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Lead Planner | Project Controls Manager

Navigating Time Extension Challenges in Real-world EPC Projects In the dynamic realm of Engineering, Procurement, and Construction (EPC) projects, every endeavor presents its unique set of trials, pushing all involved to their limits and testing their adaptability. Let me take you through a recent project in the heart of the Middle East that encapsulates the rollercoaster ride of complexities in achieving timely completion. At the project's onset, Client  entrusted the Front-End Engineering Design (FEED) to a capable Contractor, and for the most part, they delivered commendable results. However, there was a crucial puzzle piece missing—the design of a Major Water Injection + Treatment system. Unfortunately, the expertise gap here morphed into a lingering EPC risk, throwing a wrench into our plans. Although our contract clearly outlined that the EPC contractor was responsible for the entire design process, things took an unexpected turn during execution. We found ourselves grappling with uncertainties stemming from ambiguities in the initial EPC Engineering , leading to the introduction of various equipment pieces that weren't initially accounted for. Additionally, underestimations in cost during the tendering phase added financial strain to an already intricate equation. One of the most challenging moments came when we needed to procure a Long Lead Package crucial for the Water Injection facility. This involved dealing with a monopolistic vendor based in Europe, as per our client's directive. Initially cooperative, the vendor's demeanor shifted dramatically once the purchase order was issued. They stopped providing monthly reports, and then came the bombshell—declaring bankruptcy and citing a dire need for funds to fulfill their obligations. With our backs against the wall, we had no choice but to involve our client in lengthy negotiations over fund disbursement. Eventually, we managed to secure the necessary funds, albeit after significant delays. However, this setback triggered a domino effect, elongating the timeline for delivering this critical component and becoming the project's longest path. While we acknowledge that some delays were attributed to our own actions, a thorough analysis conducted by us  revealed a net excusable/compensable delay of 2 months, highlighting the multifaceted nature of project setbacks. Significantly, one of the milestones tied to liquidated damages (LD) was the commissioning of the Water Treatment/Injection system, perfectly aligning with the identified 2-month delay. This begs the question: Do you believe these circumstances warrant a valid claim for an Extension of Time? Let me know your views 😊

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SHIJU KOSHY PMP® Oracle Primavera P6®

Grid work delivery manager at National Grid.sa (HVDC, Transmission line, Substations,Renewable energy & BESS)

7mo

Informative . Lesson learn 1. Subcontractor qualification & capability should reviewed properly before awarding the work . 2. Regarding long-lead procured material design should be approved on priority base so that that material will be JIT (just in material ) as per the schedule and material vendour development needed backup plan should be developed by all contractor. 3.Most often contracts doesn't states how to deal with concurrent delay. So classify the delays Excusable ,Non excusable ,Compensable & non compensable . But several contracts stipulate that if an execusable delay occurs concurrently with non excusable delay then contractor is not entitled for EOT on most of time if it not defined on contract .

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