Construction Delay & Cost Claim Assistance

1. What You’re Preparing (Simple View) You’re basically submitting: Extension of Time (EOT) → because of delays caused by client Cost Claim → because those delays affected your cash flow + site cost 2. Main Structure of the Claim Use this structure (very important): 1. Cover Letter Short and professional: Project name Contract number Subject: Claim for Extension of Time and Additional Cost Reference to contract clause 2. Executive Summary Explain in 5–10 lines: What happened Who caused delay (client) Impact on time & cost What you are claiming 3. Contractual Basis Mention clauses like: Delay by client Late payment Variation / instruction delays Example: “As per Clause – Delays caused by Employer…” “As per Clause – Payment terms…” 4. Chronology of Events (VERY IMPORTANT) Make a table like: Date Event Impact Jan Invoice submitted No payment Feb Reminder sent Cash flow issue Mar Work slowed Progress affected 5. Delay Analysis (Time Impact) Explain: Planned progress vs actual What activity got delayed How client caused it You can use: Baseline vs Updated Schedule Critical Path impact Example: Delay in approval / payment caused suspension of backfilling works which is on the critical path. 6. Cost Impact (Money Part ) This is the most important for you. Break it into: A. Prolongation Cost Staff salaries Site engineers Equipment idle time Accommodation B. Cash Flow Impact Delayed payments → forced you to: slow work OR use your own cash C. Financing Cost Interest due to delayed payment D. Disruption / Inefficiency Labor not fully utilized Stop-start work 7. Supporting Documents Attach: Invoices Emails Payment follow-ups Daily reports Progress reports Manpower logs 8. Claim Statement (Final Ask) Clearly state: Requested EOT (days) Requested Amount 3. Simple Cost Calculation Example Let’s say: Staff cost = 20,000 / month Delay = 3 months Prolongation = = 20,000 × 3 = 60,000 Add: Equipment = 15,000 Accommodation = 10,000 Total Claim = 85,000 4. Important Points (From Experience) Don’t say “we had problem” Say → “Due to client delay in payment…” Always connect: Cause → Effect → Cost Keep tone: Professional Not emotional Contract-based5. Sample Strong Sentence (Use This) “The delay in certification and payment of invoices has significantly impacted the Contractor’s cash flow, resulting in reduced productivity and extended project duration.” 6. If You Want (Next Step) I can help you build: Full professional claim document (Word format) Or just: Executive summary Cost calculation sheet Delay wording Just send me: Type of delay (payment / drawing / variation / etc.) Duration of delay Rough monthly cost (manpower / site) Project type (villa, infrastructure, etc.) And I’ll prepare it for you like a real contractor submission

Project ID: 40424305