Prolongation Agreement Meaning

If the compensatory delay extends over a longer period than the culpable delay, the holder is entitled to an extension fee for the period during which the compensatory delay does not coincide with the culpable delay. In secular terms, when preparing a right to renewal fees: as a general rule, the rights to the extension should reflect the actual loss incurred/costs actually incurred, and not a sum resulting from the precalculation rates and prices included in the contract price. Depending on the terms of the construction contract, the extension may relate to the project as a whole or to a particular aspect. The table below shows the sum of the calculation of extension costs by applying the average actual costs per day to the loss period and load measured during the calendar days.