Mastering The Art of Submitting An EOT Claim: A Comprehensive Guide With FIDIC Reference Part 2

“He who fails to plan is planning to fail." - Winston Churchill

In the EOT Blog 1 series, we explore the necessary steps for filing an Extension of Time (EOT) claim. In this blog entry, we will delve deeper into the process, providing additional insights including:

1. A) An EOT example, complete with a scenario that outlines the timeline and cost implications.
2. B) A structured template for crafting a detailed Extension of Time (EOT) claim.

A)Example Scenario: Delay Due to Design Changes

1. Review Contract Provisions
   ABC Construction, engaged in a commercial building project, operates under the FIDIC 1999 Red Book. Per Sub-Clause 8.4, ABC is eligible for a time extension for delays due to modifications required by the employer.
2. Document Delay Events
   In Month 6 of the project, the employer requests significant design changes to the building's layout, resulting in extensive revisions to structural plans and coordination efforts with subcontractors and suppliers.
3. Notify the Engineer
   ABC Construction quickly informs the Engineer about the requested design alterations and their likely effect on the project's timeline. They submit detailed records of the changes and seek guidance on the EOT claim process.
4. Provide Notice of Intention to Claim
   By Month 7, ABC Construction submits a formal Notice of Intention to Claim for an EOT to the Engineer. They outline the reasons for the delay, citing the design changes initiated by the employer and their anticipated impact on the project timeline.
5. Prepare EOT Claim Documentation<
   Over the following two months, ABC Construction gathers exhaustive evidence to back their EOT claim. This documentation includes the updated design plans, interactions with the employer, records of meetings regarding the changes, and the latest project timelines.
6. Calculate the Delay Duration
   ABC Construction applies critical path analysis to determine the delay duration attributable to the design alterations. They calculate a total required EOT of 60 days to address the changes and resulting disruptions.
7. Evaluate EOT Entitlement
   ABC Construction assesses their right to an EOT based on contractual terms and the proof provided in their claim documentation. They maintain that the design alterations represent a variation by the employer, thus justifying an extension.
8. Submit Formal EOT Claim
   By Month 9, ABC Construction prepares and submits a formal EOT claim to the Engineer. They provide a detailed narrative explaining the impact of the design changes on the project schedule and request a 60-day extension of time to account for the delays.
9. Engage in Negotiations
   Throughout Months 10 to 12, ABC Construction engages in negotiations with the Engineer and the employer regarding the EOT claim. They provide additional information and address any concerns raised, working towards reaching a mutually acceptable resolution.
10. Obtain Engineer's Determination
    By Month 13, the Engineer reviews the claim documentation and issues a determination in favor of ABC Construction. The Engineer approves the EOT claim, recognizing the validity of the delay events and their impact on the project schedule.
11. Formalize EOT in Writing
    In Month 14, ABC Construction formalizes the extension of time through an EOT agreement issued by the Engineer. The agreement specifies a 60-day extension to the project completion date, with corresponding adjustments to contractual milestones and completion dates.

This detailed example illustrates how ABC Construction navigated the process of submitting an EOT claim for delays caused by design changes under the FIDIC 1999 Red Book. The timeline and cost implications are clearly outlined, demonstrating the significance of effective documentation, communication, and negotiation in managing construction delays

B)Template for EOT submission

Below is a template outline for submitting a comprehensive Extension of Time (EOT) claim:

[Your Company Letterhead]

[Date]

[Engineer's Name]
[Employer's Name]
[Project Name/Number]
[Project Address]

Dear [Engineer's Name],

Re: Extension of Time Claim for [Project Name/Number]

We hereby submit this formal Extension of Time (EOT) claim in accordance with the contract provisions outlined in the [Specify relevant clauses from the contract, e.g., Sub-Clause 8.4] of the FIDIC 1999 Red Book governing the above-referenced project.

1. Project Background
   Briefly describe the project, its objectives, and the contractual context.
2. Delay Events
   Detail all events causing delays, their origins, duration, and impact on crucial project phases. Include references to the relevant contractual clauses pertaining to such delays.
3. Notice of Intention to Claim
   Confirm compliance with the contractual requirements for providing notice of delay events and intention to submit an EOT claim, as per Sub-Clause [Specify relevant sub-clause from the contract].
4. Claim Justification
   Provide an in-depth justification for the EOT, citing contractual entitlements and the logic behind the requested time extension. Incorporate references to pertinent contractual clauses and attach supporting evidence.
5. Supporting Documentation
   Attach all relevant documents supporting the EOT claim, such as updated project timelines, contemporaneous records, communications with stakeholders, and any expert evaluations or studies.
6. Quantification of Delay Period
   Quantify the delay using established methods like critical path or time impact analysis, detailing the time extension sought for each identified delay.
7. Cost Implications (if applicable)
   Outline any additional costs or financial impacts stemming from the delays, referencing the relevant contract clauses or provisions that discuss compensation for such costs.
8. Conclusion and Request for Determination
   Sum up the main points of the EOT claim and ask for a formal evaluation by the Engineer. Indicate readiness to discuss and negotiate the claim to achieve a resolution.

We trust that this EOT claim submission will receive due consideration and prompt attention from the Engineer. Should you require any further information or clarification, please do not hesitate to contact us.

Thank you for your cooperation.

Yours sincerely,
[Your Name]
[Your Position]
[Your Contact Information]

Adapt this template as needed to fit the specific details of your project, the governing contract conditions, and your company’s standards. Ensure you keep all related documentation and correspondence for record-keeping and further reference.

This document is intended solely for the informational purposes of those concerned and should not be relied upon as expert advice in any circumstance without consulting an expert professional. This information may not be translated or reproduced without the express written permission of www.tccons.ae.
For additional details, please reach out to info@tccons.ae