What Are Prolongation Claims? Guide for Contractors & Consultants
What Are Prolongation Claims? Guide for Contractors & Consultants
Blog Article
In the construction industry, time is money. When a project runs longer than expected, it often results in additional costs. Prolongation Claims These unexpected delays can disrupt cash flow, tie up resources, and strain business relationships. To address this, contractors and consultants can file what's known as a prolongation claim. Understanding what prolongation claims are and how to manage them is crucial for all parties involved in construction projects.
Definition of a Prolongation Claim
A prolongation claim is a request for compensation due to extended project duration caused by delays that are not the contractor’s fault. Essentially, it seeks to recover the additional costs incurred during the extended period of work. These costs can include site overheads, labor, equipment, extended insurance, and other time-related expenses.
When Are Prolongation Claims Applicable?
Not all delays qualify for prolongation claims. The delay must meet specific criteria:
The delay must be excusable – It should result from reasons outside the contractor’s control, such as late approvals, design changes, unforeseen site conditions, or client-caused disruptions.
The delay must be compensable – The contract must allow for financial compensation, not just time extensions.
Proof of impact – The contractor must demonstrate that the delay directly led to increased costs.
Key Elements of a Prolongation Claim
To submit a successful claim, several elements must be clearly documented:
Cause of the delay – Identify what led to the extended duration.
Responsibility – Prove that the delay was due to the employer, client, or other external factors.
Evidence of cost impact – Provide records of costs incurred due to the prolongation.
Critical path analysis – Show how the delay affected the project timeline, particularly the critical path.
Well-maintained records, such as daily reports, emails, schedules, and financial documents, are essential to support the claim.
Contractor’s Responsibilities
Contractors should act promptly when delays occur. Early notification to the client or project manager is vital. Most contracts have specific clauses that require the contractor to inform stakeholders within a certain time frame. Failure to do so can result in loss of entitlement to claim.
Moreover, contractors must make reasonable efforts to mitigate the impact of the delay. This might involve rescheduling activities or reallocating resources to minimize downtime.
Consultant’s Role
Consultants, such as project managers or quantity surveyors, play a key role in evaluating prolongation claims. They assess the validity of the claim by reviewing documentation, conducting schedule analysis, and determining whether the costs claimed are reasonable and justifiable.
They also advise clients on their contractual obligations and help resolve disputes that may arise due to differing interpretations of project delays.
Conclusion
Prolongation claims are a vital mechanism for protecting contractors against financial loss due to extended project durations. However, they require thorough documentation, clear communication, and a solid understanding of contract terms. Both contractors and consultants must work collaboratively to ensure that claims are handled fairly and transparently. By proactively managing delays and maintaining accurate records, construction professionals can safeguard their interests and maintain trust in client relationships.
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