A Study on Issues Associated with Extension of Time (EOT) Claims in Construction Industry within Klang Valley

Wong, Chui Yee (2020) A Study on Issues Associated with Extension of Time (EOT) Claims in Construction Industry within Klang Valley. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Projects may be postponed due to a number of factors that may be due to the client, the contractor, the consultant, external causes such as acts of God or a third party. Delay in construction would entitle the contractor to an extension of the time claim in the construction project. In many construction projects, the extension of time (EOT) has become a common construction practice, particularly when standard forms of contract are applied. The common standard form of contracts that practised widely in Malaysia are PAM Contract 2018 and P.W.D. Form 203a (Rev 1/2010). The rejection of the EOT claim during its first submission is typical and involves further submission with some adjustment and alteration to improve the contract administrator's assessment process. The purpose of the study was to identify the causes of delays leading to the application of the Extension of Time claim in the Kuala Lumpur and Selangor area and to examine the reasons for the unsuccessful Extension of Time claim. The population of the respondent is determined and participants of the study are the construction individuals involving actively in the construction industry such as contractors and consultants. The study of literature review forms the basis of the data collection and research instrument such as questionnaire survey are adopted to further investigate the causes of delays and the related reasons for the unsuccessful claim. Four factors identified are the causes of delays; contractors, consultants, customers, and external factors. A list of reasons for the unsuccessful Extension of Time claim is provided together with the relevant methods as a solution. The study investigates the objectives by determining the respondents’ level of agreement or disagreement and the results will be converted into a ranking to provide a clear presentation of analysis. The data analysis process is assisted by using software such as Microsoft Excel and reliable formula; Relative Importance Index (RII) and measure of central tendency are adopted. Results and findings generated will be presented and arranged using tables and graph and discussion is made on each set of data together with supporting from previous studies. The outcome of the findings will be used as a guideline to tackle the current issues that are related to the construction industry with the hope to minimize the occurrence of such issues.