Content uploaded by Emmanuel Chidiebere Eze
Author content
All content in this area was uploaded by Emmanuel Chidiebere Eze on Jan 01, 2022
Content may be subject to copyright.
Journal of Engineering and Technology for Industrial Applications
Manaus, v.7 n.32, p. 23-31. Nov/Dec, 2021
DOI: https://doi.org/10.5935/jetia.v7i32.782
RESEARCH ARTICLE OPEN ACCESS
ISSN ONLINE: 2447-0228
Journal homepage: www.itegam-jetia.org
EXTENSION OF TIME (EoT) CLAIMS SUBSTANTIATION AND ASSOCIATED ISSUES IN
COMPLEX-MULTI STAKEHOLDERS’ BUILDING CONSTRUCTION CONTRACTS
Reuben A. Okereke1, Mohammed Zakariyau*2 and Emmanuel C. Eze3
1, 2 Department of Quantity Surveying, Imo State University, Owerri, Nigeria.
3 Quantity Surveying Department, Federal University of Technology, Owerri, Imo State, Nigeria.
1 http://orcid.org/0000-0003-1337-8179 , 2 http://orcid.org/0000-0002-4335-3514 , 3 http://orcid.org/0000-0001-7919-6322
Email: raphica2013@gmail.com, *mohammedzakariyau88@gmail.com, emmanuel.eze@futo.edu.ng
ARTICLE INFO
ABSTRACT
Article History
Received: October 31th, 2021
Accepted: November 24th, 2021
Published: December 15th, 2021
In complex and multi-stakeholder construction projects, delays and disruption are
commonplace. Delays trigger the request for Extension of time (EoT) to enable adequate
time for the project to be completed. Substantiating the need for EoT is a difficult task and
requires a lot of effort. The administration of EoT claims come with a lot of issues to the
clients and the contractors. The purpose of this study is to assess the factors for
substantiating Extension of time (EoT) claims and the common issues associated with (EoT)
in complex-Multi Stakeholders' Building Construction contracts. This study adopted a well-
structured questionnaire administered on construction professionals in consulting and
contracting organisations, via electronic means and using snowball sampling techniques in
Abuja and Lagos state, Nigeria. With a response rate of 39.60% and an instrument
reliability index of above 0.70, the gathered data were analysed using appropriate
descriptive analytical tools. It was found that the major documents and records that have the
level of importance for substantiating claims for extension of time are; time impact analysis
showing the potential impact of the changes before carrying out the changes, change of
work notices, claim register, programme updates, minutes of the daily, weekly, and
meetings, and daily progress reports. The major disputed issues associated with claims for
extension of time in construction contracts are concurrent delay, The absence of notice of
delay by the contractor as required by the contract, eligibility of time extension claim,
inadequate effort in mitigating the delay and poor demonstration of the impact of the delay
event to the project schedule. Regular training and continuous professional development is
required to enhance the skills and expertise of project administrators/managers for effective
claim administration and management.
Keywords:
Delays,
Extension of time,
Disputes,
Construction contracts,
Multi-stakeholders.
Copyright ©2021 by authors and Galileo Institute of Technology and Education of the Amazon (ITEGAM). This work is licensed
under the Creative Commons Attribution International License (CC BY 4.0).
I. INTRODUCTION
Globally, the construction industry is known for facing
delays in the delivery of developmental projects. Delays in
construction project delivery have remained a single most
frequent phenomenon in the construction sector [1-3]. [4] posits
that the construction sector has the lowest rate of meeting contract
deadlines amongst the industrial sector, especially in emerging
nations. This situation has been responsible for the high level of
risks and uncertainty in the construction sector compared to other
industries. Furthermore, the unique nature of construction
projects, their complexity, intense time of designs, multiple
stakeholders, construction methods and process [5-6], contributes
to the worsening poor time performance of construction projects
in the sector. In complex projects with multiple stakeholders
(client, consultants, contractors, subcontractors, suppliers, among
others), the success of the project lies in how well-emerging
issues are taken seriously and managed by the project
management team. Stakeholders’ satisfaction and meeting of
Okereke, Zakariyau and Eze, ITEGAM-JETIA, Manaus, v.7, n.31, p. 23-31, Nov/Dec, 2021.
project objectives depend on effective management of a project to
meet key project performance parameters.
According to [1], cost, time, quality and health and safety
are key project controlling features that impact project delays.
The occurrence of delays in the delivery of large-multi
stakeholder projects is a central cause of cost overrun, an
extension of time, disputes, arbitration, litigation, loss of revenue
and projects, among other issues. A critical determinant of
construction project performance is timely completion. The time
as well as the cost and quality performance of construction
projects are the basis for declaring a project successful [7-9].
According to [10], time performance is used to benchmark project
performance assessment as well as serve as a symbol of the
project's organization efficiency. While considerable efforts have
been made to avoid delays, it has remained a global epidemic on
construction projects, and the Nigerian construction industry has
received its fair share. In Nigeria, a large proportion of
construction projects (public and private) experience delays with
the consequence being time and cost overruns, disputes,
abandonment, ideal resources, negative social impact [11]. One of
the reasons for the invocation of the extension of time (EoT)
clause is delays.
Delays in the execution of construction activities may
trigger the need to apply Extension of time (EoT) to enable
adequate time for the project to be completed. EoT claims
emanate from delays that evolve from unforeseen events or
situations for which provisions are made in most standard forms
of contract, for claims for an extension in the initially agreed
project completion deadline [12]. Contractors generally leverage
the extension of time clause in building contracts to avoid the
liability of paying for damages for liquidated damages due to
failure to meet the contract completion date original contained in
the signed contract. There is always a list of "relevant events" in
most standard forms of contract that give the contractor the right
to apply for an extension of time. It is also expressly provided in
most contracts that claim for delaying events timely [5].
While there is a lot of extant literature on the causes of
delays, effects of delays, time overrun and cost overruns [13-
19,1,4], only a very few of them have focused on the extension of
time in construction projects [5, 20-24]. Extension of time in
construction contracts is an area that is understudied in Nigeria
specifically and in other developing countries generally. The
purpose of this study is to assess the factors for substantiating
Extension of time (EoT) claims and the common issues associated
with (EoT) in complex-Multi Stakeholders' Building Construction
contracts. The specific objectives towards meeting the study aim
are; (i) to assess the level of presentation of documents and
records to back up claims for extension of time, and (ii) to assess
the major issues in disputes with claims of EoT. The perspective
of the Consultants and Contractors would be sought on this very
important topic, as they are key to every construction contract.
This study will help contractors to know the required
documents and records to provide success in their claims for
extension of time. It will impact the knowledge of the contractor
as regards the issues surrounding EoT claims and administration.
Most assessment of EoT is carried out by the Quantity Surveyors.
This study will assist the Quantity surveyors to ascertain whether
the contractors have submitted the required documents to
substantiate their claims for delays. The study also adds to the few
existing studies on EoT in Nigerians and by extension of
Developing countries of Africa.
II. LITERATURE REVIEW
II.1 PROJECT COMPLETION TIME AND EXTENSION
OF TIME CLAIM
In a construction contract, it is the obligation of the
contractor to proceed regularly and diligently with the works to
the best of his endeavours. This is critical to prevent or avoid
delay in the progress of the works and to any negative impact on
the project completion date. Unless expressed, time is always of
the essence in most construction contracts. This means that "the
obligation to perform by the date stated or agreed is essential to
the contract" [21].
It is recognized by most construction contracts that the
completion date might be delayed by unexpected or unforeseen
events or circumstances. When these delays occur, the impact of
the risks is borne by either the employer or the contractor. To
cushion the effects of the risks, an 'extension of time clauses' is
usually provided to enable completion on a new date to be set
[21]. Extension of time is described as the situation where the
construction period is extended due to delays caused by the
contractor, employer or his agents. When an extension of time is
granted, the employer would not be entitled to liquidated and
ascertained damages (LAD) until such a new date is elapsed.
II.2 TYPES OF DELAYS FOR EXTENSION OF TIME
CLAIM AND COMPENSATION
The four major categories of delays identified in the
literature are; Critical or non-critical, Excusable or non-excusable,
compensable or non-compensable, and concurrent or non-
concurrent [25].
Critical or non-critical: This type of delay may or may not
impact the project completion date. Critical delays are those that
impact the project completion date. Critical delays modify and
affect the progress of work to the extent the completion date is
exceeded. According to [20], delays that occur on the critical path
of a project that consequently impacts the completion date is
known as 'critical delay'.
Non-critical delays are those whose occurrence does not
impact or modify the project milestone dates or completion date
[25, 5]. Delays that does not occur on the critical path of the
project with no consequent effect on the overall project
completion date is known as non-critical delays [26].
Excusable or non-excusable: According to [27], non-excusable
delays results from the contractors' action or inaction. This type of
delay is attributed to the contractor because the events are within
the sphere of his control, and no extension of time nor
compensation will normally be granted to the contractor [20, 2].
The category of these delays is mismanagement, poor scheduling,
errors or mistakes in construction, breakdowns of equipment and
machines, and problems related to staffing [28]. Excusable delays
are classified into; non-compensable or compensable excusable
delays. The non-compensable excusable delays are caused by
events that are beyond the control of the contractor and the
employer; usually unforeseen circumstances [27, 20]. [29] listed
things like 'Force Majeure, 'Acts of God', materials and labour
shortages which are beyond the expectation of the employers and
the contractor; as examples of non-compensable excusable delays.
On the other hand, the compensable excusable delays are caused
by the employer (owner) and not the contractor. [27] identified
defective designs changes request from the client, difficult site
Page 24
Okereke, Zakariyau and Eze, ITEGAM-JETIA, Manaus, v.7, n.31, p. 23-31, Nov/Dec, 2021.
conditions, and failure of the client to give access to the site to the
contractor; are some of the events that give rise to compensable
excusable delays. A compensable excusable delay entitles the
contractors to both extensions of time and compensation. While,
non-compensable excusable delays entitles the contractors to an
extension of time but with no compensation for delays costs [28,
5].
Concurrent delas: This results from delay events (say two or
more) that occur at the same time. It is difficult to determine the
party that is responsible for concurrent delays. This type of delay
could be attributed to the client, contractor and/or third-party;
examples include inclement weather, force majeure among others
[5]. [21] posit that the responsibility for concurrent delays is
shared by the client and contractor. Where a concurrent delay is
established, the extension of time due to the contractor’s delay
should not be reduced. Any additional cost incurred by the
contractor as a result of the delays by both the client and the
contractor, the amount recoverable as compensation by the
contractor should be to the extend he is able to identify separately
the additional costs caused by the client delay and those by the
contractor delay [21].
Concurrent delays are used as a defensive tool by both the
client and contractors against each other. The interest of the client
is to collect liquidated and ascertained damages (LAD), while that
of the contractors is to avoid the payment of LAD [29]. Litigation
is the ends point of unsettled several issues emanating from
concurrent delays [30, 27].
Figure 1 shows the summary of the various types of delays
in a construction contract. It is a modification of the work by [20].
Figure1: Types of delas.
Sources: Modified from Maritz and Prinsloo [20].
II.3 BACKING OF CLAIMS FOR EXTENSION OF TIME
Extension of time for a project may be requested and
considered under several different valid circumstances. However,
not in all cases that delays claims are approved as an extension. In
a construction contract, it is critical to keep records of claim
events; emails, change requests, documents, scheduling [31].
Claims for extension of time are backed-up by certain
specific supports documents that are paramount. Substantiation of
reasons for delays that will guarantee the
contractor/subcontractors to seek for time extension requires
certain conditions, and they include the followings according to
[31]:
i. A notice of the precise issues that triggered the delays
ii. List of activities that are affected by the delays- usually
obtained from the project schedule
iii. The precise number of days/calendar days representing the
time being claimed
iv. Photographs, images, sketches or other forms of
illustration form supporting the delayed events
v. Suggestions/recommendations given to the project
manager/contract administrator
vi. A clear description of actors taken by the contractors to
avert or reduce other delas.
vii. Alternative ideas/solutions that were presented to the
project manager
viii. Communications between the design team and
construction team or among the project teams on issues
relating to the delays evens and associated problems.
A summary of the guidelines for ensuring that claims in
construction contracts are kept to a minimum is shown below.
This guideline is as developed by [32].
i. Admissible and factual evidence such as photographs,
videos, memos, drawings, minutes of meetings, memos,
among others are under record keeping. This record should
be kept, maintained and organised in such a way that
ensures the smooth facilitation of construction contract
administration.
ii. Preservation of contract parties' rights. Written notice of
potential claim events should be served, especially within
the time stated in the contract conditions.
iii. Pro-activeness of the parties: being proactive is a
conscious attitude by either the contractor or clients to
quickly respond to complaints or potential threats to the
project completion date. Proactive actions facilitate the
administration and management of projects.
iv. Having a sound knowledge of the contract; is an aspect
that is mostly ignored by contractors. Effective delivery of
Page 25
Okereke, Zakariyau and Eze, ITEGAM-JETIA, Manaus, v.7, n.31, p. 23-31, Nov/Dec, 2021.
the project to specifications requires a clear understanding
of the obligation and responsibilities contained therein.
The onus is on the contractor to comply completely with
the contract requirements, more especially claim and
variation clauses, among others. The contractor must
adhere to contract provisions, as failure to do so will mean
loss of chances to successfully claim for EoT.
v. Adequate planning and scheduling are key for projects to
be delivered successfully. Sufficient Planning ensures that
resources are effectively utilised and managed. Events that
will impact the critical path should be properly monitored.
A regular update of the programme of work is required by
parties.
vi. Proper attention to change requests/orders that will cause
extra cost is required. Sound negotiation skill is required to
effectively execute a change order [5].
Substantiating EoT claims requires detailed record
keeping. [33] recommended for the establishment and
maintenance of a good documentary control by the contractors;
this will enable a huge amount of both hard-copy and electronic
records to be available to the planning team and project managers/
contract administrators. The type of records to be kept according
to [33] includes the following. the contractor estimate,
contractors costing system and reports, internal management
reports, ad-hoc studies and reports on profit and loss, records of
bonuses, timesheets, updates of programmes, applications for
payment, labour allocation returns and all labour reports and
returns, and other relevant records to how the breakdown of
labour hours used and the progress achieved [33].
[24] highlighted documents and records that are required to
prepare well-substantiated claims for extension of time, and they
are contained in Table 1.
Table 1: List of required records to establish properly
substantiated claim.
S/Nr
Record description
1
Baseline schedule
2
Method of construction identifies the works that are
intended to be executed by subcontractors.
3
Planned manpower and machinery resources
4
Programme updates
5
Notices for delay
6
Programme revisions indicate changes and their
required resources and the impact on the contract
completion date.
7
Delay analysis
8
Time impact analysis shows the potential impact of the
changes before carrying out the changes.
9
Cause and effect analysis for each delay disruption
event.
10
Productivity analysis reports
11
Minutes of the daily, weekly, and meetings.
12
Minutes of any special meeting
13
Change of work notices
14
Daily progress reports
15
Weekly progress reports
16
Monthly progress reports
17
Claim register
18
Delay events log
Source: [24].
II.4 DISPUTED ISSUES ASSOCIATED WITH EXTENSION
OF TIME CLAIMS
A lot of studies exist on construction management
literature regarding primary causes of disputes [34-35]. Extension
of time claims is among the major causes of disputed issues in the
construction industry [36]. One of the common causes of
disputes in construction is EOT claims [37]. Similarly, the study
of [38] indicates that claims evolving from delays and disruption
top the major sources of disputes in construction contracts.
[5] identified the top five major disputed issues in
construction projects as; concurrent Delay, Eligibility of time
extension claim, Failure by the contractor to comply with the
contractual requirement for EOT application, Inadequate effort in
mitigating the delay, and Poor demonstration of the impact of the
delay event to the project schedule. It is obvious that the
commonly disputed issues in the construction contract, especially
between clients and contractors are an extension of time. What
these further means is that no construction contract can begin and
end with claims or other issues to be disputed. Eleven most
disputed issues associated with an extension of time claims as
identified from the study of [5] is shown in table 2.
Table 2: Disputed Issues Associated with EoT Claims.
S/N
variables
1
Concurrent Delay
2
Eligibility of time extension claim i.e. the
permissibility of any specific delay event for justifying
a project time extension
3
Failure by the contractor to comply with the
contractual requirement for EOT application
4
Inadequate effort in mitigating the delay
5
Poor demonstration of the impact of the delay event on
the project schedule
6
Permissible period of time extension
7
Conflicting interpretation of contractual provisions
8
The absence of notice of delay by the contractor as
required by the contract
9
The choice of method for evaluating the delay
10
Global Claim
11
Conflicts on the ownership of float
Source: [5].
III. MATERIALS AND METHODS
This study adopted a well–structured online questionnaire
developed from the review of relevant literature. The objectives
were to assess the level of presentation of documents and records
to back up claims for extension of time and to assess the major
issues in disputes with claims of EoT. The study covered Lagos
and Abuja which are the two major areas that house the highest
numbers of construction-based organisations in Nigeria.
Experienced construction professionals that have attained
managerial level, and working with consultants and contractors
were sampled using snowball sampling techniques, as they are a
key to project delivery in the construction industry. The
Questionnaire was used for this study because covers wider
audiences at an economical cost within a shorter time. Online
means of questionnaire survey helps to avoid hard-copy paper
questionnaires; it is eco-friendly [39].
The questionnaire used was designed into three sections.
The first section garnered information on the demographic
Page 26
Okereke, Zakariyau and Eze, ITEGAM-JETIA, Manaus, v.7, n.31, p. 23-31, Nov/Dec, 2021.
characteristic of the respondents. Information gathered in this
section served as a quality check to those obtained from other
sections. The second section collected information on the role of
documents and records in substantiating claims for extension of
time, and the third section collected data on the major issues in
disputes with claims of EoT. The questionnaire was based on a 5-
point Likert scale in which 1 = lowest score/rating and 5=highest
score/rating. The respondents were required to rate the variables
on documents and records to substantiate claims for extension of
time based on level of importance in obtaining approval of the
request for EoT, and the variables on the major issues in disputes
with claims of EoT were based on level of frequency of
occurrence.
The population of 3888 construction organisations in
Lagos and Abuja were obtained from the study of [40]. From the
sample size determination Table in [41], 3888 is closer to 4000,
and the corresponding sample size is 351. Three hundred and
fifty-one questionnaires were administered to the target
participants using the snowball sampling technique via Google
form electronically. The snowball sampling technique is based on
referrals and it can increase sample response rate [42-43]. The
sampling method adopted in this study was informed by the
inability to reach all the experienced target participants by self or
physical means. Leveraging the benefits of the chain of referrals
of snowball sampling method, a total of 139 responses (88 from
Lagos, 51 from Abuja) were received after 12 weeks survey
period, and this was deemed fit for analysis. This represents a
response rate of 39.60% which is above the range suggested by
[44]. The gathered data were analysed using descriptive
statistics such as frequency, percentage, and mean score. The
Cronbach's alpha test was used to determine the reliability of the
research instrument and the internal consistency of responses. As
can be seen in Table 3, the Cronbach's alpha coefficients obtained
are above 0.70 suggested by [45-46]. This implies high
instrument reliability and quality of data. The methodological
flow chart is shown in Figure 2 below.
The cut-off points for determining the level of importance
or significance as obtained from [47] is detailed below;
i. 90 to 100% = very high importance
ii. 70-89% = High importance
iii. 50 -69% moderate importance
iv. 30 to 49% = little importance
v. 1 to 29% very little importance.
Table 3: Reliability Evaluation.
Case Processing Summary
Reliability Statistics
N
%
Cronbach's
Alpha
No. of
items
Cases 1: the role of documents and records in
substantiating claims for extension of time
Valid
139
100.0
0.727
18
Excludeda
0
0
Total
139
100.0
Cases 2: the major issues in disputes with
claims of EoT.
Valid
139
100.0
0.821
11
Excludeda
0
0
Total
139
100.0
Source: Authors, (2021).
Figure 2: Methodological flow chart.
Source: Authors, (2021).
IV. RESULTS AND DISCUSSIONS
IV.1 RESPONDENTS BACKGROUND DETAILS
The results of the analysis of the data gathered on
respondents background information are shown in Table 4. It can
be seen that 38.85% of the respondents work with consultants,
while 61.15% work with contractors' organisations. This shows a
fair representation of the two major players in contract
administration and management. The professional composition
shows that 23.02% are Architects, 10.07% are builders, 38.85%
are Engineers, and 28.06% are Quantity surveyors. This shows a
fair representation of the major professions engaged by
construction organisations. In terms of the rank/positions
Page 27
Okereke, Zakariyau and Eze, ITEGAM-JETIA, Manaus, v.7, n.31, p. 23-31, Nov/Dec, 2021.
occupied by the respondents, 32.37% are project managers,
26.62% are contract managers, 10.79% are works managers,
12.95% are production managers, and 17.27% are site managers.
This reflects considerable experience and knowledge possessed
by the respondents. The average working experience of the
respondents is about 11. 34 years. This shows a considerable
length of time to gain adequate experience and knowledge and
attainment of managerial positions in the industry.
The educational qualification shows that 10.79% have
HND, 8.63% have PGD, 43.88% have B.Sc/B.Tech., 35.25%
have MSc./M.Tech., and PhD is 1.44%. The professional status of
the respondents shows that 86.33% of them are chartered
members of the respective professional bodies, and only 13.67%
are yet to obtain their professional qualifications. The participants
have the requisite education and are professionally qualified to
participate in the subject of this study.
Table 4: Respondents background characteristics.
Variables
Classification
F
Per cent
Organisational category
Consultants
54
38.85
Contractors
85
61.15
TOTAL
139
100.00
Participants professions
Architect
32
23.02
Builders
14
10.07
Engineers (Civil/structural & Services)
54
38.85
Quantity Surveyors
39
28.06
TOTAL
139
100.00
Position/rank
Project managers
45
32.37
Contract managers
37
26.62
Works managers
15
10.79
Production managers
18
12.95
Site managers
24
17.27
TOTAL
139
100.00
Years of experience
0-5years
11
7.91
5-10years
35
25.18
11-15 years
55
39.57
16-20 years
23
16.55
21-above
15
10.79
TOTAL
139
100.00
Highest Educational Qualification
Higher National Diploma (HND)
15
10.79
Postgraduate Diploma (PGD)
12
8.63
Bachelor of Science/technology (B.Sc./B.Tech)
61
43.88
Master’s Degree (MSc./M.Tech.)
49
35.25
Doctorate (PhD)
2
1.44
TOTAL
139
100.00
Professional status
Chartered member
120
86.33
Probationer
19
13.67
TOTAL
139
100.00
Source: Authors, (2021).
IV.2 THE ROLE OF DOCUMENTS AND RECORDS IN
SUBSTANTIATING CLAIMS FOR EXTENSION OF TIME
The result of the analysis of the data gathered on the
documents and records for substantiating claims for extension of
time is shown in Table 5. It can be seen that the top six (6) of
these documents and records for substantiate claims for extension
of time-based on level of importance in obtaining approval of the
request for EoT are; Time impact analysis showing the potential
impact of the changes before carrying out the changes
(mean=4.53), Change of work notices (mean=4.53), Claim
register (mean=4.52), Programme updates (mean=4.51), Minutes
of the daily, weekly, and meetings (mean=4.47), and Daily
progress reports (mean=4.46). While the least required are;
productivity analysis reports (mean=4.25), Weekly progress
reports (mean=4.25), Cause and effect analysis for each delay
disruption event (mean=4.24), Delay events log (mean=4.24),
Notices for delay (mean=4.22), and Method of construction
identifies the works that are intended to be executed by
subcontractors (mean=4.14).
However, disregarding the relative ranking of these variables,
they all have a high influence on the success of EOT claims
requests. This is premised on the range of mean score of the
factors, the highest mean score = 4.53(90.50%) and the lowest
mean score = 4.14 (82.73%), with an average mean score of 4.37
(87.44%). Furthermore, 66.67% (12) of the assessed variables
have a high level of importance in substantiating EoT claims,
while 33.33%(6) have a very high level of importance in
substantiating EoT claims in construction contracts.
The result of this section supports the findings of [24, 31-
32]. Record keeping and propoer documentations of events,
meeting, instructions, change reques, among others are critical to
the success of EoT request.
Page 28
Okereke, Zakariyau and Eze, ITEGAM-JETIA, Manaus, v.7, n.31, p. 23-31, Nov/Dec, 2021.
Table 5: List of required records to establish properly substantiated EoT claims.
S/No
Variables
Mean score
S.D.
Rank
Per cent
Remark
1
Baseline schedule
4.45
0.8180
7th
88.92
High
2
Method of construction identifies the works that are intended to be executed
by subcontractors.
4.14
1.0915
18th
82.73
High
3
Planned manpower and machinery resources
4.43
1.1860
8th
88.63
High
4
Programme updates
4.51
1.0241
4th
90.22
Very High
5
Notices for delay
4.22
1.1167
17th
84.46
High
6
Programme revisions indicate changes and their required resources and the
impact on the contract completion date.
4.40
1.0124
9th
88.06
High
7
Delay analysis
4.29
1.1258
12th
85.90
High
8
Time impact analysis shows the potential impact of the changes before
carrying out the changes.
4.53
1.0857
1st
90.50
Very High
9
Cause and effect analysis for each delay disruption event.
4.24
0.9214
15th
84.75
High
10
Productivity analysis reports
4.25
1.3027
13th
85.04
High
11
Minutes of the daily, weekly, and meetings.
4.47
1.1628
5th
89.35
Very High
12
Minutes of any special meeting
4.40
1.0188
10th
87.91
High
13
Change of work notices
4.53
1.0857
1st
90.50
Very High
14
Daily progress reports
4.46
1.0513
6th
89.21
Very High
15
Weekly progress reports
4.25
0.9934
13th
85.04
High
16
Monthly progress reports
4.38
0.9356
11th
87.63
High
17
Claim register
4.52
0.9037
3rd
90.36
Very High
18
Delay events log
4.24
1.1770
15th
84.75
High
Sources: Authors, (2021).
IV.3 THE MAJOR ISSUES IN DISPUTES WITH CLAIMS
OF EOT
The result of the analysis of the data gathered on the issues
in disputes with claims of EoT is shown in Table 6. The top five
(5) issues in disputes with claims of EoT based on their level of
frequency of occurrence are; concurrent Delay (mean=4.53;
SD=1.2057), The absence of notice of delay by the contractor as
required by the contract (mean=4.50; SD =1.1818), Eligibility of
time extension claim i.e. the permissibility of any specific delay
event for justifying a project time extension (mean=4.47;
SD=1.0857), Inadequate effort in mitigating the delay
(mean=4.47; SD=1.1313), and Poor demonstration of the impact
of the delay event to the project schedule (mean=4.44;
SD=0.9411). While the least 3 disputed issues associated
with EoT claims are; the choice of method for evaluating the
delay (mean=4.26; SD=0.9656), Conflicting interpretation of
contractual provisions (mean=4.21; SD=1.2364), and Global
Claim (mean=4.13; SD=1.3233).
Similarly, regardless of the relative ranking of the assessed
variables, disputed issues associated with EoT claims have high
level of occurrences in construction contracts. The mean score
ranges from a maximum of 4.53 to a minimum of 4.13, and an
average mean score of 4.38. Therefore, the level of occurrence of
disputed issues in construction is high in the construction
industry.
The finding in this section is in line with the report of
(Yusuwan and Adnan, 2013). It was reported that concurrent
delays, extension of time claim eligibility, contractors’ failure to
comply with contractual requirements for requesting EOT, among
others. Extension of time claims comes with a lot of issues, and
the need to request EoT is premised on events that impact project
completion, and disputes in construction are linked to EoT claims
[34-35, 37-38].
Table 6: Disputed Issues Associated with EoT Claims.
S/No
Variables
Mean score
S.D.
Rank
1
Concurrent Delay
4.53
1.2057
1st
2
Eligibility of time extension claim i.e. the permissibility of any specific delay event for justifying a
project time extension
4.47
1.0857
3rd
3
Failure by the contractor to comply with the contractual requirement for EOT application
4.40
1.3062
6th
4
Inadequate effort in mitigating the delay
4.47
1.1313
4th
5
Poor demonstration of the impact of the delay event on the project schedule
4.44
0.9411
5th
6
Permissible period of time extension
4.35
1.0826
8th
7
Conflicting interpretation of contractual provisions
4.21
1.2364
10th
8
The absence of notice of delay by the contractor as required by the contract
4.50
1.1818
2nd
9
The choice of method for evaluating the delay
4.26
0.9656
9th
10
Global Claim
4.13
1.3233
11th
11
Conflicts on the ownership of float
4.37
1.0163
7th
Sources: Authors, (2021).
Page 29
Okereke, Zakariyau and Eze, ITEGAM-JETIA, Manaus, v.7, n.31, p. 23-31, Nov/Dec, 2021.
V. CONCLUSIONS
The purpose of this study is to assess the factors for
substantiating Extension of time (EoT) claims and the common
issues associated with (EoT) in complex-Multi Stakeholders'
Building Construction contracts. This study adopted a well-
structured questionnaire administered on construction
professionals in consulting and contracting organisations, via
electronic means and using snowball sampling techniques in
Abuja and Lagos state, Nigeria. Interesting findings were made
and discussed.
The study found that the major documents and records that
have a high level of importance for substantiating claims for
extension of time are; time impact analysis showing the potential
impact of the changes before carrying out the changes, change of
work notices, claim register, programme updates, minutes of the
daily, weekly, and meetings, and daily progress reports. The
major disputed issues associated with claims for extension of time
in construction contracts are concurrent delay, The absence of
notice of delay by the contractor as required by the contract,
eligibility of time extension claim i.e. the permissibility of any
specific delay event for justifying a project time extension,
inadequate effort in mitigating the delay and poor demonstration
of the impact of the delay event to the project schedule.
Effective contract management is at the centre of the
successful delivery of construction projects. Contractors should
have a formidable team to ensure that there is a proper
understanding of all facets of the projects, including contract
conditions and provisions. Proving delays responsibility and
substantiating extension of time claims requires a lot of effort and
knowledge of contract management. Efforts should be made to
ensure that records for claim events are recorded and regularly
updated. Contractors should ensure that they work as efficiently
and effectively as possible to avoid delays on the critical paths
that will impact the project completion date. This is because any
critical delays will delay the entire project delivery time and the
client will be entitled to a deduction of LAD on a weekly or
monthly basis depending on the provision of the contract.
Regular training and continuous professional development
are required to enhance the skills and expertise of project
administrators/managers for effective claim administration and
management. Recording keeping and proper documentation is a
critical skill needed for effective contract administrations. Every
built environment professionals should learn it. Communication,
analytical and problem-solving skills are also needed by the
contractors and other construction teams; for the efficient and
effective delivery of construction projects.
The outcome of this study is critical to the success of the
project managers/administrators who are vested with the
responsibility of ensuring that projects are delivered within the
planned schedule and critical delays are avoided by all means.
Clients and their agents will also benefit from this study, as they
have a role to play in ensuring that projects are delivered on time
without delays that are attributed to design changes, payment
issues, among other issues related to their activities. This study
will also add to the few existing bodies of knowledge on an
extension of time claims administration and delays management
in developing countries.
This study is limited by a geographical boundary (Lagos
state and Abuja), and the sample size may not be representative
enough to enable the generalisation of the results. Caution should
be taken in generalisation of the outcome of this study. Based on
these, A similar study is therefore advised in other regions or
states or developing countries, this will enable provide more
reports for comparison. A critical question that requires an answer
'is what percentage of time extension is contributed by the
contractors and clients and their agents'? The relationship between
client and contractors-specific delay factors on the completion
date of construction projects requires investigation.
VI. AUTHOR’S CONTRIBUTION
Conceptualization: Dr. Reuben A. OKEREKE and Mohammed
ZAKARIYAU.
Methodology: Dr. Reuben A. OKEREKE, Mohammed
ZAKARIYAU and Emmanuel C. EZE.
Investigation: Dr. Reuben A. OKEREKE, Mohammed
ZAKARIYAU and Emmanuel C. EZE.
Discussion of results: Dr. Reuben A. OKEREKE, Mohammed
ZAKARIYAU and Emmanuel C. EZE.
Writing – Original Draft: Dr. Reuben A. OKEREKE,
Mohammed ZAKARIYAU and Emmanuel C. EZE.
Writing – Review and Editing: Dr. Reuben A. OKEREKE,
Mohammed ZAKARIYAU and Emmanuel C. EZE.
Resources: Dr. Reuben A. OKEREKE, Mohammed
ZAKARIYAU and Emmanuel C. EZE.
Supervision: Dr. Reuben A. OKEREKE, Mohammed
ZAKARIYAU and Emmanuel C. EZE.
Approval of the final text Dr. Reuben A. OKEREKE,
Mohammed ZAKARIYAU and Emmanuel C. EZE.
VII. REFERENCES
[1] Gardezi, S.S.S., Manarvi, I.A. & Gardezi, S.J.S. (2014). Time Extension
Factors in Construction Industry of Pakistan. Procedia Engineering, 77, 196 – 204.
[2] Tumi, S.A.H., Omran, A., & Pakir, A.H.K. (2009). Causes of delay in the
construction industry in Libya. In: Proceedings of the 2009 International
Conference on Economics and Administration, 14-15 November, Bucharest,
Romania, pp. 265-272.
[3] Sambasivan, M., & Soon. (2007). Causes and effects of delays in Malaysian
construction industry’, International Journal of Project Management, 25, 517-526
[4] Maués, L. M. F., Santana, W. B., Santos, P. C., Neves, R. M., & Duarte, A. A.
A. M. (2017). Construction delays: a case study in the Brazilian Amazon.
Ambiente Construído, Porto Alegre, 17(3), 167-181. Available at:
http://dx.doi.org/10.1590/s1678-86212017000300169
[5] Yusuwan, N. M., & Adnan, H. (2013). Issues Associated with Extension of
Time (EoT) Claim in Malaysian Construction Industry. Procedia Technology, 9,
740 – 749.
[6] Acharya, N.K., Lee, Y. D., Kim, S.Y., Lee, J.C., & Kim, C.S. (2006). Analysis
of construction delay factor: a Korean Prospective. APIEMS Conference 2006,
Bankok Thialand.
[7] Walker, D. H. T., (1995). An investigation into construction time performance
Construction Management and Economics, 13, 263-274.
[8] Chan, D. W. M., & Kumaraswamy, M. M. (1994). A survey of time-cost
relationships in Hong Kong construction projects. Building Technology and
Management Journal, 20, 54-72.
[9] Nkado, R.N. (1995). Construction time-influencing factors: the contractor's
perspectives. Construction Management and Economics, 13, 81-89.
[10] Ogunsemi, D. R., & Jagboro, G. O. (2006). Time-cost model for building
projects in Nigeria. Construction Management and Economics, 24, 253-258.
[11] Dunama, M., Ali, Z. A., & Usman, M. L. (2021). Causes and Effects of
Delays and Disruptions in the Nigerian Construction Industry. International
Journal of Innovative Research in Education, Technology & Social Strategies,8(1),
66-75.
Page 30
Okereke, Zakariyau and Eze, ITEGAM-JETIA, Manaus, v.7, n.31, p. 23-31, Nov/Dec, 2021.
[12] Successfulprojects (2021). What is Extension of Time (EoT)?
https://successfulprojects.com.au/construction-claims-and-dispute-
resolution/extension-of-time-eot-claim/
[13] Akhund, M. A., Khoso, A. R., Memon, U., & Khahro, S. H. (2017). Time
Overrun in Construction Projects of Developing Countries. Imperial Journal of
Interdisciplinary Research (IJIR), 3(4), 1-6.
[14] Shrestha, P. P., Burns, L. A., and Shields, D. R. (2013). Magnitude of
Construction Cost and Schedule Overruns in Public Work Projects. Hindawi -
Journal of Construction Engineering, Article ID 935978, pp. 1-9.
http://dx.doi.org/10.1155/2013/935978
[15] Obodoh, D. AP., and Obodoh, C. (2016). Causes and Effects of Construction
Project Delays in Nigerian Construction Industry. JISET - International Journal of
Innovative Science, Engineering & Technology, Vol. 3, no.5, 66-84.
[16] Borse, M., and Khare, P. (2016). Analysis of Cost and Schedule Overrun in
Construction Projects. IJISET - International Journal of Innovative Science,
Engineering & Technology, Vol. 3, no.1, 383-386.
[17] Roslan, N., Zainun, N. Y., and Memon, A. H. (2014). Measures for
Controlling Time and Cost Overrun Factors during Execution Stage. International
Journal of Construction Technology and Management Vol.1, No.1, 8-11.
[18] Memon, A. H., Rahman, I. A., Abdullah, M. R., and Aziz, A. A. A. (2011).
Time Overrun in Construction Projects from the Perspective of Project
Management Consultant (PMC). Journal of Surveying, Construction & Property,
Vol. 2, no. 1, 54-66.
[19] Mukuka, M., Aigbavboa, C., and Thwala, W. (2015). Effects of construction
projects schedule overruns: A case of the Gauteng Province, South Africa.
Procedia Manufacturing, 3, 1690 – 1695.
[20] Maritz, T. & Prinsloo, H. (2016). A decision support framework for extension
of time claims for the JBCC Principal Building Agreement. Acta
Structilia,23(2),146-109.
[21] Tan, H. S. A. Evaluating extension of time claims. in 18th CIB World
Building Congress. 2010. Salford, United Kingdom. Available at:
https://www.irbnet.de/daten/iconda/CIB18981.pdf
[22] Abbott, N. (2002). Time and Construction Contracts Extensions of Time and
the Prevention Principle.
https://www.cbp.com.au/WWW_CBP/files/a1/a1028786-f739-4c79-8dff-
8c55bf61aa98.pdf
[23] Carl, S., & Chris, J. (2020). The importance of extension of time provisions.
Rail Professional Magazine., p.45. Available at: https://www.hka.com/the-
importance-of-extension-of-time-provisions/
[24] Alnaas, K. A. A., Khalil, A. H. H., and Nassar, G. E. (2014). Guideline for
preparing comprehensive extension of time (EoT) claim. HBRC Journal, 10(3),
Pages 308 316, https://doi.org/10.1016/j.hbrcj.2014.01.005.
[25] Trauner, T. J., Manginelli, W. A., Lowe, J. S., Nagata, M. F., and Furniss, B.
J. (2009). Construction Delay: Understanding Them Clearly, Analysing Them
Correctly. 2nd Edition ed. 2009: Elsevier.
[26] Ndekugri, I., Braimah, N., & Gameson, R. (2008). Delay analysis within
construction contracting organizations. Journal of Construction Engineering and
Management, 134(9), pp. 692-700. https://doi.org/10.1061/(ASCE)0733-
9364(2008)134:9(692).
[27] Yates, J. K., and Apstein, A. (2006). Avoiding and Minimising Construction
Delay Claim Disputes in Relational Contracting. Journal of Professional Issues in
Engineering Education and Practice, 2006. 132(2): p. 168-179.
[28] Ahmed, S. M., Azhar, S., Kappagantula, P., and Gollapudi, D. (2003). Delays
in Construction: A Brief Study of the Florida Construction Industry. SC
Proceedings of the 39th Annual Conference, Clemson University - Clemson,
South Carolina, April 10-12, 2003, pp 257-266. Available at:
http://ascpro0.ascweb.org/archives/cd/2003/2003pro/2003/Ahmed03.htm
[29] Baram, G. E., (2000). Concurrent Delays-What Are They and How To Deal
With Them? AACE International Transactions, 2000.
[30] Ibbs, W., Nguyen, L. D., and Simonian, L. (2021). Concurrent Delays and
Apportionment of Damages. Journal of Construction Engineering and
Management, 2011. 137(2): p. 119-126.
[31] Rodriguez, J. (2021). How to Request Time Extensions in Construction
Contracts. Avaable at: https://www.thebalancesmb.com/time-extension-and-the-
construction-contract-844411
[32] Jergeas, G. F. and Hartman, F. T. (1994). Contractors' construction-claims
avoidance. Journal of Construction Engineering and Management, 1994. 120(3):
p. 553-560.
[33] Iain Wishart (2021). Delay and Disruption - a separable duo. Available at:
https://www.iainwishart.com/delay-and-disruption-a-separable-duo/
[34] Love, P. E. D., Davis, P. R., Ellis, J. M., & Cheung, S. O. (2010). A systemic
view of dispute causation. International Journal of Managing Projects in Business,
3(4), 661- 680. https://doi.org/10.1108/17538371011076109
[35] Cheung, S. O., & Yiu, T. W. (2006). Are construction disputes inevitable?
Engineering Management, IEEE Transactions on, 53(3), 456-470.
[36] Waldron, B. D. (2006). Scope for improvement: A survey of pressure points
in Australian construction and infrastructure projects. Blake Dawson Waldron.
[37] Gibson, R. (2008). Construction Delays: Extension of Time and Prolongation
Claims.Taylor & Francis. 357.
[38] Aibinu, A. A. (2009). Avoiding and Mitigating Delay and Disruption Claims
Conflict: Role of Precontract Negotiation. Journal of Legal Affairs and Dispute
Resolution in Engineering and Construction, 1(1), 47-58.
[39] Nwaki, W. N., & Eze, C. E. (2020). Construction as a panacea for poor
construction projects performance. ITEGAM-Journal of Engineering and
Technology for Industrial Applications (JETIA), 6(26), 61-72.
[40] Bamgbade, A. A., Jimoh, R. A., Oyewobi, L. O., & Anifowose, M. (2020).
Organisational culture characterisation of construction firms in Nigeria. CSID
Journal of Infrastructure Development, 3(2), 198-213.
[41] Krejcie, R. V., & Morga, D. W. (1970). Determining sample size for research
activities. Educational and Psychological Measurement, 30, 607-610.
[42] Heckathorn, D. D. (2011). Comment: Snowball versus respondent-driven
sampling. In Sociological Methodology, 41(1), 355–366.
https://doi.org/10.1111/j.1467- 9531.2011.01244.x
[43] Atkinson, R., & Flint, J. (2001). Accessing Hidden and Hard-to-Reach
Populations: Snowball Research Strategies. Social Research Update, 33.
http://sru.soc.surrey.ac.uk/SRU33.html
[44] Moser, C., & Kalton, G. (2001). Survey methods in social investigation.
Aldershot: Ashgate
[45] Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate
data analysis (7th Ed.). New York (NY): Pearson.
[46] Pallant, J. (2007). SPSS Survival Manual: A Step-By-Step Guide to Data
Analysis Using SPSS version 15, 3rd edition, Open University Press, England.
[47] Saidu, I., & Shakantu, W. M. (2016). Effects of material-waste causes on
project-cost overrun in Abuja, Nigeria: A site management perspective.
Proceedings of the 9th Annual Quantity Surveying Research Conference, Port
Elizabeth, 19-21 October 2016, pp.246-257.
Page 31
