EXPO 2020
EXPO 2020 in Dubai is fast approaching. The immovable deadline for this incredibly important event for the UAE will put significant time pressure on all those involved, especially on contractors who will have undoubtedly faced delays and other challenges during construction.
In the second of a series of articles in the lead-up to EXPO 2020, Driver Trett's Matthew Greenhalgh looks at the impact that contractors and subcontractors are likely to be experiencing on a scheme of this scale that can lead to disruption and loss of efficiency.
Acceleration measures, such as trade-stacking, typically leads to tasks being carried out with a lower productivity than planned and therefore at an additional cost. This period in the delivery of the EXPO 2020 construction works is therefore likely to be the most disrupted period in the overall construction programme.
It is common within the construction industry to refer to delay and disruption claims as being synonymous, but they are quite distinct issues. The primary effect of disruption is a loss of efficiency, whereas delay is usually used to mean a delay to a completion date. However, the two are often related and go hand-in-hand.
Disruption claims are widely acknowledged to be the most challenging type of claim to quantify and resolve. However, the key to a disruption claim is the quality and extent of contemporaneous records available. The better quality and extent of the records you have, the easier it will be to quantify and resolve your disruption claim. In our experience contractors and subcontractors could submit more robust disruption claims if they took steps to maintain the appropriate records by linking the individual causes to the individual effects, and identifying the disruption events within the context of a construction programme. You can find out more about record keeping best practice by reading the first article in this series https://www.driver-group.com/middle-east/news/expo-2020-time-is-ticking---record-keeping
In order to recover a loss of efficiency, there needs to be an identifiable event that leads to a task being carried out with a lower productivity than planned. Although there are usually many causes of disruption, variations are one of the most common causes. Construction on the scale of EXPO 2020 will inevitably result in a large number of variations to the original scopes of works, which as a consequence, will likely result in significant disruption to the works.
Identifying the cause of disruption and calculating the impact can be a big task for a contractor and subcontractor. Therefore, the importance of maintaining proper records cannot be overstated. Without the appropriate resource, programme and cost records, it will be more difficult for contractors and subcontractors to prove their entitlement to the costs incurred arising from disruption events.
There are several methods for the calculation of a loss of productivity resulting from disruption, each with a varying degree of accuracy and acceptance. The methods of analysis can be categorised as either a productivity-based analysis or a cost-based method. Cost-based methods are less robust in the support of a disruption claim and are typically used when a loss in productivity cannot be reliably calculated utilising a productivity-based analysis.
Disruption claims are commonly used in the negotiation and settlement of disputes. Therefore, the greater the supporting evidence a contractor and subcontractor can provide, the more likely they will be compensated for their additional costs. A well planned, drafted and supported disruption claim is therefore of paramount importance to the recovery of additional costs.
If you have any concerns regarding the sufficiency of your record-keeping and or if you wish to have a no-obligation discussion with one of our highly experienced consultants to discuss assistance around preparing and pursuing a claim for disruption, please contact dubai@drivertrett.com or call +971 4 453 9031