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Extension of time claim in UAE Countries (Ramadan Month

14 replies [Last post]
Sun, 2006-08-27 02:22
Haresh Jayanth
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I require a solution for an Extension of time claim in UAE Countries:

Suppose I get an extension of time of one month from the client / consultant. And if the project one month extension falls in Ramadan month, wherein the productivity of Labors is comparatively very less.

The question to be answered is:
Can our company claim extension based on factor that because of the client’s one month extension falls in the month of Ramadan, they have to give further extension , on the fact that the labor productivity are less.???

Regards

Haresh

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Replies

Mon, 2006-09-11 05:03
#1
ashraf alawady
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Hi,Clive

I agreed completely with your assumptions, analysis and view.

can you tell me your opinion in the possible proposal to give the cotractor one month EOT and to compensate him by paying the addetional cost for accelerating the works and working extra hours above the normal working hours in order to palance the required daily productivity.
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Wed, 2006-09-06 21:01
#2
Clive Randall
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Looking at the original question it raises some interesting issues.

I assume that the contractor applied for an EOT and that EOT was calculated on the basis of a delaying event occassioned by the client.
The assesment by the engineer was that the delay was one month.
Was the contract due to end before Ramadan and the extension prolonged the contract into Ramadan. If this is the case the project calendar should have been modified and reflected in the EOT application. If the project was originally a period longer than 12 months the project calendar should already reflect Ramadan for the previous Ramadan period and can be transffered to the impacted programme. Thus the delays applied for in the EOT should fully consider the Ramadan affect.
Has the extension applied for been reduced by the Engineer for reasons associated with the Engineers conjecture that no loss of productivity occurs in Ramadan. If so the contractor can present contemporary justification for this.
Without the answers to the above it would appear difficult to ascertain the merits of the claim.
However, on the assumption that completion should have occured prior to Ramadan and the extension has caused the works to run into Ramadan it appears justifiable that the extension should be granted with full consideration of the lower productivity caused by Ramadan and the contractors extension should be factored up for this. Again however I assume that the extension was awarded after completion of the contract so an analysis of the events during Ramadan should be assembled to ascertain the actual progress achieved.
Their is no easy answer to this problem, considerable work must be undertaken to justify the claim.
Clive
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Wed, 2006-09-06 08:57
#3
ashraf alawady
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Hi,
I beleive that the engineer/client has to consider all thos cases during their study and analysis of the contractor’claim .
the situation will be different from case to case and the recommendation will be changer accordigly.
however, the contractor has to submit his claim with the impacted programe and all other supporting documents in order to support his view .
The engineer/client has to review the contractor’s claim taking into consideration all the events and causes.
The client may insist to complete the work within one month EOT and pay to the contractor the extra cost to work extra daily working hours in ramadan(to compensate the low of productivity due to the less in normal working hours) which is allowable specially for non muslim pepole.
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Wed, 2006-09-06 11:41
#4
Francis Moyalan, ...
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Mr Hareesh,

My opinion on this issue is something for a contractor to think well before finalisng a clause 14 (contract prog widely known in UAE) is to set the calendar very calculative well in advance....

See in your case the eot period which is approved falls in the period of ramadan and there is only 60% of the normal productivity....So the very next point which the engineer will make when the contractor asks for an extra time claim for lost productivity is ......why the calendar which was earlier set for the construction period not showing the decreased productivity?????and now when the eot is awarded u need to get more time for the same which is illogical..

so care should be taken well in advance while setting the calendar or your CL-14 need to be resource loaded for substantiating the productivity loss based on the manpower histogram (which ultimately is based on the productivity rates...)

Am I logical????????????????

Francis
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Sun, 2006-09-03 13:50
#5
David Hatwell
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Respectfully I’m going to have to disagree. Look at it from a cost perspective, you have two components of lost costs in this specific example.

If, as a result of the LOP, the project loses time then you have an extended general condition loss (supervision, trailers, other site overhead expenses) due to being on the project longer than anticipated. With a LOP claim you will also calculate the lost labor hours. That is the number of lost laborer hours which occured as a result of the conditions.

You certainly can have one without the other, but in this case it sounds like the OP has both.

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Sun, 2006-09-03 12:04
#6
Vishwas Bindigana...
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Calculating loss of productivity (and) considering reduced % of working time is the same thing.
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Sun, 2006-09-03 11:37
#7
David Hatwell
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In this case Ramadan is similar to the effects of pushing your work into a winter weather calendar. Due to delays, which (I assume) were not the responsibility of the contractor, the contract has been pushed into a period in which productivity will be decreased. As long as you never anticipated working during this Ramadam, it should be an easy claim to pursue.

You can compute your productivity loss, and corresponding delay in one of four ways: 1) reserve your rights for the additional time, perform the work and provide a measured mile analysis. 2) Use a measured mile analysis of a similar project and similar scope of work 3) Establish a reasonable productivity loss from an industry standard - don’t know if they exist for Ramadan or 4) Calculate you best estimate of the losses.

Remember you will have two financial impacts: the lost hours due to non-productivity and the delay costs due to lost time.

Cheers
Dave
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Wed, 2006-08-30 09:10
#8
Andrew Flowerdew
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John & Jawad have the correct idea
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Wed, 2006-08-30 01:06
#9
Vishwas Bindigana...
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Haresh,

Convert the time extension into ’Man-Hours’ and then apply the EOT to the project.

The effect -

Since the working hours are reduced to 60 % of the normal during the month of Ramadan, the extension gets applied appropriately. And, the client / consultant won’t have any issues.

Secondly, when you are doing your TIA (Time Impact Analysis), you have to assess your risks properly. As such, you should have given due consideration to Ramadan, Holidays, Weather, etc.

Hope this helps.

Happy Planning!

Vishwas
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Tue, 2006-08-29 02:09
#10
Jawad Al-Nimri
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Dana,

The Base of entitlement was not RAMADAN itself, it was shifting the activities (due to another issue-causation) into Ramadan month which is of low productivity and low working hours….etc. The difference in productivity assumed by the planner in the Ramadan month is expressed in the Calendar.

We are not saying "Ramadan Came" so we need EOT, instead we say we could have completed one month before Ramadan you forced us 2 months one of them is Ramadan and because the productivity of Ramadan is lesser than any other month by the amount (detailed as assumed in the calendar) the granted EOT must be greater than 2 months.

Mr. Kumar says we did not take the effect of Ramadan into consideration when preparing TIA and requesting the EOT can we modify the requested EOT?
The Answer is that: in the current phase the employer considers himself done with this issue, and it is difficult to convince him to follow the analysis again, but the right of the Contractor to modify the Analysis is maintained under the law if he reserved the right and notified his intention to do so,,,,,


John Whitney, I totally agree and it is a legitamate right to the Contractor,

Regards,
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Sun, 2006-08-27 21:42
#11
John Whitney
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Haresh,

In my view, if the contract was originally not including Ramhadan, yet the EoT pushes you into the Ramahdan period then you would certainly be entitled to extra EoT as a result. This is the same principle as having a contract that was due for completion before winter yet where the EoT pushes the end date you into the winter working period . This is a well-recognised concept in the UK where it is known that winter working produces loss of productivity.

I would go for it on this basis.

Cheers,

John
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Sun, 2006-08-27 12:28
#12
Dana Qandah
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Jawad

" However if both parties signed the agreement then your chances is not that much. but you right is always maintained under the law (remember this fact)"

Ya but we dont have any extension of time for ramadan in jordan , so it is not coverd by the law.

Just for information, in jordan EOT can be gained for winter seasons, decrease in labour ...etc but not ramadan

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Sun, 2006-08-27 04:47
#13
Jawad Al-Nimri
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HI,
I do not know what was the method you used in evaluating the EOT, but if you used TIA then Ramadan effect should have been considered in the Activity Calenders you used.

If you used The TIA method in proving your entitled EOT, and since you passed the establishing entitlement phase you can recall for a revised TIA. However if both parties signed the agreement then your chances is not that much. but you right is always maintained under the law (remember this fact).
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Sun, 2006-08-27 02:38
#14
Sunil Kumar
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Hi There,

That was good question but as a contractor a claim is made based on the fact you foresee the holy month of Ramadhan like you do when you do in your baseline programme. Once you have submitted and agreed the mutually with the client / consultant on your "CLAIM" i dont think you could ask for futher EOT .

Regards
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