The Expert Witness April 2022 For Website

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Delay vs Disruption: Know your claim?

by Shishir Kant, Senior Partner and Himanshu Batra, Principal Consultant


at Masin
Delay and Disruption both are inherently interrelated but distinct issues. A loss of
productivity i.e., disruption can lead to critical delay if the impacted activities are on
a critical path. Similarly, a delay may result into disruption if the Contractor adopt
acceleration measures to implement the Project which may lead to tasks being carried out
at a lower productivity than the planned and at higher costs.

Delay and Disruption are often confusing to Project and that the Employer is responsible for such
differentiate between. But there is a significant dis- delay;
tinction between the two. Nonetheless both may re- ➢ That the delay affected the critical path;
sult in cost and time overruns in the Project but the
process of quantifying effect of delay and disruption is ➢ That the delay qualifies for time and cost as per the
quite distinct. More attention is paid to claims conditions stipulated in the Contract;
regarding delays, still disruption claims can also be ➢ That the Contractor suffered additional expenses
substantial. which were not envisaged at the time it entered into
the Contractual framework with the Employer
The Society of Construction Law Delay and
Disruption Protocol, 2nd Edition, February 2017 The Contractor should maintain detailed and
(SCL Protocol), defines Delay as: accurate contemporaneous record such as the base-
“In referring to ‘delay’, the Protocol is concerned with line and updated/impacted/as-built programmes, joint
time – work activities taking longer than planned. In record of delay events, correspondences exchanged
large part, the focus is on delay to the completion of between the parties etc. in order to support his Claim.
the works – in other words, critical delay. Hence, The Contractor should also present a detailed foren-
‘delay’ is concerned with an analysis of time..” sic delay analysis to support its claim for Extension of
time by demonstrating the extent of critical delays
The SCL Protocol defines Disruption as: faced on the Project. There are various delay analysis
“In referring to ‘disruption’, the Protocol is concerned with techniques prevailing globally in the Construction
disturbance, hindrance or interruption to a Contractor’s nor- sector namely,
mal working methods, resulting in lower productivity or effi- ➢ Impacted As-Planned Analysis;
ciency in the execution of particular work activities. If the ➢ Time Impact Analysis;
Contractor is prevented from following what was its reason- ➢ Time Slice Windows Analysis;
able plan at the time of entering into the contract for carrying
➢ As-Planned versus As-Built;
out the works or a part of them (i.e. it is disrupted), the likeli-
hood is that its resources will accomplish a lower productivity ➢ Retrospective Longest Path Analysis;
rate than planned on the impacted work activities such that, ➢ Collapsed As-Built Analysis.
overall, those work activities will cost more to complete and the
The choice of delay analysis to be deployed should be
Contractor’s profitability will be lower than anticipated”
determined by multiple factors such as the governing
Delay as defined by the SCL is concerned with time, conditions of the Contract, nature of the causative
whereas disruption is concerned with the productiv- events, nature of the Project, quality of construction
ity. Delay may have a direct impact on the contractual programme and extent of records etc.
date of completion of the Project, depending upon its
criticality. The delay caused can be claimed in the form For the cost claim pertaining to compensation of time,
of EOT or LD based on the party responsible for delay the Contractor should claim time related indirect ex-
(i.e., Employer or the Contractor). While in case of penses at the time critical delays were faced on the
disruption, it may not affect the date of completion Project. Whereas, the Employer’s cost claim generally
directly but still lead to monetary losses. Also, there contains the Liquidated Damages expressly stipulated
may be no explicit contractual provision for claiming in the Contract.
compensation for a disruption event. Presenting a claim of Disruption
Presenting a Claim of Delay In order to claim disruption in a Project, the
For instance, delays emanating from an Employer’s Contractor needs to prove that its productivity has
risk event were faced on a Project. In order to claim suffered due to impediments for instance, non-avail-
the time and cost owing to such delay, the Contractor ability of proper access to reach Project site, Physical
would need to demonstrate the following: conditions encountered at site being different from
➢ That the delay has genuinely occurred on the what was envisaged at the time of bid etc. resulting in

EXPERT WITNESS JOURNAL 8 APRIL 2022


underutilization of its resources resulting in monetary
loss. The Contractor needs to prove the following:
➢ Disruptive events have occurred, resulting in lower
productivity;
➢ The events were not envisaged at the time bid was
submitted by the Contractor;
➢ The events were responsibility of the Employer;
➢ The events entitle the Contractor for compensation.

Similar to the case of delay, contemporaneous records


should be maintained for claiming disruption. The
Contractor here needs to have a legal entitlement to
claim for disruption with respect to the events
reported by it.

There are various Disruption analysis techniques such


as:
➢ Productivity-based methods
• Project specific studies
o Measured mile analysis
o Earned value analysis
o Programme analysis
o Work or trade sampling
o System dynamics modelling
• Project comparison studies
• Industry studies
➢Cost-based methods
• Estimated vs. incurred labour analysis
• Estimated vs. used cost analysis
In claiming disruption, the Contractor needs to prove
the cost it has incurred would have been lower if not
for the disruption i.e., the planned cost was lower than
the actual cost incurred on the Project. It is more likely
a breach of Contract implying that the Contractor was
prevented from carrying out its work according to the
Contract and as-planned.
Mr Tom Makokha BSc (Hons) FRICS
Construction Consultant & Surveyor
Significance of Distinction Tom Makokha is an highly experienced Chartered Building Surveyor (FRICS), Expert
Delay and Disruption both are inherently interrelated Witness and Project/Programme Manager.
but distinct issues. A loss of productivity i.e., disrup- He has experience managing many varied development projects from the initial client
tion can lead to delay and, if the impacted activities are briefing, through design, construction and up to and including post contract installations.
on critical path, that can be critical delay. Similarly, a He has worked in both the private and public sectors, successfully delivering trans-
formative large scale projects and programmes, both domestically and internationally.
delay may result into disruption if the Contractor
He is conversant with, and has utilised an array of different standard procurement routes.
adopt acceleration measures to implement the Project
Furthermore, he has extensive and diverse sector knowledge, comprising, but not limited
which may lead to tasks being carried out at a lower to, retail development, commercial development, development and redevelopment and
productivity than planned and at higher costs. modernisation works, in both the public and private sectors.
Both the issues can have overlapping monetary He is also accomplished leader of project teams on many varied projects, completing them
consequences as well. all on time and within budget, while always achieving the client's objectives.
He is also a mentor experienced in the recruitment, training and stewardship of large
The fundamental difference between delay and dis- professional procurement teams. He is also an RICS accredited Assessor and examines
ruption is that both the claims are needed to be pur- candidates for the RICS assessment of professional competence, in both Building
Surveying and Project Management disciplines.
sued individually as the basis of both the claims is
different. The delay and disruption analysis both fol- Areas of expertise encompass:
l Section 11 Housing Disrepair Landlord & Tenant matters
low different methodologies. In delay analysis, the l Landlord & Tenant Act housing disrepair CPR compliant Expert Witness Reports.
focus is on loss of time whereas in case of disruption l Real estate Project/Programme Management in both domestic and global markets.

analysis the focus is on loss of productivity, both l Budget Control RAID Management Project Planning Project Lifecycle Management

resulting in financial damages. Project documentation implementation and management Stakeholder Management
l Trouble shooting problamatic and distressed and schemes and programmes.

In conclusion, knowing the distinction between delay Contact Name: Construction Boffin
and disruption will enable you to differentiate your Tel: 07426 805 967
Email: tom@constructionboffin.com
claims in a better way, resulting in a better chance at
Website: www.constructionboffin.com
getting them approved. Area of Work: Nationwide and Worldwide

EXPERT WITNESS JOURNAL 9 APRIL 2022

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