Prolongation Costs

FIDIC / Legal Reference: FIDIC Red Book Clause 8.4 + Clause 20

The additional time-related costs incurred by the contractor as a result of an extension to the construction programme caused by employer-risk events. Prolongation costs are claimed separately from the EOT itself and must be substantiated by actual cost records demonstrating additional expenditure as a direct result of the extended duration.

What it means in practice

An EOT and prolongation costs are separate entitlements under FIDIC. The EOT protects the contractor from Delay Damages; the prolongation costs claim compensates the contractor for additional money spent as a result of the extended programme. Typical items include: extended site establishment costs, supervision wages, plant hire, temporary works maintenance, and head office overhead contribution.

The contractor must demonstrate a direct causal link between each employer-risk event, the resulting EOT, and the specific additional costs incurred. Lump-sum or global prolongation claims are increasingly rejected by tribunals that require item-by-item substantiation.

Where disputes arise

The most common weakness in prolongation claims is poor cost record-keeping. Contractors who cannot produce contemporaneous records linking specific resources to specific delay events struggle to substantiate their claims. The SCL Protocol recommends maintaining a dedicated cost account for each claimed extension period.

UAE Context

In UAE construction projects, prolongation claims frequently include: accommodation costs for extended labour camps, extended visa and immigration costs, and the additional cost of maintaining temporary works through UAE summer months.

Related terms

Substantiating a prolongation cost claim requires both delay analysis and cost expertise. e-Basel provides integrated delay and quantum analysis services for UAE construction disputes.

Construction Claims Consultant UAE →

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