Problems associated with evaluation of extension of time (EOT) claim in government projects

Abstract

Normally, the Extension of Time (EOT) shall be assessed based on the knowledge of the Superintending Officer (S.O) and any additional information given to him by the Contractor. However there are several problems that may delay the process of assessment of the EOT such as lack of details and particulars of submission by the Contractor, late submission of claim by the Contractor and poor demonstration of the impact of delay to the project’s completion date. Apart from that, the Contractor’s failure to provide the requested information is also a factor the S.O can take into account in assessing the EOT. This research was carried out to achieve two objectives; (i) to identify the most common problems associated with the assessment of EOT’s application and (ii) to identify how these problems can be solved by JKR. There are three (3) most common problems encountered by the S.O during assessment process namely lack of details and particulars, inadequate efforts from the Contractor to mitigate the delay and reasons to claim EOT are not relevant events as per contract. The problems were all very highly ranked by the respondents with the frequency of 83%, 78% and 70% respectively. The results imply that strict compliance to the contract requirement is important if the Contractors wanted to secure their entitlement of EOT. In addition, there are six (6) recommended solutions that have been identified to minimize the problems, which include (i) Jawatan Kuasa Lanjutan Masa (JKLM) (ii) training course (iii) progress meeting (iv) proper planning (v) written instruction and (vi) strict enforcement. Ultimate findings of this research are expected to provide a significant contribution to the industry players in government’s projects thus help to identify areas for further improvement.