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Study of methodologies and approaches for framing delay claims

By: Sridhar, M.
Contributor(s): Kumar, V. S. S.
Publisher: Pune NICMAR 2015Edition: Vol.30(4), Oct-Dec.Description: 17-26p.Subject(s): Construction Engineering and Management (CEM)Online resources: Click here In: NICMAR Journal of construction managementSummary: Many Infrastructure projects in India are affected by time overruns which eventually result in cost overrun. In case of owner caused delays in project execution, normally the contractors claim the delay costs because of prolongation of work. Such delay claims are often disputed not only on merit, like the contractual liability for the delay but also on the methodology adopted for quantification of claims .Thus the prevalent delay claims in construction industry have become a major source of conflicts. The resolution of delay claims is complex due to lack of standard methodology in framing such claims. For evolving a rational approach for resolution of delay claims, the practice and approaches followed in framing of delay claims needs to be studied. A study was undertaken through a questionnaire survey on the practices and approaches followed in framing the delay claims, their methodologies and quantification aspects. The survey was conducted on three distinct stakeholders/ groups dealing with the issues of delay claims. The groups consist of the contractors who lodge delay claims as first group, the project owners and govt. departments who are the employers as second group. The consultants and arbitrators who judge the delay claims are considered as third group. Based on the results of the study, it is found that formulae based approach is predominantly followed for framing delay claims. Appropriate conclusions have been drawn on practices and approaches followed by contractors which are useful in evolving a rational methodology for resolution of the delay claims.
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Many Infrastructure projects in India are affected by time overruns which eventually result in cost overrun. In case of owner caused delays in project execution, normally the contractors claim the delay costs because of prolongation of work. Such delay claims are often disputed not only on merit, like the contractual liability for the delay but also on the methodology adopted for quantification of claims .Thus the prevalent delay claims in construction industry have become a major source of conflicts. The resolution of delay claims is complex due to lack of standard methodology in framing such claims. For evolving a rational approach for resolution of delay claims, the practice and approaches followed in framing of delay claims needs to be studied. A study was undertaken through a questionnaire survey on the practices and approaches followed in framing the delay claims, their methodologies and quantification aspects. The survey was conducted on three distinct stakeholders/ groups dealing with the issues of delay claims. The groups consist of the contractors who lodge delay claims as first group, the project owners and govt. departments who are the employers as second group. The consultants and arbitrators who judge the delay claims are considered as third group. Based on the results of the study, it is found that formulae based approach is predominantly followed for framing delay claims. Appropriate conclusions have been drawn on practices and approaches followed by contractors which are useful in evolving a rational methodology for resolution of the delay claims.

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