IMPROVEC Project Management, Consultancy, Construction, and Foreign Trade Ltd. offers a comprehensive suite of services designed to guide contractors through the complexities of Extension of Time (EOT) and cost claims. Our firm ensures a meticulous approach at every stage, from initial contract review to the final resolution. These services are carried out by our team of experts, each specializing in their respective fields of scheduling, cost analysis, and legal affairs. Our professionals bring decades of experience and have worked on international, multicultural, and multiscale projects, ensuring that each service we provide is executed with the highest level of expertise and precision. The following outlines our structured methodology:
- Review of the Contractual Agreement
At IMPROVEC Project Management, we commence by conducting an exhaustive review of the contractual terms between the contractor and the client. This process involves a detailed analysis of provisions pertaining to EOT, cost claims, force majeure, and delays. Special attention is devoted to clauses that govern the entitlement of the contractor to claim an extension of time or additional costs, including the procedural requirements for submitting such claims, as well as the requisite documentation or notifications. In particular, we scrutinize relevant FIDIC clauses, which often address time and cost claims, to ensure that any supplementary costs arising from delays, disruptions, or alterations to the scope of work are handled in strict accordance with the contractual framework. This review is conducted by our legal experts, who possess extensive experience in interpreting and applying contractual obligations in complex projects across various jurisdictions.
- Execution of a Confidentiality Agreement
Prior to the exchange of sensitive documentation and information relating to EOT and cost claims, IMPROVEC Project Management ensures the formalization of a confidentiality agreement between the parties involved. This non-disclosure agreement (NDA) serves to protect all proprietary and sensitive materials shared during the dispute resolution process, including internal correspondence, documents, and claims. The confidentiality agreement shall explicitly define the scope, duration, and any applicable exceptions, thus safeguarding both parties from unauthorized dissemination of confidential information that may jeopardize business interests. Our legal experts guide the creation of these agreements to ensure their enforceability and to protect the interests of all parties involved.
- Identification of Delay Causes and Cost Increases
Our firm meticulously investigates the underlying causes of delays and cost escalations. This process involves determining whether the delays are attributable to factors within or beyond the contractor’s control. Beyond time-related concerns, we assess and identify any cost increases incurred as a direct result of the delays or disputes. Delays may arise from a variety of sources, including unforeseen circumstances, design modifications, client-induced delays, site conditions, or force majeure events. Likewise, we identify cost increases—including additional labor expenses, material cost fluctuations, equipment rental charges, and subcontractor fees—that arise as a consequence of such delays, ensuring all increases are substantiated as part of the overall cost claim. Our scheduling experts, who have handled a wide array of large- scale projects, perform in-depth analyses to pinpoint the root causes of delay and cost overruns.
- Compilation of Relevant Documentation
IMPROVEC Project Management takes responsibility for the systematic collection of all pertinent documentation to substantiate the EOT and cost claims. This includes daily progress reports, site diaries, emails, meeting minutes, change orders, correspondence with the client, subcontractor delays, invoices, and any documentation that outlines unforeseen circumstances or client-driven changes affecting both the project timeline and associated costs. For FIDIC-based contracts, we thoroughly review the relevant provisions for submitting claims in accordance with clauses such as Clause 20.1—Contractor’s Claims—ensuring that every aspect of the claim process is rigorously followed. This documentation is compiled by our team of experts in scheduling and cost analysis, ensuring that every piece of evidence is relevant, accurate, and properly organized.
- Analysis of Project Timeline and Cost Implications
IMPROVEC Project Management undertakes an in-depth analysis of the project schedule, carefully assessing the impact of delays on the critical path and the corresponding financial implications. We reconstruct the project timeline to reflect actual conditions, establishing a well-founded EOT schedule that incorporates the results of our analysis. This often involves forensic delay analysis, which applies recognized methods for determining the causes and effects of delays. The selection of delay analysis techniques is performed with due consideration for the unique characteristics of each project. Our experts in scheduling and project management, with their extensive experience in complex international projects, apply methodologies such as:
- Impacted As-Planned Analysis: This method evaluates how delays affect the original baseline schedule, applying the delays directly to assess their impact on the critical path and project timeline.
- Time Impact Analysis: We isolate each delay event and simulate its impact on the planned completion date, which is especially useful in analyzing sequential delays.
- Time Slice Window Analysis: We divide the schedule into discrete time slices, each representing a period of the project, to analyze delays within specific windows and evaluate their cumulative effect on the overall project timeline. • As-Planned versus As-Built Window Analysis: This approach compares the original (as-planned) schedule to the actual (as-built) progress, identifying deviations and calculating the time lost due to delays.
- Retrospective Longest Path Analysis: This analysis identifies the longest critical path and evaluates how delays during the project execution affected its completion, thus highlighting the activities that drove the delay.
- Collapsed As-Built Analysis: This method involves removing the delays from the as-built schedule to estimate how the project would have progressed had the delays not occurred, thus providing a clear picture of the impact on project completion.
Through the application of these forensic techniques, IMPROVEC Project Management ensures that both the reasons for delay and the resultant impact on time and costs are substantiated with precision and clarity, in full compliance with both contractual and legal requirements.
- Determination of Entitlement for EOT and Cost Claims
IMPROVEC Project Management conducts a thorough evaluation to determine whether the delays and associated cost increases entitle the contractor to an extension of time or additional costs under the terms of the contract. Not every delay or cost increase will justify a claim for EOT or cost recovery. For instance, delays resulting from the contractor’s own negligence or failure to meet agreed-upon milestones may not merit an extension or cost claim. We ensure that the contractor’s entitlement to both an EOT and cost claims is examined in light of the contractual conditions, particularly under FIDIC, which permits claims for delays caused by events outside the contractor’s control, such as changes instigated by the employer or force majeure events. This critical evaluation is performed by our team of legal professionals, whose deep understanding of contractual frameworks guarantees a robust, accurate analysis of entitlement.
- Preparation of a Detailed Delay and Cost Analysis
IMPROVEC Project Management is committed to preparing a comprehensive and structured analysis that substantiates both the EOT and cost claims. Our analysis employs the delay analysis methods outlined above, ensuring a clear and precise evaluation of how delays have impacted the overall project schedule. By utilizing techniques such as Time Slice Window Analysis and As-Planned versus As-Built Window Analysis, we isolate and detail the impact of specific delays over time, demonstrating their disruptive effects on the project’s progress. This forensic approach forms the foundation of our cost analysis, which compares the actual costs incurred with the original contract costs. Our cost breakdown includes:
- Additional labor costs resulting from extended work hours or an increased workforce.
- Material price increases due to delays in procurement or delivery.
- Extra charges for equipment rentals or other project-related resources.
- Subcontractor costs arising from extended timelines or disruptions. We ensure that all cost increases are calculated in accordance with the methodologies specified in the contract (e.g., unit rates, price adjustments), with clear evidence that these costs are directly attributable to the delays. Our experts in cost analysis bring decades of experience in accurately quantifying and justifying cost claims, ensuring that every claim is substantiated with robust, verifiable evidence.
- Preparation of the EOT and Cost Claim Document
Once the delay and cost analysis is complete, IMPROVEC Project Management prepares a formal claim document for both the EOT and cost claims. This document is meticulously crafted to include:
- An executive summary of the claim, detailing both the EOT and cost claims.
- A comprehensive explanation of the delays, their causes, and their impact on the project timeline and costs.
- Supporting documentation such as progress reports, correspondence, change orders, invoices, and site records.
- A request for the revised completion date and a detailed breakdown of the financial costs incurred as a result of the delays, including calculation methods and supporting documentation.
- Legal and Expert Consultation
To ensure the robustness and legality of the claim, IMPROVEC Project Management consults with legal professionals and construction delay experts who specialize in FIDIC contracts and dispute resolution. These experts assist in refining the claim, addressing potential counterarguments, and ensuring the claim is fully compliant with both legal standards and the contract’s requirements. Legal review is integral to preparing the claim for potential escalation, should arbitration or litigation become necessary. Our legal advisors, with vast experience in international disputes, provide invaluable support throughout this phase.
- Submission of the Claim to the Client
Upon finalization of the EOT and cost claim document, IMPROVEC Project Management submits the claim to the client in full compliance with the contractual provisions. We ensure that the submission follows the required procedures, including strict adherence to submission deadlines and proper channels of communication. For FIDIC contracts, we ensure submission is in accordance with Clause 20.1— Contractor’s Claims, and we maintain detailed records of all correspondences for future reference.
- Follow-up and Negotiation
After submission, IMPROVEC Project Management actively engages with the client to discuss the claim, clarify any points of contention, and negotiate a mutually agreeable resolution. Should the client dispute any aspect of the claim, we are prepared to provide additional documentation, clarifications, or engage in mediation, if necessary, to reach an amicable settlement. Any agreed-upon extensions or cost adjustments are documented and formalized to ensure transparency and contractual compliance.
- Maintaining a Record of All Communications
At IMPROVEC Project Management, we meticulously maintain a comprehensive record of all communications related to the EOT and cost claims. This includes emails, letters, meeting notes, and other forms of correspondence. These records are critical for ensuring transparency, accountability, and legal protection, particularly in the event of arbitration or litigation.
- Monitoring the Outcome and Adjustments to Project Schedule and Cost
Once the EOT and cost claims are resolved, IMPROVEC Project Management assists the contractor in making the necessary adjustments to the project schedule and financial records. If the claims are accepted, we update the project timeline and financial documentation accordingly. Should the claims be rejected, we support the contractor in contesting the decision or adjusting the claims as required, potentially through dispute resolution processes such as arbitration or litigation.
- Final Documentation and Project Closeout
Upon resolution of the EOT and cost claims, IMPROVEC Project Management ensures that all relevant documentation is finalized and securely stored for future reference. This includes updated schedules, formal agreements regarding the EOT and cost claims, and any resolutions or settlements. Proper closeout is essential for ensuring the successful completion of the project and for managing future claims.