Guide to Delay & Disruption
Date: 03 May 2023
Delays and disruptions are common in construction projects, and contractors often seek extensions of time to complete their work due to these factors.However, quantifying extension of time claims can be a complex process, with multiple factors to consider.
The Society of Construction Law (UK) Delay and Disruption Protocol provides guidance on how to quantify such claims.
The protocol was first published in 2002 and provides guidance on the handling of delay and disruption claims in construction projects. The protocol has been updated several times, with the latest version published in 2017. The guidance provided in the protocol is widely recognized in the construction industry and is often referred to in disputes related to extensions of time claims.
The protocol provides a framework for analysing delay and disruption claims, with the primary objective of determining the length of the extension of time required. The protocol outlines a six-step process for quantifying extensions of time claims:
- Establish the project baseline: This involves creating a baseline schedule that sets out the planned start and end dates for each activity in the project.
- Identify the critical path: The critical path is the sequence of activities that determines the project’s completion date. Any delays in critical path activities will impact the project’s completion date.
- Identify the delay events: This involves identifying the events that have caused the delay, such as changes in design, unforeseen site conditions, or adverse weather.
- Assess the effect of the delay events: The contractor must demonstrate that the delay events have impacted the critical path and caused a delay in the project’s completion.
- Evaluate the contractor’s entitlement: This involves determining whether the contractor is entitled to an extension of time based on the delay events and their impact on the critical path.
- Calculate the extension of time: The final step is to calculate the length of the extension of time required to complete the project.
The protocol also provides guidance on how to calculate the costs associated with the delay events. The costs can be classified as direct or indirect costs. Direct costs are those that are directly related to the delay events, such as additional labour costs or equipment rental fees. Indirect costs are those that are not directly related to the delay events, such as loss of productivity or extended overhead costs.
The protocol emphasizes on the importance of maintaining accurate records of the delay events and their impact on the project schedule. This includes keeping daily logs, change orders, and correspondences related to the project. The contractor must also provide timely notice of any delay events to the owner to ensure that the owner has the opportunity to mitigate the impact of the delays.
In conclusion, Following the protocol’s guidance can help contractors effectively quantify their extension of time claims and successfully negotiate with owners to receive the extension of time and compensation they are entitled to.