If you’re involved in the construction industry, you’ve likely heard of the term “prolongation claims.” These claims are becoming increasingly common in the industry, but they can be complex and confusing. In this article, we’ll break down everything you need to know about prolongation claims, including what they are, how they arise, and how to handle them.
What are Prolongation Claims?
- Definition: Prolongation claims are claims for additional time and/or money that arise due to delays in the completion of a construction project.
- Common Causes: Delays caused by factors outside the control of the contractor, such as weather, changes to the scope of work, or unforeseen site conditions.
- Types: Time-related prolongation claims and cost-related prolongation claims.
Time-Related Prolongation Claims
- Definition: Time-related prolongation claims are claims for additional time required to complete a project due to delays caused by events outside the contractor’s control.
- Examples: Weather-related delays, changes to the scope of work, delays caused by the client or other contractors on the project.
- How to Handle: Proper documentation of the delays and their causes, notification to the client or other parties, and negotiations for an extension of time.
Cost-Related Prolongation Claims
- Definition: Cost-related prolongation claims are claims for additional costs incurred due to delays in the completion of a project.
- Examples: Additional labor costs, rental of equipment, extended overhead costs, and additional supervision costs.
- How to Handle: Proper documentation of the additional costs, notification to the client or other parties, and negotiations for reimbursement of the costs.
Mitigation of Prolongation Claims
- Definition: Mitigation is the process of reducing or preventing prolongation claims.
- How to Mitigate: Proper planning and scheduling of the project, effective communication with the client and other parties, and proper management of risks.
Conclusion
Prolongation claims can be a headache for contractors and clients alike. However, with proper planning, documentation, and communication, they can be managed effectively. By understanding the causes and types of prolongation claims and taking steps to mitigate them, you can minimize their impact on your construction project.