We encountered the same on one of our project. The delay was analysed carefully and it was ascertained that the delay caused by company variation is critical hence the contractor was given extension as the completion was shifted from March to December the Liquidity damages were waived out for that period.
However it was not a blank check for him and the extension of time claims of the contractor was reviewed and he was compensated for the only the necessary manpower which he needs to retain for company variation.
This was easier said than done and as you pointed out the finalization of variation in our case also took six months and a lot of trade-off was done. However as the company fairplay should be name of the game.
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18 years 5 monthsRE: CONCURRENT-ENTITLEMENT FOR PROLONGATION COST
Hi Prabhu,
We encountered the same on one of our project. The delay was analysed carefully and it was ascertained that the delay caused by company variation is critical hence the contractor was given extension as the completion was shifted from March to December the Liquidity damages were waived out for that period.
However it was not a blank check for him and the extension of time claims of the contractor was reviewed and he was compensated for the only the necessary manpower which he needs to retain for company variation.
This was easier said than done and as you pointed out the finalization of variation in our case also took six months and a lot of trade-off was done. However as the company fairplay should be name of the game.
Regards,
Ashraf