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Progress Reports

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Karim Mounir
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Hello,

Just to increase the headache, the client employed a project management consultant to supervise the contractor (our company) and the consultant, this PMC wasn’t mentioned neither in the contract conditions (FIDIC 99 1st edition) nor the project specs., hence I assume that we ’ll issue our claim against this employment near the project’s completion (due to their running cost).

Now this PMC requests that we issue a weekly progress report. The specs. dont mention any progress reports rather than the monthly progress report.
The problem is that the contents of this WR are very diffcuilt to gather and actually we belive that it will be used against our side, we suggested another form for this WR but they refused it.

The question is can they request the issuance of this WR without issuance of a variation as this is an additional requirement to the contract in view of the FIDIC 99 as well as our specs.?

Regards,
Karim

Replies

Jaga deesan
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In the event of submitting weekly progress report, please may refer below YouTube link having a simple and clear Weekly Progress Report format where free template can also be availed.

UCJ1QCqXRumD34CFwYPb1dmw

https://youtu.be/rm4QARbv0Es

Regards,

R. Jagadeesan

Karim Mounir
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Hello Andrew / Sherif,

So nice to know that the PMC has no rights to instruct the contractor after all!!, the scenario happened as follow:
1- The project commenced and we have only the client / engineer
2- After nearly 3 months of contractual start date the PMC was appointed by the client
3- There were no formal delegations from engineer’s responsibilities to the PMC rather than statements in the meetings that the PMC will monitor time & cost issues of the project, again without the issuance of any formal written to our side.

The PMC is saying that their role is to manage the project in order to complete it in due time and within budget, actually they are not doing any of these tasks. The project is over budget (we issued around 8 VO) and we have already submitted our 1st EOT.

The client may have instructed them to do such weekly reports, but they are reluctant to do it thus they instructed us, their sole role is to justify the contents of the report as they say.

We keep our daily reports as record which we may use in any time, we also sent a letter requesting an instruction as per CL 13.1 so as we can proceed with the appointment of the additional staff required to prepare the WR in the forms they are requesting.

We are already playing catch the mouse with the consultant / PMC even before this issue, it will only add to the headache we are currently suffering from.

Regards,
Karim
Andrew Flowerdew
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Karim,

I’m assuming it’s the Red Book and the original consultant is and always has acted as the Engineer.

You could have some fun here but I would suggest a gradual approach:

If the Engineer has not delegated in writing any of his powers to the PMC under Cl 3.2 or the Engineer has not been replaced by the PMC under Cl 3.4, (42 days notice in writing), then the PMC has no contractual significance or contractual powers whatsoever.

As far as instructions, progress reporting, programming, etc are concerned:

Cl 3.1 The Engineer shall have no authority to amend the Contract.

Cl 3.3 The Engineer is the only one who can give instructions , (or those with delegated powers), but in any case this is restricted to instructions and additional or modified Drawings “which may be necessary for the execution of the Works and the remedying of any defects”.

Doubtful if this actually covers procedural reporting changes and even if it does, which I don’t think it does, the instruction has to be necessary rather than in the opinion of the Engineer, is necessary.

Note the wording – “The Contractor shall only take instructions from the Engineer, or from an assistant to whom the appropriate authority has been delegated under this clause.” If not duly authorised the PMC can not issue instructions.

Cl 4.21 – progress reports are monthly unless otherwise stated in the Particular Conditions and continue until the Contractor has completed all the work – submitted to the Engineer.

Clear and part of the original contract. So to vary this the Engineer would have to issue an instruction as a variation under Cl 13.1

1.1.6.9 “Variation” means any change to the Works, which is instructed or approved as a variation under Clause 13.

1.1.5.8 “Works” mean the Permanent Works and the Temporary Works, or either of them as appropriate.

Again given the list of things in Cl 13 it is very doubtful if any of these could be said to include procedural reporting changes.

So to answer your question “can they (PMC) request the issuance of this WR without issuance of a variation as this is an additional requirement to the contract in view of the FIDIC 99 as well as our specs.?”

Answer - the PMC can’t request you to do anything, only the Engineer or someone with properly delegated authority can instruct anything.

Also it’s pretty doubtful that even the Engineer can actually instruct this, which may surprise him! You and the Employer could agree weekly reporting at an additional cost however as an amendment to the contract.

All that said, if weekly reporting would help the management of the contract, (even if it is difficult), I doubt the PMC will have requested weekly reporting just for the hell of it. I’m pretty sure there’s a purpose in the request, probably to get a tight control on what is happening and to be able to react asap to situations as they arise. Which is no more than all parties should be doing if the contract is in difficulties.

As Sherif says, additional weekly reporting could work for you at the end of the day, you can never have enough records, but then it could act against you if you are the one at fault!!!!!!

Challenging the authority of the PMC, (or the Engineer), will probably upset them big time, I’ve been there and done similar in the past but was very sure of my position before I did it, you normally have to scrape them of the ceiling afterwards and then be prepared for them to run around the site fully flexing what powers they do have.

I’d probably approach the situation by sending a quotation and requesting an agreement to amend the contract from the Employer and see what they come back with.
Sherif Fam
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Hi,

You send your quotation (variation) for issuing this report. If I am in your position; I will say 10 working hours for a planner plus 2 working hours for a senior planner (of course it depends on the size of your project, and the number of appointed planners).

I saw such incidents happen; between the Client and the Consultant. The Client requested a report which is not in their agreement. The Consultant sent him quotation for exagerated amount for each issue. Consequently; the Client dropped the whole request.

However; on the other hand; you have to consider 2 issues:

1. The factual reports (such as the daily reports; weekly and monthly; containing number of labours; material delivered; equipment at site, etc.); are considered as PRIMARY DOCUMENTS for claims, and are stronger than minutes of meetings and memorandums of understanding. Accordingly; the more you have such reports; can benefit you for the claims.

2. Prepare yourself for a tension environment between you and the Consultant.

Regards,
Sherif