|
|
|
Message Board >
Understanding Prolongation Claims in Construction
Understanding Prolongation Claims in Construction
Page:
1
Guest
Guest
Jul 02, 2025
1:38 PM
|
In the complex world of construction, delays are not just inconvenient—they can have significant financial and legal consequences. One of the most critical issues that arise from delays is the prolongation claim. This article provides an in-depth understanding of Prolongation Claims, explaining what they are, why they arise, how to substantiate them, and best practices for both contractors and employers to manage them effectively.
What Are Prolongation Claims?
Prolongation claims refer to claims made by a contractor for compensation due to the extended duration of a construction project. These claims typically arise when the delay is caused by the client or factors beyond the contractor’s control, such as late approvals, scope changes, or failure to provide site access. Unlike acceleration or disruption claims, prolongation claims focus strictly on the financial impacts of the project's extended duration rather than increased pace or inefficiencies.
Common Causes of Prolongation Claims
There are several events and circumstances that may lead to prolongation claims, including:
Late Issuance of Drawings or Instructions
When the client or consultant fails to provide essential design documents on time, the contractor may face delays.
Change Orders and Variations
Adjustments to the original scope of work may require additional time to execute.
Site Access Delays
Inability to access the site or specific areas due to the employer’s inaction.
Approval Delays
Late approvals of materials, subcontractors, or procedures can stall progress.
Force Majeure or Exceptional Circumstances
While often treated under separate clauses, natural disasters or government actions can contribute to the grounds for a prolongation claim if the event indirectly involves employer responsibility.
Key Elements of a Valid Prolongation Claim
For a prolongation claim to be successful, the contractor must substantiate it with clear, compelling evidence. The following components are crucial:
Entitlement to Claim
The contract must provide a legal basis for the contractor to claim compensation. Standard forms like FIDIC or NEC often outline the conditions under which such claims can be made.
Cause and Effect Link
There must be a demonstrable connection between the employer’s actions (or inactions) and the delay.
Actual Delay
The delay must be critical, meaning it affects the project completion date and not just interim milestones.
Additional Costs
The contractor must provide detailed evidence of extra costs incurred due to the extended time on site.
Timely Notice
Most contracts require the contractor to notify the employer promptly of any delays. Failure to provide timely notice can invalidate the claim.
Types of Costs Recoverable in Prolongation Claims
The financial compensation in prolongation claims typically includes:
Site Overheads: Ongoing costs like site management, security, welfare facilities, etc.
Head Office Overheads: A proportionate share of the contractor's central administrative expenses.
Equipment and Plant Costs: Continued usage or idling of machinery and equipment on site.
Labor and Material Price Escalation: Increased costs due to inflation or market changes.
Loss of Productivity: In cases where resources are underutilized due to employer-caused delays.
How to Prepare a Strong Prolongation Claim
To increase the likelihood of a successful claim, contractors should:
Maintain Accurate Records
Daily site reports, correspondence, meeting minutes, and photographs can all serve as valuable evidence.
Use Delay Analysis Techniques
Techniques like Time Impact Analysis (TIA) or As-Planned vs. As-Built comparisons help demonstrate delay causation.
Engage Expert Consultants
Delay and quantum experts can provide independent assessments that support the claim’s validity.
Comply With Contract Requirements
Adhering to notification and documentation requirements is essential for enforceability.
Defending Against Prolongation Claims
From the employer's perspective, it's essential to challenge unsubstantiated or exaggerated claims. Key strategies include:
Requesting Detailed Evidence: Ensure the claim is backed by comprehensive documentation.
Assessing Concurrency: Determine if there were concurrent delays for which the contractor is responsible.
Auditing Cost Calculations: Review the method used to calculate additional expenses.
Engaging Independent Reviewers: Employ external consultants to assess the legitimacy of the claim.
Case Law and Industry Standards
Several legal precedents and industry guidelines provide insight into how courts and arbiters assess prolongation claims. For instance, in Walter Lilly & Co Ltd v Giles Patrick Cyril Mackay (2012), the court upheld the contractor’s right to claim for prolongation costs based on the employer’s delay and recognized the importance of reliable record-keeping and cost evidence.
Standard contract forms, like FIDIC 2017, also address prolongation under clauses dealing with extensions of time and claims, emphasizing the importance of notice and substantiation.
Conclusion
Prolongation claims play a critical role in balancing the risks and responsibilities between parties in a construction contract. For contractors, they represent a legal avenue to recover justifiable costs incurred due to delays beyond their control. For employers, understanding these claims is vital to managing project risk and avoiding disputes.
The key to success lies in clear documentation, timely communication, and professional analysis. With the right approach, both contractors and employers can navigate prolongation claims in a way that protects their interests and fosters fair outcomes
|
Augustine max
Guest
Jul 29, 2025
12:07 PM
|
If you're a homeowner in League City, TX, you already know how unpredictable the weather can be — heavy rain, windstorms, and hail can strike without warning. When your roof takes the hit, even minor damage can lead to major problems. At Frost Roof, we understand the urgency and the stakes. That’s why we offer reliable, fast, and expert roof repair league city tx that protects your home and restores your peace of mind.
|
Post a Message
www.milliescentedrocks.com
(Millie Hughes) cmbullcm@comcast.net 302 331-9232
(Gee Jones) geejones03@gmail.com 706 233-3495
Click this link to see the type of shirts from Polo's, Dry Fit, T-Shirts and more.... http://www.companycasuals.com/msr
|
|
