Prolongation Claims: Addressing the Cost of Extended Project Duration
In construction projects, delays are a common challenge. When a project extends beyond its planned completion date, contractors may incur additional costs such as site overheads, staff salaries, equipment hire, and financing expenses. These are typically recovered through prolongation claims.
What are Prolongation Claims?
A prolongation claim is a contractor’s request for compensation due to the extended duration of a project, provided the delay is not attributable to the contractor. These claims arise when an employer-related event—such as late design changes, delayed approvals, or unforeseen site conditions—causes the project to continue longer than originally planned.
Key Elements of a Prolongation Claim
To succeed, a prolongation claim must be supported by clear evidence, typically addressing:
Entitlement – proving that the delay is the employer’s responsibility under the contract.
Causation – demonstrating the link between the delaying event and the extended project duration.
Evidence of Costs – substantiating additional expenses such as:
Site and head office overheads
Extended staff and supervision costs
Plant, equipment, and facilities hire
Financing and insurance costs
Contractual Framework
Prolongation claims are often made under standard forms such as FIDIC, which provide for both extensions of time and recovery of related costs. Proper contract administration—including timely notices and accurate records—is crucial in securing entitlement.
Challenges in Prolongation Claims
Causation Proof – establishing a clear link between employer delays and incurred costs.
Record-Keeping – demonstrating actual cost impacts with contemporaneous evidence.
Concurrent Delays – handling situations where both contractor and employer contributed to delay.
Importance of Independent Analysis
Specialists in quantum analysis and forensic delay analysis often assist in preparing, defending, or evaluating prolongation claims. Independent experts can provide credibility by assessing entitlement, calculating costs, and presenting findings in arbitration or litigation.
Conclusion
Prolongation claims are an essential mechanism for contractors to recover the financial impact of extended project durations. However, they require strong contractual knowledge, robust evidence, and clear analysis. With proper preparation and independent expert support, parties can resolve prolongation-related disputes fairly and effectively.