PLANNING & PROJECT MANAGEMENT CONFERENCE

ANALYSIS & DELAYDISPUTE RESOLUTION

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WHAT IS DELAY?

• DELAY is an act or event that extends the time required to perform tasks or activities under a Contract . It is usually reflected as additional days of work or as delayed start of activities.

• DELAY May or may not include change(s) in the scope of work of activity(s) or the Contract.

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Baseline Programme - Baseline is an approved version of Programme. -Define the baseline as a Target of schedule update.

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• Activity duration and relation determination.

• Network Forward and Backward calculations lead to float (most used is total float).

• Total float is margin for delay, and equal the difference between late and early dates.

• Total Float Indicator Positive Float: Project/Activity in good situation Zero Float: Project/ Activity is critical Negative Float: Project/ Activity is delayed

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REASONS OF DELAYS

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Risk Events: Usually causes will be categorized as Contractor Risk Events (CRE), or Employer Risk Events (ERE). Until any of these events are confirmed as having caused actual delay, they are only risk events. There is another category is Neutral event such as Force majeure.

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Delay

Neutral Event

In-Excusable (CRE) Excusable

ERE

Compensable Non- Compensable

Concurrent

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Concurrent Delay

(ERE) exceed (CRE) (CRE) exceed (ERE) (ERE) after completion date

Excusable Delay (ERE) 

In‐Excusable Delay  (CRE) 

Excusable Non Compensable  Delay 

In-Excusable Delay concurrent with shorter Excusable Delay yields a net Excusable Non Compensable Delay ONLY Time Extension is Granted Should be 

recovered 

Excusable Delay (ERE) 

In‐Excusable Delay  (CRE) 

Excusable Non Compensable  Delay 

In-Excusable Delay concurrent with longer Excusable Delay yields an Excusable Delay and Partial Compensation - Time Extension is Granted with prolongation cost

Excusable Compensable 

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Delay Analysis Techniques

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Prospective Delay Analysis: Analysis of facts associated with delay events during construction of a project and the estimation of their effect upon the planned completion date of a project. (Interim Extension of Time) Retrospective Delay Analysis: Analysis of facts associated with delay events after completion of the construction period of a project. (Final Extension of Time)

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Guidance Section 4

4. Guidelines on dealing with disputed extension of time issues after completion of the project – retrospective delay analysis 4.13 The table below summarises the types of analysis that can be conducted depending on the types of factual material available. An ‘X’ indicates the factual material that is required for a particular analysis, but in some cases there are alternatives, as indicated in the table:

Why Dispute Reached??

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Change Request Instruction or Proposal of new woks requested by any stakeholder may include: addition, omission, corrective action or preventive action.

Claim Submittal Request from one contracting party to another party for additional payment/ compensation, or/and extension of the time for completion, as result of change or any other event / issue.

Variation Order Description of the work to be performed including the time impact or/and cost impact if applicable, as result of change or claim.

Dispute Unresolved claim, and resolution methods are: negotiation, mediation, arbitration & litigation.

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Methods of Dispute resolving Negotiation

The most direct method for resolving any type of construction claim. Requires certain skills that reduce the gap between the negotiation parties. The objective: is to reach a solution that might be acceptable to both parties.

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Mediation When negotiation does not work, either because of lack of trust or a lack of skills, mediation may be an option. The mediator may be an individual or a team.

Dispute review boards The owner and the contractor select an independent neutral panel with construction experience when the contract is signed . Rather than waiting until the end of project to settle claims, (DRBs) resolve disputes as they arise.

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Arbitration It is usually a formal process performed by an independent professional arbitrator. Arbitration is voluntary. Arbitration does not require the use of lawyers

Litigation When none of the previous work and parties can not reach a settlement, the complaining party uses the other party in a court of law. Construction litigation is usually complicated lengthy, and expensive.

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ARBITRATION

Institutional vs. 'ad hoc' arbitration

Domestic vs. International arbitration (address is the difference)

Types of Arbitration

Arbitration agreement : The arbitration agreement is ordinarily a clause in a larger contract. or, post-dispute arbitration agreement.

Procedure, dispute, arbitrator panel, seat / legal place, duration, language, the applicable law and rules.

Arbitration award: Legally-binding and enforceable decision Appeal & recourse against an award

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Thank You

–Don’t Hesitate to Contact….

M.Maged