Extension of time (EoT) claims substantiation and associated issues in Complex-Multi Stakeholders’ building construction contracts
Abstract
In complex and multi-stakeholder construction projects, delays and disruption are commonplace. Delays trigger the request for Extension of time (EoT) to enable adequate time for the project to be completed. Substantiating the need for EoT is a difficult task and requires a lot of effort. The administration of EoT claims come with a lot of issues to the clients and the contractors. The purpose of this study is to assess the factors for substantiating Extension of time (EoT) claims and the common issues associated with (EoT) in complex-Multi Stakeholders' Building Construction contracts. This study adopted a well-structured questionnaire administered on construction professionals in consulting and contracting organisations, via electronic means and using snowball sampling techniques in Abuja and Lagos state, Nigeria. With a response rate of 39.60% and an instrument reliability index of above 0.70, the gathered data were analysed using appropriate descriptive analytical tools. It was found that the major documents and records that have the level of importance for substantiating claims for extension of time are; time impact analysis showing the potential impact of the changes before carrying out the changes, change of work notices, claim register, programme updates, minutes of the daily, weekly, and meetings, and daily progress reports. The major disputed issues associated with claims for extension of time in construction contracts are concurrent delay, The absence of notice of delay by the contractor as required by the contract, eligibility of time extension claim, inadequate effort in mitigating the delay and poor demonstration of the impact of the delay event to the project schedule. Regular training and continuous professional development is required to enhance the skills and expertise of project administrators/managers for effective claim administration and management.
Downloads
References
Gardezi, S.S.S., Manarvi, I.A. & Gardezi, S.J.S. (2014). Time Extension Factors in Construction Industry of Pakistan. Procedia Engineering, 77, 196 – 204.
Tumi, S.A.H., Omran, A., & Pakir, A.H.K. (2009). Causes of delay in the construction industry in Libya. In: Proceedings of the 2009 International Conference on Economics and Administration, 14-15 November, Bucharest, Romania, pp. 265-272.
Sambasivan, M., & Soon. (2007). Causes and effects of delays in Malaysian construction industry’, International Journal of Project Management, 25, 517-526
Maués, L. M. F., Santana, W. B., Santos, P. C., Neves, R. M., & Duarte, A. A. A. M. (2017). Construction delays: a case study in the Brazilian Amazon. Ambiente Construído, Porto Alegre, 17(3), 167-181. Available at: http://dx.doi.org/10.1590/s1678-86212017000300169
Yusuwan, N. M., & Adnan, H. (2013). Issues Associated with Extension of Time (EoT) Claim in Malaysian Construction Industry. Procedia Technology, 9, 740 – 749.
Acharya, N.K., Lee, Y. D., Kim, S.Y., Lee, J.C., & Kim, C.S. (2006). Analysis of construction delay factor: a Korean Prospective. APIEMS Conference 2006, Bankok Thialand.
Walker, D. H. T., (1995). An investigation into construction time performance Construction Management and Economics, 13, 263-274.
Chan, D. W. M., & Kumaraswamy, M. M. (1994). A survey of time-cost relationships in Hong Kong construction projects. Building Technology and Management Journal, 20, 54-72.
Nkado, R.N. (1995). Construction time-influencing factors: the contractor's perspectives. Construction Management and Economics, 13, 81-89.
Ogunsemi, D. R., & Jagboro, G. O. (2006). Time-cost model for building projects in Nigeria. Construction Management and Economics, 24, 253-258.
Dunama, M., Ali, Z. A., & Usman, M. L. (2021). Causes and Effects of Delays and Disruptions in the Nigerian Construction Industry. International Journal of Innovative Research in Education, Technology & Social Strategies,8(1), 66-75.
Successfulprojects (2021). What is Extension of Time (EoT)? https://successfulprojects.com.au/construction-claims-and-dispute-resolution/extension-of-time-eot-claim/
Akhund, M. A., Khoso, A. R., Memon, U., & Khahro, S. H. (2017). Time Overrun in Construction Projects of Developing Countries. Imperial Journal of Interdisciplinary Research (IJIR), 3(4), 1-6.
Shrestha, P. P., Burns, L. A., and Shields, D. R. (2013). Magnitude of Construction Cost and Schedule Overruns in Public Work Projects. Hindawi -Journal of Construction Engineering, Article ID 935978, pp. 1-9. http://dx.doi.org/10.1155/2013/935978
Obodoh, D. AP., and Obodoh, C. (2016). Causes and Effects of Construction Project Delays in Nigerian Construction Industry. JISET - International Journal of Innovative Science, Engineering & Technology, Vol. 3, no.5, 66-84.
Borse, M., and Khare, P. (2016). Analysis of Cost and Schedule Overrun in Construction Projects. IJISET - International Journal of Innovative Science, Engineering & Technology, Vol. 3, no.1, 383-386.
Roslan, N., Zainun, N. Y., and Memon, A. H. (2014). Measures for Controlling Time and Cost Overrun Factors during Execution Stage. International Journal of Construction Technology and Management Vol.1, No.1, 8-11.
Memon, A. H., Rahman, I. A., Abdullah, M. R., and Aziz, A. A. A. (2011). Time Overrun in Construction Projects from the Perspective of Project Management Consultant (PMC). Journal of Surveying, Construction & Property, Vol. 2, no. 1, 54-66.
Mukuka, M., Aigbavboa, C., and Thwala, W. (2015). Effects of construction projects schedule overruns: A case of the Gauteng Province, South Africa. Procedia Manufacturing, 3, 1690 – 1695.
Maritz, T. & Prinsloo, H. (2016). A decision support framework for extension of time claims for the JBCC Principal Building Agreement. Acta Structilia,23(2),146-109.
Tan, H. S. A. Evaluating extension of time claims. in 18th CIB World Building Congress. 2010. Salford, United Kingdom. Available at: https://www.irbnet.de/daten/iconda/CIB18981.pdf
Abbott, N. (2002). Time and Construction Contracts
Extensions of Time and the Prevention Principle. https://www.cbp.com.au/WWW_CBP/files/a1/a1028786-f739-4c79-8dff-8c55bf61aa98.pdf
Carl, S., & Chris, J. (2020). The importance of extension of time provisions. Rail Professional Magazine., p.45. Available at: https://www.hka.com/the-importance-of-extension-of-time-provisions/
Alnaas, K. A. A., Khalil, A. H. H., and Nassar, G. E. (2014). Guideline for preparing comprehensive extension of time (EoT) claim. HBRC Journal, 10(3), Pages 308 316, https://doi.org/10.1016/j.hbrcj.2014.01.005.
Trauner, T. J., Manginelli, W. A., Lowe, J. S., Nagata, M. F., and Furniss, B. J. (2009). Construction Delay: Understanding Them Clearly, Analysing Them Correctly. 2nd Edition ed. 2009: Elsevier.
Ndekugri, I., Braimah, N., & Gameson, R. (2008). Delay analysis within construction contracting organizations. Journal of Construction Engineering and Management, 134(9), pp. 692-700. https://doi.org/10.1061/(ASCE)0733-9364(2008)134:9(692).
Yates, J. K., and Apstein, A. (2006). Avoiding and Minimising Construction Delay Claim Disputes in Relational Contracting. Journal of Professional Issues in Engineering Education and Practice, 2006. 132(2): p. 168-179.
Ahmed, S. M., Azhar, S., Kappagantula, P., and Gollapudi, D. (2003). Delays in Construction: A Brief Study of the Florida Construction Industry. SC Proceedings of the 39th Annual Conference, Clemson University - Clemson, South Carolina, April 10-12, 2003, pp 257-266. Available at: http://ascpro0.ascweb.org/archives/cd/2003/2003pro/2003/Ahmed03.htm
Baram, G. E., (2000). Concurrent Delays-What Are They and How To Deal With Them? AACE International Transactions, 2000.
Ibbs, W., Nguyen, L. D., and Simonian, L. (2021). Concurrent Delays and Apportionment of Damages. Journal of Construction Engineering and Management, 2011. 137(2): p. 119-126.
Rodriguez, J. (2021). How to Request Time Extensions in Construction Contracts. Avaable at: https://www.thebalancesmb.com/time-extension-and-the-construction-contract-844411
Jergeas, G. F. and Hartman, F. T. (1994). Contractors' construction-claims avoidance. Journal of Construction Engineering and Management, 1994. 120(3): p. 553-560.
Iain Wishart (2021). Delay and Disruption - a separable duo. Available at: https://www.iainwishart.com/delay-and-disruption-a-separable-duo/
Love, P. E. D., Davis, P. R., Ellis, J. M., & Cheung, S. O. (2010). A systemic view of dispute causation. International Journal of Managing Projects in Business, 3(4), 661- 680. https://doi.org/10.1108/17538371011076109
Cheung, S. O., & Yiu, T. W. (2006). Are construction disputes inevitable? Engineering Management, IEEE Transactions on, 53(3), 456-470.
Waldron, B. D. (2006). Scope for improvement: A survey of pressure points in Australian construction and infrastructure projects. Blake Dawson Waldron.
Gibson, R. (2008). Construction Delays: Extension of Time and Prolongation Claims.Taylor & Francis. 357.
Aibinu, A. A. (2009). Avoiding and Mitigating Delay and Disruption Claims Conflict: Role of Precontract Negotiation. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 1(1), 47-58.
Nwaki, W. N., & Eze, C. E. (2020). Construction as a panacea for poor construction projects performance. ITEGAM-Journal of Engineering and Technology for Industrial Applications (JETIA), 6(26), 61-72.
Bamgbade, A. A., Jimoh, R. A., Oyewobi, L. O., & Anifowose, M. (2020). Organisational culture characterisation of construction firms in Nigeria. CSID Journal of Infrastructure Development, 3(2), 198-213.
Krejcie, R. V., & Morga, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610.
Heckathorn, D. D. (2011). Comment: Snowball versus respondent-driven sampling. In Sociological Methodology, 41(1), 355–366. https://doi.org/10.1111/j.1467- 9531.2011.01244.x
Atkinson, R., & Flint, J. (2001). Accessing Hidden and Hard-to-Reach Populations: Snowball Research Strategies. Social Research Update, 33. http://sru.soc.surrey.ac.uk/SRU33.html
Moser, C., & Kalton, G. (2001). Survey methods in social investigation. Aldershot: Ashgate
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th Ed.). New York (NY): Pearson.
Pallant, J. (2007). SPSS Survival Manual: A Step-By-Step Guide to Data Analysis Using SPSS version 15, 3rd edition, Open University Press, England.
Saidu, I., & Shakantu, W. M. (2016). Effects of material-waste causes on project-cost overrun in Abuja, Nigeria: A site management perspective. Proceedings of the 9th Annual Quantity Surveying Research Conference, Port Elizabeth, 19-21 October 2016, pp.246-257.
This work is licensed under a Creative Commons Attribution 4.0 International License.