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Variations and Extesion Of Time

8 replies [Last post]
Tue, 2007-04-10 08:39
ashraf alawady
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if we have a contract for excuting 10KM road and we have issued an istruction to the contractor to add another 2KM more.
is this can consider as a variation and does the contractor has the right to claim for EOT.

Please advise me
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Replies

Mon, 2007-04-23 00:47
#1
Clive Randall
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There is no doubt that adding 2km of road to a 10km project is at the least a variation
However it may be that this is not an instruction that can be issued due to its magnitude and it may be that it requires a supplementary agreement.
The reasoning behind this is that the scope has increased to a degree that makes the original contract unreasonable.

Let us say that the contractor is on the limit of his overdraft with the bank, a further 20% increase in his capital requirement would push him into a position where he could no longer fund the project.

In the alternative the extra 2km may be all balanced cantilever whereas the previous 10km were all at grade, would it be reasonable to force the contractor to build the extra 2km?

What I am trying to say here is that under the majority of contracts even those heavily bastardised the contractor usually does not have to accept a variation that is so large or different that it changes the fundamentals of the original contract.

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Sat, 2007-04-21 11:39
#2
Richard Spedding
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Dear All

What is to stop you mobilising additional resources to complete the 20% additional work, and still finish on time?
We seem to be constrained by the resources available at the moment. Is this a reasonable constraint?
If it is reasonable / possible to obtain the additional resources, then there is a duty on the contractor to mitigate delays to the contract on the client’s behalf.
There is an entitlement to additional money for additional work, and if it can be shown to be necessary, additional time.
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Sat, 2007-04-21 07:17
#3
Siva Kumar
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Refer this thread for concurrent delays

http://www.planningplanet.com/forum/forum_post.asp?fid=1&Cat=7&Top=3492
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Wed, 2007-04-18 15:33
#4
prabu deva
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Thanks a lot hani,

Still need some clarification,is the eot to be determined based on the as planned impacted method or
time impact analysis method which considers the contractors delay also,accordingly if both the delay already caused by the contractor and the likely delay due to the V.O if both are equal,can the client deny to pay prolongation for the period of eot ,because regardless of the V.O the contractor is already delayed
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Tue, 2007-04-17 18:06
#5
Hani El Sherbini
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Prabu,

you need to present to the Client/Engineer the as planned resources that was required to execute the original work scope and the associated duration based on your approve baseline schedule.
Using the same productivity rates and resource level you should be able to demostrate the time impact and the required EOT.

Now this exercise has nothing to with the contractor being delayed-Unless the dealy is caused or related to the subject VO - beacuse the contractor may accelerate his at his own expense to recover his own delays and escape liquidated damages.

Now being granted EOT you have all the right to claim for the associated costs to that time, which may and may not include pro;ongation cost.

hope that would help!!!
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Fri, 2007-04-13 12:31
#6
prabu deva
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What is the appropriate method to evaluate time impacts of variations ,e.g assume quantities have increased say 20%,is as planned impacted method appropriate,or time impact analysis considering the contractors delay on the date of issue of V.O to be considered,incase of this method ,there is a contractors delay concurent with the v.o,whats the fair evaluation concurent delay EOT without prolongation cost to the contractor if contractors delay is equal to the delay caused to the impact of v.o
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Fri, 2007-04-13 06:28
#7
Shahzad Munawar
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Issuance of insturction for extenion of works surely entitles you variations as well as Extension of Time.
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Fri, 2007-04-13 05:13
#8
Bijaya Bajracharya
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This is definitely a variation. After adding 20% additional work you cannot hope to get it completed in the original time.
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