STATE MINISTRY OF PROVINCIAL COUNCIL AND LOCAL GOVERNMENT AFFAIRS

World Bank Funded Transport Connectivity & Asset Management Project - Loan No.P132833

Contract No: MPCLGS/PRDP/UV/05RR

ENVIRONMENT AND SOCIAL SAFEGUARDS COMPLIANCE-

COMPLETION REPORT
MARANGAHAWELA-KOSGAMA ROAD

EMPLOYER -CHIEF SECRETARY (UVA PROVINCE)

ENGINEER -PROJECT IMPLEMENTATION CONSULTANT

CONTRACTOR- SUHADA ENTERPRISES

ANNEXTURE 04
ANNEXTURE 02
NOTICE TO CLAIM
 REVISED CONSTRUCTION PROGRAMME

CLAIM FOR EXTENSION OF TIME TO THE CONTRACT PERIOD (EOT CLAIM NO: 02)

01. INTRODUCTION
1.1 Objective
The purpose of this report is to claim Extension of Time for the above project due to following causes. Upon
the occurrences of this events, as we were failing or delaying performance, we notified to the Engineer in
writing set forth the nature of the occurrence, its’ expected duration and how it has affected pursuant to the
sub clause 20.1 in GC. Hence Suhada Enterprises is entitled to an Extension of Time with respect to delay.
 1.2 Contract Particulars

Contract Dates
Letter of Acceptance -2021.08.26
Time for Completion - 450 Days
Due Date of Completion -17th December 2022
Revised Date of Completion - 3rd March 2023
Accepted Contract Amount - Rs. 381,688,184.20

02. Disruptions due to Fuel & Material Crisis

2.1 Background
01. As per the original scope of work we have submitted Construction Programme and approved by the
Engineer. Further submissions for EOT 01 were also accepted by the Engineer.
03. According to the Construction Programme, major works to be complied with the critical path to complete
the project before the completion date of original completion date are,
a) Road works
b) Structure works
c) Site Clearing
d) Earth works
As per the planned milestones to gain the required physical progress over the last period was not drastically able
due to their supporting environment.
Sri Lanka’s economy has come to a near standstill and facing its worst financial crisis, run out for fuel all
activities. Fuel is a key economic enabler. Disruptions to fuel availability and price changes potentially have
considerable impact on construction industry. Because, balance major works of the project mainly energy
intensive works.

2.2 Impact of shortage on the construction programme

a) Shortage of fuel curtails the services of the officers, labours due to the curtailment of transportation.
Hence output of the human resources was drastically limited.
b) Heavy machinery is traditionally one of the greatest costs to consider mainly due to fuel consumption. These
typically diesel-powered machines have a great variability of fuel consumption depending on the scenario of
utilization. Due to this heavy consumption rate machineries had to be used in a limited time period. Thus
excavation, loading, unloading, transportation in the site and other related works were limited and caused to
delay the road works, structure works, earthworks and clearing works.

c) Requirement of purchasing the inadequate amount of fuel for asphalt production, paving works, asphalt
transportation has barred the above works wholly. The fuel usage factor for asphalt concrete production includes
all requirements to produce a ton of asphalt concrete, including the material handling at the plant site, drying and
heating of aggregates, heated asphalt storage and generating power for all plant machinery. Fuel usage factors
represent requirements to place asphalt concrete with a paving machine and compact it with three rollers.
Estimated fuel requirement for whole asphalt process was calculated as approximately 12000 l
Fuel usage factors for the production of Portland cement concrete include all requirements to produce a cubic meter
of concrete including material handling at the site, mixing, and generating power for all plant & machinery.
d) Inability of transporting inadequate amount of material, such as tor steel, cement, sand and metal gained a
huge shortage of that causing a delay on main activities

2.3 Contractor’s Entitlement for an EOT

We have made our intention to Claim for Extension of Time for the contract period with our letters
TCAMP/PRDP/UP/05RR/EN/CRE/08, EN/CRE/11 and EN/CRE/14.
Pursuant to the sub clause 8.4 (d) general conditions set forth in Section VIIӀ,

“Unforeseeable shortages in the availability of personnel or goods caused by epidemic or governmental

actions”

“The Ceylon Petroleum Corporation was set up as a state enterprise by Act. No. 28 of 1961 in parliament
and further amendments carried out subsequently. The main objectives of Ceylon Petroleum Corporation are
the following:”

“To carry on business as an importer, exporter, seller, supplier and distributor of Petroleum products. To carry
on business of exploring for the exploiting, producing, and refining of Petroleum and to carry on any such
business as may be incidental or conducive to the attainment of the objectives”

Hence Ceylon Petroleum Corporation is functioning as a state enterprise and whole process is controlled
through government policies, effect of the mechanism squarely falls within the mechanism of Governmental
Actions.

Hence effect of this can be considered under Compensation Event pursuant to the sub clause 8.4 .Therefore
occurrences of these failures to perform under contract, complied with the sequences of failures done by the
government body which has made a direct or indirect impact.

Further neither party shall be responsible or liable to the other, for the failure or delay in the performance of
these contractual obligations due to this contingency beyond the party’s reasonable control. Applicability of
this, we, Suhada Enterprises has used its contractually reasonable effort to overcome, eliminate or cure any
such causes and resume the performance of our obligation.

Pursuant to the sub clause 8.4 GC contractor is entitled to an Extension of Time if a compensation event
occurs or a Variation is issued which make it impossible for completion to be achieved by the intended
Completion date.
We have made our intention to claim for Extension of Time for the contract period by our previous letters.
2.4 Number of Days of EOT

Task Name June-2022 July-2022 August- Cumulative Nos of

2022 days
Monthly Fuel 9610 9610 9610
Requirement/l
Collected 530 580 550
Amount of Fuel/l
Work achieved 5.5% 6.03% 5.7%
Percentage
Effective 100% 100% 100%
Percentage
Work Lost 94.5% 93.97% 94.3%
Percentage
Days of Lost 28.3 29.13 29.23 86.66

Table 01. Delayed Critical Items affected by the crisis

Current fuel crisis has been continuing since 25/02/2022 and critically affected up to 31/08/2022 and effect of
other limitations done by the Government slightly affected on the programme up to the end of the year 2022.
Crisis occurred potentially high up to 31/08/2022, was considered for the Claim No. 02, Extension of Time
No. 02.
Hence, Suhada Enterprises intend to claim 87 Days of EOT since 08/03/2022. According to that our intended
completion date should be 03rd June 2023.

By considering all these factors you are kindly requested to consider the Extension of Time for the
balance work of the project upto 03 rd June 2023. Because, above considered effect has been affecting to
the critical path of the project for this whole period.

Hence our intended Date of Extension is 03/06/2023