IFH ENGINEERING PLC

አይኤፍኤችኢንጅነሪንግኃ.የተ.የግልማህበር

Ref No: IFH /TD/081/ 14 Date: December 22, 2014

TO: Classic Consulting Engineers PLC

Addis Ababa
Attn: Ato Tariku Semmu, Resident Engineer
Ref: Tulu – Dimtu Road Construction Project (LOT -1)

Subject: Request for Time Extension

Dear Sirs,

As you are well aware, the construction of the captioned project has been
significantly retarded mainly due tosuspension of Utility line works and other
delays beyond the contractor’s control. The contractor was committed itself and
tried its best to finalize the works at the contract completion time.

In accordance with the signed contract, the project has to be completed within
180 calendar days after the signing of the contract. Thus, the whole project
was supposed to be completed on December 26, 2014. However, this was not
made practical due to reasons beyond the contractor’s control.As can be seen
from the attached schedule analysis, the planned volume of work for the period
until December 22, 2014 was 96.25 while the actual accomplishment is 52.5%.
This shows a slippage of 50.5 % which is fully attributed to cause of delays due
to mainly associated with the Employer.

We need to draw your attention to the following problems as justification for

time extension and to give emphasis on the fact that some of the outstanding
problems still need the Employer/the Engineer immediate actions:

1. Delay on site handover:

The contract agreement was signed onJune 26, 2014 for 180 calendar days of
completion. The construction of the captioned project has been lagging from
the beginning mainly due to the delay of possession of site. The site was
handed over to us on July 15, 2014(R01) in the presence of the client
representatives and the Engineer; though it was supposed to make it sooner as
it is a short duration contract.

P.O.Box: 2509 Tel: 00251-1-391971 Fax: 00251-1-392468

Address: Akaki Kaliti Sub-City; Woreda 5 Addis Ababa, Ethiopia
  Contract Commencement date: June 26, 2014
 Actual handing over date: July 15, 2014
 Sub-total delays: 20 calendar days
2. Design Revisions and Delays:
2.1Road Design: We received the revisedRoad profile design through the
Engineer’s letter ‘CCE/TUD/1093/14 dated July 25, 2014’ (R02).Besides,
the FinalRoad Plan was forwarded to us through the Engineer’s letter
‘CCE/CON-TD/005/14 dated September22, 2014’ incorporating two new
bus-bays, two major junctions with islands and Five U-turns (R03). This
shows Plan and profile of the main road were finalized after 30 days of
contract signing.
 Sub-total delays: 30 calendar days

2.2Slab culverts (at K0+004 new design & K0+025 existing in the
original contract): Typical sections were not included in the original
contract drawings.It was after our request through letter
‘CRBC/TD/001/14 dated July 14, 2014’ (R ) that the Engineer
04

forwarded the slab culvert typical sections throughhis letter ‘CCE/Con-

TDU/014/14 dated October 11, 2014’ (R05) for K0+025 Slab Culvert
(2*1.5m)and ‘CCE/Con-TDU/018/14 dated October 17, 2014’ (R06) for
K0+004 Slab Culvert (1*1m).
This showmore than 3 months has passed until the Engineer’s decision
after our request.Furthermore, the culvert at 0+004 with internal
dimensions of 1*1m was completely a new work which was not included
in the contract drawings.
 Planned Commencement date of culverts: August 16,
2014
 Actual Commencementdate: October 17, 2014
 Sub-total delays: 60 calendar days
3. Suspension Workfor Utility Lines:
We requested for Utility designs through our letter ‘CRBC/TD/012/14
datedAugust 4, 2014’ as the same were not incorporated in the contract
drawings. (R07). Then we received the EEPCO design on your letter ‘CCE/TU-
Con/021/14 dated October 23, 2014 (R08) and the TELE design on your
letter‘CCE/TU-Con/029/14 dated November 6, 2014’ (R09). The contractor was
repeatedly requesting for beginning of the utility works so as to proceed side
walk construction.You may refer to the following correspondent letters:
 CRBC/TD/063/14 dated November 18, 2014, (R10)
 CRBC/TD/068/14 dated November 27, 2014, (R11)
 IFH/TD/076/14 dated December 12, 2014, (R12)

P.O.Box: 2509 Tel: 00251-1-391971 Fax: 00251-1-392468

Address: Akaki Kaliti Sub-City; Woreda 5 Addis Ababa, Ethiopia
However, it was not possible to commenceutility worksfollowing the original
scheduledue to unapproved price quotations. This issue is still not solvedandhas
greatly affected critical activities (such as side walk construction) and the
overall project progress.
 Planned commencement date: July 15, 2014
 Actual commencement date: Not yet started
 Sub-total delays: 158 calendar days
 Time needed to complete utility works and walkway tiles: 45 days
after the Engineer’s approval of unit rate and notice to commence.

4. Delay of Street Lighting Shop drawings:

It was through our letter ‘CRBC/TD/039/14 dated October 20, 2014’ that we
requested for approval of typical drawings (R13)so as to enable us make timely
purchase order.As you are quite aware, the majority of street lighting materials
are to be imported from abroad which will require minimum of two to three
months to arrive Addis. It was after the Employers intervention and prolonged
negotiation that we received your provisional approval through your letter
‘CCE/TD-Con/037/14 dated November 28, 2014’ (R14).
This is the major critical delay of the project as can be seen below:
 Scheduled Commencement date: December 12, 2014
 Date of approval of design: November 28, 2014
 Time needed to import street lighting items: three month
 Target Commencement date of street lighting: February 28, 2015
 Time needed to install street lighting items: 20 calendar days
 Target completion date of street lighting: March 20, 2015
 Sub-total delays: 75 calendar days

5. Delay of Access to Quarry material:

As clearly indicated in the contract signing negotiations, AACRA was supposed
to liaise with the concerned office so as to permit us access quarry and enable
us produce capping, sub base and base material for this project. However it
was on August 19, 2014 that the Environmental Protection Authority notified
concerned offices to allow us using designated quarries(R15).Such delayshad
seriously affected progress of capping, sub base and base production and
placing activities which in turn affected the overall project accomplishment.
 Planned Commencement of material production: July 25,
2014 (material production for drainage back fill and bedding)
 Actual commencement of material production: August 19,
2014
 Sub-total delays: 25 calendar days

P.O.Box: 2509 Tel: 00251-1-391971 Fax: 00251-1-392468

Address: Akaki Kaliti Sub-City; Woreda 5 Addis Ababa, Ethiopia
As can be seen from the above delay analysis, the project completion time is
seriously affected due to causes of delays attributed to the Employer.
The overall Time extension can be calculated considering critical delays as
follows:
 Delay in handing over: 20 calendar days
 Street lighting delays: 75 calendar days
 Total EOT required: 95 calendar days

The same can be further proved by makingschedule analysis as follows:

 Total slippage due to causes of delay beyond the contractor’s control:
50.5 %
 Total Contract time: 180 calendar days
 Total justified delays: 0.505 x 180 days = 91 days
In view of the above, we kindly request the Engineer to give us approval of
time extension of 95 calendar days so as to complete the remaining works of
the project. The revised completion date will be March 31, 2014.
Attached herewith please also find the revised work schedule for your kind
review and approval.

Other financial compensation claims will be submitted in due course following

overall effects of outstanding issues (particularly delays associated with utility
works).

Your prompt action is highly appreciated.

Sincerely yours

Wang Yang
General Manager

Enc: - Referenced letters R1 ,R2,R3,R4,R5,R6,R7,R8,R9,R10,R11,R12,R13,R14,R15

- Revised work schedule
- Cash Flow Planed and Actual
CC:
 Addis Ababa City Roads Authority
 Mr.HanFie, Project Manager

P.O.Box: 2509 Tel: 00251-1-391971 Fax: 00251-1-392468

Address: Akaki Kaliti Sub-City; Woreda 5 Addis Ababa, Ethiopia