Evaluate Of Applications Extension Of Time

Clauses In Construction Contracts

Mohd Syukran Nazirin Bin Mohamad Sakri1 & P.M. Dr Mohamad Ibrahim Bin Mohamad1
1
Fakulti Kejuruteraan Awam, Universiti Teknologi Malaysia, 81310, Skudai, Johor, Malaysia

Abstract: Construction delay is common problem in the construction industry. Contractors may apply for an
extension of time (EOT) if it is proved that the reasons for the delays is beyond its control. The procedures to
claim for EOT are closely related to the clauses in standard form of contract. In Malaysia, various standard form
of contract commonly use in construction. Thus, the aim of study is to review EOT clauses, evaluate application
EOT clauses and find the current issues in construction contract. Data was compiled from literature review,
interview with professional and questionnaire survey. Data obtained from the survey was analysed using Mean
Index and Relative Important Index (RII). The highest RII is one that mostly agreed about evaluation the
suitability, adequacy and accuracy of the application clauses EOT and proposed additional requirements related
clauses EOT in construction contract. From the study, EOT clauses are found in every type standard form of
contract. The finding also conclude EOT clauses in the standard form of contract procedure works well and
delays on construction site can be evaluated in detail by way of an EOT clauses specified. This study also found
for improvement, supporting documents proving the rational delays should be attached to the application for
EOT. Significantly, this study could be a reference to the contract drafters such JKR, PAM and CIDB to update
existing clauses in their standard form of contract.

Keyword: Extention Of Time (EOT), Standard Form Of Contract, Review EOT Clauses, Evaluate Aplication
EOT Clauses

1.0 Introduction

A large number of the development budget was approved by the government to

implement development programs and projects Malaysia Five Year Plan (2016-2020) or
Rancangan Malaysia Ke-11 (RMK-11). RMK-11 is seen as the most critical determinant of
the ability of Malaysia to become a developed country by year 2020 in line with the
aspirations of Vision 2020. Towards achieving developed nation status, an important role in
the construction industry in realizing the aspirations cannot be denied. (N.M Tawil et al.,
2014). The construction industry can be regarded as a productive industry and the backbone
of economic growth and social development in Malaysia from then until now

In the construction, variety of things outside the common and disturbing the planning
of construction. Delay is one of the issues in construction projects worldwide. The term 'late'
is a matter or event that led to an extension of time or delays to events in a construction
project. (M.A Khoiry et al., 2013). The completion period of work has been set at the start of
the project and is the responsibility of the contractor to ensure the project can be completed
according to the time allowed in the contract. When a delay occurs, the contractor will
accelerate or add a predetermined time through the application Extension Of Time (EOT)
(M.A Khoiry et al., 2013). The procedures to claim for EOT are closely related to the type of
contract used between client and contractor. Different clauses in various standard forms of
contracts would affect the EOT application and approval processes (Lew Yoke-Lian et al.,
2012).

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2.0 Problem Statement

Planning, control and overall coordination of a project from inception to completion

aimed at achieving client requirements and ensure completion on time, cost and quality
standards required (NorAini Yusof,1996). However, only a small number who did not
experience any problems such as delays to the schedule of work plans. When delays occur,
the reasons for the delay should be investigated so that appropriate action can be taken to
avoid such delays persist. For some reason, as contained in the clauses of the contract, the
contractor may be given an EOT during the construction period.(Jabatan Kerja Raya, 2010)
Generally, the contractors will be given an EOT if the cause of the delays is not under its
control.

Evaluation of the application for extension of time is something that is very difficult.
The Superintending Officer or the implementing projects need highly skilled in determining
the granting of an extension of time to the contractor. Procedures for dealing with time
extensions are established in the general conditions of the contract. Claims for EOT must be
based on the provision clauses in the standard form of contract. Therefore it is worthwhile to
develop a guideline to justify which event is entitled to EOT and which are not qualified for
the entitlement. (Lew Yoke-Liam et al.,2012)

A successful clause in standard form of contract would lend itself to regulate the day-
to-day relationship on a construction site and provide a clear and definitive understanding to
the parties, professionals and site personnel of their roles and responsibilities. Users and
practitioners must be familiar with the particular standard form of conditions of contract
being used. (Sundra Rajoo, 2014) For the application of time, the role of Supritendant Officer
to understand the basis of the delay and understand the situation in which the contractor is
eligible to obtain an EOT.

Assessment of the application EOT clauses to be studied whether it's working

properly, suitability, adequacy and accuracy. Common problem and improvement proposal
also to be find to improve application of EOT clauses in construction contract.

3.0 Aim & Objective Of Study

The aim of this study is to evaluate application EOT clauses in construction contract.
To attain this aim, the following objective are pursued:

1. To review clauses relating to the application for extension of time (EOT)

from the various Standard Form of Contract as practiced in Malaysia.
2. To evaluate the appropriateness, accuracy and adequacy of the application
extension of time clause (EOT) clauses in the construction contract and,
3. To recommend additional requirements relating to the application for
extension of time (EOT) in improving existing construction contract.

4.0 Scope And Limitation Of Study

This study is focusing on issues in the application extention of time (EOT) clauses in
construction contract. The scope and limitation are follows:

2
 1. The study focus on clauses of EOT from four (4) standard form of contract
:-
a. P.W.D Form 203A (Rev. 1/2010)
b. PAM Contract 2006
c. CIDB Standard Form Of Contract For Building Works 2000
Edition
d. FIDIC Condition Of Contract For Construction: The New Red
Book
2. Collecting data for interview and questionnaire conducting with
professional and people involved in construction project at Kuala Lumpur

5.0 Literature Riview

5.1 Delays In Construction Project

According to study design theory cause of delays in construction projects on the basis
of productivity provided by Noraini Hamzah (2013), this study was conducted to find the
causes of the delays to be included in a framework that is generated using Conversion System
Open Drewin. The study showed 96 causes of delays were identified and divided into several
dimensions of input factors (eg. labor, financial, material and equipment construction),
internal factors (eg. management, contracting, security, planning, organization, etc.) and
external factors (eg weather , local authorities, economic, political). The study found that less
effective communication within the internal factors to cause to be taken seriously.

According to Mohd Zaidi (2011) Delays can be divided into three (3) main reasons
for the delays caused by the contractor (non-excusable delays), the delay caused by the
actions of the client or the Superintending Officer (compensable delays) and delayed by
something outside the control of the client and contractors (excusable delays).

5.2 Standard Form Of Contract In Malaysia

In Malaysia, 'Standard Form of Contract' mostly drafted and issued by the authorities
involved in the construction industry, and is recognized by the contracting parties, is one of
the most used among the forefront of the construction industry (Sundra Rajoo, 2014) . For a
small country, Malaysia offers a wide range of Standard Form of Contract 'in the field of
engineering and construction. There are several categories of contract which are practiced in
Malaysia as follows: -
a) Contract of government / public sector
b) Contract for private sector
c) International contracts

5.2.1 Contract Of Government / Public Sector

Historically, the initial set of government contracting procedures have been enacted
by the various government agencies to work in the public sector. In the local context, this is
evidenced by the proposal Public Works Department (PWD) Standard Form published in
1931. From time to time, a standard form has been modified and adapted to the needs of the
construction industry at the time. Between 'Standard Form of Contract for the engineering
and construction are as under: -

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 a) JKR Standard Forms for Traditional General Contracts:-

JKR Form 203A (Rev 1/2010): Conditions of Contract to be used where

bills of quantities form part of the contract;
JKR Form 203 (Rev 1/2010): Conditions of Contract to be used for
contract based on drawings and specifications;
JKR Form 203N (Rev 1/2010): form of contract to be used for nominated
subcontractors where the main contract is based upon Form JKR 203 or
203A
JKR Form 203P (Rev 1/2010): form of contract to be used for nominated
suppliers where the main contract is based upon Form 203 or 203A

b) JKR Standard Form for Turnkey Design & Build Contracts

c) CIDB Standard Forms
d) Miscellaneous Forms

5.2.2 Contract Of Privete Sector

Parallel to the acquisition adopted by the public sector to work until the mid 80s, the
private sector is not able to develop the 'Standard Form of Contract' itself to accommodate
projects. This became the impetus Institute of Architects Malaysia or Malaysian Institute of
Architects (PAM) to provide Standard Form for their main activity in the construction.
Between 'Standard Form of Contract for the engineering and construction of the private
sector are as under: -
a) PAM Forms
b) The PAM 1998 Forms
c) The PAM 2006 Forms
d) IEM Forms

5.2.3 International Contract

International standard form of contract has been and continues to be used in Malaysia
for various projects despite the emphasis and priority to use local contract. One of them is:-
a) FIDIC Standard Forms of Contract (International Federation of Consulting
Engineers)
b) JCT Standard Forms of Contract (Joint Contracts Tribunal)
c) ICE Standard Forms of Contract (Institution of Civil Engineers)
d) MechE Standard Forms of Contract (Institution of Mechanical Engineers)
e) IEE Standard Forms of Contract (Institution of Electrical Engineers)

5.3 Application For Extention Of Times

The procedures to claim for EOT are closely related to the type of contract used
between client and contractor. Different clauses in various forms of contracts would affect the
EOT application and approval processes. Procedures for dealing with time extensions are
established in the general conditions of the contract. Claims for EOT must be based on delays
that are caused by the owner or the owners agents, or on delay due to acts of God or based
on the provision clauses in the form of contract.

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 Contractor has to submit supporting documents and prove the exact time affected by
the causes. This becomes a burden to the contractor and it is not easy to identify the delay.
Despite the application of EOT period is approved or reduced, contractor still has to complete
the job within the granted EOT. ( Loke Yoke-Lian et al., 2012)

It is important for a contractor when facing delays which incurred by the client, in
determining his eligibility in EOT and entitlement of suitable EOT in contract finish date.
Otherwise the contractor will be penalized to Liquidated Damaged (LAD) for reasons within
clients control, but not within his own control.

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5.4 EOT Clauses On Standard Form Of Contract

Table 1.0 : Differential EOT Clauses In Various Standard Form Of Contract

Name Standard Standard Form Of Contract PAM Contract 2006 (Without CIDB Standard Form Of FIDIC Condition Of Contract For
Form Of Contract PWD Form 203A (Rev 1/ 2010) Quantities) Contract For Building Works Works Of Civil Engineering
2000 Edition Construction (Fourth Edition 1987)

Publish By Jabatan Kerja Raya Malaysia Persatuan Arkitek Malaysia (PAM) Construction Industry Federation Internationale Des
(Public Works Department) Developement Board (CIDB) Ingenieurs- Conseils (FIDIC)

Commanly Use 1. Government Sector 1. Private Sector 1. Private Sector 1. Private Sector Project
2. Private Sector 2. International Project

Parties Involved 1. Contractor 1. Contractor 1. Contractor 1. Contractor

2. Consultant (Architect, 2. Architect 2. Superintending Official 2. Engineer
C&S, M&E, QS) 3. QS (S.O)
3. Superintending Official 4. Client 3. Client
(S.O)
4. Client

6
Conditions filed a Clause 43.1 Clause 23.1 Claus 24.2 Clause 44.2
notice & details of
EOT Once the contractor expects will The Contractor shall provide If the Contractor is of the opinion Contractors must send a notice to the
occur shortly slowness or delays written notice to the architect, his that the progress or completion of engineer 28 days or more in advance of
occur, the contractor is intention to claim an extension of the Works or any section of the the date of completion of work (CPC)
responsible for submitting an time along with the initial budget Works is or will be or has been
application or a written notice extension of the time needed to be delayed by any event including
along with pertinent information supported by details of the reasons but not limited to the events
and supporting documents must for the delay. Such notice shall be stated in Clause 24.1, he shall
be submitted as soon as possible given within twenty eight (28) days forthwith notify the
of the date expected delays from the date of Confirmation Superintending Officer of such
Instructions architect or initially event within 30 Days of the
Relevant Event, whichever is occurrence of such event:- event
earlier. Submission of the notice of delay;event of delay on the
will be a prerequisite to the right to worksprogramme accepted under
an extension of time. Clause 5.

Aceptable clauses Delay And Extention Of Time Extention Of Time Delay And Extention Of Time Extention Of Time
related delays in
the application for
extension of time
Clause 43 (a) (j) Klausa 23.8 (a) (p) Clause 24.1 (a) (q) Clause 44.1 (a) (e)
(EOT)

Refer Details At Appendix Refer Details At Appendix Refer Details At Appendix Refer Details At Appendix

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6.0 Methodology

Preliminary study was carried out by literature review on journals, thesis, articles,
books and others. This preliminaries study was conducted to determine the research topic,
defining the aim, objective and scope of study. It also determine the data sources and data
analysis technique.

The data are collected through a literature review, interview and questionnaire. This
research was done through interviewing experts of construction industry from private and
government sector. The panel which was interview consisted of personnel from consultants
and clients.

Survey questionnaire were given to parties in the construction project those were on
progress around Kuala Lumpur. Thirty (30) questionnaire has been done collected and the
respondent to state their level of agreement on a 5 point likert scale ( 1-least agreed, 2-
slightly agreed, 3-moderately agreed, 4-agreed, 5-strongly agreed ).

Data analyzed using mean value and relative important index or R11 using formula
above:-

Mean = n1x1 + n2x2 + n3x3 + n4x4 +n5x5

n

RII = n1x1 + n2x2 + n3x3 + n4x4 +n5x5

n (5)

n = frequency of item , x = likert scale for item

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7.0 Analysis And Result

7.1 Content Analysis For Expert Interview

Table 2.0 : Content Analysis For Expert Interview

Question Respondent 1 Respondent 2 Respondent 3 Respondent 4

Q1 What is the 1) The significant difference is 1) EOT clauses for PAM & 1) The significant difference is 1) The significant difference is
difference on the the clauses of delays CIDB more detailed. PAM the clauses of delays the clauses of delays
EOT clauses in the allowed for an EOT & CIDB contains clauses allowed for an EOT allowed for an EOT
standard form of application that are rarely happen application application
contract that is
practiced under
construction in 2) The various EOT clauses 2) Have a contract does not
Malaysia? because of its clients from provide for an EOT clause
wide range of backgrounds on client requirements. It
who are profit oriented makes it unfair contract

Q2 Is an EOT clauses in 1) Yes, clauses functioning 1) Yes, clauses functioning 1) Yes, clauses functioning Yes, clauses work properly
the standard form of properly but EOT clauses well and there is no problem properly. No new issues that implemented in accordance
contract currently should be supported by the because the contractor need to be improved the with the proper procedures
used in contact necessary supporting understands the contract clauses.
construction works documents and evidence
well? related.

9
 Table 2.0 : Content Analysis For Expert Interview (Cond)

Question Respondent 1 Respondent 2 Respondent 3 Respondent 4

Q3 Is an EOT clauses 1) Yes, clauses enough as it is 1) Yes,clauses adequate and 1) Still there are clauses which 1) Yes, clauses enough and
contained in the formed by professionals in regularly updated. For are not allocated. For believe will be updated
standard form of the "Board Of Committee" example P.W.D 203A example, clause for delays based on the current
contract now every board or organisation which has been updated on resulting from the client / situation at the construction
adequate or need to issuing standard form of 2010. government delay to make site across the country
be made contract. It also interim payment to
enhancements? continuously updated from contractors
time to time. For example
P.W.D 203A which has
been updated on 2010.

Q4 What are the 1) Advantage it opens 1) Advantage give space to the 1) Advantages give 1) Advantages give a clear
advantages and opportunities for the contractor to claiming lost psychological impact on the guidance to contractors and
disadvantages of contractor to complete the of time & cost is not contractor to complete the clients before and during
using an EOT clause project within comfortable because of their fault. project because if given construction work
in the construction period EOT then they will not be
contract? subjected to LAD.
2) Disadvantage when EOT 2) Disadvantages when too 2) No advantages 2) Disadvantages when
approved, contractors are many clauses in the contractors take advantage
eligible to apply any contract, give an idea to the of these clauses and failure
additional overhead cost as contractor to apply for an to detected by the client
well as increase the overall extension of time during evaluation
cost of the project
Q5 What is the most 1) Delays must allocated in 1) Must send a notice 1) Must send a notice 1) Must send a notice
important thing that EOT clauses
must be adhered by
contractors to 2) Aplication of EOT must be 2) Any delays should have 2) Any delays should have 2) Aplication of EOT must be
qualify their support by supporting record as an evidance record as an evidance support by supporting
approval of any documents documents
EOT?
3) Only a delay in the critical 3) Aplication of EOT must be
path in the project schedule support by supporting
(CPM) will be evaluate documents

10
 Table 2.0 : Content Analysis For Expert Interview (Cond)

Question Respondent 1 Respondent 2 Respondent 3 Respondent 4

Q6 Delays in 1) The cause of the delay will 1) Only a delay in the critical 1) The cause of the delay will 1) Each item delays will be
construction sites be assessed in accordance path in the project schedule be assessed in accordance referred to the clauses.
occur from a variety scope of work (architects, (CPM) will be evaluate scope of work (architects,
of sources and C&S, M&E) through C&S, M&E) through
causes. How these technical meetings between technical meetings between
things to be analysis consultants. consultants.
and how the EOT 2) Each item will be referred to 2) Each item delays will be 2) Each item delays will be 2) Number of days approved
clauses determine the clauses. referred to the clauses. referred to the clauses. extension depends on the
the feasibility of an evidence of supporting
application for documents attached and nett
EOT? efective delay
3) Approval of an EOT will 3) Approval of an EOT will 3) Approval of an EOT will
also be assessed through also be assessed through also be assessed through
supporting documents supporting documents supporting documents

Q7 Use of project 1) CPM very important for 1) CPM is very important for 1) CPM very important for the CPM very important for the
implementation determining the 'event' start determining delay in 'critical planning work affected by planning work affected by
schedule (CPM) is and finish any delays path'. the delay. the delay.
important in
assessing the
application for 2) Only CPM which was 2) Only CPM which was 2) Only CPM which was The total number of days
EOT? How this approved and agreed valid approved and agreed valid approved and agreed valid extension also depends on
implementation as a reference application as a reference application as a reference application the CPM which was
schedule can help for EOT for EOT for EOT designed by the contractor
assessment of the
application for
EOT?

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 Table 2.0 : Content Analysis For Expert Interview (Cond)

Question Respondent 1 Respondent 2 Respondent 3 Respondent 4

Q8 Supritending 1) For government projects, 1) Nett effective delay juga 1) Nett effective delay' akan Nett effective delay' will be
Officials (PP) is the the proposed approval of dinilai melalui CPM yang dinilai dengan menolak evaluated by subtracting the
one who approved EOT will be reviewed and dilampirkan jumlah hari pada tempoh number of days overlapping
the application for recommended by the peristiwa bertindih in schedule for every delay
EOT. Based on the consulting team to P.P. items are allowed in clauses
EOT clauses, how During the evaluation, nett
PP assess the actual effective delay will be seen
delay (nett effective in the events overlapping
delay) and and delays arising from
qualifying period of variation order (V.O)
EOT.
Q9 What can cause the 1) The reason for the delay is 1) The reason for the delay is 1) The reason for the delay is 1) The reason for the delay is
application EOT not based on the relevant not based on the relevant not based on the relevant not based on the relevant
rejected or not clause. clause. clause and does not affect clause.
accepted? the main project schedule

2) No supporting document 2) No supporting document 2) No supporting document 2) No supporting document

and evidance and evidance and evidance and evidance

Q10 If there is a dispute 1) Contractors can appeal if 1) Contractors can appeal and 1) Normally there is no dispute 1) Contractors may appeal to
or conflict approval they disagree with the provide additional because of valuation clients so that applications
and the approval approval of the EOT or the supporting documents. through several meetings are reviewed
period of EOT application was rejected. between contractors,
between the consultants, consultant
contractor and the between P.P and P.P with
client, how it is board of EOT approval
resolved?
2) Court action can also be 2) Contractors can challenge 2) Incomplete documents will 2) Contractors can challenge
held if still not satisfied, but the decision in court if not also be notified to the the decision in court or
this is rarely happen satisfied contractor to provide back arbitration

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 Table 2.0 : Content Analysis For Expert Interview (Cond)

Question Respondent 1 Respondent 2 Respondent 3 Respondent 4

Q11 Is an EOT clauses 1) Yes, each clause protect the 1) Yes, clause protect the 1) Yes, the whole clause is Yes, clause protect the
currently used to interests of all those parties interests of both parties. If very fair for both side but interests of both parties.
protect the interests involved. Clause not made the contract is too tight and unfair if the clause is not However, depending on
of clients and to favor one side closed, it make a risk to the provided into the contract their views to assess.
contractors ? It is contractor
fair for client &
contractor?

Q12 What is suggestions 1) As executor of the project 1) No improvement, all clauses 1) Insert procedures or 1) Appoint a third party to
or additional assume any contract that have been perfect guidelines on the evaluate and determine the
requirements that was drafted by the Board or application for EOT in application for EOT.
need to be improved organisation is already clauses Example 'Delay Analysis
on an EOT clauses perfect to be applied. Consultant'
in the Standard
Form of Contract in
construction 2) Improvement is the 2) Set a time earlier for date 2) Qualification of the
contracts? application for EOT must be application EOT by the Superintending Officer as
assessed in accordance with contractor (four months the person who approved
the scope of work. before the CPC) the application EOT should
be tightened and allocated
to the clause

Q13 If there is a need to 1) Department or organization 1) Universities can play a role 1) Department or organization 1) Department or organization
improve the EOT that issued the standard to conduct research and that issued the standard that issued the standard
clauses, which form through the Board of raised to the PWD or PAM form through the Board of form through the Board of
department or Comittee be responsible if for improved existing Comittee be responsible if Comittee be responsible if
organization should improvements need to be clauses improvements need to be improvements need to be
be responsible to made on EOT clauses made on EOT clauses made on EOT clauses
make improvement?

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7.2 Questionaire Survey

7.2.1 Background And Experience Of Respondent

Figure 1.0 : Experience Of Respondent

Chart Title
Less than 5 years 6 - 10 years 11 - 15 years
16 -20 years 21-29 years More than 30 years

3% 7%
7%
33%

20%

30%

Figure 2.0 : Scope Of Work Respondents

Scope Of Work Respondents

Engineering Architect Quantity Surveyor Building/Construction

20%
33%

17%

30%

In this study, there are 30 respondent are answered the survey questionnaire. Figure
1.0 show working experience of the respondent. From 30 respondents, majority 33% have
experience less than 5 years and only 2 respondents (3%) have experience more than 30
years.

Figure 2.0 show scope of work respondents. From 30 respondents 33% work on
building/construction, 30% as a quantity surveyor, 20% on engineering and 17% on
architecture.

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7.2.2 Mean And Relative Importance Index (RII)

7.2.2.1 Evaluate Adequacy & Appropriateness Of Applications EOT Clauses

Table 3.0 : Result Analysis For Evaluate Adequacy & Appropriateness Of Applications EOT
Clauses

Relative
Question Mean Important Classification Rank
Index
Adequacy & Appropriateness
Delays in the construction site come from
various sources and causes 4.7667 0.9533 Strongly Agreed 1
EOT clauses in the standard form of
contract working well 4.6000 0.9200 Strongly Agreed 2
All delays in the construction site can be
evaluated in detail referring to EOT 4.6000 0.9200 Strongly Agreed 3
clauses specified
EOT clauses in the standard form of
contract currently used is complete enough 4.2667 0.8533 Strongly Agreed 4
EOT clauses in the standard form of
contract to determine the feasibility an 2.9667 0.5933 Moderately Agreed 5
application for EOT
EOT clauses in the standard form of
contract must be updated and improve 2.8333 0.5667 Moderately Agreed 6

7.2.2.2 Evaluate Accuracy Of Applications EOT Clauses

Table 4.0 : Result Analysis For Evaluate Accuracy Of Applications EOT Clauses

Relative
Question Mean Important Classification Rank
Index
Accuracy
Each application for EOT must be
analyzed based on an EOT clauses 4.6333 0.9267 Strongly Agreed 1

Superintending Officer(S.O) must give

reasonable an EOT before or on the 4.5333 0.9067 Strongly Agreed 2
date of completion of work
Work schedule (Critical Path Method)
shall serve as a guide to determine
4.5000 0.9000 Strongly Agreed 3
whether contractors are eligible for an
EOT
EOT must be given if it is proved that
the Government / Clients have
4.5000 0.9000 Strongly Agreed 4
contributed to the delay at the
construction site

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 Table 4.0 : Result Analysis For Evaluate Accuracy Of Applications EOT Clauses (Cond)

Relative
Question Mean Important Classification Rank
Index
Superintending Officer(S.O) shall assess
the period of delay events that overlap
3.7333 0.7467 Strongly Agreed 5
or run concurrently (concurrent delays)

EOT clauses help Superintending

Officer(S.O) evaluate actual delays (nett 4.3333 0.8667 Strongly Agreed 6
effective delay)
EOT clauses help Superintending
Officer(S.O) made the decision to grant 4.2333 0.8467 Strongly Agreed 7
an EOT period
EOT should be granted if the delay is
for reasons of neutral 4.2333 0.8467 Agreed 8

Application for EOT will be rejected if

Moderately
not in accordance with the requirements 2.6667 0.5333 9
Agreed
of clauses

7.2.2.3 Evaluate Disputes And Conflict Issues Of Applications EOT Clauses

Table 5.0 : Result Analysis For Dispute And Conflict Issues Of Applications EOT Clauses

Relative
Question Mean Important Classification Rank
Index
Disputes and Conflict
EOT clauses fair and protect the
interests of all those parties involved 4.4667 0.8933 Strongly Agreed 1

Contractors have to be satisfied with the

results of the application for EOT 4.1667 0.8333 Agreed 2

Contractor can dispute the results of the

application for EOT 3.9667 0.7933 Agreed 3
Conflicts often occur in the approval
application for EOT 3.7000 0.7400 Agreed 4

Contractors can challenge the decision

Moderately
of EOT in court or arbitration 3.3667 0.6733 5
Agreed

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7.2.2.3 Proposed Improvements Of Applications EOT Clauses

Table 6.0 : Result Analysis For Dispute And Conflict Issues Of Applications EOT Clauses

Relative
Question Mean Important Classification Rank
Index
Improvement
Application for EOT should be
supported by the necessary supporting 3.6667 0.7333 Strongly Agreed 1
documents and evidence related.
S.O should identify milestone for each
stage of the project implementation in
the period of the contract, so that the 3.6667 0.7333 Strongly Agreed 2
monitoring of the work progress can be
made more effective
Personal accreditation as Superintendent
Officer / Deputy Superintendent Officer
should be made in all the agencies or 4.3333 0.8667 Strongly Agreed 3
departments to make sure application
EOT clauses as per procedure
EOT clause must be improve for item of
evaluation or analysis techniques 4.5333 0.9067 Strongly Agreed 4

Non-technical agency or department to

handle projects with competent staff
who are equipped so that all contract 4.5333 0.9067 Strongly Agreed 5
administration in accordance with the
terms and clauses
If the delay in completion of the work
has resulted in significant losses in the
Government / Client and it is available
stems from granting an EOT which is Moderately
3.2333 0.6467 6
not in accordance with the provisions of Agreed
the contract, surcharges action should be
taken against the officials responsible

8.0 Discussion Of Result

8.1 Adequacy & Appropriateness Of Applications EOT Clauses

Evaluation adequacy and appropriateness of application EOT Clause of this study

reveal that, EOT clauses in the standard form of contract working well. From table 3.0,
respondent also strongly agreed that all delays in the construction site can be evaluated in
detail referring to EOT clauses specified and EOT clauses in the standard form of contract
currently used is complete enough.

17
 Based on content analysis table 2.0 on Question No.2 and No.3, all respondents
agreed EOT clauses functioning properly and EOT clauses in the standard form of contract
now adequate, no need to be made enhancements. 75% says EOT clauses enough as it is
formed by professionals in the Board Of Committee every Board or Organisation issuing
standard form of contract. It also continuously updated from time to time

8.2 Accuracy Of Applications EOT Clauses

Based on content analysis on table 2.0, each delayed item on application for EOT will
be referred to EOT clauses. The approval of an EOT also be assessed trough supporting
document and evidence. Project schedule (CPM) also very important to determining critical
path and to identify event effected by the delays.

It is strongly agreed by questionnaire survey that each application for EOT must be
analyzed based on EOT clauses. Respondents also strongly agreed that S.O must give
reasonable and fair EOT to contractor and project schedule (CPM) important as a guide to
support EOT clauses

8.3 Dispute And Conflict Issues Of Applications EOT Clauses

Based on content analysis on table 2.0, EOT clauses protect the interest of both
parties client and contractor. One of opinion says, the whole clause is very fair for both side
but unfair if the clause is not provided into the contract. If dispute or conflict happen, for
example application for EOT has be rejected, contractors can appeal if they disagree and
provide additional supporting documents so that applications can reviewed. If still not
satisfied, contractors can challenge the decision in court or arbitration.

Result from questionnaire also strongly agreed EOT clauses are fair and protect the
interests of all those parties involved. But respondents moderately agreed and on lowest
ranking about when dispute happen, contractors can challenge the decision of EOT in court
or arbitration.

8.4 Proposal improvement Of Applications EOT Clauses

Based on content analysis on table 2.0, 3 from 4 respondents give an opinion to

improvement EOT clauses. One of the best opinions from respondent No.4 is appoints a third
party to evaluate and determining the application for EOT. Respondent also say qualification
of the Superintending Officer as the person who approved the application EOT should be
tightened and allocated to the clause.

For questionnaire survey, six (6) improvements has been list to be agreed by
respondents. Result show, the higher ranking is application for EOT should be supported by
the necessary supporting documents and evidence related. Means this item must be allocated
into EOT clauses. The lowest ranking and moderately agreed by respondent when proposal to
surcharges action taken against the officials responsible that make mistake granting an EOT
which is not in accordance with the provisions of the contract

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9.0 Conclusion And Recommendation

The following are the conclusion that may answer the objective of this study:-

Objective 1 : To review clauses relating to the application for extension of time (EOT)
from the various Standard Form of Contract as practiced in Malaysia.

The findings of this study conclude that EOT clauses contained in every standard
form of contract that is practiced in Malaysia. Every standard form of contract there is a
difference. It because practiced on a variety of projects and clients come from diverse
backgrounds, especially those who profit oriented.

The findings also conclude clauses are essential to ensure the success of a project.
Contract and project implementation will be very difficult if this clause is not contained in the
contract

Objective 2 : To evaluate the appropriateness, accuracy and adequacy of the application

extension of time clause (EOT) clauses in the construction contract

The findings of this study conclude that application an EOT clauses is practiced and
works well. Clauses also found to be very complete, detailed and able to assess each
application for an EOT. There is no need to improve the existing clauses in standard form of
contract. Each application for EOT will be referred to the EOT clause and support by
supporting documents and evidence related. Project implementation schedule (CPM) also
helps to assess application for EOT.

The findings of this study also conclude EOT clauses also found to be very fair to the
contractor and the client. Disputes and conflict are rarely happen because this clause is very
clear and complete.

Objective 3 : To recommend additional requirements relating to the application for

extension of time (EOT) in improving existing construction contract.

From the data analysis finding there are some improvements that could be proposed to
improving existing contract. There are:-
2) Allocate specific clauses for supporting document and evidence for application
for EOT,
3) Qualification of the Superintending Officer/Deputy Superintending Officer as
the person who approved the application EOT should be tightened and allocated
in the clauses

Department or organization that issued the standard form be responsible if

improvements need to be made on EOT clauses. Universities also can play a role to conduct
research and raised a issues about EOT to the Public Work Department or PAM for improved
existing clauses.

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10.0 References

1. America (1987), FIDIC Condition Of Contract For Works Of Civil Engineering

Construction (Fourth Edition 1987)

2. Jabatan Kerja Raya (2010) Buku Panduan Pentadbiran Kontrak Kerja Raya Edisi
Ketiga. Penerbitan Ibu Pejabat JKR Malaysia, Malaysia

3. Lew Yoke-Lian, S.Hassim, R.Muniandy, and Tan Mee-Ling (2012), The Assesment
Of Applications For Extention Of Time Claims in Malaysia Construction Industry.
IACSIT International Journal Of Engineering And Technology, Vol.4, No.4, August
2012, pp. 446-450

4. M.A.Khoiry, N.Hamzah, N.M.Tawil, W.H.W.Badaruzzaman, I.Arshad (2013),

Pembangunan Kerangka Teori Punca Kelewatan Dalam Projek Binaan Berdasarkan
Sistem Produktiviti. The 3rd International Building Control Conference 2013

5. Malaysia (2000), CIDB Standard Form Of Contract For Building Works 2000
Edition-Articles Of Agreement

6. Malaysia (2006), PAM Contract 2006 (Without Quantities)

7. Malaysia (2010), P.W.D Form 203A (Rev.1/2010)(with addendum No.1)

8. Mohd Zaidi Bin Mohd Jamil (2011). Analisis Kelewatan Projek Pembinaan
Politeknik. Degree Thesis Page 16-20, Universiti Teknologi Malaysia, Skudai

9. NorAini Yusof (1996) Penilaian Dan Pembangunan Projek. Penerbitan Universiti

Sains Malaysia, Malaysia

10. Norngainy Mohd Tawil, Muhamad Azry Khoiry, Noraini Hamzah, Ishak Arshad,
Wan Hamidon Wan Badaruzzaman (2014), A Pilot Survey On Causes Of Delay In
Malaysia Construction Project. MATEC Web Of Conference 15.

11. Professor Datuk Sundra Rajoo (2014). International Bar Association (IBA) Annual
Conference 2014. September 2014. Tokyo

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