© Turner & Townsend plc December 11
making the difference
FIDIC, extension to Time for Completion and
liquidated damages in the Middle East
April 2014
2
FIDIC, extension to Time for Completion and liquidated damages in the
Middle East
Timetable
Timetable
Time Topic
5 mins Timetable
8 mins FIDIC Range of Contracts
3 mins Contractual Roles
8 mins The Contractor and Clause 8
4 mins The Contractor and Sub Clause 20.1
2 mins Clause 8 and relevant Sub Clauses
5 mins The Engineer
10 mins Engineer’s calculation and determination
5 mins Employer’s Claims & Delay Damages
10 mins
Demonstration and illustration of unliquidated and liquidated
damages
5 mins Conclusion
Questions & Answers
Richard Chamberlain
© Turner & Townsend plc December 11
making the difference
FIDIC Range of Contracts
4
GREEN BOOK
4
Short Form of Contract
Recommended for
building or engineering
works of a relatively small
capital value, for relatively
simple work, or work of a
short duration.
5
RED BOOK
5
Conditions of Contract
for Construction
for Building and Engineering
Works Designed by the
Employer
6
PINK BOOK
Construction
Contract MDB
Harmonised Ed
(Version 3: June
2010)
Pink Book project is
MDB financed and a
development of the Red
Book
(Multilateral Development
Banks who provide
finance for projects in
developing countries)
6
7
YELLOW BOOK
7
Conditions of Contract for
Plant and Design-Build
for Electrical and
Mechanical Plant and for
Building and Engineering
Works designed by the
Contractor
8
SILVER BOOK
8
Conditions of Contract
for EPC/Turnkey
Projects
.
9
GOLD BOOK
9
Design, Build and
Operate Projects
(2008)
10
WHITE BOOK
10
Client/Consultant Model
Services Agreement
(4th Ed 2006)
© Turner & Townsend plc December 11
making the difference
Contractual Roles
13
FIDIC & Contractual Roles
• Complete design
• Progress the works in a
regular and diligent
manner
• Safe manner of work
• Workmanship
• Consultancy Agreement
• Responsible for Design
• Supervision of
Contractor
• Provide possession of
the Site
• Provide information
• permits and consents
• Appoint the Engineer
• Payment
• Instructions
• Variations
• Certifier of extensions
to Time for Completion
• Certifier of Payments
• Determinations
Engineer
Obligations
Employer
Obligations
Contractor
Obligations
Engineer
Administers
Contract
making the difference
The Contractor & Clause 8
15
The Contractor
■ The Contractor in FIDIC is :
■ the master of the programme
■ revises the programme when necessary
■ notifies the Engineer of the causes of delay to the
programme (Clause 8 and 20)
■ consults with the Engineer to assist in the determination
of extension to the Time for Completion
15
16
Clause 8
■ 8.1 Commencement of Work
■ 8.2 Time for Completion
■ 8.3 Programme
■ 8.4 Extension of Time for Completion
■ 8.5 Delays Caused by Authorities
■ 8.6 Rate of Progress
■ 8.7 Delay Damages
■ 8.8 Suspension of Work
■ 8.9 Consequences of Suspension
■ 8.10 Payment for Plant and Materials in Event of Suspension
■ 8.11 Prolonged Suspension
■ 8.12 Resumption of Work
16
17
Sub Clause 8.3 Programme
■ Summary:
■ The Contractor shall submit a programme to the
Engineer as required in the Contract.
■ The Employer's Personnel shall be entitled to rely upon
the programme when planning their activities.
■ The Contractor shall promptly give notice to the
Engineer of specific probable future events or
circumstances which may delay the execution of the
Works.
■ If the Engineer gives notice to the Contractor that a
programme fails the Contractor shall submit a revised
programme to the Engineer in accordance with this Sub-
Clause.
17
18
Clause 8.4: Extension of Time for Completion
18
■ Summary
■ The Contractor shall be entitled to an extension to Time for
Completion, if delayed by any of the following causes:
■ (a) a Variation
■ (b) a cause of delay under a Sub-Clause of these Conditions
■ (c) exceptionally adverse climatic conditions
■ (d) any Unforeseeable delay, impediment or prevention caused
by Employer
■ ….”the Contractor shall give notice to the Engineer in
accordance with Sub-Clause 20.1 [Contractor's Claims]”
■ ….”the Engineer shall review previous determinations and may
increase, with the Employer's written approval, but shall not
decrease, the total extension of time”
making the difference
The Contractor and Sub Clause 20.1
20
Tension between Clause 8.3 and 20.1
Does probable = aware ?
Cl 8.3: The Contractor shall promptly
give notice to the Engineer of specific
probable future events…
Clause 20.1: The notice shall be given
as soon as practicable, and not later than
28 days after the Contractor became
aware or should have become
aware, of the event or circumstance
21
Avoiding “probable and aware”
Tension between 8.3 and 20.1
• Notices are in a state of flux
• Engineer can time bar
• Engineer’s Determination can only be overturned in arbitration
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Cl8.3&20.1
"Probable"and"Aware"are
merged
Cl20.1
FullyDetailedClaim
(Interim)
Cl20.1
FullyDetailedClaim
(Interim)
Updateorfinalafterendofeffects
© Turner & Townsend plc December 11
making the difference
Clause 8 Matrix
23
Clause 8 Matrix of potential causes of delay
© Turner & Townsend plc December 11
making the difference
The Engineer
25
The Engineer - Generally
■ The Engineer is a quasi arbitrator and has two functions,
namely:
■ Agency function, where s/he administers the Contract on
behalf of the Employer
■ Decision making function, where s/he certifies time and
money
■ When in the agency function, the Engineer must not
misapply or misunderstand the Contract
■ When in the decision making function the Engineer must be
independent and fair to both the Employer and the
Contractor
■ Over certification by the Engineer is negligence
■ The Engineer has no duty of care to the Contractor
25
26
The Engineer - Certification
■ The Engineer
■ acts as the Employer’s agent
■ must consult with the Contractor and Employer when
differences arise
■ must carry out fair determinations
■ must calculate all certificates in a logical and methodical
manner
© Turner & Townsend plc December 11
making the difference
Engineer’s calculation and determination
28
Logical and methodical process
Step 1 -
Investigation
Records
Step 2 -
Summary
Data basing
Analysis
Graphing
Step 3 -
Verification
Method
selection
Step 4 -
Analysis
Application
of method
Step 5 -
Graphical
Finalisation
of Report
Investigation Conclude
Step 6 -
Award
Engineer
determines
entitlement
Analysis
Review
29
Step 1 - Investigation
Step 1
Investigation
Step 2
Summary
Step 3
Verification
Step 4
Analysis
Step 5
Causation
Step 6
Liability
Information
Gathering
- Meetings interviews with
project team
- Orientation meetings
with client
- Document review
(schedule of likely
document types included
below)
Action Output
No external
deliverables
Aims and
considerations
Internally:
- Chronology
- Document mapping
- Sequence sketches
- General overview notes
Analysis route to be
matched to information
available and issues
identified.
Initial aim is to develop
robust overview as-planned
v as-built.
Investigation
Comment
30
Step 1 - Typical record types
Programme
•Baseline Programme
•Revised Baseline programmes
•Progress Programme Updates
Progress Records
•Progress Reports
•Marked up progress drawings
•Progress Photos
•Site diaries
•Minutes of Site Meetings
ContractDocuments
•Drawings
•Specification
•Conditions of Contract
DrawingsandproductionRecords
•Iso / spool dwg tracking schedules
•Iso / spool fab /delivery records
•Drawing registers
•Inspection and test records
• Reactor vessel / plant item design, manufacture and
delivery records
•FEED design details
Payment records
•EPC contractor applications
•Supplier / sub-contractor applications
Project Admin Records
•Client instructions
•Site Instructions
•Change notices
•Delay Notices
•Correspondence
•Any claims submissions to date by Tecnicas Reunidas
Step 1
Investigation
Step 2
Summary
Step 3
Verification
Step 4
Analysis
Step 5
Causation
Step 6
Liability
31
Step 2 - Summary
Step 1
Investigation
Step 2
Summary
Step 3
Verification
Step 4
Analysis
Step 5
Causation
Step 6
Liability
Establish baseline
and actuals
- Identifying Baseline
programme from
candidates.
- Compilation /
verification of as-built
records to generate
robust As-built
programme.
-Sense checking / cross
referencing as-built
records for resilience
Action Output
As-planned v As-
built
Aims and
considerations
-Reasoned selection of
baseline
-Verifiable as-built
- Notes on verification and
sources of data.
As-built programme
element potentially as
summary level in order to
deliver early overview.
Extent to which summary
required depending upon
availability and quality of
records, time available and
consideration of issues.
Summary
Comment
32
Step 3 - Verification
Step 1
Investigation
Step 2
Summary
Step 3
Verification
Step 4
Analysis
Step 5
Causation
Step 6
Liability
Interrogation of
T&T output
-Review of Step 2 outputs
(predominantly As-
planned v As-built).
-Identification of
significant programme
variance (delay /
sequence change).
-Identify key events.
- Develop analysis
windows.
Action Output
Key Decision point Aims and
considerations
-Definition of key events.
- Definition of Analysis
windows/time slices.
Step presents opportunity
to review delays identified
and to consider potential
causation/ liability
positions.
Option to substantially
modify approach based on
findings to date.
Verification
Comment
33
Step 4 - Analysis
Step 1
Investigation
Step 2
Summary
Step 3
Verification
Step 4
Analysis
Step 5
Causation
Step 6
Liability
Detailed
investigation
-Review progress by sub
dividing the project into a
series of windows and
examining each window in
detail
-Analysis will deliver
extent and causes of
delays in each window.
- development of view of
actual critical path in each
window.
Action Output
No external outputs Aims and
considerations
Internally:
-Windows analysis and
graphics.
- Initial report outline.
- Notes on causation.
- Notes on critical path
and critical delays.
Detailed analysis stage.
This stage is likely to be
time consuming.
Initial approach of
investigation of most
significant areas of delay
may be appropriate.
NOTE - A selective
approach cannot deliver
certainty and often
increases time and cost to
prepare opinion in the long
term.
Analysis
Comment
34
Step 5 - Causation
Step 1
Investigation
Step 2
Summary
Step 3
Verification
Step 4
Analysis
Step 5
Causation
Step 6
Liability
Finalising Report
- Finalising delay in each
window and cumulative
critical delay.
- Causation findings set
out.
- Drafting Preliminary
Expert opinion.
Action Output
Opinion Aims and
considerations
- Summary table of delay
events, extent, whether
critical, dates during
which delay occurred, etc
– to enable quantum
assessment to be
established.
In order to comply with
initial phase timescale
significant short cuts in
analysis and causation
phases are likely to be
necessary – hence the
preliminary nature of the
report.
Causation opinion should
enable issues behind
critical delays to be
identified and settled.
Causation
Comment
35
Step 6 - Liability
Step 1
Investigation
Step 2
Summary
Step 3
Verification
Step 4
Analysis
Step 5
Causation
Step 6
Liability
Legal views
- Preliminary report
should enable legal
assessment of liability
issues.
- Quantum (loss &
expense, liquidated
damages) assessment
should be available
Action Output
Output Engineer’s
Determination
- Output likely to be
award or non award of the
extension to Time for
Completion.
Preliminary opinion should
be suitable for use in
dispute resolution.
Liability
Comment
making the difference
FIDIC & Delay Damages
37
Unliquidated or general damages
Employer breaches:
• interference and prevention
• late supply of information
• failure to give possession
Result of Employer breaches is Contractor’s claims for:
•delay
• disruption
• prolongation
• extension to the Time for Completion
• additional payment
In summary, the Contractor’s remedy for an Employer’s breach
is recovery of general or unliquidated damages.
(Note: Unliquidated damages are assessed after the
breach)
38
Liquidated damages
Liquidated is a word recognised in the Shorter Oxford Dictionary and
from as early as 1574 and is defined as ‘ascertained and fixed’
Questions that arise with respect to liquidated damages:
• Are they an exclusive remedy for a breach?
• an agreed price to be paid for a breach or non performance
• Is an agreed price for a breach a penalty?
• is the liquidated damage disproportionate to the loss?
• Can the parties agree any price they wish?
• freedom of contract –v- penalty
• What is a genuine pre-estimate of loss?
• is a genuine precise pre estimate impossible to determine?
•What is the purpose of liquidated damages?
• from Contractor’s perspective it takes away uncertainty and provides
an incentive to perform
• for Employer, the burden of proving actual loss
39
Middle East (FIDIC delay damages –v- Liquidated damages)
Qatar
• Arabic term for liquidated is fines
• principle of ‘freedom of contract is endorsed
• principle of ‘good faith’ and bound by terms agreed
• pre estimates of liquidated damages are permitted
• no distinction between penalties and liquidated damages
• FIDIC delay damages replaces liquidated damages
• a genuine pre estimate is an important concept
• exhaustive remedy depends on drafting
• adjustment if no loss is incurred
• superseding or contributory fault reduces compensation
• liquidated damages provide certainty in contract
• liquidated damages are uncertain in law due to exceptions and
circumstances
A guide to liquidated and ascertained damages for the Qatar
construction sector, Warren L, Hall A (2013), Clyde & Co
40
Middle East (FIDIC delay damages –v- Liquidated damages)
United Arab Emirates
Construction contracts provide for:
• pre determined amount of damages to be paid by Contractor for late
completion of a project
• liquidated damages are an incentive for the contractor to perform
• liquidated damages removes the burden of ascertaining loss
The Courts have determined:
• liquidated damages is a secondary obligation
• delay fines in contracts are a penalty clause and a secondary
obligation
• termination is fatal to liquidated damages
• liquidated damages are an estimate and actual loss is preferred
• no loss then liquidated damages should be repudiated
• the application of liquidated damages is subjective and prone to the
application of exceptions
Liquidated damages under UAE and UK law, a comparison
(2014), Ibrahim A, Mullen J, Fenwick Elliot
41
Middle East (FIDIC delay damages –v- Liquidated damages)
Sultanate of Oman
Royal Decree No. 29/2013 enacting the Civil Code issues such as liquidated
damages relating to building contracts (Muqawala) is codified as follows:
• if the subject matter of obligation is not a sum of money, the contracting
parties may determine the amount of compensation in advance by making
provision of same in the contract or in a subsequent agreement
• In all cases, the court may, upon application of either of the parties amend
such agreement to make the compensation equal to the damage , and any
agreement to the contrary shall be null and void
Result :
• courts may award liquidated damages
• liquidated damages must be a reasonable assessment of the loss
• Court may reopen liquidated damages and award general damages
Construction Disputes in Oman – Here and Now (2013), Curtis, Mallet
– Prevost, Colt & Mosie LLP
42
Summary (FIDIC delay damages –v- Liquidated damages)
Principles surrounding liquidated damages :
• freedom of contract is acceptable practice
• parties free to agree liquidated damages
• liquidated damages must be reasonable estimate
• liquidated damages can be reopened by the courts
• liquidated damages may fall away and be substituted by general
damages
Conclusion: In respect of the application of liquidated damages in
the Middle East there is no such thing as certainty
making the difference
Presenting extensions to Time for
Completion
making the difference
Visualising the Critical Path
45
DN65
Contract 206
DOLJ County Limit to
Slatina
21+200 to 49+000 Km
DN65
Contract 207
Slatina to Pitesti County
Limit 54+000 to
90+000 Km
DN65
Contract 208
Pitesti County Limit to
Pitesti = 90+000 to
115+000Km
NR65B
Pitesti County Limit to
Pitesti
46
Km 21+200
Km 115+000
Km 0+000
Km 7+400
Contract
206
Contract
207
Contract
208
A1
A2
A3
A4
A5
A6
A7
A8
A7
A6
A5
A4
A3
A2
A1
A1 A2 A3
A4
A5
A6
A7
A8
Saru Forest
Negreni Lane
B1- km 28+1
79
B2 - km 33+1
80
B3 - km 43+550
B4 - km 44+850
B5 - km 48+250
B6 - km 48+570
B7 - km 59+050
B6 - km 70+265
B5 - km 70+650
B4 - km 71
+863
B1- km 75+634
B2 - km 82+1
91
B3 - km 86+476
B2 - km 1
+440
B1- km 3+365
B3 - km 1
09+1
37
B4 - km 1
09+067
B5 - km 1
07+1
70
B6 - km 96+300
B7 - km 96+088
B9 - km 92+500
B8 - km 94+700
k
m
2
1
+
2
0
0
k
m
2
4
+
6
5
0
k
m
2
9
+
6
9
0
k
m
4
1
+
6
5
0
k
m
4
2
+
1
8
0
k
m
4
7
+
3
6
0
k
m
4
9
+
0
0
0
k
m
7
+
4
0
0
k
m
3
+
4
0
0
k
m
1
1
5
+
0
0
0
k
m
1
0
9
+
0
0
0
k
m
1
0
6
+
4
0
0
k
m
1
0
0
+
5
0
0
k
m
9
4
+
5
0
0
k
m
5
4
+
0
0
0
k
m
5
8
+
0
0
0
k
m
6
0
+
5
0
0
k
m
6
9
+
5
0
0
k
m
7
2
+
6
0
0
k
m
7
5
+
5
0
0
k
m
8
1
+
0
0
0
k
m
8
3
+
2
0
0
k
m
9
0
+
0
0
0
k
m
3
2
+
6
0
0
k
m
3
7
+
2
0
0
Key
= Bridge:- Number &
Chainage
B1 - km 75+634
= Programme Window 
Timeslice
A7
= Tree Felling
47
Construction Methods
Stage 1 : Original Road Profile and Structure Exhibit C-2 : Typical Cross Section
Nr. 1
Exhibit C-2 : Typical Cross Section
Nr. 1 shows the proposed
rehabilitated road profile in black
lines. Original road profile shown in
broken green line
48
Stage 2 : Topsoil Removed
Working Drawings Non-Critical
A 1km stretch of carriageway is
closed and the topsoil removed
from the banks and stored for
future use
Construction Methods
49
Stage 3 : Excavation
Working Drawings Non-Critical
The existing bank is excavated to
enable the new profile of the
rehabilitated road to be formed and
the foundation layers placed
Construction Methods
50
Stage 4 : Fill to Form Bank Profile
Working Drawings Non-Critical
A portion of the excavated area is
filled with earth to form the new
road bank profile and enable work
to begin on the foundation layers of
the road
Construction Methods
51
Stage 5 : 4% Lime Sub-Base
Working Drawings Non-Critical
A 15cm deep sub-base layer made
up of soil treated with 4% lime is
laid
Construction Methods
52
Stage 6 : Granular Sub-Base
Working Drawings Non-Critical
A 35cm deep granular sub-
base layer is laid and
compacted
Construction Methods
53
Stage 7 : Stabilised Ballast 6%
Cement
Working Drawings Non-Critical
A 25cm layer of natural aggregates
stabilised with 6% cement is laid
using shuttering to the outer edge
Construction Methods
54
Stage 8 : Regulating/Base Course
Working Drawings Critical
A 4cm base course is laid across the
carriageway together with a
regulating course where necessary
to achieve the proposed road profile
Construction Methods
55
Stage 9 : Binder Course
Working Drawings Critical
A 4cm binder course is laid on top
of the base course
Construction Methods
56
Stage 10 : Fill up to Base Course
Level
Working Drawings Non-Critical
The new bank is filled to underside
of the stabilised ballast layer
Construction Methods
57
Stage 11 : Identical Works to Opposite
Carriageway
The same 1km stretch of the
opposite carriageway is closed and
stages 1 to 10 inclusive are carried
out to that side (construction up to
binder course)
Construction Methods
58
Stage 12 : Wearing Course to First
Carriageway
Working Drawings Critical
A 4cm wearing course (MASF16) is
laid to the first carriageway
Construction Methods
59
Stage 13 : Wearing Course to Opposite
Carriageway
Working Drawings Critical
A 4cm wearing course (MASF16) is
laid to the opposite carriageway
Construction Methods
60
Stage 14 : Fill to Shoulders
Working Drawings Non-Critical
The remaining section of the new
bank is filled. During this process a
small length of one side of the
carriageway is closed to carry out
the work
Construction Methods
61
Stage 15 : Topsoil to Banks
Working Drawings Non-Critical
Exhibit C-2 : Typical Cross Section
Nr. 1
Constructed
The new banks are covered with
topsoil using the material removed
in stage 2
Completed Road
Construction Methods
making the difference
Photographs to illustrate
the critical path
63
South Central Depot Improvement Contract
Littlehampton Depot
Delay Event 1: Bellmouth:
(Entrance to the site and car park and work which has encountered
a critical path delay of 34 days)
Volume 1:
7.0 EXTENSION OF TIMEPARTICULARS
DELAY EVENT 1
64
South Central Depot Improvement Contract
Littlehampton Depot
Delay Event 2: Upsidings:
(An area of work located between the cleaning shed and train
washer and adjacent the car park and that has encountered a critical
path delay of 42 days)
Volume 1:
7.0 EXTENSION OF TIMEPARTICULARS
DELAY EVENT 2
65
South Central Depot Improvement Contract
Littlehampton Depot
Delay Event 3: Path 6
(An elevated reinforced concrete pathway and canopy located
between siding 3 and 4 in the “Backsidings” and that has
encountered a critical path delay of 20 days)
Volume 1:
7.0 EXTENSION OF TIMEPARTICULARS
DELAY EVENT 3
66
South Central Depot Improvement Contract
Littlehampton Depot
Delay Event 4: PSU
(The upgrade of the power supply that is located adjacent the car park
and which has caused a critical path delay of 81 days)
Volume 1:
7.0 EXTENSION OF TIMEPARTICULARS
DELAY EVENT 4
67
South Central Depot Improvement Contract
Littlehampton Depot
Delay Event 5: ETE
(The late installation of electrical traction engineering, which has
resulted in a critical path delay of 17 days)
Volume 1:
7.0 EXTENSION OF TIMEPARTICULARS
DELAY EVENT 5
68
South Central Depot Improvement Contract
Littlehampton Depot
Delay Event 6: Car Park Works
(The late construction of the car park, which has resulted in a
critical path delay of 41 days)
Volume 1:
7.0 EXTENSION OF TIMEPARTICULARS
DELAY EVENT 6
making the difference
Modelling the critical path
70
Dalston Junction Station
70
71
71
72
Construction Sequence
72
73
Piles
73
Piles
74
Pile Caps
74
Pile Caps
Piles
75
Walls & Columns
75
Pile Caps
Walls
Columns
Piles
76
Podium Steel
76
Pile Caps
Walls
Columns
Podium Steel
Piles
77
Pile Caps
Walls
Columns
Podium Steel
Piles
Trackslab
Trackslab and Platforms
77
Trackslab Trackslab
Platforms
78
Temporary Supports
78
Pile Caps
Walls
Columns
Podium Steel
Piles
Temporary Supports
Trackslab
Trackslab Trackslab
Platforms
79
Podium Slab
79
Pile Caps
Walls
Columns
Podium Steel
Piles
Podium Slab
Trackslab
Trackslab Trackslab
Platforms
80
Platform Finishes
Pile Caps
Walls
Columns
Podium Steel
Piles
Podium Slab
Trackslab
Platforms
80
Platform
Finishes
Trackslab Trackslab
making the difference
Flow charting the critical
path
82
Flowcharts to assess the impact of variations
Off Site design
of software /
graphics &
development of
DOP’s
Revised
Minimum
Air
Volumes
Perforated Plates
Modify
Volumes to
perimeter
zones
Remove
Perforated
Plate and
blank 1
No Bell
Mouth
Disable CV Box
Acoustically
line 4No Bell
Mouths
83
Analysis of commissioning plans
Off Site design
of software /
graphics &
development
DOP’s
Note: Off Site
Operations should be
complete.
• Engineer located at
the Head End.
• Engineer located at
the Controller.
• Engineers
communicate via radio.
• Certain conditions
require simulation by
the Engineer at the
Controller i.e. Boilers
and Chillers need not be
available.
• All points would be
checked in this way.
• The Specification set
out that Systems 33 &
35 should be
commissioned
separately.
• In our opinion, 1 - 2
days would have been
allowed to commission
System 33.
• After all points are
checked and both
Engineers satisfied, the
System is ready for
witnessing.
84
SPECIFIED WITNESSING PROCEDURE
Off Site design
of software /
graphics &
development
DOP’s
Stage 1 - Point to
Point Checks.
• Carried out in the field
with the Witness
Authority located with
Engineer at IQ
Controller.
• Another Engineer in
the Plant Room.
• Communication via
radio.
• Engineer at Controller
would force values and
start fans etc.
• Plant Room Engineer
confirming actions have
taken place.
• 10% of points agreed
between OAP, Skanska
and Axima.
85
SPECIFIED WITNESSING PROCEDURE
System 33 and 35
should have been
witnessed
individually as the
specification
dictated.
Off Site design
of software /
graphics &
development
DOP’s
Stage 2
• Engineer located at
Controller.
• Engineer at Head End
along with the
Witnessing Authority.
• Communication via
radio.
• Proving the
functionality of the plant
in automatic mode using
graphics.
• This witness would take
place on a System by
System basis again with
simulation being
generated to prove
Global Interfaces.
86
SPECIFIED WITNESSING PROCEDURE
Site design of
software /
graphics &
development
DOP’s
Stage 3
• The final stage is
termed as The Global
Witness.
• This can only be
carried out when ALL
relevant items of plant
are online and
functioning correctly.
• In the instance of
Systems 33 & 35, the
Boilers and Chillers are
required to be
operational and
functioning in automatic
mode.
• This witness would
take place during a 2
week period at the end
of the project, which
would include the 7 day
Continuous Run,
immediately prior to
Practical Completion.
• The building should be
empty of other trades,
sub-contractors & free of
dust & debris etc.
making the difference
Bar charts & network
analysis
88
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3
89
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3
Contractor theoretical
critical path
90
2 Month Delay
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3
91
7.5 Month Delay
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3
92
9.5 Month Delay
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3
93
12 Month Delay
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3
94
12 Month Delay
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3
95
15
Month
Delay
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3
Engineer critical path
after factual analysis
96
15
Month
Delay
12 Month Delay
12 Month Delay
9.5 Month Delay
7.5 Month Delay
2 Month Delay
Factual Analysis
Dealing with Scenario 3 – Impact on Level 3
making the difference
Charts in general
98
98
Anticipated output = green line
Actual output = Blue Line
Delay Effect = Red Bars
Factual Analysis
Dealing with Scenario 2 – Late Detail Design
99
■ The example of the Level 3 programme shows the effect of
design delay in blue background facilities that make up the
project
■ The construction in each facility is being driven out and delayed
by red delay bars that represent late detail design
■ Each red delay bar in each facility has a different effect and
length of delay, this is called causative potency
■ The longest red bar in a facility = the primary critical path and
the others that follow behind are the secondary critical paths
99
PROCUREMENT DELAY EVENT 1: ROOF FANS
PROCUREMENT DELAY EVENT 2: MOLY SCREW DRYER
PROCUREMENT DELAY EVENT 3: AGITATORS
PROCUREMENT DELAY EVENT 4: ROCK BREAKER
PROCUREMENT DELAY EVENT 5: HIGH ANGLE CONVEYORS
PROCUREMENT DELAY EVENT 6: IN PLANT CONVEYORS
PROCUREMENT DELAY EVENT 7: BELT FEEDER
PROCUREMENT DELAY EVENT 8: MOLY BAG FILLING SYSTEM
PROCUREMENT DELAY EVENT 9: BRIDGE CRANE
Factual Analysis
Dealing with Scenario 2
Level 3 Critical Path Analysis
Primary Critical Path
100
100
Use of man hour histograms
to analyse displaced start
and subsequent effect upon
man hour expenditure
Blue = cause of delay
Red = effect of delay
Factual Analysis
Dealing with Scenario 3 – Resource Analysis
making the difference
Thank You
Questions & Answers

FIDIC delay damages –v- Liquidated damages ( PDFDrive ).pdf

  • 1.
    © Turner &Townsend plc December 11 making the difference FIDIC, extension to Time for Completion and liquidated damages in the Middle East April 2014
  • 2.
    2 FIDIC, extension toTime for Completion and liquidated damages in the Middle East Timetable Timetable Time Topic 5 mins Timetable 8 mins FIDIC Range of Contracts 3 mins Contractual Roles 8 mins The Contractor and Clause 8 4 mins The Contractor and Sub Clause 20.1 2 mins Clause 8 and relevant Sub Clauses 5 mins The Engineer 10 mins Engineer’s calculation and determination 5 mins Employer’s Claims & Delay Damages 10 mins Demonstration and illustration of unliquidated and liquidated damages 5 mins Conclusion Questions & Answers Richard Chamberlain
  • 3.
    © Turner &Townsend plc December 11 making the difference FIDIC Range of Contracts
  • 4.
    4 GREEN BOOK 4 Short Formof Contract Recommended for building or engineering works of a relatively small capital value, for relatively simple work, or work of a short duration.
  • 5.
    5 RED BOOK 5 Conditions ofContract for Construction for Building and Engineering Works Designed by the Employer
  • 6.
    6 PINK BOOK Construction Contract MDB HarmonisedEd (Version 3: June 2010) Pink Book project is MDB financed and a development of the Red Book (Multilateral Development Banks who provide finance for projects in developing countries) 6
  • 7.
    7 YELLOW BOOK 7 Conditions ofContract for Plant and Design-Build for Electrical and Mechanical Plant and for Building and Engineering Works designed by the Contractor
  • 8.
    8 SILVER BOOK 8 Conditions ofContract for EPC/Turnkey Projects .
  • 9.
    9 GOLD BOOK 9 Design, Buildand Operate Projects (2008)
  • 10.
  • 11.
    © Turner &Townsend plc December 11 making the difference Contractual Roles
  • 12.
    13 FIDIC & ContractualRoles • Complete design • Progress the works in a regular and diligent manner • Safe manner of work • Workmanship • Consultancy Agreement • Responsible for Design • Supervision of Contractor • Provide possession of the Site • Provide information • permits and consents • Appoint the Engineer • Payment • Instructions • Variations • Certifier of extensions to Time for Completion • Certifier of Payments • Determinations Engineer Obligations Employer Obligations Contractor Obligations Engineer Administers Contract
  • 13.
    making the difference TheContractor & Clause 8
  • 14.
    15 The Contractor ■ TheContractor in FIDIC is : ■ the master of the programme ■ revises the programme when necessary ■ notifies the Engineer of the causes of delay to the programme (Clause 8 and 20) ■ consults with the Engineer to assist in the determination of extension to the Time for Completion 15
  • 15.
    16 Clause 8 ■ 8.1Commencement of Work ■ 8.2 Time for Completion ■ 8.3 Programme ■ 8.4 Extension of Time for Completion ■ 8.5 Delays Caused by Authorities ■ 8.6 Rate of Progress ■ 8.7 Delay Damages ■ 8.8 Suspension of Work ■ 8.9 Consequences of Suspension ■ 8.10 Payment for Plant and Materials in Event of Suspension ■ 8.11 Prolonged Suspension ■ 8.12 Resumption of Work 16
  • 16.
    17 Sub Clause 8.3Programme ■ Summary: ■ The Contractor shall submit a programme to the Engineer as required in the Contract. ■ The Employer's Personnel shall be entitled to rely upon the programme when planning their activities. ■ The Contractor shall promptly give notice to the Engineer of specific probable future events or circumstances which may delay the execution of the Works. ■ If the Engineer gives notice to the Contractor that a programme fails the Contractor shall submit a revised programme to the Engineer in accordance with this Sub- Clause. 17
  • 17.
    18 Clause 8.4: Extensionof Time for Completion 18 ■ Summary ■ The Contractor shall be entitled to an extension to Time for Completion, if delayed by any of the following causes: ■ (a) a Variation ■ (b) a cause of delay under a Sub-Clause of these Conditions ■ (c) exceptionally adverse climatic conditions ■ (d) any Unforeseeable delay, impediment or prevention caused by Employer ■ ….”the Contractor shall give notice to the Engineer in accordance with Sub-Clause 20.1 [Contractor's Claims]” ■ ….”the Engineer shall review previous determinations and may increase, with the Employer's written approval, but shall not decrease, the total extension of time”
  • 18.
    making the difference TheContractor and Sub Clause 20.1
  • 19.
    20 Tension between Clause8.3 and 20.1 Does probable = aware ? Cl 8.3: The Contractor shall promptly give notice to the Engineer of specific probable future events… Clause 20.1: The notice shall be given as soon as practicable, and not later than 28 days after the Contractor became aware or should have become aware, of the event or circumstance
  • 20.
    21 Avoiding “probable andaware” Tension between 8.3 and 20.1 • Notices are in a state of flux • Engineer can time bar • Engineer’s Determination can only be overturned in arbitration 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Cl8.3&20.1 "Probable"and"Aware"are merged Cl20.1 FullyDetailedClaim (Interim) Cl20.1 FullyDetailedClaim (Interim) Updateorfinalafterendofeffects
  • 21.
    © Turner &Townsend plc December 11 making the difference Clause 8 Matrix
  • 22.
    23 Clause 8 Matrixof potential causes of delay
  • 23.
    © Turner &Townsend plc December 11 making the difference The Engineer
  • 24.
    25 The Engineer -Generally ■ The Engineer is a quasi arbitrator and has two functions, namely: ■ Agency function, where s/he administers the Contract on behalf of the Employer ■ Decision making function, where s/he certifies time and money ■ When in the agency function, the Engineer must not misapply or misunderstand the Contract ■ When in the decision making function the Engineer must be independent and fair to both the Employer and the Contractor ■ Over certification by the Engineer is negligence ■ The Engineer has no duty of care to the Contractor 25
  • 25.
    26 The Engineer -Certification ■ The Engineer ■ acts as the Employer’s agent ■ must consult with the Contractor and Employer when differences arise ■ must carry out fair determinations ■ must calculate all certificates in a logical and methodical manner
  • 26.
    © Turner &Townsend plc December 11 making the difference Engineer’s calculation and determination
  • 27.
    28 Logical and methodicalprocess Step 1 - Investigation Records Step 2 - Summary Data basing Analysis Graphing Step 3 - Verification Method selection Step 4 - Analysis Application of method Step 5 - Graphical Finalisation of Report Investigation Conclude Step 6 - Award Engineer determines entitlement Analysis Review
  • 28.
    29 Step 1 -Investigation Step 1 Investigation Step 2 Summary Step 3 Verification Step 4 Analysis Step 5 Causation Step 6 Liability Information Gathering - Meetings interviews with project team - Orientation meetings with client - Document review (schedule of likely document types included below) Action Output No external deliverables Aims and considerations Internally: - Chronology - Document mapping - Sequence sketches - General overview notes Analysis route to be matched to information available and issues identified. Initial aim is to develop robust overview as-planned v as-built. Investigation Comment
  • 29.
    30 Step 1 -Typical record types Programme •Baseline Programme •Revised Baseline programmes •Progress Programme Updates Progress Records •Progress Reports •Marked up progress drawings •Progress Photos •Site diaries •Minutes of Site Meetings ContractDocuments •Drawings •Specification •Conditions of Contract DrawingsandproductionRecords •Iso / spool dwg tracking schedules •Iso / spool fab /delivery records •Drawing registers •Inspection and test records • Reactor vessel / plant item design, manufacture and delivery records •FEED design details Payment records •EPC contractor applications •Supplier / sub-contractor applications Project Admin Records •Client instructions •Site Instructions •Change notices •Delay Notices •Correspondence •Any claims submissions to date by Tecnicas Reunidas Step 1 Investigation Step 2 Summary Step 3 Verification Step 4 Analysis Step 5 Causation Step 6 Liability
  • 30.
    31 Step 2 -Summary Step 1 Investigation Step 2 Summary Step 3 Verification Step 4 Analysis Step 5 Causation Step 6 Liability Establish baseline and actuals - Identifying Baseline programme from candidates. - Compilation / verification of as-built records to generate robust As-built programme. -Sense checking / cross referencing as-built records for resilience Action Output As-planned v As- built Aims and considerations -Reasoned selection of baseline -Verifiable as-built - Notes on verification and sources of data. As-built programme element potentially as summary level in order to deliver early overview. Extent to which summary required depending upon availability and quality of records, time available and consideration of issues. Summary Comment
  • 31.
    32 Step 3 -Verification Step 1 Investigation Step 2 Summary Step 3 Verification Step 4 Analysis Step 5 Causation Step 6 Liability Interrogation of T&T output -Review of Step 2 outputs (predominantly As- planned v As-built). -Identification of significant programme variance (delay / sequence change). -Identify key events. - Develop analysis windows. Action Output Key Decision point Aims and considerations -Definition of key events. - Definition of Analysis windows/time slices. Step presents opportunity to review delays identified and to consider potential causation/ liability positions. Option to substantially modify approach based on findings to date. Verification Comment
  • 32.
    33 Step 4 -Analysis Step 1 Investigation Step 2 Summary Step 3 Verification Step 4 Analysis Step 5 Causation Step 6 Liability Detailed investigation -Review progress by sub dividing the project into a series of windows and examining each window in detail -Analysis will deliver extent and causes of delays in each window. - development of view of actual critical path in each window. Action Output No external outputs Aims and considerations Internally: -Windows analysis and graphics. - Initial report outline. - Notes on causation. - Notes on critical path and critical delays. Detailed analysis stage. This stage is likely to be time consuming. Initial approach of investigation of most significant areas of delay may be appropriate. NOTE - A selective approach cannot deliver certainty and often increases time and cost to prepare opinion in the long term. Analysis Comment
  • 33.
    34 Step 5 -Causation Step 1 Investigation Step 2 Summary Step 3 Verification Step 4 Analysis Step 5 Causation Step 6 Liability Finalising Report - Finalising delay in each window and cumulative critical delay. - Causation findings set out. - Drafting Preliminary Expert opinion. Action Output Opinion Aims and considerations - Summary table of delay events, extent, whether critical, dates during which delay occurred, etc – to enable quantum assessment to be established. In order to comply with initial phase timescale significant short cuts in analysis and causation phases are likely to be necessary – hence the preliminary nature of the report. Causation opinion should enable issues behind critical delays to be identified and settled. Causation Comment
  • 34.
    35 Step 6 -Liability Step 1 Investigation Step 2 Summary Step 3 Verification Step 4 Analysis Step 5 Causation Step 6 Liability Legal views - Preliminary report should enable legal assessment of liability issues. - Quantum (loss & expense, liquidated damages) assessment should be available Action Output Output Engineer’s Determination - Output likely to be award or non award of the extension to Time for Completion. Preliminary opinion should be suitable for use in dispute resolution. Liability Comment
  • 35.
  • 36.
    37 Unliquidated or generaldamages Employer breaches: • interference and prevention • late supply of information • failure to give possession Result of Employer breaches is Contractor’s claims for: •delay • disruption • prolongation • extension to the Time for Completion • additional payment In summary, the Contractor’s remedy for an Employer’s breach is recovery of general or unliquidated damages. (Note: Unliquidated damages are assessed after the breach)
  • 37.
    38 Liquidated damages Liquidated isa word recognised in the Shorter Oxford Dictionary and from as early as 1574 and is defined as ‘ascertained and fixed’ Questions that arise with respect to liquidated damages: • Are they an exclusive remedy for a breach? • an agreed price to be paid for a breach or non performance • Is an agreed price for a breach a penalty? • is the liquidated damage disproportionate to the loss? • Can the parties agree any price they wish? • freedom of contract –v- penalty • What is a genuine pre-estimate of loss? • is a genuine precise pre estimate impossible to determine? •What is the purpose of liquidated damages? • from Contractor’s perspective it takes away uncertainty and provides an incentive to perform • for Employer, the burden of proving actual loss
  • 38.
    39 Middle East (FIDICdelay damages –v- Liquidated damages) Qatar • Arabic term for liquidated is fines • principle of ‘freedom of contract is endorsed • principle of ‘good faith’ and bound by terms agreed • pre estimates of liquidated damages are permitted • no distinction between penalties and liquidated damages • FIDIC delay damages replaces liquidated damages • a genuine pre estimate is an important concept • exhaustive remedy depends on drafting • adjustment if no loss is incurred • superseding or contributory fault reduces compensation • liquidated damages provide certainty in contract • liquidated damages are uncertain in law due to exceptions and circumstances A guide to liquidated and ascertained damages for the Qatar construction sector, Warren L, Hall A (2013), Clyde & Co
  • 39.
    40 Middle East (FIDICdelay damages –v- Liquidated damages) United Arab Emirates Construction contracts provide for: • pre determined amount of damages to be paid by Contractor for late completion of a project • liquidated damages are an incentive for the contractor to perform • liquidated damages removes the burden of ascertaining loss The Courts have determined: • liquidated damages is a secondary obligation • delay fines in contracts are a penalty clause and a secondary obligation • termination is fatal to liquidated damages • liquidated damages are an estimate and actual loss is preferred • no loss then liquidated damages should be repudiated • the application of liquidated damages is subjective and prone to the application of exceptions Liquidated damages under UAE and UK law, a comparison (2014), Ibrahim A, Mullen J, Fenwick Elliot
  • 40.
    41 Middle East (FIDICdelay damages –v- Liquidated damages) Sultanate of Oman Royal Decree No. 29/2013 enacting the Civil Code issues such as liquidated damages relating to building contracts (Muqawala) is codified as follows: • if the subject matter of obligation is not a sum of money, the contracting parties may determine the amount of compensation in advance by making provision of same in the contract or in a subsequent agreement • In all cases, the court may, upon application of either of the parties amend such agreement to make the compensation equal to the damage , and any agreement to the contrary shall be null and void Result : • courts may award liquidated damages • liquidated damages must be a reasonable assessment of the loss • Court may reopen liquidated damages and award general damages Construction Disputes in Oman – Here and Now (2013), Curtis, Mallet – Prevost, Colt & Mosie LLP
  • 41.
    42 Summary (FIDIC delaydamages –v- Liquidated damages) Principles surrounding liquidated damages : • freedom of contract is acceptable practice • parties free to agree liquidated damages • liquidated damages must be reasonable estimate • liquidated damages can be reopened by the courts • liquidated damages may fall away and be substituted by general damages Conclusion: In respect of the application of liquidated damages in the Middle East there is no such thing as certainty
  • 42.
    making the difference Presentingextensions to Time for Completion
  • 43.
  • 44.
    45 DN65 Contract 206 DOLJ CountyLimit to Slatina 21+200 to 49+000 Km DN65 Contract 207 Slatina to Pitesti County Limit 54+000 to 90+000 Km DN65 Contract 208 Pitesti County Limit to Pitesti = 90+000 to 115+000Km NR65B Pitesti County Limit to Pitesti
  • 45.
    46 Km 21+200 Km 115+000 Km0+000 Km 7+400 Contract 206 Contract 207 Contract 208 A1 A2 A3 A4 A5 A6 A7 A8 A7 A6 A5 A4 A3 A2 A1 A1 A2 A3 A4 A5 A6 A7 A8 Saru Forest Negreni Lane B1- km 28+1 79 B2 - km 33+1 80 B3 - km 43+550 B4 - km 44+850 B5 - km 48+250 B6 - km 48+570 B7 - km 59+050 B6 - km 70+265 B5 - km 70+650 B4 - km 71 +863 B1- km 75+634 B2 - km 82+1 91 B3 - km 86+476 B2 - km 1 +440 B1- km 3+365 B3 - km 1 09+1 37 B4 - km 1 09+067 B5 - km 1 07+1 70 B6 - km 96+300 B7 - km 96+088 B9 - km 92+500 B8 - km 94+700 k m 2 1 + 2 0 0 k m 2 4 + 6 5 0 k m 2 9 + 6 9 0 k m 4 1 + 6 5 0 k m 4 2 + 1 8 0 k m 4 7 + 3 6 0 k m 4 9 + 0 0 0 k m 7 + 4 0 0 k m 3 + 4 0 0 k m 1 1 5 + 0 0 0 k m 1 0 9 + 0 0 0 k m 1 0 6 + 4 0 0 k m 1 0 0 + 5 0 0 k m 9 4 + 5 0 0 k m 5 4 + 0 0 0 k m 5 8 + 0 0 0 k m 6 0 + 5 0 0 k m 6 9 + 5 0 0 k m 7 2 + 6 0 0 k m 7 5 + 5 0 0 k m 8 1 + 0 0 0 k m 8 3 + 2 0 0 k m 9 0 + 0 0 0 k m 3 2 + 6 0 0 k m 3 7 + 2 0 0 Key = Bridge:- Number & Chainage B1 - km 75+634 = Programme Window Timeslice A7 = Tree Felling
  • 46.
    47 Construction Methods Stage 1: Original Road Profile and Structure Exhibit C-2 : Typical Cross Section Nr. 1 Exhibit C-2 : Typical Cross Section Nr. 1 shows the proposed rehabilitated road profile in black lines. Original road profile shown in broken green line
  • 47.
    48 Stage 2 :Topsoil Removed Working Drawings Non-Critical A 1km stretch of carriageway is closed and the topsoil removed from the banks and stored for future use Construction Methods
  • 48.
    49 Stage 3 :Excavation Working Drawings Non-Critical The existing bank is excavated to enable the new profile of the rehabilitated road to be formed and the foundation layers placed Construction Methods
  • 49.
    50 Stage 4 :Fill to Form Bank Profile Working Drawings Non-Critical A portion of the excavated area is filled with earth to form the new road bank profile and enable work to begin on the foundation layers of the road Construction Methods
  • 50.
    51 Stage 5 :4% Lime Sub-Base Working Drawings Non-Critical A 15cm deep sub-base layer made up of soil treated with 4% lime is laid Construction Methods
  • 51.
    52 Stage 6 :Granular Sub-Base Working Drawings Non-Critical A 35cm deep granular sub- base layer is laid and compacted Construction Methods
  • 52.
    53 Stage 7 :Stabilised Ballast 6% Cement Working Drawings Non-Critical A 25cm layer of natural aggregates stabilised with 6% cement is laid using shuttering to the outer edge Construction Methods
  • 53.
    54 Stage 8 :Regulating/Base Course Working Drawings Critical A 4cm base course is laid across the carriageway together with a regulating course where necessary to achieve the proposed road profile Construction Methods
  • 54.
    55 Stage 9 :Binder Course Working Drawings Critical A 4cm binder course is laid on top of the base course Construction Methods
  • 55.
    56 Stage 10 :Fill up to Base Course Level Working Drawings Non-Critical The new bank is filled to underside of the stabilised ballast layer Construction Methods
  • 56.
    57 Stage 11 :Identical Works to Opposite Carriageway The same 1km stretch of the opposite carriageway is closed and stages 1 to 10 inclusive are carried out to that side (construction up to binder course) Construction Methods
  • 57.
    58 Stage 12 :Wearing Course to First Carriageway Working Drawings Critical A 4cm wearing course (MASF16) is laid to the first carriageway Construction Methods
  • 58.
    59 Stage 13 :Wearing Course to Opposite Carriageway Working Drawings Critical A 4cm wearing course (MASF16) is laid to the opposite carriageway Construction Methods
  • 59.
    60 Stage 14 :Fill to Shoulders Working Drawings Non-Critical The remaining section of the new bank is filled. During this process a small length of one side of the carriageway is closed to carry out the work Construction Methods
  • 60.
    61 Stage 15 :Topsoil to Banks Working Drawings Non-Critical Exhibit C-2 : Typical Cross Section Nr. 1 Constructed The new banks are covered with topsoil using the material removed in stage 2 Completed Road Construction Methods
  • 61.
    making the difference Photographsto illustrate the critical path
  • 62.
    63 South Central DepotImprovement Contract Littlehampton Depot Delay Event 1: Bellmouth: (Entrance to the site and car park and work which has encountered a critical path delay of 34 days) Volume 1: 7.0 EXTENSION OF TIMEPARTICULARS DELAY EVENT 1
  • 63.
    64 South Central DepotImprovement Contract Littlehampton Depot Delay Event 2: Upsidings: (An area of work located between the cleaning shed and train washer and adjacent the car park and that has encountered a critical path delay of 42 days) Volume 1: 7.0 EXTENSION OF TIMEPARTICULARS DELAY EVENT 2
  • 64.
    65 South Central DepotImprovement Contract Littlehampton Depot Delay Event 3: Path 6 (An elevated reinforced concrete pathway and canopy located between siding 3 and 4 in the “Backsidings” and that has encountered a critical path delay of 20 days) Volume 1: 7.0 EXTENSION OF TIMEPARTICULARS DELAY EVENT 3
  • 65.
    66 South Central DepotImprovement Contract Littlehampton Depot Delay Event 4: PSU (The upgrade of the power supply that is located adjacent the car park and which has caused a critical path delay of 81 days) Volume 1: 7.0 EXTENSION OF TIMEPARTICULARS DELAY EVENT 4
  • 66.
    67 South Central DepotImprovement Contract Littlehampton Depot Delay Event 5: ETE (The late installation of electrical traction engineering, which has resulted in a critical path delay of 17 days) Volume 1: 7.0 EXTENSION OF TIMEPARTICULARS DELAY EVENT 5
  • 67.
    68 South Central DepotImprovement Contract Littlehampton Depot Delay Event 6: Car Park Works (The late construction of the car park, which has resulted in a critical path delay of 41 days) Volume 1: 7.0 EXTENSION OF TIMEPARTICULARS DELAY EVENT 6
  • 68.
  • 69.
  • 70.
  • 71.
  • 72.
  • 73.
  • 74.
    75 Walls & Columns 75 PileCaps Walls Columns Piles
  • 75.
  • 76.
    77 Pile Caps Walls Columns Podium Steel Piles Trackslab Trackslaband Platforms 77 Trackslab Trackslab Platforms
  • 77.
    78 Temporary Supports 78 Pile Caps Walls Columns PodiumSteel Piles Temporary Supports Trackslab Trackslab Trackslab Platforms
  • 78.
    79 Podium Slab 79 Pile Caps Walls Columns PodiumSteel Piles Podium Slab Trackslab Trackslab Trackslab Platforms
  • 79.
    80 Platform Finishes Pile Caps Walls Columns PodiumSteel Piles Podium Slab Trackslab Platforms 80 Platform Finishes Trackslab Trackslab
  • 80.
    making the difference Flowcharting the critical path
  • 81.
    82 Flowcharts to assessthe impact of variations Off Site design of software / graphics & development of DOP’s Revised Minimum Air Volumes Perforated Plates Modify Volumes to perimeter zones Remove Perforated Plate and blank 1 No Bell Mouth Disable CV Box Acoustically line 4No Bell Mouths
  • 82.
    83 Analysis of commissioningplans Off Site design of software / graphics & development DOP’s Note: Off Site Operations should be complete. • Engineer located at the Head End. • Engineer located at the Controller. • Engineers communicate via radio. • Certain conditions require simulation by the Engineer at the Controller i.e. Boilers and Chillers need not be available. • All points would be checked in this way. • The Specification set out that Systems 33 & 35 should be commissioned separately. • In our opinion, 1 - 2 days would have been allowed to commission System 33. • After all points are checked and both Engineers satisfied, the System is ready for witnessing.
  • 83.
    84 SPECIFIED WITNESSING PROCEDURE OffSite design of software / graphics & development DOP’s Stage 1 - Point to Point Checks. • Carried out in the field with the Witness Authority located with Engineer at IQ Controller. • Another Engineer in the Plant Room. • Communication via radio. • Engineer at Controller would force values and start fans etc. • Plant Room Engineer confirming actions have taken place. • 10% of points agreed between OAP, Skanska and Axima.
  • 84.
    85 SPECIFIED WITNESSING PROCEDURE System33 and 35 should have been witnessed individually as the specification dictated. Off Site design of software / graphics & development DOP’s Stage 2 • Engineer located at Controller. • Engineer at Head End along with the Witnessing Authority. • Communication via radio. • Proving the functionality of the plant in automatic mode using graphics. • This witness would take place on a System by System basis again with simulation being generated to prove Global Interfaces.
  • 85.
    86 SPECIFIED WITNESSING PROCEDURE Sitedesign of software / graphics & development DOP’s Stage 3 • The final stage is termed as The Global Witness. • This can only be carried out when ALL relevant items of plant are online and functioning correctly. • In the instance of Systems 33 & 35, the Boilers and Chillers are required to be operational and functioning in automatic mode. • This witness would take place during a 2 week period at the end of the project, which would include the 7 day Continuous Run, immediately prior to Practical Completion. • The building should be empty of other trades, sub-contractors & free of dust & debris etc.
  • 86.
    making the difference Barcharts & network analysis
  • 87.
    88 Factual Analysis Dealing withScenario 3 – Impact on Level 3
  • 88.
    89 Factual Analysis Dealing withScenario 3 – Impact on Level 3 Contractor theoretical critical path
  • 89.
    90 2 Month Delay FactualAnalysis Dealing with Scenario 3 – Impact on Level 3
  • 90.
    91 7.5 Month Delay FactualAnalysis Dealing with Scenario 3 – Impact on Level 3
  • 91.
    92 9.5 Month Delay FactualAnalysis Dealing with Scenario 3 – Impact on Level 3
  • 92.
    93 12 Month Delay FactualAnalysis Dealing with Scenario 3 – Impact on Level 3
  • 93.
    94 12 Month Delay FactualAnalysis Dealing with Scenario 3 – Impact on Level 3
  • 94.
    95 15 Month Delay Factual Analysis Dealing withScenario 3 – Impact on Level 3 Engineer critical path after factual analysis
  • 95.
    96 15 Month Delay 12 Month Delay 12Month Delay 9.5 Month Delay 7.5 Month Delay 2 Month Delay Factual Analysis Dealing with Scenario 3 – Impact on Level 3
  • 96.
  • 97.
    98 98 Anticipated output =green line Actual output = Blue Line Delay Effect = Red Bars Factual Analysis Dealing with Scenario 2 – Late Detail Design
  • 98.
    99 ■ The exampleof the Level 3 programme shows the effect of design delay in blue background facilities that make up the project ■ The construction in each facility is being driven out and delayed by red delay bars that represent late detail design ■ Each red delay bar in each facility has a different effect and length of delay, this is called causative potency ■ The longest red bar in a facility = the primary critical path and the others that follow behind are the secondary critical paths 99 PROCUREMENT DELAY EVENT 1: ROOF FANS PROCUREMENT DELAY EVENT 2: MOLY SCREW DRYER PROCUREMENT DELAY EVENT 3: AGITATORS PROCUREMENT DELAY EVENT 4: ROCK BREAKER PROCUREMENT DELAY EVENT 5: HIGH ANGLE CONVEYORS PROCUREMENT DELAY EVENT 6: IN PLANT CONVEYORS PROCUREMENT DELAY EVENT 7: BELT FEEDER PROCUREMENT DELAY EVENT 8: MOLY BAG FILLING SYSTEM PROCUREMENT DELAY EVENT 9: BRIDGE CRANE Factual Analysis Dealing with Scenario 2 Level 3 Critical Path Analysis Primary Critical Path
  • 99.
    100 100 Use of manhour histograms to analyse displaced start and subsequent effect upon man hour expenditure Blue = cause of delay Red = effect of delay Factual Analysis Dealing with Scenario 3 – Resource Analysis
  • 100.
    making the difference ThankYou Questions & Answers