Managing extension of time (EOT) claims in building projects in Sri Lanka

Abstract

Managing EOT Claims in Building Projects in Sri Lanka Compare to other industries, more claims are arising in the construction industry, and a majority among those are EOT claims. Key reasons for arising claims are the involvement of many parties, temporary setup of the organization, long period for delivery, unforeseen events, changes in market conditions, and change of government requirements. Mostly claims lead to arise disputes, ending with adjudication, arbitration, litigation and loss both time and money. For avoiding or minimizing EOT claims, it is necessary to identify the most significant causes of EOT claims, remedies, relevant parties, and occurring effects. Recognized six lists related to EOT claim as; owner related causes, consultant related causes, other related causes, owner related remedies, consultant related remedies, and effects to conducted research. The questionnaire tested via a pilot survey and carried out a questionnaire survey with three Delphi rounds. Results confirmed through expert validation. Forty-one industry experts were involved in the process. A binomial test was used to derive the existence factors, and the RII equation was used to obtain significant levels for each factor. Most significant; owners related cause was “Unrealistically short project duration,” and for consultants related was “Incomplete Contract Document,” and for other related category it was “Changes in statutory requirements.” Consequence comparing all three categories together, the most significant cause was found as “Incomplete Contract Document.” From the 22 remedies, “Choose experienced consultant” was the first rank of owner related remedies, similarly “On-time approval of drawings” was attributable to the consultant. In the overall comparison, both owners and consultants’ categories, the most appropriate remedy was “On-time approval of drawings.” The most arising effects of EOT was “Time overrun.” These findings are equally essential for Owners, Consultants, and Project Management (PM) strategy developers.