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(INT-3381) Dealing with Requests for EOT: The Peru Public Contracts Case

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Level: Basic
TCM Section(s):
9.2. Progress and Performance Measurement
10.1. Project Performance Assessment
Venue: 2020 AACE International Conference & Expo

Abstract: During the last two decades, the Peruvian government has been undertaking a growing multitude of public works projects of differing complexity, risks, and costs to develop the country’s transportation and public services infrastructure.These diverse projects have been executed under various circumstances and conditions; therefore, the need to properly manage and resolve the potential impacts and disputes that typically arise during project execution has also become increasingly important.

One common dispute that arises during the execution of construction projects is contractor extension of time (EOT) requests due to the prolongation of the completion date.This paper provides a review of the current contractual language and requirements to obtain an EOT (and related compensation) included in a sample of Peru public work contracts and the Peruvian State Contracting Law.Current Peruvian State Contracting Law and contracts establish defined guidelines for determining costs associated with EOTs and set clear timelines for the submission and approval of EOT requests; however, the law and contract provisions are undefined when providing guidance for other important issues, such as the identification of potential causes, responsibility and duration of delay, and entitlement for compensation related to EOTs. To address these uncertainties, generally accepted, industry recognized practices, documents and treatises may be used to provide clarity and complement Peruvian public contracts and State Contracting Law with regard to the management and resolution of EOTs.