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When to put forward an EOT claim in case of ongoing Employer Risk Event

3 replies [Last post]
Kaif Mohsin
User offline. Last seen 6 years 37 weeks ago. Offline
Joined: 15 Feb 2011
Posts: 44
Groups: GPC Qatar

Dear All,

I would like to know that is it correct to submit an EOT even before the conclusion of an Employer Risk Event? In the project I am working on there has been a delay in the delivery of one of the Client supplied material. The installation of the same item is on the critical path as per the approved Baseline programme. As of the information at hands, it may take another 3-4 weeks before it reaches the site. In the meanwhile notification for the delay has already been send to the CR.

So, can we submit an EOT claim now or it's better to wait for the actual delivery of the item in order to have complete information about the delay caused?

Best Regards,

Kaif Mohsin

Replies

Kaif Mohsin
User offline. Last seen 6 years 37 weeks ago. Offline
Joined: 15 Feb 2011
Posts: 44
Groups: GPC Qatar

Thanks a lot Mr. Justin and Mr. Rafael for your valuable advices. Extra thanks to you Mr. Rafael for highlighting all the critical issues. Fortunately enough our contract does not requires any specific procedure to be followed for the delay notification. So, just sending a simple letter has done in our case. I totally agree with you Mr. Rafael that any further delay will make the TIA analysis more cumbersome. So, I have started working on the claim :)

Best Regards,

Kaif Mohsin

Rafael Davila
User offline. Last seen 1 day 9 hours ago. Offline
Joined: 1 Mar 2004
Posts: 5229

I believe EOT shall be submitted within reasonable time after start of impact no matter if delay have not concluded. In the notice of delay I would expose my plan on how I will handle the claim. If the delay have not concluded just make it clear on every ETO request you will submit further requests on regular windows until it ends.

Very frequently delay continues for several months because the other side believes there is not such delay on his part. If latter comes out you are not entitled to all or some of the time you claim a surprise might surface, you will be liable for liquidated damages for time you thought you was entitled. Happy birthday if a long delay!

The longer you wait the harder it will be to analyze the delay using TIA and you will bear the burden to make your case using other methods that most probably will anyway require some windows approach.

To me it makes no sense to delay your EOT claim any longer than two update periods. It will be easier if you submit your TIA on separate windows from the beginning, preferably one per update period.

It is known selected windows can change outcome of the analysis, that it is better to use update periods as your windows period even when unequal windows is an option. An exception to consider is when delay started close to next update period and it makes sense to consolidate the first window.

Read the contract as on public works notice of delay is not official unless you follow specific procedures, a siple letter might not be enough, not even a discussion on meetings and other correspondence.

From:

http://www.ronwinterconsulting.com/Time_Impact_Analysis.pdf

More Useable:

· Short duration of delay.

Less Useable:

· The less linear
· The more mitigation was accomplished during the delay
· The longer the time period between the schedule update and the start of the delay. 

 photo contract_vs_change_order_zpsaae51ec2.jpg

Best Regards,

Change Order

Justin James
User offline. Last seen 5 years 8 weeks ago. Offline
Joined: 19 Aug 2009
Posts: 32
Groups: GPC Qatar, TILOS

Dear Kaif,

Before submitting your EOT claim, you must notify client your entitlement in accordance with your contract and try to record your delay damages in minutes / correspondences, when you discovered the full effect of the delay event you can submit you claim, However mitigating owners delay is one of the responsibility of contractor, Hence you must prove your EOT period is beyond recoverable.

Regards,

Justin James.