submi tted by contrac tor is eno ugh to
for 9 months extension o f time. An ex tension pr ove the contracto r's entitlem ent
of time of 9 months had been subseque ntly d) Su bs ta n tia li ty of contra ct
gra n ted b y PWD th u s ex te n di ng th e admini strator 's as sessm en t - to
completion da te from S'" Au gu s t 2000 to 5'h ob s erve whether c o n trac t
May 2001. The Con trac tor issued a notice of administrator is able to provid e valid
del ay and ap p lica tion for extension of tim e reasons for his decision
no. 2 on 26'h April 2001 w ith out sup plying
an y relevant s upporting d ocuments. Up on Admissibility ofcontrnctor's claim
request from PWD, the Cont ractor submi tted It is the Contrac tor 's obliga tion to notify the
a brief repor t on application of extensio n of Con tract Ad ministrator of an y delay events
tim e no . 2 on I S" Ma y 2001. Contra ctor 's as stipulated in the cond itions of contrac t
cla im for ex te ns io n o f tim e no . 2 is (see Tabl e 5). Th e central issue is whether
summariz ed in Table 4. Based on Table 4, the Con trac tor 's late not ificat ion will a ffect
the Contractor claimed tha t the project could his enti tlement to extens ion of time . One of
be de layed up to a tot al of 24 'Iz months. By the Con tracto r' s a rg umen ts is tha t the
implementing various mitigating mea sures, notifi cation requiremen t is no t so s tringent
the Con trac to r applied for a total of 16 where the delay is cause d by the Employer'S

21
[our nal of Design and 11/0 Buill Environment

default o r even ca used by neut ral events. It instruction from the Engineer. Such leiter
is arg ued that the Con tractor sho uld be appears to be as mere no tification. However,
entitled to extension of time based on the the Contractor's letter dated 27" December
equitable p rinciple that an Em ploye r should 2000, which clea rly expressed a specific
n ot benefit from hi s own d efault in application and can be considered to be a
preventing the Contrac tor from meetin g the p roper request in co mpli ance w ith th e
projec t's de adli ne. The wo rs t occasion is requirement of Clause 23.7(v i ). Though the
fo und in C a se S tudy N o .3 whe re th e Contractor has the en title me nt to claim,
Contractor made an application for extension defen ce is available to the Em ploye r on
of time no.2 on 261h Apr il 2001, 10 days before pro cedural gro unds to chall eng e the
the imposition of liqu idated dam ages on the Contractor's entitlement to extensio n of time.
Con tractor by the Em p loyer. Nevertheless, Ano the r issue in Case Stud y No.1 is
in all three (3) case s tud ies, the Architect! the Contractor's claim that the.designe d pile
En gineer / Su pe rin tende n t O fficer (5.0.) fou nd ations for Block C we re inad equate
proceed ed to e va lua te the Co ntracto rs' resulting in n ume rous piles being broken or
submissio ns , unset. Due to this circumstance, the Engineer
ha d ins tru cted for ad d it ional piles to be
Validity of thegrounds claimed by contractor driven which amou nted to a variation to the
In Case Stud y No .1, the Co ntractor clai med con tract. If this was the case , the Contractor
that the la te s tart of the p roject w as due to would be entitled to claim for extension of
the requ est to stud y and evalua te proposals tim e. Ho wever , there was a d ispu te on this
by the Architect to use a proprietary pre-cast issu e when the Eng ineer co ntend ed that it
sys tem in lieu of con ve ntional co ns truction was no t a variation, as the broken pi les or
meth od to save cost and time. It is legitimate un set piles were caused by the Co ntractor's
to rely o n Cla use 23.7(v) of PAM 1998 failure to exercise due care and to adop t
prov ided that th ere is an Archit ect' s app ropriate driving techniques s uitable for
instruction and it falls specifically under any the typ e o f so il encountered .
one of th e Cl ause 23 .7(v) w hi ch s ta tes In Case Stud y N o.2, objections from
'compliancewitll Architect's instructions under lot ow ners, residen ts and bu siness
Clauses 1.2, 11.2, 21.1 01" 21.4'. Man y of the comm uni ty had pr evented the Contractor
claims in Case Study No.1 is based on Claus e from commencing pipe jacking wo rks on the
23.7(v i) for d elay due to la te recei p t of da te s tated in the work prog ra mme. Thi s
ins truction from the Eng inee r. How ever, hindrance is consid ered to be be yond the
C lause 23.7(vi) st ip u la tes a go ve rning Contractor's control. Based on Clau se 38(b)(i)
procedure that mu st be complied with before and Cla use 43(g ) of the !EM 1989 form of
reli ance ca n be made on this clause. It contra ct , th e g ro u n d upon whi ch the
req ui re s that th ere must be a s pecif ic Co ntrac tor based their claim is va lid. The
ap p licati on ma de by the Contrac tor before Contrac tor is also entitled for ex tension of
he can succeed in claiming. For exam ple, the time under Clause 43(e) of lEM 1989 form of
Co ntrac tor contended that he had app lied contract for varia tion works, Delay -was
for an instruction on 23'" No vember 2000 caused in the pr ocess of obt aining the
and has tak en this dat e as the da te from appropriate cou pling and T-jo int size due
which the delay began. to the uncertaint y of the d iameter of the force
T h e is su e then is w h e th e r the mai n. The basis of this claim wa s that time
Contractor's letter dated 23'· November 2000 was requir ed to so urce an d ob tai n the
can be considered as "a specific application" coupling an d T-joint from any supplier. This
req uired by Clause 23.7(vi). The Contractor's delay event wo uld have given the Con tractor
lett er dat ed 23'· No ve mber 2000 di d no t the entitlement for an extension of time under
appear to have spec ifica lly ap plied for an Clause 43G) ofI EM 1989 form of contrac t for

22
ApplicatiolJ and Assessment of Extension of Time Clobn

inability to secure mate rials as are essential law and for the Con tractor to determ inate
to the prope r carrying out of the works d ue the contract if the breac h is so significant so
to reaso n beyond the con tractor's control as to go to the roo t of the con trac t. Sho u ld the
and which h e co u ld not reasonably ha ve co n tractor decides to go for arbit ration ,
foreseen at tender stage . How ever , Clause Clause 54 o f PWD 203A form of contrac t
47(j) of !EM was dele ted in the sig ned copy s tates that the Contractor mu st first invoke
of the cond itions of contract and there is no Cla use 54 by re ferring a ny d isp ute a risi ng
other prov ision in the contract, which allows from the contract to the S.O. for a d ecision.
the Engineer to gran t extension of tim e If th e S.O. fail s to give a d ec ision
ca used by such event. As s uch, time for wi thin 45 days, then the Con tractor ma y
completion will be a t large. proceed to refer the di spute to a rb itration.
In Case Study No.3, the Co n tractor However, the Contractor had done ne ither
had claimed fo r ex tens ion of time on the of the above. Cash flow prob lem caused by
ground of Cla use 43(b) of PWD 203A form fallen of Mal aysian Ringg it va lue a nd non-
of co n tract: " by reosolls of OilY exccptionalb] paym en t o f ag reed variat ion works are not
inclement uieother", This is a relevant eve nt valid grounds for claiming extension of time.
for w h ich the Con tracto r is e n titled to There is the refor e n o con tractual grou nd for
extension of time ifhe is able to de mo ns trate the Con tractor to claim for extension o f time
t hat th is has cau sed d e lay to proj ect for cash flow problem.
comple tion. Th e Contractor had also claimed
for an extension of time on th e ground o f Sufficiel/cy of contractor's claim
Cla use 43(e}of PWD 203A s tand ard for m of In Ca se Study No.1, if the Contracto r is to
co ndi tions of co n tract: " by reasoll of 5.0.'5 a rg ue that the late star t of the project had
illslr llctiolls iss lied under cialise 5 hereo], caused delay, b y rel ying on Clause 23.7(v )
provided lltal sucl, illslmc liolls or" 1101 isslled of PAM 1998 form of co nt rac t, ther e mu st
due 10 OilY def alllt or breact, of contract by tile first be a n instruction issued by the Architect.
Contmctor ornllY sub-coiltractor nominated or For the ins truc tion to be va lid a nd e ffec tive,
oihertoise", In this instan ce, the Co n trac tor it mus t be iss ue d in writing or confirmed by
referred to theS.Oo's instruction for variation the Contractor in writing pursuant to Clause
work found in Clause 5(a}(i} of PWD 203A 2.5. An e xamina tion of the Contractor's
standard form of contract. Th is is a relevant supporting documents showed that there
even t for which the Co n trac tor is entitled to was no correspondence from the A rchitect
ex tens ion of time if he is ab le to de mo ns trate req u es tin g the Con trac to r to eva lua te
th at thi s h as ca used d e lay to proj cct p roposa ls to use a p rop rieta ry sys tem. There
co mp letion. Inay be verbal communi cation exchanged
On the o the r hand, ther e is no vali d ins tead. Such verb al co mmunication may
gro u nd fo r th e co n trac to r to clai m fo r only be mere proposal a nd ma y n ot a mo un t
ex tension of time as a result o f financial cash to a valid instru ction under the con tract. In
flow prob lem or non-p a y m ent by th e tile absence of any w ritten doc umen t relating
Employer. Two basic remedi es are available to the issu e, the case would be one' s word
to the contractor - (1) determi nation of the against the other, where the discov ery of
con tract, a nd (2) referring the di spute to ev idence relating to the s ta temen t cou ld only
arbi tration. Unlike o ther standard forms of be made by way o f exami nation and cross-
con tract (PAM 1998 and !EM 1989), there is examina tion o f w itne sses.
no con trac tua l right in FWD 203A form for a It is do ub tful w he the r the lat e receip t
Contractor to determinate the contra ct w here of not ice as alleged by th e Co n trac tor really
there is a br each of con trac t by the Empl oyer . a ffected th e p rogress of th e works. Eve n
However, th is sh all not stop the Co n trac tor though the Contrac tor had pr ovid ed relevant
from clai rning for da mages under C01111110n supporting information, he di d no t submit

23
jOllfl/nl of Design and IIw Built Environment

an y justifi cati on for additional tim e ca used completion date. The increase in earthwo rks
by th is even t to show the ca us e and effect of is inevitable d ue to the change in earthwork
this delay even t. However, for d elay event profi le as directed b y the Emp lo yer.
noA & 5, th e Co n trac to r had s u bm itte d Similarly, as a result of the revision in the
relev ant information including minu tes of platform level, the piling lay out an d d esign
site meeting, work programme, site records needed to be rev ised. T he in for mat ion
and geo-technical eng inee r's report. Based subrnitted to supportclaims on the increased
on these, the informat ion submitted was earthw ork and piling qu an titi es w er e
sufficient to sup por t the claim for delay even t sufficient,and they are conside red variation
no . 4 & 5. un de r Cla use 24(b) of PWD 203A form of
fn Case St udy No.2, it is found that contract.
the Con tracto r's su p porting d ocu ments d id
not provide s ufficie nt informati on as the Snbstantinlitsjof Contrac t Administrator's
details and calculation of the number of AsscssJltclt t
delay da ys claimed a re not known. The In Case Stud y No .1, th e A rch itect gran ted
Contractor may find it di fficult to carry ou t a no extens ion of time for the project's late start.
proper d elay analysis based on Criti cal Path It was d ecid ed th a t even if the Contractor
Me thod to demonstra te the impact tha t each wa s able to prove tha t a va lid instruction
delay eve n t ha s on the co m pletion d ate. had been issued, the claim d id not fan within
However the ina bility to d em on strat e these th e ambit of th e speci fic even ts referred to
impacts does not mea n tha t the Co ntractor under Cla use 23.7(v) of PAM 1998. As for
is not ent itled for any extens ion of time due the lat e ins truction , th e ap p roach adopted
to events due to the Emp loyer's defaul t. Only was considered inapp ro pria te because it d id
PAM 1998 form o f co n tract requires the not clearl y d emonstrate how the lat e receipt
contractor to submi t detai ls and particulars of instruction affec ted the act ua l p rog ress of
of expec ted effect of delay, the estima ted the works and subsequently affec ted the
le n g th o f d elay a n d ex te nsi o n o f time comple tion date. There was no jus tification
req uired . 1EM 1989 and PWD203A forms of to granting an extension of time since the
contract do no t contain express provision works we re in fact n o t d el ayed . Having
requi ring the con tractor to subm it s uch review ed all the facts on the va ria tion claims
particulars. und er th e delay even t n o.3 and 4, the
As for Case Stud y No .3, the wea the r Architect granted a total ex tension of time of
records from the Meteorological Department 86 days for the disruption caus ed to progress
were used as comparison aga inst average of wo rk.
project weather records. While this may show Th e m ain issue s u rro und ing the
that the weather has been unu sua l, it may un suitability of d esigned p iles re lates to a
prove no thing in respect of d el ay to the technical matter that need s to be determined
progress of the works. For the Con tractor to initi ally be fore a ny con tra ct ual liab ility ca n
succeed in this claim, the Contractor must be identified. The Con tracto r claimed that
be able to demonstra te that the weather on a the de signed pile founda tio ns for Block C
pa rticu lar date ha s be en e xcep tiona lly were inadequate resulting in numero us piles
inclementcompared to the average we ather bein g bro ken or unset. Th e Eng ineer alleged
cond ition for, say the past 10 yea rs, and tha t tha t the Con trac tor d id not practi se p ro per
this has an effect of disrup ting the work on pili ng m e thods and th a t they failed to
that day. The informa tion submitted by the p erform and comp le te t he w orks a s
Contractor had failed to demon strate this. reason ably ex pec ted b y a n ex perienc ed
Base d o n Con t rac to r ' s ori g in al w ork con tractor . Th e Engineer noted that the Site
programme, earthwo rk and piling w ere Ag ent and Gen era l Manager lacke d
con sidered critical activities to the project's ex pe rience and engineerin g knowledge

24
Applicatioll (Iud AssesslI1ellt of Extension a/Time Ctabn

pertaining to p iling wo rks which resulted may not have met his co ntractual obliga tion
in lack ofcontrol ofwork on site. He therefore, s tipulated by Clau se 43 of the !EM 1989 form
recom mended the Con tractor's claim fo r of con tract which provides tha t:
delay event no.5 as not valid. Conseq uently, ...ifill theopinion of lite Engineer,thecompletion
the Architect concur red wi th the Engineer's of the Works is likely 10 be delayed or has beel/
explanations and grant ed no ex tensio n of delayed beyolld ihe Dafe for Completion staled
time to the Con trac tor for this event. ill the Appendix 0 /' beyolld allY extended Dale
The vali di ty of a par ty 's technical for Completion .. .the Engineer shall as SOOIl as
argumen t canno t be determined until all he is able to estimate IIIe lenglh of the delay
evidence and tes tim ony from bo th parties beyolld thedale01' limeaforesaid make ill1Vritillg
have been ana lysed and whe re appropriate, a fail' alld reasonable ex lellsioll of tim e for
expe rt op inion so ug h t. The piling work's compte!ion of the Works, ...
durat ion for Blo ck C was prolonged
approx imately 3 months (double the peri od Most s ta nd a rd forms of co n tr ac t
originally planned ). In deriving to wh o is req uire the co n trac t ad miriis trnto r to
liable for such delay, the facts need to be d e tennine e xtension of time wi thi n a
exa mi ned close ly . The o n us is on the reasonable time. Time is crucial especially
Contractor to prove his case to secure the for va riation w ork so that the Co ntrac to r
entitlement to an ex tens ion of time. Hav ing co uld have s ufficie nt time to reprogram the
rev ie w ed all the de lay ing e ve n ts, th e w ork. In the Sing ap o rean cas e o f Linn 50011
Architec t proceede d to eva luate the master Construction Pie Lid v Gllall Qiall Realty Pte
progra m me, w hi c h s ho w ed th a t th e Lid (2000) 1 SLR 495, it had been decided
Cont rac tor int en ded to execu te the3 blocks that substantial de lay in issuing ex tension
almos t conc urre n tly . It appeared that 3 of time by contract ad ministra tor without any
groups of res ources were alloca ted to ex p la na tio n w ould r end er th e de la y
cons tr uct the 3 blo cks and ther e was no ce r ti ficate in valid. It is the Eng inee r's
d irec t depende ncy o r sha red resources obliga tion to gra n t a fair and reasona ble
be twee n the activi ties in the 3 blocks. Based ex tensi on of time as soon as it is po ssible for
on Cont ractor's up -dated wo rk programme, him to estimate the impact of de lay to project
the Architect carried ou t a delay an alysis. completion.
He had to co ns id er. co ncur re n t dela ys, The 5.0. in Ca se Study N o.3 took a
cha nge in cri tica l p ath, float a nd ot he r few months to assess Contracto r's ex tension
relevant issu es. Acco rdi ng ly, the Architect of time claim no.2. As for dela y event no.1,
granted the Co ntractor 30 days extension of the Con tractor had failed to demonstrate that
time having reviewed the eviden ce submitted the wea ther condition on a particular day
by bo th th e Co n trac to r and th e p ro ject had been excep tiona lly inclem ent, that work
Engineer. was disrup ted. The Co ntrac to r's claim then
The Engineer in Case Study No.2 did wa s rejected.
not provide any rationale for his decision Fo r the increa se in ea rthwor k
on how and why a total of72 day s extensions quantities and revised piling de sign, the 5.0.
of time had been granted to the Contractor. co ncur red w ith the p rod uctiv ity rate
The Engi neer issued his ex tension o f time a na lysis a do pted b y th e Co n trac tor in
certifica te on 19'" Au gu s t 2002 based on the arriving a t an exten s ion o f 20 months to the
Contractor 's notific ati on on 5'" Ap ril 2002. co mple tion dat e. Taking into co ns ideration
Tak ing into acco un t that the Co n tract's co nc u rren t delays, the 5.0. awarded 16
Extended Da te for Completion was on 3'· months of extension o f time for even t no.2 as
January 2002, prompt eval ua tion of an claimed by th e Contra c tor . Fro m the
ex tension of time claim was critical to the info rmatio n s ubmi tted, the Co ntractor d id
project. It can be ar gu ed that the Engi nee r not dem on st rate how man y days of delay

25
Journal of Design aud tim Buill Enulronment

ha d been caused b y th e additional p ipe records on de lay issues . This is one major
la ying work u n d c r d elay even t no.4 as aspec t o f co n trac t ma nagem en t th at
inst ru c ted by the 5.0. A t the time the case co ntractors need to urg en tly address .
study was written, the Contractor has yet to Without proper record and documentation
demonstra te the delay days caused by the that is v irtually no th ing that can used as
5.0.'s in struct ion. The 5.0. req uested the supporting evidence. As a resu lt, they face
Contractor to resubmit his claim once he was diffi cult y in de monst ra ting the cause and
ab le to de monstra te the d elay when the effect of the de layi ng even t and this grave ly
ex tern al work wa s completed. affect theirentitlemen t for ex tension of time.
T h e Contra ctor submitted an Th ere is a mbig uity and a lack of records or
extension of time claim no.3 for de lay event supporting facts as to when events occurred,
no .4 for a total of 8 m onths. However, the how and w ho caused the delay and th e
5.0. deci ded that th ere was also culpable impact they have on the project's comple tion
delay by th e Co ntractor and gran ted an date. Often, a contractor's ex tension of time
extension of time of on ly 6 mon ths. The cla im s co nsi st only of the s ta te me n t of
Contractor claimed that cash flow problem occurrence of delaying ev ents and their
due to the unfo reseen economic downturn causes, and that these are s ubmitted as one
a n d non-payme n t by th e Em p loyer on globa l delay claim .111ey also failed to infor m
agreed varia tion works had con trib u ted to contract administrator on the changes on
the delay in the project. The Co nt ractor works programme and their impact on the
arg ued that these problems had ca used project's crit ical path. Meanwh ile, upda ted
inabi lity to ex pe d ite works by e mploy ing works programmes are usually sub m itte d
appropriate resources such as labour , plant on ly when the co n tra ctors wi sh to cla im for
or eq u ip me nt. The risk of ma nagi ng these ex tension of time. Even then, some of the
reso urces gene rally rest s up on the works p rogrammes d o not in d ic at e
Co ntrac to r and d el a y caused b y poor important facts such as the p roject 's cri tical
manage men t s h o u ld be borne by the path to enable contract administrator to easy
Contractor. Th erefore, the ground for thi s assessment of time impac t on the project.
claim is unfounded. In any event there are Th e main problem e ncou n tered by
o ther remedies that the Cont ractor may contract adm inistrators is that contractors
pu rsu e for breach ofcontrac t by the Emp loye r tend to "infla te" the ir cla ims even th ou gh
w he re the Employer failed to pay for work the y are una bl e to provi de p roper
done . justification for them , As a result, contract
administrators need to spend a great deal of
Conclusions time to evaluate and establish reasonable
The case s tudy approach se emed to have and accept abl e length of time to be gran ted
worked in exploring the hist or y of events to th e co n trac tor. It is observed that the re is
and issues that are pertinen t in discussing of ten de lay by the con trac t ad ministra tors
the obligations and responsibiliti es of in processing and evaluating contractors'
parties invol ved and the sequence o f events d ela y claims . S uc h d ela ys may ha v e
for a particular incident of claim o n an prevented contractors from taking necessary
extension of time. The case studies indicated mitigating action (ifany) to reduce the impa ct
tha t contractors often fail to comply w ith the of project delay. Co n tract administra tors
con tract's p rocedural req uiremen t to submi t appear to have a nega tive and defe nsive
timely notifica tion of delay. Notices of del ay attitude towards contractor's de lay claims
are subm itted late, of ten, just before the d ate and seld om provide any rationale for their
of completion when the employer is abou t to decisions on how and wh y a certain number
im p o s e li qu id a te d damages on to th e of days ex tension of time ha ve been gran ted
contractor. Contractors seldom keep proper to the contractors.

26
Application and Assessment of Extension OfTime Claim

Suggestio ns on m in im ising problems IEM 1989 Standard Form of Contract. Published


e nc o un te re d in the app li ca tio n and by The Institution of Engineers, Malays ia.
prepa ra tion of ex te nsion of tim e claim by Liau Soon Cons tructio n Pte Ltd v G u nn Qian
contractor and analysis and justification of Reall y Pte Ltd (2000) 1 Singapo re Law Rep orts
claims entitlement by contract administra tor, 495.
in clud e : adherence to th e a g re ed p ro cedure Londo n Borough of Merton v. Stanley Hugh
fo r th e p repara tio n and e va lua tion of d el ay Leach Ltd (1985).32 Build ing Law Reports 51.
claims, implementation of a se t o f agreed
s tandard ised delay an alysis m et h odolo gy , Ng , S.T., Sk it mor e, M., Deng , M.Z .M. and
Nadee m, A. (2004). lmprouing existing' delay
and p ropel' documenta tion of p roject reco rds analysis technique» for tlu: ('s falJlislulJe nt of delay
to be used lat er for the purposes of cla im s liabilitie«, Construction Inno vation, 2004, VolA,
a nd overcoming dispu tes by both pa r ties. Issue 1, 3-17.
Pro m p tness o f proce ss ing a nd fin ali s in g
cla im s an d docum en ta tio ns o f proj ect
J. ). (1976). Co ns tr u c tio n De lay -
O' Brien ,
Responsibilities, Risks and Litigation . Cahners
records fur clai ms pur poses are utmos t Books International, Inc. Boston.
im por tant issu es in relat io n to cl aims .
Perha ps , an in cre ase d se nse o f PA M 1998 Standar d Fo rm o f Con trac t.
Published by Malaysian Institute of Archi tects,
pro fessi o nali s m in co ns truc tio n co uld Malaysia.
overcome some of the problems rel at ed to
claims and extens ion of time. Pa tla n, M. Q. (1987). How / 0 LIse Qllalita/ive
It is reco m m ended th at o ther resea rch Methods ill Euaiuetion,Sage Publications, London.
m et h o d olo g ie s s u c h as q u e s ti o nna i r e Pick avance, K. (2000). Delay and Disruption ill
s urvey s and tr ia ng ula tion m e thod s be used Const ructi on Contmc ts, LLP Refe re nce
in future research to provide more insights Publish ing, London .
and p oss ib le remedies into th e problems Powell-Smith y . and Sims, J. (1989). Bl/ildillg
e nco un te re d in th e app li ca ti on and Contract Claims. BSP Profes si onal Boo ks,
aSSeSSITICnt of extension of time claims. London.
PWD 203 A Stand a rd Fo rm of Co n t rac t.
Publi sh ed by Public Work s De par tme n t,
Refere nce s Malaysia.
Ad rian, ] . J. (1988). Cons truction Claims - A
Quautitative Approach, Pren tice-Hall , United Robinson, N. M., Lavers A. P., Tan, G. K. H. and
States. Chan, R. (1996). Construction Law ill Singapore
and Malaysia, 2.....1 Edition. Butte rw or th Asia,
Bra mble, B. B. a nd Ca llaha n, M. T. (1992). Singapo re.
COllS tYll ctioll DelnyClnim, 2".1 Ed ition, John Wiley
& Sons Iu c., N ew York. Thamesa Designs Sdn. Bhd. v. Kuchin g Hotel s
Sdn. Bhd . (1993).3 Malayan Law ]ournaI 25.
C IOB 200 0 S tan d ard Fo rm o f Contrac t.
Pu bli sh e d by Co ns truc tio n Indu s try Turner, D. F. and Turne r, A. (1999). Building.
Deve lopment Board, Malaysia. Contract Clai ms and Disp utes, 2 nJ Ed it io n,
Collier, K . (2001). Cons truc tion COll fmc/s, 3" Addison Wes ley Longma n Limited, England.
Edition. Prentice-Hall, Inc. United States. White, B. (2000). Dlssertation Skills, Co ntinuum,
Eggleston, B. (1 997). Liquid ated Dama ges and Lond on and New York.
Extensions of Time in Construction Con tracts,
Williams, T. (2003). Assessing extellsion of lime
2"" Ed ition, Blackwell Science Ltd ., London.
delays 0 11 ",ajor projects. In ter national Journal of
Far idi , A,S. and El-Sayeg h, S,M. (2005). Project Managemen t, Vol.! 5, No.3, 181-186,
AsseSSlII t'Ilt of tile Cnusrs of Delays ill tti c llAE
COlJs trllctioll l n d ust rs}, Proce ed ings of 2005 Yin, R. K. (1984). Case Stl/dy Resea rch - Design
Inte rnation al Co nfe rence of Cons truction & and MetllO'/' Sage Publica tions, London .
Real Estate Manage ment, Decemb er 12lh - 131h ,
2005, Penang, Malaysia, Vol.!, 146-150,

27
icumot of Dt's(~ 11 nlld thn Built E,wirolllll{'lIf

Table 1: G ro u n ds for Extensio n of T im e for Case Stu dy No.1

No. D escription of Eve n l Pursuant to Clause Number of


(PAM 1998) D ays Cl aimed

1. Late start o f p roject. 23.7 (v) 30


2. Lat e ins truc tion on u nse t p iles. 23.7 (vi) 37
3. Late instruction on sho rt piles 23.7 (vi) & 23.7 (v) 41 + 50
&Variation instruction on sho rt piles
4. Relocation of m ock 23.7 (v). (vi), (x) 48
5. CUnsui tabi lity o f d esign ed p iles. 23.7 (v), (v i), (x) 74

T abl e 2: Ch ro n ology of Even ts for Ca se Study No.2

No.1 Dat e Details

1. 24'h O ct 2001 No tifica tion fro m Engineer tha t it is unlikely that the
extended completion da te no . 1 of 4'" November 2001 can be
achieved.

2. 25'" Oct 2001 Contractor served notice of de lay and claim for ex tension
o f time of 60 da ys.

3. 9'" Nov 2001 Contractor served no tice and cla im for 10 days ex tens ion
oftime.

4. 5'" Ap ril 2002 Co n tractor app lied for ex tensio n of tim e and req ue sting
co mp le tion d ate to be ex tended to 5'" April 2002.

5. 22"· April 2002 Eng ineer gra n ted extension of time of 60 days and comp la te
d a te was extended to 3'" Janu a ry 2002 as per Co n trac tor's
ap p licat ion d a ted 25'" Oc tobe r 2001.

6. 23'" Ap ril 2002 Engineer issu ed Cert ifica te of No n-Co mp le tion on 4 th Jan
2002.

7. 12'h May 2002 Co n trac tor reitera ted that th e Engineer had yet to evalua te
their ap p lica tion for extension o f tim e s ub m itted on
5'h April 2002.

8. 31" Ju ly 2002 Contractor req uested for s ta tus upda te o f the ex tension of
time applications dated 5'" Ap ril 2002 a nd their le tter da ted
12" May 2002.

9. 1" Aug us t 2002 Eng inee r confirmed that ass ess men t of ex tens ion of tirne is
in progress.

10. 5'" August 2002 Engineer issued Cer tifica te of Pr ac tical Comp letion.

28
Application auf!Ass{'sS11Il'II l of Extension of Time Claim

Table 3: Grou nds for Exten si on of Time for Case Study No. 2

No. Description of Even t Pursuant to Number of Days


Clause (IEM 1989) Claim ed

1. Objection o f works by third parties. 43 (g) 34


2. Refusal by lo t owne r. 43 (e) 25
3. Uncertainty of diame ter of force main. 43 (j) 8
4. Discove ry of exis ting pipeline . 43 (e) 7
5. Poor soil co nd ition. 43 (e) 18
6. Variation work. 43 (e) 10

Table 4: Grounds for Extens ion of Time fo r Case Study No .3

No. Descri ption of Eve n t Pursuant to N umb er of


Clau se(I'WD 203A) Months Clai me d

1. Exception all y inclemen t wea ther. 43 (b) 4.5


2. Increase in ea rthw ork quan tities. 43 (e) 12
3. Revised pil in g d esign. 43(e) 8
4. Add itio na l wa ter pipe laying. 43 (e) Disru p tion due
5. Fina nci al cash flow p roblem. 43 (j) to resou rce
re- allocation
Affect overa ll
wo rk progress

Table 5 : No tice of Delay Claus e

Key Issu es PAM 1998 PWD203A !EM 1989

When to Clause 23.1 Clause 43 Clause 43


serve a Ifand toncu it becomes Llpoll it becomillg Upon it becomillg
Noti ce of reasollabtyapparmt rt>flsOIwbly apparel'l rrosollably apparent tlmt
Delay? that the progress of the thn! the progress of the the progress of the Works
Works is beillg or likely Works is delayed, the is ddayed, tlu:
to bedelaued beyolld COlltmctor shall COlltmetal' shallf orthwith
the Datefor Cotnpletiou forthwith give written givewritten noticeof
the Contractorshall noticeof file causes of the callses of delay to
forthwith of tue delayto the 5.0... file Engineer."
OCC llrrellce of SIfCIteveJlt
1I0tify the Architect ill
writillg idelllifyi llg the
releoan t events C(lusil1g
the delay,.. .

29

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