In the construction industry, time is money. Delays are not only disruptive—they can be financially damaging. When a project is extended beyond its contractual duration due to delays outside the contractor’s control, Project Advisory come into play. These claims help contractors recover the additional costs they incur from being on-site longer than originally planned.
Understanding how to identify, prepare, and defend prolongation claims is essential for contractors, clients, and consultants alike.
What Are Prolongation Claims?
A prolongation claim is a formal request by a contractor for compensation resulting from an extension of the project duration. These claims are typically made when delays are not the contractor’s fault and lead to extra costs that weren’t accounted for in the original contract.
Costs recovered through a prolongation claim may include:
- Site management and supervision
- Extended use of temporary facilities and equipment
- On-site staff salaries
- Security, utilities, and insurance
- Loss of opportunity (e.g., missing out on other projects)
It’s important to note that prolongation claims are only valid if the delay is a compensable delay—i.e., caused by the employer or other factors outlined in the contract as grounds for financial recovery.
Common Causes of Prolongation Claims
Some typical scenarios that give rise to prolongation claims include:
- Design changes issued after construction begins
- Late issuance of instructions or approvals
- Delays in site access or handover
- Unforeseen ground conditions
- Late delivery of client-supplied materials or equipment
- Variations or additional work not anticipated in the original scope
Understanding the root cause of a delay is crucial in determining whether a prolongation claim is justified.
Proving a Prolongation Claim
To succeed in a prolongation claim, a contractor must provide:
- Causation – Proof that the delay was due to events outside their control
- Entitlement – Contractual grounds for additional compensation
- Substantiation – Evidence of actual costs incurred due to the extended duration
This requires detailed records such as:
- Daily progress reports
- Time and resource logs
- Communications between stakeholders
- Updated project schedules
- Cost breakdowns tied directly to the delay
The more detailed and consistent the documentation, the stronger the claim.
How Are Prolongation Claims Assessed?
Assessment typically involves forensic delay analysis—a method used to establish the impact of the delay on the overall project schedule. Techniques like Time Impact Analysis (TIA), as-planned vs. as-built comparisons, and window analysis are commonly used.
Cost evaluation follows, focusing on:
- Prolonged preliminaries or head office overheads
- Site management extensions
- Escalated labor or material costs
Most standard construction contracts (e.g., FIDIC, JCT, NEC) contain provisions outlining how time-related claims should be handled.
How to Minimize Disputes Over Prolongation Claims
While prolongation claims are often valid, they can become contentious. Here's how to reduce the risk of disputes:
- Maintain clear, consistent site records
- Follow contractual procedures for notification and claim submission
- Engage in early communication with clients or consultants when delays arise
- Use professional claims consultants to prepare or evaluate claims
- Include clear extension of time (EOT) clauses in the contract
When both parties understand their rights and obligations under the contract, the likelihood of prolonged disputes decreases.
Conclusion
Prolongation claims play a crucial role in ensuring that contractors are fairly compensated for the extended costs of staying on a project longer than expected—when those delays are not their fault. However, success hinges on proper documentation, contract compliance, and a clear understanding of cause and effect.
Whether you're preparing a claim or defending one, a professional and fact-based approach can mean the difference between conflict and resolution.
