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Save 1317- Contractor's claim fro extension of time due... For Later so taaakt wou Hee
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wy EBB YAM T ATA hy
China We Vi Co, Lid je Te eral
Civil Works and Rehabilitation of b-
Fort Portal-Hima Road (5Skm) Project Office 2
1.0, ox 37126 Kampala Uganda __slauwbinaprjetGhsnsls
Ref CWY-SABA-FH-1317,
Date: 28/06/2020 el
SABA Engineaing Private Limted Company, AB
P.O. Box 21324
Steicher Road ~ Ninda, ase asco
Kampala. Q2len
‘Ati: Eng, Diba Belete Edee
Dear Sir,
CIVIL WORKS AND REHABILIATION OF FORT PORTAL — HIMA ROAD (55
KM) CONTRACT NUMBER: UNRAMWORKS/2015-16/00057
‘Sub: Contractor's Claim for Extension of Time Due to Delay inthe Process,
F Procuroment and Approvals for Relocation of Utilities, Varied
Works of Additional Road, 's.a Roundabor t Lights,
‘Abnormal Rainfall and Force Majeure Situation Cause VID-19.
REFERENCES: (01) Contractor's Claim No. 2 letter Ref. No. CWY-SABA-FH-763 of
1108/2019, excluding attachments, claiming for extension of time
‘due to delay in issuing revised design drawings for the road
sections km +000 to km 14800 and km 44+100 to km 45+000,
variation for the box culvert at km 449472 and delay in
arrangements and processes for relocation of utities, [Exhibit
ot),
(02) Contractors letter Ref. No. CWY-SABA-FH-S27 of 26/10/2018,
updating Claim No. 2 after some of the events causing the delays
were resolved, [Exhibit 02},
(03) Engineer's letter Ref, No. CSIFHRI664-2020 of 10/02/2020,issuing a determination of pat of Claim No.2, [Exhibit 03}
(04) Contactors letter Re. No, CWY-SABA-FH-1267 of 19" May
2020, submiting tothe Engineer an update on the ctim for tine
extension due to delay in procurement of tities relocation
subcontractors, [Exhibit 04),
(05) Engineer’ letter Ref, No. CSIFHRIS46.2018, issuing revised
design drawings for Fort Portal, km 0000 > km 1#860 and
Rimi, km 43+800 to km 45+200, (Exhibit 05),
(06) Contractors letter Ref. No, CWY-SABA-FH-828 of 24” October
2019 notifying the Engineer of his intension to claim for time
extension and costs for execution of varied works of service
roads, a roundabout and street ights, [Exhibit 05
(07) Engineors letter Ref. No, CS/FHRI611-2019 of 19% December
2019 requesting the Contractor to submit a proposal for execution
ofthe varied works of sence roads in Fort Portal and Rimi, a
roundabout in Rumi and a box culvert at Rwimi, km 44+473,
[Extibit 07)
(08) Contractor's letter Ref, No. CWY-SABA-FH-1070 of 20" January
2020 submitting tothe Engineer the time and cost proposal for
‘execution ofthe varied works of service roads in Fort Portal and
wii, @ roundabout in Rwimi and a box culvert at Rwimi, km
44473, [Exhibit 08)
(08) Contractors letter Ret. No. CWY-SABA-FH-1275 of 22° May
2020 reminding the Engineer about the tme ans cost proposal for
the varied works, [Exhibit 08)
(10) Contractors letter Ref. No. CWWY-SABA-FH-1256 of 14" May
2020 requesting the Engineer for confimation and construction
details ofthe varied works of streetlights, [Exhibit 10],
(11) Day rainfall records for the period August 2018 to Apri 2020
from the project's rainfall gauges at km 26+800, the stone quarry
‘and km 50440, (Exhibit 11,
(12) Contractors letter Ref, No. CWY-SABA-FH-11°7 of 17" February10
1
2020 notifying the Employer and the Engineer of the Force
‘Majeure event caused by the Novel Corona Virus. [Exhibit 12)
(13) Employer's letter Ret. No. UNRA/DRBD/02-02 of 26" March 2020
Informing all its contractors, supervision consultants and in-house
supervision teams about the COVID-19 pandemic, the
Presidential Address of 25" March 2020 on prevention of spread
of the disease and measures that should be followed while
transporting workers at site, [Exhibit 13},
(14) The Presidential Address of 30" March 2020 on the COVID-19
‘and more guidelines on the preventive measures and the need for
‘a shutdown, [Exhibit 14]
(15) Contractors letter Ref, No, CWY-SABA-FH-1188 of 2% April 2020
further notifying the Employer and the Engineer of the Force
Majeure event caused by the COVID-19 and effacs ofthe several
Presidential directives issued in its wake to the project, [Exhibit
181,
‘STATEMENT OF CLAIM
Pursuant to the terms and provisions of Sub-Clause 8.4 [Extension of Time
for Completion], Sub-Clause 13.1 [Right to Vary], Sub-Clause 13.3
[Variation Procedure], Sub-Clause 19.4 [Consequences of Force Majeure)
‘and Sub-Clause 20.1 [Contractor's Claim] of the General Conditions of
Contract, also pursuant to Sub-Clauses 1202 (f) and 1229 of the General
Specifications and Sub-Clause 1229 of the Special Specifications,
‘consequent upon the construction activities on the eriical path of Fort
Portal ~ Hima Road Project, and as a direct effect of delay in relocation of
affected ullities, varied works, abnormal rainfall and the COVID-19 Force
Majeure event, the Contractor is hereby claiming an extension of time for
‘completion of the Works to the amount below:-
‘Time:289 Days = 9.5 months20
24
22
FACTS IN OUTLINE
(On 15! August 2019, through a letter Ref. No. CWY-SABA-FH-763, [Exhibit
1, the Contractor submitted @ letter to the Engineer claiming for addtional
time for completion of the Works (2% Claim for Time Extension) due to the
following events:
(1) Delay in issuing the revised design drawings forthe road section km
144+100 to km 45+000;
(2) Instructing additional work/variation for the box culvert at km 44+472;
(2) Delay in issuing revised design drawings for the road section km
(0+000 to km 1800; and
(4) Delays in the procurement process and approvals fo" relocation of
tities of water pipelines and electricity power lines effected by the
road works,
In the claim, the Contractor stated that all the above four events were stil
‘ongoing and as of 10 August 2019, the reference date of the claim, the
events had caused a combined delay of 222 days.
(On 26" October 2079, the Contractor through his letter Ref. No. CWY-
SABA-FH-927, [Exhibit 2], submited to the Engineer an update of his 2"
Claim for Extension of Time. In the update, the Contractor oresented that
the causes of delays due to 3 of the events, Le. delayed revised design
Grawings for the road section km 44+100 to km 45+000, instructing
additional worldvariation for the box culvert at km 444472 and delay in
issuing revised design drawings forthe road section km 0#0C0 to km 14800
had been resolved. According to the Contractor's claim update, the
‘combined delay caused by these 3 events had increased to 410 days. The
Contractor noted that the delay effects of the fourth event, ie. delays
In the procurement process and approvals for relocatior of utilities of
8 and electricity power lines affected by the road works,
water pipel
‘were continuing since the causes were yet to be resolved23
24
28
26
(On 10” February 2020, the Engineer through his letter Ref. No,
CSIFHR/664 - 2020, [Exhibit 3], issued his analysis and determination of
the Contractor's Claim No. 2 for extension of time. The Engineer noted
that the event of delayed procurement process and approvals for
relocation of utilities was continuing and would make a determination
‘once itis resolved and the Contractor submits a final claim for the
same. The Engineer determined that the completion date should be
extended by 262 days, from 27 November 2019 to 15 August 2020, due to
delays arising from late issuing of design drawings for the road sections km
44+100 to km 45+000 and km +000 to km 1#800 and the variation for
construction of a box culvert at km 44472,
‘The Contractor, via his letter Ref. No. CWY-SABA-FH-1267 of 19" May
2020, [Exhibit 04}, submitted an update of delays due to delayed
procurement process and necessary approvals for relocation of lites, In
the update, the Contractor noted that the causes of this delay event
were yet to be resolved and that as of 18% May 2020, the event had
caused a delay of 116 days beyond the current determined completion
date of 15 August 2020. A more detailed presentation of the claim for
extension of time due to this delay event, including mandatory notifications,
discussions of background facts leading to the claim, exhibits, entitlements
land analysis of the extent of delay, is contained in the Contractor's claim
submission, including attachments, with letter Ref. No. CWY-SABA-FH-763,
of 15" August 2019, (Exhibit 1].
‘The Engineer on 23 October 2019 via his letter Ref No, CS'FHRIS46-2019
[Exhibit 5, issued the updatedirevised design drawings for Fort Portal Town
= km 0+000 to km 14860 and Rwimi Town ~ km 43+800 to km 45+200,
together wth other revisediupdated design drawing for several project road
components
‘The Contractor noted that within the above issued revised design drawings,
there were works of a kind not included in the project Contract. These were1) 3 No. service roads in Fort Portal Municipality, i) 2 No. Service roads
in Rwimi Town, a roundabout in Rwimi Town and street lights in Fort
Portal Municipality and Rwimi Town. In a letter Ref. No, CIWY-SABA-FH-
928 of 24 October 2019, [Exhibit 6], the Contractor notified the Engineer
about these varied works, informing the Engineer that he will laim for time
and cost of executing these works unless an adjustment in the time for
completion and valuation of the variations are agreed. In the letter, the
Contractor also noted that he was yet to receive the extent, construction
details and specifications forthe streetlights.
2.7 The Engineer via his letter Ret, No. CS/FHRI611-2019 of 10" December
2019, [Exhibit 7], requested the Contractor to submit a proposal for
execution of the varied/additional works of I) three service roads in Fort
Portal Municipality, i) two service roads Rwimi Town, ii) a roundabout
in Rwimi Town and iv) the Box culvert in Rwimi Town.
2.8 The Contractor through his letter Ref. No. CWY-SABA‘FH-1070 of 20"
January 2020, [Exhibit 8], submitted to the Engineer a time and cost
proposal for execution of the additional works as per the Engneer's request.
Whereas the proposal included the cost for the box culvert in Rwimi,
km 444473, the time for its execution was not includes, as this was
already part of the extension of time claim submitted by the
Contractor via his letier Ret. No. CWY-SABA-FH-763 of 15° August 2019,
[Exhibit 1]. The time proposal was for 11"% months from 2" April 2020 to
45" March 2021, while the cost proposal was for Shs €,102,983,730/-
including 10% physical contingencies and 18% VAT.
29 On 22% May 2020, after noting that he had not received any response form
the Engineer regarding the submitted proposal for additionelvaried works,
the Contractor through his letter Ref, No, CWY-SABA-FH-1275, [Exhibit 9},
reminded the Engineer about his earlier submitted time and cost proposal
However by the date ofthis claim, a response had stil not been received.
2.40. Through his latter Ref, No. CWY-SABA-FH-1256 of 14 May 2020, [Exhibitaan
212
243
10}, the Contractor noted that whereas the issued revised design drawings
for Fort Portal Municipality and Rwimi Town included streetlights, which
were varied works, despite his earlier notification about the same via his
letter Ref, No. CWY-SABA-FH-923 of 24" October 2019, [Exhibit 6], up to
that date he had not received any construction details for the same, The
Contractor thus request the Engineer to confirm whether street lights
will be part of the Works and if so to issue respective construction
details including specifications and quantities so that he can cost the work
‘and prepare to execute it.
Since August 2018, the Engin«
st and the Contractor have been jointly
collecting daily rainfall data from 3 No. rainfall gauges installed as part
of the Engineer's laboratory equipment along the proje:t road at km
264800 LHS, the stone quarry located 3 km off the project road at km
44+440 LHS and km 50+010 LHS. These ‘ainfall records are attached
hereto as [Exhibit 11] and cover the period 1" August 2018 to 31" May 2020.
‘On 17/02/2020, the Contractor through his letter Ref No, CIY-SABA-FH-
1117 of 17 February 2020, [Exhibit 12], noted the Employer and the
Engineer of the Force Majeure event caused by the Novel Corona Virus,
later termed the COVID-19 disease. In the notification, he Contractor
stated that since 5" February 2020, this event was affecting the project's
input mainly from China. These were expatriate staff, spare parts and other
in-puts.
On 18%, 21% and 25! March 2020, several directives aimed at alleviating
the COVID-19 disease in the Country were issued by the Government of
Uganda through Presidential Addresses. Some of these relevant to the
\Works were: i) stopping all public passenger transport vehices and i) mit
the occupancy in private vehicles. Through a letter Ref. No.
UNRA/DRBD102-02 of 26" March 2020, [Exhibit 13], the Employer informed
all its Contractors, Supervision Consutants and its in-house Supervision
‘Teams on how workers should be transported in order to keep in line with214
245
the government directives. The Employer guided that works for which
workers can walk to their work stations and those requiring litle human
labour could continue, while transporting of workers should adhere to the
directed reduction of vehicle occupancy limits. In addition the Employer
guided that Contractors should schedule works appropriately while being
‘mindful of the need to limit mass movement of statiworkers.
‘Through another Presidential Address of 30 March 2020 on the COVID-19,
{Exhibit 14], the Government of Uganda announced a shutdown of many
business and social activities accompanied with several measures again
aimed at preventing spread of the disease. Among the directives that
greatly impeded smooth execution of the project Works were: i) closure of
public passenger transport, i) stopping of all passengers coming into
Uganda through ail mean:
i) prohibition of al people to people movernent
including by private car, motorcycle, tuk-tuks, etc, iv) closure of hardware
shops and other non-food shopsistores, v) prohibition of gatherings of more
than § people and vi) introduction of a curfew between 7.00 pm and 6.30
fam, The directives, however, specifically allowed construction works to
continue, provided that workers were encamped at site and Standard
(Operating Procedures (SOPs) issued by the Ministry of Health were in
place.
‘The Contractor through is leer Ret, No, CWY-SABA-FH-1183 of 2” Apri
2020, [Exhibit 15), further notified the Employer and the Engineer of the
Impact of the COVID-19 Force Majeure event to constructior of the Works,
The Contractor noted that the COVID-19 disease had besn declared a
‘global pandemic by the World Health Organisation (WHO) and that many
countries, including Uganda had put in place measures and curtalments to
stem spread of the disease. The Contractor presented that these measures
had created a diffculty in movement of local and foreign workers, reduced
effective working time, some foreign workers who had gone on leave could
not be back to work on time while others had been preventec from traveling3.0
3a
344
342
back altogether, local and international supply chains had become slower
land in some cases supplies were not possible. The Contractor also
presented that he had to suspend some works while those that continued
CONTRACTOR'S BASIS OF ENTITLEMENT
Contract Provisions Pertaining to Extension of the Time for
Completion Due to these Events
‘The Contractor's entitlement to an extension of the Time for Completion and
costs due to these event is contained in the following clauses, which are
reproduced in full herein,
Clause 8.4 of the Conditions of Contract (FIDIC MDB Harmonised Version
2010) un-amended by the Conkitions of Particular Application states that -
“The Contractor shail be entitled subject fo Sub-clause 20.‘ [Contractor's
Claim] to an extension of time for Completion if and to the extent that
‘completion for the purpose of Sub-Clause 10.1 [Taking-Over of the Works
_and Sections] is or wil be delayed by any ofthe folowing cases:
(2) 2 Variation (unless an adjustment to the Time for Completion has
been agreed under Sub-Clause 13.3 [Variation Procedure] or other
“substantia! change in the quantity of an item of work eluded in the
Contract,
(0) a cause of delay giving an entitlement to extension cf time under a
‘Sub-Clause of these Conditions,
(€) exceptionally adverse climatic conditions,
(@) Unforeseeable shortages of inthe availabiliy of personnel or Goods
caused by epidemic or government actions, or
(e) any delay, impediment or prevention caused by or attibutable fo theEmployer, the Employers Personnel, or the Employer's other
contractors.
If the Contractor considers himself fo be entitled to an extension of time
for completion, the Contractor shall give notice fo the Engineer in
‘accordance with Sub-Clause 20.1 [Contractor's Claim] When determining
each determining each extension of time under Sub-Clause 20.1, the
Engineer shail review previous determinations and may increase, but not
decrease, the fotal extension of time.
3.13 Sub-Clause 13.1 of Conditions of Contract (FIDIC MDB Harmonised
Version 2010) un-amended by the Conditions of Particular Application
states that
“Variations may be inated by the Engineer at any time prior to issuing
the Taking-Over Certificate for the Works, either by an instruction or by a
‘request for the Contractor to submit a proposal.
‘The Contractor shail execute and be bound by each Variaton, unless the
Contractor promptly gives notice to the Engineer stating (with supporting
particulars) that ()) the Contractor cannot readily obtain the Goods
required for the Variation, or (i) such Variation triggers a substantial
‘change in the sequence or progress of the Works. Upon receiving this
notice, the Engineer shall cancel, confirm or vary the instruction.
Each Variation may include:
(@) changes to the quantities of any item of work included in the
Contract (however, such changes do not necessariy constitute a
Variation,
(&) changes to the quality and other characteristics of any item of work,
(©) changes to the levels, positions andor dimensions of any part of the
works,(@) omission of any work unless itis to be carried out by others,
(@) any additional work, Plant, Materials or services necassary for the
Permanent Works, including any associated Tests 01 Completion,
boreholes and other testing and exploratory work, or
(9 Changes to the sequence or timing ofthe execution ofthe works.
The Contractor shall not make any alteration and/or modification of the
permanent works, unless and until the Engineer instructs or approves
variation’
3.144 Sub-Clause 133 of Conditions of Contract (FIDIC MDB Harmonised
Version 2010) un-amended by the Conditions of Particular Application
states that
4 the Engineer requests @ proposal prior fo instructing & variation, the
Contractor shail respond in writing @s soon as practicable, either by giving
reasons why he cannot comply (if this isthe case) or by submitting:
(a) A description of the proposed work to be performed and
programme for its execution.
(@) The Contractor's proposal for any necessary moditcations to the
programme according to Sub-Clause 83 [Programme] and the
Time for Completion, and
(¢) The Contractor's proposal for evaluation of the verification.
The Engineer shall, as soon as practicable after receiving such proposal
(under Sub-Clause 13.2 [Value Engineering] or othenwise), respond with
‘approval, disapproval or comments. The contractor shall not delay any
work whilst awaiting a response.
Each instruction to execute @ variation with any requirements for the
recording of costs, shall be issued by the Engineer to the contractor who
hall acknowledge receipt.Each variation shall be evaluated in accordance with Clause 12
(measurement and evaluation), unless the Engineer instructs or approves
cotherwise in accordance with this clause”
3.15 Sub-Clause 19.4 of Conditions of Contract (FIDIC MDE Harmonised
Version 2010) un-amended by the Conditions of Particular Application
states that
“if the Contractor is prevented from performing its substantial obligations
under the contract by Force majeure of which notice has been given
under Sub-clause 19.2 (Notice of Force Majeure], and sufers delay and/
‘or incurs Cost by reason of such Force Majeure, the Contractor shall be
ontiled subject to Sub-Clause 20.1 [Contractor's Claims} te:
a)
»
‘An extension of tine for any such delay, if completion is or will be
delayed, under Sub-Clause 84 [Extension of Time for
Completion}, and
If the event or circumstance is of the kind deseribed in sub-
paragraphs (i) t0 (iv) of Sub-Clause 19.1 [Definition of Force
Majeure] and, in the case of sub-paragraph (i) tc (iv), occurs in
the Country, payment of any such cost, including the costs of
rectifying or replacing the Works and/ or Goods damaged or
destroyed by Force Majeure, to the extent they are not
indemnified through the insurance policy referred to in Sub-
(Clouse 18.2 [insurance for Works and Contractor's Equipment]
3:16 Clause 20.1 of the Conditions of the Contract (FIDIC MCB Harmonised
Version 2010) unamended by the Conditions of Particular Application
states, in par, that
“if the Contractor considers himself to be entitled to any extension of the
Time for Completion and/or any additional payment, under any Clause ofthese Conditions or otherwise jn connection with the Contract, the
Contractor shall give notice to the Engineer, describing the event or
circumstance giving rise to the claim. The notice shall be as soon as
practicable, and not later than 28 days after the Contractor became aware,
or should have become aware ofthe event or circumstance.’
Clause 1202 of the General Specification (Ministry of Works’ General
Specifications for Road and Bridge Works, January 2005) as amended by
the Special Specifications, states, in pat, that
*(e) Negotiations with owners of services
The Contractor shall work in close consultation and co-operation with
private Owners and public authorities controling services, which have to be
protected, moved or relocated. Should the Owners of services refuse £0 6o-
operate with the Contractor in @ reasonable manner in connection with
‘protection or moving of services belonging to them, the Contractor shall
refer the matter to the Engineer.
‘The Contractor shall set out the works sufficiently in advance of their
programmed construction to allow time for relocation of services to suitable
positions, and shall confim in writing to the Engineer the sewvices which he
‘considers will affect the works, Services works shall be included jn the
Contractor's programme.
“(9 Programming relocation of services
When the Contractor details his program of work as referred to in the
relevant clause of the Conditions of Contract, he/she shal in consultation
withthe Engineer, clearly indicate as fo when he/she proposes to start with
‘and conclude the moving of each service or when he/she will require the
Cumer to start with and conelude the moving of each service. Should it
thereafter, through delays on the part the Employer or the Owner of the‘service to be moved, be impossible to adhere fo the programme of work,
‘such programme shall be suitably amended by the Contractor in
‘consultation with the Engineer so as to limit, in so far as is possible, the
‘extent of any damages or delays.
Should it be impossible to limit entirely the damages or delays resulting
{rom the amendments necessary to the programme of work, ‘he Contractor
shall be reimbursed for any additional costs incurred or damages suffered
by himmer”
Clause 1229 of the General Specification (Ministry of Works’ General
Specifications for Road and Bridge Works, Januaty 2005) as amended by
the Special Specifications, states, in part, that
“Extension of time as provided in the General Conditions of Contract arising
{from abnormal rainfall shall be calculates separately for each calendar
‘month or part thereof in accordance withthe formula given below. It shall be
calculated for the whole period for completion of the Contract including any
extensions thereof:
V= (Me= Na) * (R= Bd
IF V is negative and its absolute value exceeds Nn the V shall be taken as
‘equal fo minus No
The symbols shail have the following meanings:
V = Extension of tine in calendar days in respect of the calendar month
under consideration.
[Ne = Actual number of days during the calendar months which @ rainfall of y
‘mm or above has been recorded by the Meteorological Department of
the Ministry of Water, Lands and Environment, at the station closest f0
the Site, or from a source agreed ton writing by the Engineer.Re = Actual rainfall in’ mm for the calendar month under consideration
obtained from the Meteorological Department of the Minstry of Water,
Lands and Environment, or from a source agreed fo in writing by the
Engineer
Ne = Average number of days, as derived from the existing rainfall records
of the Department of Meteorology provided in the Special
‘Specifications, or as agreed to, in writing by the Engineer, on which @
rainfall of Y mm or more has been recorded for the calendar month.
Ro
\verage rainfall in mm for the calendar month, as derived from
the rainfall records of the Department of Meteorology provided in the
‘Special Specifications, or as agreed to in wating, by the Engineer
x= 20 unless otherwise provided in the Special Specifications
Y= 10 unless otherwise provided in the Special Specifications.
‘The total delay that will be taken into account for the determination of the
extension of time for the contract shall be the algebraic sum of the monthly
totals for the period under consideration. But if the grand total is negative,
the time for completion shall not be reduced. Extensions of time for part of
‘a month shall be calculated using pro rate values of Np ané Re. The total
extension of time for any calendar month shall not excved (Ne - Nn)
‘calendar days, where Ne = number of days in the month under
‘consideration on which work may be executed jn accordance with the
provisions of the Conditions of Contract andlor Specifications.
The factor (Nw ~ Ns) shall be considered to represent a fai allowance for
variations from the average number of days during which rainfall exceeds Y
mm.
‘The factor (Ru ~ Ralk shall be considered fo represent a far allowance for
variations from the average in the number of days during which rainfall does32
324
not exceed ¥ mm but wet conditions prevented or disrupted work.
Data for Np and Rs for each calendar month is given in Table 1229/1 below.
The Contractor shail allow in his Programme for the number of Rain days
‘above 10 mm (No) for each calendar month.”
Entitlement to Extension of Time
In his submission of Claim No. 2 for Extension of the Time fer Completion,
[Exibit 1], the Contractor presented and discussed in detal his basis of
entitlement to extension of time due to delayed relocation of utities under
‘Sub-Sections 3.2.10 and 3.2.11 therein. In brief, as provided for under Sub-
Clause 1202 (e) of the Special Specifications, The Contrector diigently
worked with the water and electricity utities owners to identiy the affected
utlity lines, developed and cost relocation schemes togetter with them.
However the process for procurement of relocation subcontractors and
related approvals from the Employer and the Engineer have dragged on
and is stil incomplete by the submission date ofthis claim, As provided for
under Sub-Clauses 1202 (fof the General Specifications and 8 4 (e) of the
General Conditions of Contract, the Contractor is ented to an extension of
the time for completion,
322 The design drawings issued to the Contractor at Contract signature
323
did not include the service roads in Fort Portal and Rwimi, the roundabout
in Rwimi and street lights in Fort Portal and Rwimi, Also the Bills of
‘Quantities in the bidding documents and the Contractors bid, which formed
the basis for the Agreed Contract Price, did not include ems for these
works. However the revised design drawings issued to the Contractor by the
Engineer via his letter Ref. No. CS/FHRIS46-2019 of 23rd October 2018,
[Exhibit 5}, included these works.
From the above it is observed that the service roads in Fort Portal and
Rwimi, the roundabout in Rwimi and street lights in Fort Portal and Rwimi
constitute a variation as per GCC Sub-clause 13.1 [Right to Yary], under theprovision (e) “any additionai work, Plant, Materials or services necessary for
the Permanent Works, including any associated Tests on Completion,
boreholes and other testing and exploratory work”, With this variation, the
Contractor was entitled to proposing necessary modifications to the
programme and to the Time for Completion and proposing an evaluation of
the variation as provided for under GCC Sub-clause 133 (b) ‘the
Contractor's proposel for any modification to the programme according to
‘Sub-Clause 83 [Programme] and to the Time for Completion’ and
GCC133 (c) “the Contractor's proposal for evaluation of che Variation”
‘Thus through his letter of 10” December 2019, [Exhibit 7] the Engineer
requested the Contractor for a proposals to execute the varied works,
324 The Contractor submitted a time and costivaluation proposal to the
Engineer through his letter of 20” January 2020 [Exhibit 8]. However by the
time of this claim the time for execution of the varied works and their
valuation are yet to be agreed. Consequently, the Contract provides, under
GCC Sub-Clause 84 that the Contractor shall be entitled to “an extension
of the Time for Completion if and fo the extent that completion is or will be
delayed due to (a) a Variation (unless an adjustment fo the Time for
Completion has been agreed under Sub-Clause 13.3 [Variation Procedure]
3.25 The General Conditions of Contract, under Sub-Clause 6 4 (¢) provides that
the Contractor shall be enttled to an extension of the Time fer Completion if
‘and to the extent that completion forthe purpose of Taking Over the Works
Is or wil be delayed by exceptionally adverse climatic conditions, Sub-
Clause 1229 of the General and Special Specifications gives the
‘methodology for calculation of extension of time due to abnormal rainfall
3.26 Sub-Clause 8.4 (d) of the General Conditions of Contract provides that &
Contractor is entiled, subject to mandatory notification, to an extension of
the Time for Completion if and to the extent that completion for the purpose
cof handing over is or will be delayed by unforeseeable shortages of
personnel or Goods caused by an epidemic or government actions, Alsosub-Clause 194 of the General Conditions of Contract provides that if the
Contractor is prevented from performing its substantial obligations under the
Contract by a Force Majeure event of which notice has been given and
suffers delay and for incurs cost by reason of such Force Majeure, the
Contractor shall be entitled to an extension of the time for such delay, if
‘completion will be delayed. The Contractor noted a Force Najeure of the
COVID-19 pandemic which affected execution of the Works starting 5*
February 2020 and notified the Employer and the Engineer through a letter
of 17" February 2020 [Exhibit 12], The Employer also noted that the
COVID-18 pandemic vis-2-vis the Government directives issued to contain
it wil affect the Works and issued information and guidelines to limit its
impact via a letter of 26° March 2020 [Exhibit 13]. However more
Government directives with stronger measures to contain the disease were
being issued. The one with the greatest impact to the Works being issued
‘on 30" March 2020, (Exhibit 14), which was a lockdown accompanied with
‘several measures prohibiting many business and social activities. This
prompted the Contractor to submit to the Employer and the Engineer a
notification of additional impacts of the pandemic to the Works on 2° April
2020 [Exhibit 15], The lockdown and several of the measures ear issued
are stil in place by the time of this claim. Below are the key factors of the
COVID-19 event vis-#-vis the Contractor's major obligations that could not
be carried out or were carried out with reduced outputs,
’) Ministry of health advised 14 days setFisolation of 7 No. key foreign
staff including the Projact Manager, Asphalt Plant Operator and
Works Superintendents ~ Asphalt Works were suspended for 14 days,
ji) Closure of all water, land and air borders preventing 2 key staf, the
Surveyor and Chief Site Superintend from returning from leave —
suspension of ertcal site works like earthworks, pavenent layers and
drainage works for effectively 10 working days, over a 14 days’ period,
‘as replacements were being sought locally,ii) Increased controls and procedures at borders and ‘or local and
{foreign factories, closure of hardware shops and none-feod stroes, all
leading to slow supply chains and difficulty in obtaining supply’ ike
coment, steel, bitumen, fuels, ols spare parts and office stationery
‘among others — intermittent stoppage of works,
iv) Curfew between 7.00 pm and 6.30 am, closure of public transport
and directives for reducing passenger carrying capacity of vehicles,
both affecting workers’ timing of travel to and from ste ~ reduced
|working time from 8.00 am — 5.00 pm in the Contract to 9.00 am ~
4.00 pm,
327 As can be noted from the above presentation, the Contractor was
prevented from performing its substantial obligations under the Contract
due to the COVID-19 pandemic and the Governments measures, issued
through directives, to contain this disease. Thus as provided for under Sub-
Clauses 8.4 (d) and 19.4 (a), the Contractor is ented to an extension of
the Time for Completion
“The Contractor, therefore, hereby clsims and proposes an extension of the Time
{for Completion due to the delay events, varied works and respective entitlements
deseribed in this claim.
40 CAUSE AND EFFECT ANALYSIS
4.1 The events that the Contractor has encountered and presented causing
delays and a need for extension of the Time for Completion of the Fort
Portal-Hima Road Project, described in Section 2.0 - Facts In Outline,
above, are summarized as:
(1) Delay in the procurement process and approvals for relocation of
tltios of water pipelines and electricity power lines affected by the
Works,42
43
(2) Instruction of additional works/variation fori) service roads in Fort
Portal Municipality and Rimi Town, i) @ roundabout in Rwimi Town,
and ii streetlights in Fort Portal Municipality and Rwimi Town,
(8) Exceptionally adverse climatic conditions of abnormal rainfall, anc
(4) Force Majeure event due to the COVID-19 pandemic.
[As per the Contractor's submissions in Claim No. 2 for time extension of
45 August 2019, [Exhibit 1], and updates on 26% October 2019, [Exhibit 2)
‘and on 19" May 2020 [Exhibit 4, the delay in the procurement process and
approvals for relocation of utities started affecting progress of the Works
‘on 7" May 2019. Whereas some approvals during the inte-vening period
have been issued to relocate water pipelines at some criical locations,
especially pipe culvert works locations, the bulk ofthe relocations are yet to
bbe done. The delayed relocation is affecting works especially in sections
with high concentration of utity lines, ie. Fort Portal Municipality, km 0+000
to km 24600, km 3+000 to km 44100 and Rimi Town, km 434800 to km
45#200, including Rwimi roundabout and Service roads, where earthworks
cannot proceed before the relocations are done. Finishing works like
construction of lined drains are also stalled at several locations along the
road due to the pending utities relocation. Since the last update of 19"
May 2020, [Exhibit 4], when the delay was 378 days, up to the date of this
claim, 23° June 2020, an additional delay of 36 days has been experienced
“Thus the total delay now since 7" May 2019 is 414 days.
“The instructed adkitional works of service toads in Fort Potal Municipality
land Rimi Town, i) @ roundabout in Rwimi Town, and i) street ights in Fort
Portal Municipality and Rwimi Town, could not be accommodated in the
ctiginal work's programme, Thus on a request from the Engineer, (Exhibit 7].
the Contractor prepared a work programme for these variediadditional
works, {Exhibit 8, save for the street lights in Fort Portal Nunicipality and
Rwimi Town, which the Engineer did not include in his request. In the44
45
Contractor's proposed work programmed the additionalivaried works were
to commence on 2° April 2020, when major actives of the original works
were planned to be nearly complete, and be finished by 15! March 2021, a
period of 11"%2 months,
[As of the date of this claim, 23" June 2020, all indications are that street
lights in Fort Portal and Rwimi willbe installed as part of this project's Works.
'A sub-programme has thus been prepared and included in the other
additional work's programme. Scheduling for he rest of the additional works
activities has not changed. The new Work Programme for Additional Works
is attached to this claim as Attachment No. 01 according to ths programme,
preparations for street lighting works, including ordering (imperting) al fing
is scheduled to start on 16” July 2020 afer specifications and construction
details, expected by 11" July 2020, have been issued. Physical works are
‘scheduled to commence on 5* January 2021. A construction period of 85
days has been planned, for the street lights, giving an end date of 30"
March 2021. The new handover date forall these varied works is now 31%
March 2021. Thus all the varied works of i) service roads in Fort Portal
Municipality and Rwimi Town, i) a roundabout in Rwimi Town, and ii) street
lights in Fort Portal Municipality and Rwimi Town, require a period of 364
days (12 months) starting 2° April 2020 up to 31* March 2021
Most of the construction activities of the works are not supposed to be
carried out during rainfall and for varying periods after, depending on the
kind of work, as this compromises their quality, Thus the Contract provisions
for extension of the Time for Completion due to exceptionally
‘adverse/abnormal rainfall, Sub-Clause 8.4 (c) of the Genera Conditions of
Contract, The formula end procedure for calculating the extension are given
in Sub-Clause 1229 of the General and Special Specifications. Using the
daily rainfall records, jointly collected by the Engineer and the Contractor
along the project site from August 2018 to May 2020, {Exhibit 11], and
historical average monthly rainfall data of the project area, ¢ calculation of46
the required extension of time was done in an MS-excel spread sheet. The
calcuiation is attached to this claim as Attachment No. 02. Aczording to this
calculation, by 31% May 2020, the Time for Completion should be extended
{for 61 days due to abnormal rainfall
‘The COVID-19 pandemic started impacting progress of the Works from 5
February 2020 as per the Contractor's notification of 17" February 2020,
[Exhibit 12]. In section 3.2.6 above, the Government directives issued to
contain the pandemic and their impact on the Works has been discussed
“These impacts resulted in delays to the works as outined below;
i) The Ministy of Health advised 14 day selt-isolation of 7 foreign staff
started on 21% February 2020 and ended on 5! March 2020. This
included the Asphalt Plant Operator. During this period an activity on
the critical path, laying the asphalt concrete wearing course, could
not take place. Thus 14 days were lost,
ii) The closure of all the country’s water, land and air borders to
passenger traffic, which commenced on 25 March 2020 prevented 2
key staff, the Surveyor and the Chief Site Superintend from returning
from leave in China, The closure is stil ongoing. However it took 14
days for replacements to be sourced locally. During that period
effectively 10 working days were lost
li) Increased controls and procedures at borders and for local and
foreign factories, closure of hardware shops and none food stores
which commenced on 1% April 2020 led to siow supply chains and
dificuty in obtain supply like cement, steel, bituren, fuels, oils
spare parts and office stationery, among others. This turn resulted
in intermittent stoppage of works due to lack andlor sow delivery of
these supplies. Hardware shops were allowed to re-open on 26" May
2020, which eased most supplies. During this period an effective 20
days were lost. However some measure slowing down supply chains
e.g. mandatory testing of truck drivers for COVID-19 at the country’s50
5A
boarders, the 7.00 pm to 630 am curfew, among others are stil in
place and affecting the Works by the date of this claim,
|v) The directive of reducing passenger carrying capacty of vehicles
hich started on 25" March 2020, the curfew between 7.00 pm and
6.30 am and the directive for closure of all public transport, which
started on 31% March 2020, affected workers’ timing cf travel to and
from site. Workers cannot set off early for work and have to leave
work early in order to meet the curfew restrictions. The public
transport option was also taken away. The Contractor's vehicles
transporting workers have to make more trips to abide by the person-
to-person cistance SOPS. Effectively working time has reduced from
£8.00 am ~ 5.00 pm in the Contract to 9.00 am — 4.00 pm. Apart from
‘easing public transport in non-boarder districts on 4” June 2020, the
‘other restriction are still in place by the date of this claim. Part of the
Works and residences fer some of the workers are in a boarder
district, Kasese District. Thus for each of the 64 working days from 1*
‘April 2020 to now 23° June 2020, 2 working hours have been lost
This is effectively 16 working days.
From the above presentations, the combined time lost due the COVI-19
pandemic, taking into account the overlaps of impacts, is 39 days, as of the
date of tis claim, 23 June 2020.
EVALUATION OF EXTENSION OF TIME AND COSTS - DELAY
ANALYSIS.
From the above, in sections 4,2, 4.3, 4.6, 4.5 and 46, itis concluded that
as of the time ofthis claim, 23% June 2020, the Contractor has incurred
delays in relocation of utites, requires time for execution of varied works
land extension of time due to abnormal rainfall and the COVID-19
pandemic as follows;52
53
54
(1) Delay in the procurement process and approvals fo relocation of
tities of water pipelines and electricity power lines affected by the
Works ~ 414 days starting from 7” May 2019,
(2) Instruction of additional works!varation for i) service roads in Fort
Portal Municipality and Rwimi Town, i) a roundabout in Rwimi Town,
‘and ii) streetlights in Fort Portal Municipality and Rwimi Town - 364
days starting 2°* April 2020
(3) Exceptionally adverse climatic conditions of abnormal rainfall 61
days extension of the Time for Completion
(4) Force Majeure event due to the COVID-19 panderric ~ 39 days
‘extension ofthe Time for Completion.
‘The causes of events 1), 3) and 4) are stil continuing. Thus their impact
‘on the project execution is sil continuing. The required time for the varied
‘works is a fixed period, but may be influenced by the date when actual
commencement of these works is ordered delays by events 1), 3) and 4),
For this submission, a reference day of 23° June 2020, the date of this
claim, has been used to determine the impact of these causes to the
construction period of the Works, so far, and the respective required
extension ofthe Intended Completion Date as of now.
Delay event 1) with a delay of 414 days starting 7" May 2019 requires
‘extension ofthe completion date to 15* January 2021,
“The varied works in event 2) require 364 days commencing 2% April 2020,
However a part of this period has been influenced by the COVID-19
pandemic delays, These are 29 days of delay, after excluding 10 days
(21 February 2020 to 1* April 2020) from the sub-total of 39 days of
COVID-19 delays. The varied works have also been inflienced by the
delay in relocation of utities in Rwimi and Fort Portal, According to the
‘varied works’ programme, see Attachment No. 01, Relocation of utiities
{for the service roads in Fort Portal Municipality should have commenced‘on 01/06/2020, Thus by the date ofthis claim, 23° June 2020, the varied
works have experienced a delay of 23 days due delayed relocation of
uilties. There were 8 days compostable due to abnormal rainfall during
‘April, but none during May 2020, See Attachment No 02, Therefore, as of
23 June 2020, the varied works require a total of 424 days to be
‘completed, starting on 2" April 2020. This means a completion date of
31 May 2021, including the delays du to the COVID-19 pandemic during
2% April 2020 to 29 June 2020, the impact of delayed relocation of
tities and abnormal rainfall in May 2020, to the programme for the
varied works, so fer.
5 Delay events 3) and 4) acting independently would require extension of
the completion date from the current date of 15 August 2020 by 100 days,
(61 days for abnormal rainfall and 39 days for COVID-19 dekays), ie. up to
23 December 2020,
556 From the above, the time requirement for the additonal works, taking into
account delays due to the COVID-19 pandemic from 2" April 2020 to 23°
June 2020, the impact of delayed relocation of utities to the additional
works up to the same date and abnormal rain fall during Nay 2020 have
the longer impact on the intended completion date, ie. an extension of up
to 31% May 2021. This is 289 days beyond the current completion date of
16 August 2020,
With this submission, t!'erefore, the Contractor requests that the Intended
Completion Date for the whole of the Works be extended by 283 days, ic.
from 15% August 2020 to 31% May 2024
“The Contractor requests that the Engineer considers the evidence presented
h the terms and conditions of the Contract, after due
herein and, in accor:'ance w
‘consultation withthe Emp's
nzistion, obtains the approval ofthe Employer and
and the Contractor, determines the amount ofthe
Extension of Time fcr cox
notifies the Contracior accordingly, with a copy to the Employer. Futhermore, theContractor reserves his rights to claim for additional project execution costs as a
consequence of the delays that are the subject ofthis claim. These willbe in
further submissions by him to the Engineer.
‘This claim is put forward without limiting or restricting the Contractor’ right to
pursue any addtional or alternative claims arising from the same orrelated
‘events, especially given tht these delay events are continuing,
=
Canine
Project Manager, UNRA
Project Engineer, UNRA
Encl: (1) Attachmen's 1 en 2
(2) The above referre# letters and documents in Exhibits 1 015