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Glossary

Prolongation

Prolongation extends a project due to delays, causing added costs like overheads or rentals, managed via contract clauses for fairness and dispute prevention.

Topic: 
Contract Administration (AUS)

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What is Prolongation

Prolongation in construction refers to extending a project’s completion date due to delays, resulting in additional costs known as prolongation costs. These costs typically include extra site overheads, extended supervision, or equipment rentals and occur when delays are caused by parties other than the contractor. Prolongation is often managed through contractual clauses to ensure fair compensation and avoid disputes.

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What Does Prolongation Mean in Construction?

Prolongation refers to when a construction project’s contractual completion date is extended due to delays. These delays often impact the project’s critical path, requiring adjustments to the schedule and additional time-related costs. For example, if the employer causes the delay, the contractor may be entitled to claim prolongation costs through proper contract administration procedures.

What Are Prolongation Costs in Construction?

Prolongation costs are expenses incurred during a project extension caused by delays, such as:

  • Additional site overheads like utilities and site facilities.
  • Extended supervision and staffing.
  • Extra equipment rentals and plant hire.

These costs are usually recoverable through an Extension of Time Claim if the delay is not the contractor’s fault. Proper documentation, such as updated schedules and cost records, strengthens these claims.

How Are Prolongation Claims Managed?

A Prolongation claim is managed by adhering to the contract’s terms, which define responsibilities for delays and entitlements to compensation. To make a successful claim, contractors must:

  • Prove the delay was beyond their control (e.g., employer-caused or a force majeure event).
  • Show how the delay impacted the project’s critical path.
  • Provide evidence, such as correspondence, schedules, or financial records.

The construction superintendent plays a key role in reviewing and approving prolongation claims, ensuring compliance with contractual obligations.

Why Is Prolongation Important in Construction Contracts?

Prolongation is significant because delays can result in financial strain and disputes. Contractual clauses for managing prolongation ensure:

  • Fair compensation for contractors facing time-related costs.
  • Clear allocation of responsibility for delays.
  • Avoidance of penalties like liquidated damages in construction for extended timelines.

Effective management of prolongation claims helps maintain project efficiency and financial stability.

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