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1317 - Contractor's Claim Fro Extension of Time Due To Delay in The Process For Procurement and Approvals For Relocation of Utilities, Varied Works of Additional ....

CLAIM FOR TIME EXTENTION
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578 views26 pages

1317 - Contractor's Claim Fro Extension of Time Due To Delay in The Process For Procurement and Approvals For Relocation of Utilities, Varied Works of Additional ....

CLAIM FOR TIME EXTENTION
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so taaakt wou Hee eanadusoana 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" February 10 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 months 20 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 resolved 23 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 were 1) 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, [Exhibit aan 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 with 214 245 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 traveling 3.0 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 the Employer, 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 of these 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 does 32 324 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 the provision (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, Also sub-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 the 44 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 of 46 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’s 50 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, the Contractor 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

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