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Delays Due to Obstructions !!!

11 replies [Last post]
Gayantha Abeywardena
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I recently joint to a MEP contractor as a Contracts Manager. One of our Project (We are Nominated Subcontractors)
I have made following Observations.

1). Main Contractor has given target program to us for MEP work based on his main program.

2). we have accepted it but haven’t submitted our own baseline program.

3). Civil works didn’t finish according to the main programs. As result of non availability of the certain areas of the site we were not able to follow the target program.
Now the Scheduled date is passed by 5 months we need more than another 6 months to finish the job.

4). we have received Variation Orders (Quantity changes approved value is less than 4% of the Project value)

5). I have prepared a rate break down for the Resources and derived Average value per month considering contemporary records.

As we have not given notice of intention to claim just mentioned in the weekly reports without defining the affected area.

What are the precautions I have to take when I am submitting the Prolongation Claim ?

Cheers

GA






Replies

Gayantha Abeywardena
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Hi gentleman,

Latest situation is project extended by two months wehave granted interim EOT for 2 months. and asking for revised program and we have to wait two months for other contractors delay. until he finish the A/C we can not proceed our work .....

So how i am taking the Advantage from this situation

GA
Gayantha Abeywardena
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Hi james,

Our base line program Which prepared by Main contractor is out now then second one he has given program for completion recently, now he is going to give new one (Third one) just adjusting the dates keeping provisions for his late. But i want to prepare realistic programme independantly consedering testing & commissioning time too... (this is done by the equipment supplier we have to bring them her from abroad and timing is critical )

for my CLAIM LETTER which i have to consider as the First programme ("So called Base line Program") is well out dated and we have accepted the second program too... and third one is on the way....

GA
James Barnes
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Gayantha

I am not familiar with your trade and would expect that the PM will not be either. I would post a notice explaining why you cannot install your PLC system (whatever one of those is) and ensure him that you are open to discussions on mitigating tactics. Especially good is to be able to explain that installing xyz component without airconditioning could cause damage to the installation and so it is sensible to hold off (thus you are protecting the PMs project)

Do check your contract for a time bar against posting claims (often 28 days from discovery) and make sure you don’t miss the cutoff if it’s there. If you are unable to quantify the claim at the moment (the delay is ongoing) then be sure to say so. The contract probably requires you to update the PM on a monthly basis all outstanding claims info. Make sure you do this, it will serve your claim well even though it can be a lot of effort.

As far as ongoing delays are concerned, it sounds like they are digging their own hole. If they continue to delay you even now, then the letters previously sent by your errant PM may be less dangerous to you later.
Gayantha Abeywardena
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Hi James ,

I got the protocol and its realy useful.... as you say I have to keep the better reltionship with client so I have to prepare an average program considering both paries...
Now I have one trumph as they have not done the Air Conditioning we cannot install our PLC system as the tempataure varies in day time and in the night so this will take another two months but we can work on variation work we recieved recently for these two months but the client has fixed the dead line to finish the project it depends on the airconditioning net work completion... so what precautions i have to take to inform the PM about the delay due to these reasons..

Gayntha
James Barnes
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I suggest you have a read of teh Society of Construction Law Delay and Disruption Protocol, you can download it at www.eotprotocol.com.

This lays out a proposed approach so is not dierctly enforcible but it does cover the basic concepts clearly, especially with regard to what you should be reasonably entitled to in the event of a complex delay (original delay, mitigated somewhat by contractor accelleration etc).

It doesn’t take too long to read and is well worth it.

If you prepare an "advanced programme" (by which I suppose you mean "accellerated") then be sure to know yourself what the financial implications are fro your company and, if you feel that you are due compensation, communicate that to the client or they may consider that you are mitigating their delays for no cost. Still, tread carefully as the probable existance of a time bar plus the letters already on file from your previous PM are likely to form an effective barrier to any claim if you decide to go the aggressive route with your client.

On the subject of these letters ... I’ve never worked in the mid-East but in the Far East (specifically in Singapore) I have heard of judgements where a contracting party was held blameless for signing a contract because they said they had signed it "by mistake" (ie; admitted incompetance, I suppose) I recall that these were generally turned over on appeal (imagine your entire country’s contract framework falling down around your ears if anyone could get out of contract obligations simply by saying "oops, didn’t mean to sign that, how silly of me").

I’d call a lawyer, if I were you, you may be able to get those letters discredited someway, but local laws and practices would prevail and only a lawyer or local specialist would be able to advise you correctly.
Gayantha Abeywardena
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Hi,

Now we have to submit revised program. Dead line is not fixed yet if we prepare a Advanced program for shorter period as the client requested we might cut down our EoT claim. What’s your suggestion in this kind of scenario?

GA
Andrew Flowerdew
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Gayantha,

The logical sequence is to start at the beginning and work your way through what happened:

This event happened, it’s effect was this and it cost us this much. Then this happened, etc, etc.....

The previous letters from your PM would probably have a very negative impact on your claim if the Employer wants to hold you to them. In the Middle East, a signature on a document is usually taken to signify unequivocal acceptance of what it contains and can’t be revisitied later unless the right to has been expressly reserved. The deal has been done and you will stick to your word unless otherwise indicated would be the normal interpretation in Sheria law although it may not be Sheria law that governs your contract if you are in the UAE.
Gayantha Abeywardena
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Hi Every body
But We Have some Green Light From the Client I want to submit the claim in a proper with limited facts available.
guys give me the clue to proceed it in a logical manner....

Gayantha
James Barnes
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erm. Probably.

If I were the client I’d certainly wave around letters from you stating that you accept variations with no time implication. Whether they are enforcible or not (especially if you can demonstrate that the letters were self evidently incorrect, although this would imply that you had an incompetant PM on the job).

Sounds like you need a lawyer.
Gayantha Abeywardena
User offline. Last seen 11 years 20 weeks ago. Offline
Joined: 27 Feb 2008
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Hi James,

I think with spread sheet breakdown (showing the affected activity numbers ,locations,Delayevent,start&finish of delay event and Delay impact on our work)will give us some benifit at least Project managers thinking about the best intersest of the project.

But I am really worriyng is it is very difficult to find the dates of delay occured as no proper records for it and our Project manager has changed too...

and there are some letters issued by our former PM saying the Project Manageres Instructions has no time implication to the project and will be finished the project as agreed.
will these letter has negative impact on my cliam ????

GA
James Barnes
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most likely time bars on claims issuance. You may be too late to make a claim, although you may be able to argue that notice was given in your progress reports. At the end of the day, if areas have been handed to you late you should at least be insulated from liability fro ther delays to your own work that result, but you may have lost the ability to claim prolongation costs if there is a timebar in your contract.