OXAGON Community Residential Building Renovation

Contract No. 480000758

EXTENSION OF TIME CLAIM

CONTRACTOR: Barq Al Mustaqbal

CONSULTANT: PARSONS

CLIENT: NEOM
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CONTENTS

1. EXECUTIVE SUMMARY............................................................................................................2
1.1. THE PROJECT DETAILS.............................................................................................................3
1.2. PROJECT OBJECTIVES...............................................................................................................3
1.3. PROJECT SCOPE OF WORKS....................................................................................................3
2. BACKGROUND............................................................................................................................4
2.1. INTRODUCTION..........................................................................................................................4
3. CONTRACT PARTICULARS & ENTITLING PROVISIONS....................................................5
3.1. THE CONTRACT BASIC DETAILS...........................................................................................5
3.2. THE CONTRACT DOCUMENTS................................................................................................6
3.3. THE FORMATION OF THE CONTRACT..................................................................................6
3.4. PENALTY FOR DELAY...............................................................................................................7
4. DELAY AND DISRUPTION TO THE CONTRACT WORKS...................................................8
4.1. INTRODUCTION FOR DELAY EVENT.....................................................................................8
4.2. DELAY ANALYSIS METHODOLOGY & TECHNIQUE..........................................................8
5. DELAY EVENT:...........................................................................................................................9
5.1. EVENTS CHRONOLOGY CAUSE & EFFECT........................................................................10

Attachment:

Annex 1 – Impacted Layout

Annex 2 – Summary Programme

Annex 3 – Critical Activities

Annex 4 – Detailed Impacted Programme

Annex 5– Al Wakeel RO application dated 21st Sept 2022

Annex 6 – Al Wakeel Letter, Ref. No.: WA054-AWT-ISP-LET-826, dated 14th Nov 2022

Annex 7 – Al Wakeel Letter, Ref. No.: WA054-AWT-ISP-LET-841, dated 17th Nov 2022

Annex 8– Al Wakeel RO application dated 5 Dec 2022

Annex 9 – Al Wakeel Letter, Ref. No.: WA054-AWT-ISP-LET-933, dated 21st Dec 2022

Annex 10 – Al Wakeel PM Mail to PWA and GEC Top Management, dated 21st Dec 2022

Annex 11 – Al Wakeel Letter, Ref. No.: WA054-AWT-ISP-LET-1015, dated 29th Dec 2022

Annex 10 – Al Wakeel RO Renewal application dated 20 Mar 2023

Annex 11 – Environmental Permit, received on 2nd April 2023

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1.1 EXECUTIVE SUMMARY

The Memorandum of Contract was made between NEOM and Barq Al Mustaqbal and Contracting for
the project known as “OXAGON Community Residential Building Renovation.” The Contract
Commencement Date was 25th May 2023, and Contractual Completion Date was 11th July 2023.

The mentioned project was delayed due to the Ongoing Delay Events and Circumstances which were
beyond the Contractor’s control. The Project had the Commencement Date set to 25 th May 2023 and
Completion Date set to 11th July 2023. However, the Contractor basically received the signed copy of
the contract at 6th June 2023 and started mobilization on 7th June 2023.

1.1. The Project Details

The Project, “OXAGON Community Residential Building Renovation” is a project works that are
located in Oxagon near Dube Port (Neom Port). The works comprise the renovation of 22 Apartments
and 2 Villas.

1.2. Project Objectives

The primary objective of the Project is to improve/enhance the quality of buildings located in Oxagon
community for residential purpose

1.3. Project Scope of Works

The project scope of work as per the contract, however are not limited to, the following:

 External Finishes
 Internal Finishes
 Installation of Ceramic Tiles
 Room/Corridor/Hall / Lobby Accessories Installation
 Installation of Kitchen Accessories
 Installation of Toilet Accessories
 Roof Deck Buildings/Villa Repairing
 Removal & Disposal of unwanted Items
 Installation of Furniture

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2.1 BACKGROUND

2.1. Introduction

The mentioned Contract’s Overall Commencement Date was set to the 25 th of May 2023, with the
Construction Period of 48 days and the Completion Date of 11th July 2023.

The Contractor hereby submits full and detailed particulars for the entitlement to claim relief for the
Delays of Contract No. 4800000758.

These Particulars Cover:

 Description of Delay Event.

 Contemporary records associated with the Delay Event and Contractual grounds for the claim.
 Time Impact analysis utilizing the latest Approved Baseline Programme/Schedule.
 Claim statement.

3.1 CONTRACT PARTICULARS & ENTITLING

PROVISIONS

3.1. The Contract basic Details

Authority: Neom

Consultants: Parsons

The Contractor: Barq Al Mustaqbal

Contract Value: 11,978,823.92 SAR

Contract No. 4800000758

Project Start Date: 25 May 2023

Project End Date: 11 July 2023

Original Project Duration: 48 Days

This EOT Finish Date: 03 Aug 2023

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3.2. Contractual Dates (Key Milestones)

The Project contractually has two milestones:

Completion of milestones Duration from Commencement date

Renovation of all the twenty-two (22) apartments. 31 days

Renovation of the two (2) villas and Handover. 48 days

The reflection of these mentioned milestones in contractor approved baseline shown below:

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4.1 DELAY AND DISRUPTION TO THE CONTRACT

WORKS

4.1. INTRODUCTION FOR DELAY EVENT

The Events and circumstances that give rise to the Contractor’s entitlement to the Claim for an
Extension of Time for Completion have been reviewed up to 28 July 2023. The Contractor has
identified herein a Delay Event that clearly entitles it to an Extension to the Site Instruction’s Time for
Completion and thereby resulting in relieving the Contractor from any Contractual Delay Penalties.

4.2. DELAY ANALYSIS METHODOLOGY & TECHNIQUE

The Time Impact Analysis is a method recommended by the Society of Construction Law (2002) for
both Prospective and Retrospective delay analysis. With regards to the delay events described in this
document, the Contractor followed the below steps to complete the Time Impact Assessment using
TIA delay analysis methodology.

Step by step procedure of Time Impact Analysis:

1. Initially all the delay events are identified and listed in chronological order.
2. Separate networked fragment (which is called as frag net) is prepared for each delay event.
3. Baseline programme of Works was updated till the occurrence of the delay event. Then the
programme is scheduled whereby the finish date is noted in the calculation sheet. This will be
termed as ‘finish date before the occurrence’ of the event.
4. The frag net is introduced into the baseline programme and the programme is scheduled to
determine the finish date. This will be noted as the ‘finish date after the occurrence’ of the event.
5. The difference between these dates shall determine the delay due to that event.

Those delay events which are having an impact on the longest path shall determine the delay to the
Completion of the Contract Works.

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5.1 DELAY EVENT:

 D1 Late issuance of Environmental Permit

 D2 Late issuance of RO Renewal permit.

Date Key Recorded Issue

21 Sept 2022 Contractor submitted RO permit

3rd October 2022 Contractor started Mobilization and submission of shopdrawings

issuance Date of Work Order No. 22 Mekaines with Start Date of 15-
9th October 2022 Oct-2022 and Finish Date of 15-Feb-2023.
AWG sent acknowledgement of Work Order No. 22 Mekaines (Ref.
24th October 2022 No.: WA054-AWT-ISP-LET-763, dated 24th October 2022).

14th November 2022 Contractor started Site Clearance works

Contractor forwarded documents to GEC for the MME General
Environmental Permit (Ref. No.: WA054-AWT-ISP-LET-826, dated
14th November 2022 14th November 2022).
Contractor forwarded documents to GEC for the MME General
Environmental Permit (Ref. No.: WA054-AWT-ISP-LET-841, dated
17th November 2022 17th November 2022).

5th December 2022 Contractor submitted RO permit Renewal

Construction works in Mekaines was stopped by Authorities due to
21st December 2022 unavailability of Environmental Permit.
Contractor sent email to GEC to inform that the General
Environmental Permit was requested via ref. WA054-AWT-ISP-LET-
21st December 2022 841 dated 17 Nov 2022.
Contractor notified GEC regarding the Stoppage of Works by the
Authorities due to the unavailability of the MME Approved
Environmental Permit (Ref. No.: WA054-AWT-ISP-LET-933, dated 21st
21st December 2022 December 2022).
Contractor forwarded to GEC a notice of Risk Alert due to Delay in
the issuance of MME Environmental Permit (Ref. No.: WA054-AWT-
29th January 2023 ISP-LET-1015, dated 29th January 2023)

Contractor submitted RO permit renewal

20 March 2023

PWA forwarded to GEC the Approved Environmental Permit

2 April 2023
nd

23rd May 2023 Contractor received approval for RO renewal

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5.1. EVENTS CHRONOLOGY CAUSE & EFFECT

Delay Event D1 - Late issuance of Environmental Permit:

WO # 22 was signed and acknowledged by the Contractor on 9 th Oct 2022 with the WO’s
Commencement Date 15th Oct 2022 and Completion Date 15th Feb 2023. On 3rd October 2022,
Contractor commenced the Works on-site earlier than the Commencement Date as per the verbal
instructions from PWA/GEC to meet their commitments with WOQOD by the submission of Shop
Drawing (WA054-EDS2017-AWT-EL-0001,1000,1001.1002,0002….) [1]. Moreover, on 14th
November 2022, Contractor applied for the Environmental Permit and Contractor sent a letter with
Ref. No.: WA054-AWT-ISP-LET-826 [2] to the GEC regarding the Application for Environmental
Permit. After the review of GEC, Contractor submitted another Application on 17 th Nov 2022 with
Ref. No.: WA054-AWT-ISP-LET-841 [3]. As mentioned before, the Contractor in order to meet
PWA’s commitments with WOQOD, the Contractor carried out activity on site pro-actively from 14 th
Nov2022 to 20th Dec 2022. However, on 21 st Dec 2022, the Legal Authorities (Law Enforcement)
stopped the Works at site due to the non-availability of the Approved Environmental Permit which
was already under process in the MME System. In addition, Contractor got fined and its equipment
were seized as a result. On the same date, Contractor notified GEC with a letter Ref. No.: WA054-
AWT-ISP-LET-933 [4] stating these events which have occurred on-site and how the Legal Authority
has stopped the Works due to non-availability of Approved Environmental Permit. Furthermore,
Contractor’s Representative have sent a mail(s) [5] to PWA’s and GEC’s Top Management on 21 st
Dec 2022 regarding the Risk and the problem attached to the unavailability of the Approved
Environmental Permit.

The Contractor raised a risk alert with Ref. No.: WA054-AWT-ISP-LET-1015 dated 29 th January
2023 [6] regarding the Delays in the issuance of the MME Environmental Permit. On 2 nd April 2023,
Contractor received the Environmental Permit Approval from GEC through Letter Ref. No.: WA054-
AWT-ISP-LET-747.

On a fair ground, Contractor considers the starting of this Delay Event to be on 17th Nov 2022.
The Contractor had performed certain activities on site as a pro-active measure to meet the PWA’s
commitments with WOQOD which have not been considered, even though, this has in turn affected
the Contractor as the Legal Authority had fined and seized the Contractor’s equipment.

1
Shop drawing number WA054-EDS2017-AWT-EL-0001 dated 3-oct-2022
2
letter to GEC Ref: WA054-AWT-ISP-LET-826 Dated 14-Nov-2022
3
letter to GEC Ref: WA054-AWT-ISP-LET-841 Dated 17-Nov-2022
4
Contractor letter to GEC Ref: WA054-AWT-ISP-LET-933 Dated 21-dec-2022
5
Contractor PM mail to PWA and GEC top management on site Dated 21-dec-2022.
6
Contractor letter to GEC Ref WA054-AWT-ISP-LET-1015 Dated 29-Jan-2023

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Finally, Contractor considers the End of this Delay Event on 2nd April 2023.

Delay Event D2 - Late issuance of RO Renewal permit:

On 21st Sept 2022, Contractor applied for the RO Permit [7] and got the Approval on 3rd Nov 2022.
The Expiry Date of the RO Permit was 31 st Dec 2022. Moreover, on 5th Dec 2022 [8], Contractor
submitted the RO Permit Renewal Application, and it was only Approved on 4 th Mar 2023 with the
Expiry Date of the RO being 10 th April 2023. Due to the Delay Event D1 regarding the late issuance
of the Environmental Permit, Contractor was obstructed from carrying out Works on-site, hence, RO
Permit during this timeframe got expired. The Contractor needed to renew the RO Permit before
commencement of Site Activity and to avoid any further Penalties from the Authorities. On 20 th
March 2023, the Contractor applied for RO Permit Renewal [9]. In order to mitigate further Delays
on-site and to meet PWA’s commitments with WOQOD, Contractor proceeded on-site on 1 st May
2023. Unfortunately, the Works were yet again suspended, this time by the ASHGHAL Inspector on
8th May 2023 due to the absence of a valid R.O, and a violation was issued accordingly. The R.O fees
were eventually released on 18 th May2023 (paid on 20th May 2023). Furthermore, on 23 rd May 2023,
Contractor got the Approval for the R.O.

On a fair ground, Contractor considers the starting of this Delay Event to be on 20th March 2023.

The Contractor had performed certain activities on site as a pro-active measure to meet the PWA’s
commitments with WOQOD which have not been considered, even though, this has in turn affected
the Contractor as the ASHGHAL Inspector had issued a violation.

Finally, Contractor considers the End of this Delay Event on 23rd May 2023.

The Contractor’s analysis is based upon the Approved Baseline Programme/Schedule, which
illustrates the Contractor’s intention to complete the Work Order No. 22 Works during the time frame
given by the PWA.

The Contractor identifies major constraints hindering the progress for the related Work Order No. 22
work activities.

Considering the above causes, the effect to the Time of Completion for the Work Order No. 22 has
been analyzed using the above-mentioned Delay Analysis Methodology and Technique. The

7
RO application NO 709780 Dated 21 Sept 2022
8
RO application NO 719960 Dated 5 Dec 2022
9
RO application NO 732653 Dated 20 Mar 2023

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Contractor submits the consequential effects of the delays to the Contract Works considering the
current status of Works.

A) Delay Analysis

Contractor considered the following factors during the Delay Analysis:

1. The use of the Approved Baseline Programme.

2. Developed the subnet, utilizing ascertained facts with supported documents, by applying such
facts to the schedule.

To understand the time impact caused by a single event and how it will impact the Project Schedule,
an individual analysis, using sub-nets, demonstrates how the works have been interrupted and
disrupted moreover, to illustrate when and how the events impact the Schedule.

The Contractor submits the Time Impact Analysis method (TIA) for the Delay analysis the event
identified under this claim.

The delay event presented herein is preventing the Contractor from proceeding the execution of the
activities for construction works.

B) Time Impact Analysis (TIA)

The Approved Baseline Programme has been considered for the purposes of this extension of time
claim and forms the basis to produce the Entitlement Program.

The ‘Time Impact Analysis’ delay analysis method has been adopted in this extension of time claim.

C) Steps for TIA Implantation:

DELAY EVENT 1
1. Updating the Approved Baseline Program with actual progress up to 10 Nov 2022 which is prior
to the resolution of delay event.

2. Develop schedule fragnet to model, identify and describe the conditions encountered before
performing the time impact analysis for each delay event.

3. Inserting the fragnet illustrates the delay event chronology under WBS:

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4. After inserting the fragnet into the Approved Baseline Program, establish a relationship. successor
relationship of the first activity of this fragnet is FS+0 to the primary construction works activity
“RIW-22-CONS-10180 CONSTRUCTION OF ELECTRICAL DUCT.” as shown below.

5. Assign the Approved Baseline Program as Project Baseline and the Updated Baseline Programme
with Data Date of 10 November 2022 as Primary Baseline.

6. Review the longest path for the activity “RIW-22-GENE-00030 overall Completion Date”. The
impacted over all Completion Date as of this update is 01-Aug-2023.

7. After rescheduling the program, the “RIW-22-GENE-10010 Completion Date” has moved from
15th February 2023 to 01-Aug-2023 with 167 Days delay duration.

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8. The difference between these dates of Impacted and Overall Baseline Programme is 113 Days,
which is the delay due to the stipulated event.

Over all Approved

Description Impacted Programme Variance
Baseline Programme

Days 113 0 113

Dates 01-Aug- 2023 10 April 2023 01-Aug- 2023

By using the above steps, the Contractor considers itself entitled to extend Work Order No. 22 End
Date until 01-Aug-2023 as final consequential effects of the stated Delay Event 1 to the Contract
Works are established.

DELAY EVENT 2
9. Updating the Approved Baseline Program with actual progress up to 16-mar-2023 which is prior
to the resolution of delay event.

10. Develop schedule fragnet to model, identify and describe the conditions encountered before
performing the time impact analysis for each delay event.

11. Inserting the fragnet illustrates the delay event chronology under WBS:

12. After inserting the frag net into the Approved Baseline Program, establish a relationship.
Successor relationship to Review & approval of permit/RO FF+0 “RIW-22-GENE-10060
Review & approval of permit/RO.” as shown below.

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13. Assign the Approved Baseline Program as Project Baseline and the Updated Baseline Programme
with Data Date of 16-mar-2023 as Primary Baseline.

14. Review the longest path for the activity “RIW-22-GENE-00030 overall Completion Date”. The
impacted over all Completion Date as of this update is 24-July- 2023.

15. After rescheduling the program, the “RIW-22-GENE-10010 Completion Date” has moved from
15th February 2023 to 24-July- 2023 with 159 Days delay duration.

16. The difference between these dates of Impacted and overall Baseline Programme is 105 Days,
which is the delay due to the stipulated event.

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Over all Approved

Description Impacted Programme Variance
Baseline Programme

Days 105 0 105

Dates 24-July-2023 10 April 2023 24-July-2023

By using the above steps, the Contractor considers itself entitled to extend the Work Order No. 22
End Date for Completion until 24th July 2023 as final consequential effects of the stated Delay Event
2 to the Contract Works are established.

D) Statement of the Delay event

Delay Event #01 causes a delay to the completion for Work Order No. 22 till 1st Aug 2023.

Delay Event #02 causes a delay to the completion for Work Order No. 22 till 24 July 2023.

Hence, contractor longest Entitled date will be considered as the EOT finish date.

E) Contractual Entitlement and Compliance

 Risk Notice(s) raised for Event to comply with the contractual obligations stipulated by Sub-
clause 15.7.1 of the General Conditions of Contract (ref. WA054-AWT-ISP-LET-1015 dated
29-Jan-2023).

 Sub-clause 15.4.1 of the General Conditions of Contract which states that “In the event that
any of the risks listed in Sub-clause 15.4.2 results in loss or damage to the Works (or a part pf
the Works) the Contractor shall remedy such loss or damage to the extent instructed by the
Engineer and if compliance with the instruction of the Engineer causes the Works to be
delayed and/or the Contractor to incur additional Costs, subject to Sub-clause 19.1
[Contractor’s Claims], the Contractor shall be entitled to bring a claim for Relief for Delay
and Relief for Cost”.

 Sub-clause 15.4.2 of the General Conditions of Contract which states that “The Authority
shall retain responsibility for the following risks:
…….
(e) Warranted Project Data.”

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 The implications outlined herein are beyond the Contractor’s control and are therefore subject
to the provisions of the General Conditions of Contract Sub-Clause 9.3 (Delay to
Completion), Sub-Clause 9.4 (Delays caused by Regulatory Bodies) and Sub-clauses 19.1
(Contractor’s Claims) to seek Relief from the identified impacts.

 Sub-Clause 9.3.1 of the General Conditions of the Contract, ‘The Contractor shall be entitled,
subject to Sub-clause 19.1 [Contractor's Claims], to claim Relief for Delay if completion of a
Key Stage, Section or the Works has been or will be delayed by:
(a) a cause of delay giving an express entitlement under the Conditions of Contract to
Relief for Delay;

 Sub-Clause 9.3.2 of the General Conditions of the Contract, ‘In the event that the Contractor
considers that it is entitled to Relief for Delay, the Contractor shall give notice to the
Engineer in accordance with Sub-clause 19.1 .1. When determining each extension to a Time
for Completion the Engineer shall review previous determinations and may increase, but
shall not decrease, the total extension to a Time for Completion.

 Sub-Clause 9.4.1 of the General Conditions of the Contract

(a) the Contractor has diligently followed the procedures laid down by a Regulatory
Body for obtaining an Approval; and
(b) the Regulatory Body, without lawful reason, withholds the Approval or delays the
issue of the Approval beyond the date by which it should have been issued in
accordance with the Law and such withholding or delay causes a Key Stage, a
Section or the Works to be delayed; and
(c) the Contractor identified the Approval in the latest Activity Programme and has
notified the Engineer of such potential for delay to a Key Stage, a Section or the
Works in the updated Risk Register

Then the delay of the Regulatory Body in issuing the Approval shall be considered as a cause
of delay and the Contractor shall be entitled to bring a claim for Relief for Delay and/or
Relief for Cost.

 Sub-Clause 19.1.1 states, ‘If the Contractor considers himself to be entitled to any Relief
under any Clause or Subclause of these Conditions of Contract the Contractor shall give the
Engineer notice of any event or circumstances giving rise to a claim for Relief within twenty-
eight (28) Days after the date on which the Contractor became, or ought by exercising Good
Design, Engineering and Construction Practices to have become, aware of the same. The
notice shall state that it is a notice under this Sub-clause 19.1.1 and shall describe both the
event or circumstances and the relevant Clause or Sub-clause giving rise to the entitlement to
bring a claim.

 Sub-Clause 19.1.2 states, ‘Within twenty-eight (28) Days after giving notice pursuant to Sub-
clause 19.1.1, the Contractor shall submit an Impact Assessment to the Engineer in respect of
the event or
 circumstances giving rise to the Contractor's claim for Relief described in the Contractor's
notice.

F) Substantiation

The Contractor provides all documents that prove entitlement herein.

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G) Mitigation

The Contractor endeavored to minimize the impact of delay event as follows:

 The Contractor sent email to GEC to inform that the General Environmental Permit was
requested via ref. WA054-AWT-ISP-LET-841 dated 17 Nov 2022.
 The Contractor notified GEC the Stoppage of Works by the Authorities due to the
unavailability of the Approved Environmental Permit.
 The Contractor immediately raised Notice of Risk Alert when the Contractor became aware
of stoppage by Authorities due to unavailability of Environmental Permit.

CONCLUSION

Due to the Delay Event(s) – D1 & D2 described in this document, the Contractor has been delayed
and disrupted in the Completion of Works for Work Order No. 22 for a period beyond the Completion
Date stipulated in Work Order No. 22. Based on the analysis and evaluation contained herein, the
Contractor considers itself entitled to a Claim and relief from all Delay Penalties for Work Order No.
22 in accordance with the Sub-Clause 9.3 (Delay to Completion), Sub-Clause 9.4 (Delays caused by
Regulatory Bodies) and Sub-clauses 19.1 (Contractor’s Claims), with Extension for the Completion
Date as detailed below:

On the WO # 22 Final Completion Date:

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Contractor
Assessed
Contractor Delay
Original WO#22 Assessed Duration
Activity Name Remarks
Completion Date Entitlement (Days)
Finish Date

Temporary Access Roads to

Mekaines – 2 Petrol Station 15-Feb-23 01-Aug-23 167 Days Final
(EDS 2017)

On the Overall WA054 Contract Final Contract Completion:

Contractor
Contractor
Assessed
Original Contract Assessed
Project Name Delay Remarks
Completion Dates Entitlement
Duration
Finish Date
(Days)

ROAD WORKS
IN VARIOUS
10-Apr-23 01-Aug-2023 113 days Final
AREA IN
QATAR (WQ)

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