EOT Claims – Save your company Rights
Be your Company Guard
The construction industry is complicated by natural, involves too many parties (Client, Consultant, Main contractors, Sub contractors, and Suppliers), also having a lot of constraints you have to take in your consideration and deal with ( Time – Budget- scope –Risk- Resources – Quality – Customer satisfaction)
Therefore, each one of the involved parties does not want to lose any additional money or time rather than the project original budget. Accordingly, when something goes wrong during the project life cycle, one or more parties of the project will raise dispute to prove which fault is it. Yes. It is as simple as this. However, the real battle starts when the dispute begins. The winner who could prove that the mistake was not his/her fault and s/he was a victim of this mistake and he deserve compensation (Time, Money, or Both).
Because of the delays whatever the reason of it, any delay produces an “Entitlement”, your role is to protect and defend your rights. This applies in both cases (contractor side or the client side).
In this article, we will try to give you some important information about Claims in general and EOT Claims as the most type of claims in construction industry, that will help you to play the role of the company Guard, defend/get Entitlement for your company.
What is Claim?
Claim doesn’t mean problem, simply in planning engineer Est. (Our Company) we define Claim as an application or request for any entitlements or rights reference to the contract.
Why Claims in Construction industry?
Claims is the contractual method that you can get or defend on your rights with specific procedures and steps, it simply organize the way for request and approve any entitlement between the contractor and the client.
According to the previous definition and reference to your role and position in the construction project, you may be one of the following:
- Contractor Planner: You have to prepare the claims and request any entitlement, you may have as per the contract with the employer and make analysis for any delays, check the delays impact on the time schedule , convert it into number of days and also prolongation cost if any.
- Client Planner “Representer” : You have to review any claim requested by the contractors and check the reason of the delays and also check any delays impact on the project time schedule.
- Consultant Planner :
As consultant you have to play as fair party to review any claims from the contractors and review the delays impact, give final decision for any claim.
What are Types of Claims?
As illustrated in the chart below, following are some types of claims, the most important and common types are:
Why EOT Claims?
EOT Claims are the most complicated claims and they are subject to huge argument between the claim parties. Furthermore, although the extension of time claim would increase the project duration by a certain number of days, but once it is approved, another claim of cost will be raised based on the EOT to recover the delays (or prolongation) costs incurred due to the delays.
Planning Engineer Est. has a golden rule for any EOT Claim, and we apply this rule in all our claims preparation. Time = Money
Making EOT Claims Responsibility?
In planning Engineer Est. , we believe that the Planning Engineer is the most organized person in the construction team. Also, Planning Engineers have the project history and of course they have the access to the project time schedule which is the base of the EOT claim. Accordingly, Planning Engineer should collect all relevant data from the project team and be responsible for the final product (the EOT).
Planning Engineer is responsible for making EOT Claims as s/he has good understanding and access of the following:
1- Project Contract Special Conditions
2- Project Contract General Conditions
3- Project Time Baseline
4- Project updates and progress
5- Project documents” BOQ – Drawings – Specifications”.
If you are interested to get more practical and valuable knowledge and procedure of making successful EOT Claim, you can check our EOT Claims Workshop from the following Link: http://planningengineer.net/courses/claims-management-and-delays-analysis-online-workshop/
We hope you enjoy our journey today
Hope to receive your feedback and recommendations
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