Introduction
Your project in Dubai has been extended. The Engineer finally approved part of your Extension of Time, and the liquidated damages threat has eased. But your site team, cranes, site offices, security and supervision stayed on site for every one of those extra weeks, and nobody has paid for them.
This is the gap many contractors in the UAE miss. An approved EOT protects you from delay damages, but it does not automatically put money back in your account. That money is recovered through a separate, properly built prolongation cost claim.
This guide explains what prolongation costs are, what can be claimed, what it costs to prepare a claim in Dubai, and the four-step process MANGMARK uses to turn delay records into a claim the Engineer can assess.
What is a Prolongation Cost Claim?
A prolongation cost claim is a contractor’s request to recover the additional time-related costs incurred because the project took longer than planned for reasons that are the employer’s risk under the contract. Typical causes in Dubai include late drawings, design changes, late access to site, slow approvals and delayed authority NOCs.
It is closely linked to, but different from, an Extension of Time (EOT) claim:
- EOT answers the question “how many extra days are you entitled to?” and protects you from delay damages.
- Prolongation cost answers the question “how much did those extra days cost you?” and recovers money.
Not every delay that gives you time also gives you money. Under FIDIC contracts, whether cost is recoverable depends on the specific sub-clause the delay event falls under and on the particular conditions of your contract. That is why the contractual basis has to be checked event by event, not assumed.
What Costs Are Usually Included
- Site overheads (preliminaries): site management and supervision staff, site offices, temporary utilities, security, insurances and bonds extended for the delay period.
- Plant and equipment: cranes, hoists, scaffolding and equipment retained on site because of the delay.
- Head-office overheads: a share of the company’s fixed overheads that the delayed project was expected to cover, where the contract and evidence allow it.
- Financing costs: where the contract allows, the cost of money tied up because payments were delayed.
Key Benefits of a Properly Built Prolongation Claim
1. You Stop Funding the Employer’s Delay
Without a claim, every extra week of site overheads comes straight out of your margin. A documented claim moves that cost back to the party responsible for the delay.
2. Better Cash Flow
Prolongation costs on long delays can be significant. Recovering them, or even agreeing part of them in interim payments, relieves pressure on working capital.
3. A Stronger EOT Position
Quantifying the cost forces a disciplined link between each delay event, the critical path and your records. That discipline also strengthens the time claim itself.
4. Faster, Fairer Negotiation
A claim built on actual cost records and clear calculations is far easier for the Engineer and the client to assess than a single lump-sum figure in a letter.
Cost of Preparing a Prolongation Claim in Dubai
There is no fixed fee, because the work depends on the number of delay events, the length of the project and the quality of your records. A prolongation claim is normally prepared together with, or after, a delay analysis. MANGMARK’s indicative ranges for delay analysis and claim work in the UAE (explained in detail in our guide to delay analysis cost in Dubai) are:
| Case Type | Typical Scope | Indicative Fee |
|---|---|---|
| Simple Claim | 1–2 delay events, updated programme, good records | 15,000 – 40,000 AED |
| Medium Claim | Multiple overlapping events, TIA and full claim report | 40,000 – 120,000 AED |
| Dispute / Arbitration | Full forensic analysis, expert report, prolongation and disruption costs | 120,000 – 400,000+ AED |
Indicative figures only, not a quotation. Quantifying prolongation and disruption costs adds financial work on top of the time analysis, so the final fee is set after reviewing your contract and records.
What Drives the Fee
- Quality of cost records: payroll, timesheets, plant hire invoices and site cost reports. Organised records reduce the work.
- Programme condition: an approved Primavera P6 baseline with regular updates makes it far easier to identify the compensable delay period.
- Concurrent delay: where contractor and employer delays overlap, the analysis must separate them before cost can be allocated.
- Purpose: a submission to the Engineer needs less depth than an expert report for arbitration.
How the Process Works: 4 Steps
Step 1: Consultation
- Review of the contract, particular conditions and claim time limits
- Check of whether notices were issued on time (see our guide on the FIDIC Notice of Claim deadline)
- Identification of the delay events that may carry cost entitlement, not just time
Output: a merit assessment, the events worth pursuing, and a clear scope and fee.
Step 2: Planning
- Urgent notices issued where time limits are still running
- Collection of programmes, daily reports, correspondence and minutes
- Collection of cost evidence: staff costs, plant records, site overhead accounts
Step 3: Implementation
- Delay analysis on the critical path to define the compensable period
- Calculation of time-related site costs for that period, based on actual records
- Assessment of head-office overheads and financing costs where the contract allows
- A full claim report with the contractual basis, calculations and supporting evidence
Step 4: Results & Follow-Up
- Submission to the Engineer and responses to requests for further particulars
- Support in negotiation meetings with the client and consultant
- Follow-up until the cost entitlement is agreed or escalated properly
To see how this works on a real file, read how MANGMARK recovered AED 3 million in delay claims for a Dubai contractor.
Before & After: Illustrative Scenario
Before: EOT Only, No Cost Claim
- Extension days approved, but extended site overheads absorbed by the contractor
- A single lump-sum figure in a letter, rejected for lack of detail
- Cost records scattered between site and head office
- Margin on the project quietly eroded
After: Time and Cost Claimed Together
- Each delay event linked to the critical path and to its contractual basis
- Prolongation costs calculated from actual records for the compensable period
- A claim the Engineer can check line by line
- A faster negotiation and a clearer path if the matter escalates
This is an illustrative scenario, not a specific client case.
Why Choose MANGMARK
1. Construction and Claims Specialists
MANGMARK focuses on contracting and real estate in Dubai and the GCC, with hands-on experience in FIDIC contracts, Primavera P6 and project management and EOT claims.
2. Time and Money in One Claim
We build the delay analysis and the cost quantification together, so the days and the dirhams tell the same story.
3. Merit Review Before You Commit
You know how strong your position is before spending on a full claim.
4. We Follow Through
We don’t stop at the report. We support correspondence and negotiation until the outcome is agreed.
FAQs
1. Does an approved EOT automatically entitle me to prolongation costs?
No. An EOT gives you time. Cost depends on whether the delay event is one the contract compensates with money, and on the evidence of the costs you actually incurred. Each event needs to be checked against its sub-clause and the particular conditions.
2. What records do I need for a prolongation cost claim?
The contract and particular conditions, the baseline programme and updates, daily and monthly reports, correspondence and minutes, plus cost evidence such as payroll and timesheets for site staff, plant hire invoices and site overhead accounts.
3. Can I still claim prolongation costs after the project is finished?
Sometimes, but contractual notice and claim time limits may already have passed, and reconstructing records later is harder and more expensive. Starting while the project is live gives you the strongest position.
4. Can head-office overheads be included?
They can be, where the contract allows it and you can show the delay prevented the company from recovering those overheads elsewhere. They are often challenged, so the evidence has to be strong.
5. How long does it take to prepare a prolongation claim?
It depends on the size of the project and the records available. Simple cases can take a few weeks; complex claims with many overlapping events take longer. We confirm the timeline after the initial review.
Conclusion
An Extension of Time protects you from delay damages. A prolongation cost claim gets you paid for the extra time you were forced to spend on site. Contractors in Dubai who claim both, on time and with proper records, protect their margin instead of quietly funding someone else’s delay.
Is your project running late because of employer delays? Contact MANGMARK or send a message on WhatsApp. We’ll review your contract and delay events, assess what can be recovered, and give you a clear scope and fee.
This article is for general information and is not legal advice.
