Case Study - Design Changes, Additional Works and Time/Cost Impact Claim

Case Study: Design Changes, Additional Works and Time/Cost Impact Claim

How structured claim preparation supported recovery of additional cost and time following major employer-driven scope changes

Project Background

A specialist design-build contractor was engaged to design and construct a fast-track hub office facility forming part of a major infrastructure development project in the Arabian Gulf region.

The project comprised a hub office campus with multiple office buildings, together with associated civil works, MEP infrastructure, roads, parking, landscaping and supporting facilities.

The original contract value was approximately QAR 107 million. The contract required design and construction to be completed within a very tight programme of 180 days. The project was based on a modular prefabricated building system, which was intended to allow off-site fabrication and fast installation on site.

The Problem

After commencement, the employer and its representatives introduced a series of significant changes to the original tender concept.

These changes went beyond normal design refinement. They affected the building layouts, site arrangement, infrastructure, finishes, building use, design life and construction methodology.

The changes included:

increasing the site boundary;
significantly increasing landscaping and screen trees beyond the original specification;
introducing new buildings, including a car wash, supermarket and archives building;
completely redesigning the main employer office building into three interconnected segments;
changing the access road alignment on two separate occasions;
introducing Dryvit external cladding across all buildings without issuing a formal instruction;
changing the buildings from a temporary office concept to permanent use;
upgrading the structural design from G+1 to allow for future G+2 use;
upsizing the electrical, potable water and firefighting infrastructure.

These changes affected both time and cost. They also disrupted the contractor’s original modular construction strategy, which was essential to achieving the fast-track programme.

Claim Value

The contractor’s preliminary time and cost claim was valued at approximately QAR 28.3 million.

This amount included:

Part II-1: Design review and scope changes QAR 9.87 million
Part II-2: Instruction No. 1 — G+2 / permanent use QAR 18.46 million
Total preliminary claim value QAR 28.3 million

Matrix CCC / Consultant Involvement

The work involved converting scattered project records, emails, workshops, drawings, instructions and programme impacts into a structured claim.

The claim addressed:

the original contract and tender basis;
the difference between the accepted design concept and the revised requirements;
employer-driven design changes and the failure to issue formal instructions;
abortive design and construction work;
additional infrastructure and building works;
programme and time impact;
BOQ-based quantum assessment anchored to accepted contract rates;
informal instructions and quantum meruit entitlement.

The claim was prepared using a clear cause-and-effect structure, linking each employer direction to its design, construction, time and cost consequences.

Employer’s Rejection and Arbitration

The employer rejected the contractor’s claim.

This left the contractor with no practical option other than to proceed with ICC arbitration to protect its contractual and commercial entitlements.

During the arbitration, the claim documentation prepared by Matrix CCC provided a key technical foundation for the contractor’s case. The structured cause-and-effect analysis, BOQ-based quantification and detailed infrastructure breakdowns assisted in demonstrating both entitlement and quantum to the tribunal.

Following the arbitration, the contractor was awarded damages, additional costs, and an extension of time entitlement.

Outcome

The contractor successfully recovered entitlement for damages, additional costs and time.

The outcome confirmed the importance of preparing claims with proper records, clear cause-and-effect analysis, contractual reasoning and defensible quantum methodology.

Key Lesson

Fast-track design-build projects leave little room for uncontrolled scope change.

When an employer changes the design basis, building use, infrastructure requirements or construction methodology after award, the contractor should not simply absorb the impact.

Every change should be recorded, assessed and linked to the contract, programme and cost records.

A successful claim does not only list additional costs. It explains how the project moved from the original contractual basis to a materially different scope, and why the contractor is entitled to additional time and money.

Matrix Construction Claims Consultants supports owners, developers, contractors and project teams with claim defence, variation assessment, delay analysis, final account review and dispute support.

Matrix Construction Claims Consultants

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