DISRUPTION CLAIMS AND DELAY CLAIMS ARE NOT THE SAME ?

Delay and disruption are common terms in the construction industry and often appear in construction contracts. The two terms may seem similar, but they refer to distinct concepts that can impact construction projects in different ways. Depends on the approach or where and when either will confront each other.

Delay in construction contracts refers to the failure of a project to be completed within the agreed-upon timeframe. This can be caused by a variety of factors, such as unexpected weather conditions, design changes, or labor shortages. When a delay occurs, the construction schedule is extended, and the project completion date is postponed.

Disruption in construction contracts refers to a situation where the productivity or efficiency of a contractor is impacted, leading to decreased output or performance. This can be caused by various factors, such as material shortages, changes in project management, or unforeseen site conditions. Disruptions can cause delays in the project timeline, increase costs, and affect the quality of work.

Disruption is not same as the delay disruption is an interference, disturbance, hindrance or interruption to the contractor intended method of works as agreed and resulting in an out of sequence of work, and or lower productivity. If this was caused by the employer it may give rights to the compensation either under the contract or as a breach of a contract.

Disruption claim could be a part of EoT claim with with disruption was on the critical path or it could be a separate claim. If the disrupted event is not in the critical path extended disturbance to a non-critical activity could make it critical and change the logic of the critical path. It is no an uncommon to find a projects there are disruption claims amount huge number of figures. However, contractor generally find prove difficulties in disruption claim by way of recognizing industrial methodologies, thus is is common to find contractor suffer significantly losses without able to prove for an entitlements.

It is essential to distinguish between delay and disruption in construction contracts because the remedies and approaches to addressing these issues may differ. For example, a delay may require an extension of the contract completion date, while a disruption may require a re-sequencing of the work or the provision of additional resources. Additionally, the party responsible for a delay or disruption may differ depending on the cause and extent of the issue.

In some cases, delays and disruptions can occur simultaneously, making it challenging to identify the root cause and apportion responsibility. Therefore, it is crucial to define these terms clearly in construction contracts and establish protocols for addressing them.

To mitigate the impact of delays and disruptions on construction projects, it is essential to have a comprehensive understanding of the factors that can cause them. This requires careful planning, risk assessment, and contingency planning. By identifying potential delays and disruptions early in the project lifecycle, contractors can take proactive measures to mitigate their impact, such as adjusting schedules, increasing resources, or revising designs.

COMMON MISUNDERSTANDINGS BETWEEN DELAY AND DISRUPTIONS WHICH SHOULD BE AVOIDED

Delay and disruption are two distinct concepts in the construction industry, and it's essential to understand the differences between them to avoid confusion. Here are some common confusions between delay and disruption that should be avoided few comparative statement?are as under

Equating delay with disruption: A delay occurs when an activity is completed later than planned, while a disruption refers to any event that interrupts the normal flow of work, resulting in a loss of productivity or efficiency. A delay can be a consequence of a disruption, but a disruption does not necessarily result in a delay. It's essential to differentiate between the two and analyze their respective impacts. Either way cause and effect due to disturbance (cause) and therefore a delay (effect) is the common understanding

Failing to document events accurately: Proper documentation is critical in distinguishing between delays and disruptions. Failure to document events accurately can lead to confusion and disputes. It's essential to record events, including the reason for the delay or disruption, the time it occurred, the parties involved, and the impact on the project.

Ignoring concurrent delays: Concurrent delays occur when multiple delays or disruptions affect the same activity, resulting in a prolonged delay. Ignoring or non prioritizing concurrent delays can lead to disputes and confusion regarding responsibility for the delay. It's essential to analyze concurrent delays to determine the impact on the project and the parties responsible.

Not considering the baseline schedule: The baseline schedule is the original plan for the project and serves as a reference for measuring progress and identifying delays and disruptions. Failing to consider the baseline schedule can lead to confusion and disputes regarding the impact of delays and disruptions on the project, a proper construction programming and it’s regular and periodical updates are eventually the best record

Misunderstanding the impact of compensable and non-compensable events: Compensable events are events that entitle the affected party to additional time or compensation, while non-compensable events do not. It's essential to differentiate between the two and understand their impact on the project schedule and costs.

DELAY ANALYSIS VS DISRUPTION ANALYSIS?METHODOLOGIES

Methodologies to Analyze Delays:

There are several methodologies for analyzing delays in construction projects. These include:

Critical Path Method (CPM): CPM is a widely used project management technique that involves creating a detailed schedule of all the activities involved in a project. By identifying the critical path, which is the sequence of activities that determine the project's completion date, CPM can help identify delays and determine their impact on the project timeline.

Time Impact Analysis (TIA): TIA involves comparing the original project schedule to the updated schedule after a delay has occurred. By identifying the changes to the schedule, TIA can help determine the impact of the delay on the project timeline and identify the parties responsible for the delay.

As-Planned vs. As-Built Analysis: This methodology involves comparing the planned project schedule to the actual construction progress. By identifying the differences between the planned schedule and actual progress, this analysis can help identify delays and their impact on the project timeline.

Impacted As-Planned Analysis: This methodology involves taking the original planned project schedule and adding the actual events that caused the delay or disruption. By analyzing the resulting schedule, the impact of the events on the project timeline can be determined, and parties responsible for the delay or disruption can be identified.

Collapsed As-Built Analysis: This methodology involves taking the actual construction progress and removing the events that caused the delay or disruption. By analyzing the resulting schedule, the impact of the events on the project timeline can be determined, and parties responsible for the delay or disruption can be identified.

It is vital to have a proper records and good construction programming date in order to prove disruption claim.

?Methodologies to Analyze Disruptions:

Analyzing disruptions in construction projects can be more challenging than analyzing delays because disruptions can have indirect impacts on project productivity and efficiency. However, several methodologies can be used to analyze disruptions, including:

Productivity Loss Calculation: This methodology involves calculating the difference between the planned productivity and the actual productivity during the disruption. By identifying the factors that contributed to the loss of productivity, this analysis can help identify the parties responsible for the disruption.

Measured Mile Analysis: Measured Mile Analysis involves comparing the productivity or efficiency of a specific time period when no disruption occurred to the productivity or efficiency of a period when a disruption occurred. This analysis can help identify the parties responsible for the disruption and determine the impact of the disruption on the project. The unit cost method is play an important role here,?

Comparative Analysis: Comparative analysis involves comparing the productivity or efficiency of a project with similar projects that did not experience a disruption. By identifying the differences in productivity or efficiency, this analysis can help determine the impact of the disruption on the project and identify the parties responsible for the disruption.

Earned Value Management (EVM) is a project management technique that measures and monitors a project's performance against its planned schedule and budget. It provides a quantitative view of project performance and allows project managers to make data-driven decisions to keep the project on track. EVM involves tracking the actual work completed (Earned Value), comparing it to the planned work (Planned Value), and analyzing the cost performance of the project.

DELAY AND DISRUPTION CLAIMS ?CALCULATING DAMAGES

Calculation of damages for delay claims:

The damages for delay claims are typically calculated based on the additional costs incurred by the contractor as a result of the delay. These costs can include:

Additional labor costs: If the delay required the contractor to hire additional labor to complete the project, the cost of this labor can be included in the damages.

Extended general conditions: If the delay required the contractor to extend the project's general conditions, such as site security, equipment rental, and temporary facilities, the additional costs incurred can be included in the damages.

Increased material costs: If the delay caused an increase in material costs, such as steel or cement, the additional costs can be included in the damages.

Loss of productivity: If the delay caused a loss of productivity, the contractor can calculate the additional costs incurred as a result of the reduced productivity.

?Calculation of damages for disruption claims:

The damages for disruption claims are typically calculated based on the impact of the disruption on the contractor's productivity. These damages can include:

Lost productivity: If the disruption caused a loss of productivity, the contractor can calculate the additional costs incurred as a result of the reduced productivity.

Increased labor costs: If the disruption required the contractor to hire additional labor to complete the project, the cost of this labor can be included in the damages.

Increased material costs: If the disruption caused an increase in material costs, such as steel or cement, the additional costs can be included in the damages.

Extended general conditions: If the disruption required the contractor to extend the project's general conditions, such as site security, equipment rental, and temporary facilities, the additional costs incurred can be included in the damages.

Overhead costs: The contractor can include additional overhead costs incurred as a result of the disruption, such as additional supervision or project management costs.

BEST PRACTICES FOR PREVENTING AND RESOLVING DELAY AND DISRUPTION DISPUTES

• Clear Contractual Agreements: The contract should clearly define the scope of work, timeline, payment terms, and dispute resolution mechanisms. It should also identify the parties' responsibilities, obligations, and liabilities. Having a clear understanding of the contractual agreement can prevent disputes from arising and help parties resolve disputes more efficiently.
• Accurate Scheduling: Accurate project scheduling is essential to ensure that all parties understand the project timeline and can plan accordingly. Regular updates to the schedule can help identify potential delays and disruptions, allowing parties to take proactive measures to avoid them.
• Effective Communication: Effective communication is crucial in preventing and resolving disputes. Parties should regularly communicate project status, issues, and concerns to each other. This can help identify problems early on and prevent them from escalating into disputes.
• Proper Documentation: Proper documentation of project activities, such as meeting minutes, change orders, and progress reports, is crucial to resolving disputes. Parties should maintain accurate records of all project activities to support their claims in case of disputes.
• Early Dispute Resolution: Early dispute resolution can prevent disputes from escalating into costly and time-consuming legal battles. Parties should try to resolve disputes through negotiation, mediation, or other alternative dispute resolution mechanisms before resorting to litigation.
• Collaborative Problem-Solving: Parties should adopt a collaborative problem-solving approach to resolving disputes. This involves working together to identify the problem, understand each other's perspectives, and develop a mutually acceptable solution.
• Expert Advice: In complex disputes, parties may require expert advice from professionals such as project managers, delay experts, and lawyers. Seeking expert advice early on can help parties understand their options and develop effective strategies to resolve the dispute.

In nutshell, and to precise statement would be, “if there is critical disturbed event it would cause the delay to the project completion date, but if the disrupted claim in a non-critical path there would be no impact to the project completing date, but there could be a monetary claim attached to it”

ROLE OF THE SCL DELAY AND DISRUPTION PROTOCOL IN GUIDING CONSTRUCTION CONTRACTS

The Society of Construction Law (SCL) Delay and Disruption Protocol plays a significant role in guiding the construction industry on how to manage and resolve delay and disruption disputes in a fair and consistent manner. The protocol is widely recognized and respected by construction industry professionals, and many standard form contracts reference it as a standard for resolving delay and disruption disputes.

The SCL Protocol provides guidance on various aspects of delay and disruption disputes, including notification, records and documentation, causation and entitlement, mitigation, and dispute resolution. The protocol recommends that parties provide timely and accurate notification of potential delays or disruptions to the project. This can help prevent disputes from arising or escalating.

Moreover, the protocol recommends that parties maintain accurate records and documentation of project activities, including changes, delays, and disruptions. This can help support claims and assist in dispute resolution. The protocol provides guidance on how to determine causation and entitlement for delay and disruption claims. It recommends that parties take a collaborative approach and consider all relevant factors when determining entitlement.

Furthermore, the SCL Protocol recommends that parties take steps to mitigate the impact of delays and disruptions on the project, including identifying and implementing alternative methods or resources to keep the project on track. The protocol also recommends that parties attempt to resolve disputes through negotiation or alternative dispute resolution mechanisms before resorting to litigation.

Disruption conclusion in general : Disruption is associated with money or time, so here the critical point is to know what is a disrupted event takes place on the non-critical path, but it will have no impact whatsoever to the project completion date, therefore it is in general opinion that incorrect to state that any disruption will result in a delay to project completion date.

Authors?Vijayarengan Chockalingam?&?Ilam Parithi

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