STUDY OF EXTENSION OF TIME (EOT) CASES IN CONSTRUCTION INDUSRTY OF PAKISTAN

Abstract

Construction projects all over the world are most of the times delayed, and construction industry of Pakistan is no exception. Delays in construction projects can be attributed to either of the parties to the contract while some may be beyond the control of the parties such as Force Majeure. And when there is delay, this may result in either liquidated damages to the Contractor or an extension to the stipulated time of completion plus monetary compensation to the Contractor, depending on the fact that which of the two parties i.e the Contractor or the Client is responsible for it under the Contract. Several factors are involved regarding the way these delays are examined while determining the extension of time (EOT). The objective of this research study is to analyze those factors and highlight the most important factors involved in realistic assessment of EOT claims. The study was undertaken via a questionnaire based survey. Data collected from 97 construction professionals from different categories of stakeholders located in different cities of Pakistan was analyzed using SPSS and MS Excel. The factors which were identified to be most frequently involved in assessment of EOT claims were grouped into 04 main categories i.e. Schedule related factors, Delay analysis related factors, Ownership of Float related factors & Prolongation cost related factors. Top 3 factors out of all these 04 groups of factors were highlighted based on the combined Relative Importance Index (RII) values for all the factors. Results also showed that in most of construction projects in CI of Pakistan, schedules are not realistic and are also not monitored. Delay analysis is not performed and the contract completion time mentioned in contracts is also unrealistic and tentatively assigned. As a result, EOT in most of the projects is not calculated realistically. Similarly some other factors like ownership of float & cost compensation for prolongation are also not very commonly understood and taken care of in most of the projects. Based on the analysis of the results, recommendations for the stakeholders have been proposed for realistic assessment of EOT cases. Recommendations include discussing the viability of contract completion time in pre-bid meetings, inclusion of a float ownership clause in contracts & assessment of available resources while preparing construction schedule. Contractors are recommended to keep a well maintained record of events at site, in order to substantiate their EOT & prolongation cost claims. Clients are recommended to ensure timely payments to the bills of contractors to avoid disruption of work due to stoppage of cash flow. Consultants are recommended to use efficient delay analysis techniques to make sure realistic assessment of EOT.