Sunday, October 13, 2019

Application for Extension of time in construction project

Good day readers.

In this article we will discuss how can we lodge on our application for the extension of time in construction project. Previous article in this blog, I do write on types of delay and managing delays in construction. I also did mentioned that one or the method in managing delay is by application for Extension of time(E.O.T). The question now are, what is the process, what documents are required and how to write?

Below is the step by step process.

Start ( when the event occur)
  1. Analyzed to ensure the event is eligible for EOT.
  2. Write and officially issue notice to inform client on the possible impact of the event. 
  3. Write and submit official EOT application to client.
In the application, supporting document are important document that Shall not be missed out. Below are list of some of the important supporting document  to be submit together:

1. Event chronology,
2. Project time line
3. Work program
4. Related Minutes of meeting
5. Related official letter or notices
6. Related photo with date
7. Any related document that can prove the delay.

The most important document is the official letter. Those letter shall be write in a manner that it shall refer to the correct subject and also quoted relevent clause in. the contract.

Friday, October 4, 2019

Managing delay in construction project.

Hai all.

In my previous posting, we discussed on the reasons of delay. The three type of delay are due to contractor fault, Client matters and unforeseen external factor.

Now in this posting, our the question is how to manage delay in construction? The discussion here will focused base on why delay happened? Who's fault is it?

Delay due to contractor own fault. This type of delay as mentioned in previous posting, contractor will not be granted extension of time (should the construction work overshoot the agreed construction period). Instead, contractor will be panelised as allow in the contract.

Hence how to avoid the delay beyong agreed construction period and avoid being panelised? There are  three (3) major method can be applied.

1. Working longer hours
2. Increase manpower, machine, plants and equipment
3. Change the construction method.

However, prior to deciding on which method to be use, contractor have to keep in mind that when they in the delay mode the most important issue is time and reputation.

As the remaining construction period getting shorter, contractor need to speed-up their works and to ensure that they completed the construction project as agreed in the contract. Thus the cost to expedite the construction work will be the second priority to be achieved. Nevertheless, as much as possible, contractor need to stay within the contract value to ensure or minimised losses due to the delay.

Delay caused by client and by external factor. This type of delay is much more easy to dealth with. Most contractor will prefer to apply extension of time(EOT). However proper documentation must be in-place. Prior to EOT application, contractor shall fulfill all of the procedure as mentioned in the contract. Some of the procedure are, to serve notice to client and to keep and produce any documents that can proved the delay was originated from client. Apart from that, contractor need to proved that the event will and already affected the critical path of the project.




Sunday, September 29, 2019

Why construction project delay?

Hi readers, it has been quite sometime that this blog had been not updated. Today we meet again through this posting.

Construction delay, construction delay, construction delay !!!!

Why its happened to most of the contractor? What is the reason behind this delay?

First of all,what are the main reason for delay?
There are three (3) major type of delay.
1. Delay due to contractor fault.
2. Delay due to client reason.
3. Delay due to unforeseen external factor.

What are the root cause for construction delay due to contractor fault.

1. Fail to estimate and plan for the project budget and cash flow.
2. Fail to plan for a proper construction activities & work flow sequence
3. Fail to understand the construction procedure
4. Fail to procure required materials, machinery, equipments and construction experts in order to run constructions activities smoothly.
5. Lack of technical knowledge in the works undertaken.

Bear in mind, delay due to contractor own fault will not be granted for any extension of time. Extra working period taken by contractor to complete the project will be charge liquidated and ascertained damages by client. Not only that,  further delay to the project by contractor can caused stern action being taken against contractor up to termination of the contract and all termination.

How about delay on part of the client. Here are some of the reasons why.

1. Design change by client
2. Delay in payment to contractor.
3. Delay in client decision(s)
4. Additional scope of work requested by client.
5. Insufficient information given to contractor.

Delays due to client fault will always resulted in contractor being granted reasonable extra time to enable contractor complete the project.


Apart from contractor and client fault, unforeseen external factors also can be the reason for delay. In numerous occasions, reasons of nature and unforeseen human activities that can hindered both contractor and client to perform their duties diligently. What are the two mentioned before. Here are some of it.

Due to nature;
1. Extreme increment weather
2. Natural disaster

Cause by human;
1. Riots
2. Global or internal economy crisis
3. In sufficient workforce in construction industries
4. Sudden material shortage
5. Changes in government policies.
And etc.

Delay due to unforeseen external factors resulted to contractor being awarded extension of time or worst case scenario, mutual termination.

Now we know reasons why delays occur in construction. Then the question is, how do we solve this issue?

Keep on following this blog for the next posting. Thank you and have your nice day.