Extension of time and prolongation claims for electricity infrastructure

We supported a specialist contractor and its consortium partner with extension of time and prolongation claims on two electricity infrastructure projects. We brought together the delay analysis and cost records to prepare detailed claim reports, while giving the client a separate assessment of recovery risks and the commercial basis for negotiation.

Background

The projects had both experienced significant delays to civil works, grid connections and testing. The contractor needed to establish which periods supported an extension of time and how the resulting costs could be established and explained under the contract.

Earlier cost submissions by the contractor had been challenged for lacking sufficient particulars. The client’s strategy was to pursue a negotiated outcome, supported by a detailed account of its position.

Our approach

We worked with a specialist delay analyst to connect the valuation to the events affecting completion. The analysis compared the planned and actual programmes through time windows, examining how the critical path changed and the effect of competing delays. We used the assessed periods for each event to structure the prolongation calculations, excluding periods identified as the contractor’s responsibility.

The cost review had to accommodate two consortium members, separate UK and overseas accounting systems, and costs recorded in sterling and euros. We distinguished project-specific costs from resources shared across both schemes and explained the currency and allocation basis used.

Personnel costs were organised by role and month. Shared management resources were apportioned according to whether one or both projects were active, with the basis recorded in the calculations.

We reviewed the accounting extracts for site facilities, travel, accommodation, plant and equipment, separating prolongation-related expenditure from other project costs. Subcontractor costs were considered by month and delay event, supported by invoices for activities such as commissioning attendance, equipment hire and repeated mobilisation.

The prolongation reports explained the issues, set out the delay events and extensions of time claimed, and linked the delays to the prolongation costs. They also explained the valuation method for each head of claim. The supporting valuations made the calculation visible, including the resources, periods and rates behind each amount.

Alongside the claim preparation, we assessed the strength of the position being advanced. Our advice identified where further evidence was needed. It also examined the effect of delay damages and the risk associated with contractual notice compliance. We set out best, likely and worst-case scenarios to distinguish the claim’s presented value from the range of potential commercial outcomes.

Outcome

The resulting reports and valuations set out the calculation for each head of claim, linking the assessed delay periods to the relevant resources and cost records. The supporting advice distinguished where evidence supported the position and where further substantiation was needed.

Our advice gave the client a clearer basis for negotiation and for deciding what further work would be necessary before considering adjudication. It brought the claim calculations, evidential limitations and potential delay damages exposure into one commercial assessment, supporting an informed decision on the route forward.