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PLANNING & PROJECT MANAGEMENT CONFERENCE

DELAY ANALYSIS &


DISPUTE RESOLUTION
WHAT IS DELAY?

DELAY is an act or event that extends the time required to


perform tasks or activities under a Contract . It is usually
reflected as additional days of work or as delayed start of
activities.

DELAY May or may not include change(s) in the scope of work


of activity(s) or the Contract.

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Baseline Programme
- Baseline is an approved version of Programme.

-Define the baseline as a Target of schedule update.

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Activity duration and relation determination.
Network Forward and Backward calculations lead
to float (most used is total float).

Total float is margin for delay, and equal the


difference between late and early dates.

Total Float Indicator


Positive Float: Project/Activity in good situation
Zero Float: Project/ Activity is critical
Negative Float: Project/ Activity is delayed

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REASONS OF DELAYS

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Risk Events:

Usually causes will be categorized as Contractor Risk


Events (CRE), or Employer Risk Events (ERE). Until
any of these events are confirmed as having caused
actual delay, they are only risk events.

There is another category is Neutral event such as


Force majeure.

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Delay

Excusable In-Excusable (CRE)

ERE Concurrent Neutral Event

Non- Compensable Compensable

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Concurrent Delay

(CRE) exceed (ERE) (ERE) exceed (CRE) (ERE) after completion date

InExcusableDelay(CRE) InExcusableDelay
In-Excusable In-Excusable
Delay
(CRE) Delay
concurrent concurrent
with shorter with longer
Excusable Excusable
Delay yields Delay yields
a net an Excusable
ExcusableDelay Excusable ExcusableDelay(ERE) Delay and
(ERE) Non Partial
Compensable Compensation
Delay - Time
ONLY Time Extension is
Extension is Granted with
ExcusableNon Excusable
ExcusableNon Granted prolongation
Shouldbe CompensableDelay Compensable cost
CompensableDelay recovered
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Delay Analysis Techniques

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Prospective Delay Analysis:
Analysis of facts associated with delay events during
construction of a project and the estimation of their effect
upon the planned completion date of a project. (Interim
Extension of Time)

Retrospective Delay Analysis:


Analysis of facts associated with delay events after completion
of the construction period of a project. (Final Extension of
Time)

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Guidance Section 4
4. Guidelines on dealing with disputed extension of time issues after completion of
the project retrospective delay analysis
4.13 The table below summarises the types of analysis that can be conducted depending
on the types of factual material available. An X indicates the factual material that is
required for a particular analysis, but in some cases there are alternatives, as indicated in
the table:

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Why Dispute Reached??
Instruction or Proposal of new woks
Change Request requested by any stakeholder may
include: addition, omission, corrective
action or preventive action.

Request from one contracting party to


another party for additional payment/
Claim Submittal
compensation, or/and extension of the
time for completion, as result of change
or any other event / issue.

Description of the work to be performed


Variation Order including the time impact or/and cost
impact if applicable, as result of change
or claim.

Unresolved claim, and resolution


Dispute methods are: negotiation, mediation,
arbitration & litigation.
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Methods of Dispute
resolving
Negotiation

The most direct method for


resolving any type of
construction claim.

Requires certain skills that reduce the gap between the


negotiation parties.

The objective: is to reach a solution that might be acceptable


to both parties.

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Mediation

When negotiation does not work, either because of lack of


trust or a lack of skills, mediation may be an option.

The mediator may be an individual or a team.

Dispute review boards

The owner and the contractor select


an independent neutral panel with
construction experience when the
contract is signed .
Rather than waiting until the end of project to settle claims,
(DRBs) resolve disputes as they arise.
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Arbitration

It is usually a formal process performed


by an independent professional
arbitrator.

Arbitration is voluntary.
Arbitration does not require the use
of lawyers

Litigation
When none of the previous work and parties can not
reach a settlement, the complaining party uses the
other party in a court of law.
Construction litigation is usually complicated lengthy,
and expensive.
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ARBITRATION

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Types of Arbitration
Institutional vs. 'ad hoc' arbitration

Domestic vs. International arbitration


(address is the difference)
Arbitration agreement :

The arbitration agreement is ordinarily a


clause in a larger contract.

or, post-dispute arbitration agreement.

Procedure, dispute, arbitrator panel, seat /


legal place, duration, language, the applicable
law and rules.
Arbitration award:

Legally-binding and enforceable decision

Appeal & recourse against an award


Thank You
Dont Hesitate to Contact.

M.Maged
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