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Who owns the float?

A common question when demonstrating entitlement to an Extension of Time is, who owns the float?

When considering who owns the float, one first must understand the various definitions of 'float' typically associated with construction projects. Secondly, one must understand the applicable contractual clause relating to claiming an extension of time.

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Prolongation Costs – A Non Global Approach

Prolongation or delay costs must reflect the actual losses incurred by a claimant unless otherwise stated in the contract.

More often than not, claimants derive prolongation costs by determining an average daily rate taken from the preliminaries and/or indirect costs listed in the contract and multiplying that rate by the number of days delay.

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Delay Analysis – A Common Sense Approach

Delay analysis is not the “dark art” it is often perceived to be. It is simply how to prove the purported delaying events impact (the cause) on time (the effect). The analysis must provide a clear and succinct distinction of the chain of events that have hindered progress and ultimately caused the delay(s) to completion.

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Digging Deeper and Untangling Quantum and Delay Claims

When drafting a quantum and/or delay claim based on several events, claimants commonly use inference rather than causation to build their arguments. This approach is sometimes used by claimants as they tend to focus on the monetary amounts lost and/or the delays they have incurred, rather than identifying causation.

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