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Valuation - Schedule Impact of Verbal Instructions

5 replies [Last post]
Tue, 2009-02-17 04:36
Safak Vural
User offline. Last seen 3 years 45 weeks ago. Offline
Joined: 12 May 2008
Posts: 117
Groups: Petro-Chem / Oil & Gas
Dear Planners,

My project is a Petrochemical Facility which is finalising after ammendments and instructions for long years. At least 40 percent of the job is Site Instructions (Out of Scope Work) for last 6 months. All this work load and uncertainity causes a lot of planning problems. Majority of the site instructions have notices as "Schedule Impact" or "Cost Impact". Whenever we claim that the major milestone delays occurs from this instructions, COMPANY replies that as a CONTRACTOR we have to supply all neccesarry resources to complete the work.

My problem is the valuation of this schedule impacts. I tried to approach as a planning point of view but it is not simple as scheduling a scope.

Could you provide me a point of view or samples to approach to the COMPANY?

Regards,

Safak
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Replies

Thu, 2009-02-19 23:51
#1
Safak Vural
User offline. Last seen 3 years 45 weeks ago. Offline
Joined: 12 May 2008
Posts: 117
Groups: Petro-Chem / Oil & Gas
Thank you very much pals.
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Thu, 2009-02-19 14:17
#2
Samer Zawaydeh
User offline. Last seen 5 years 8 weeks ago. Offline
Joined: 3 Aug 2008
Posts: 1664
Groups: Civil Engineering, Regional Representatives
Dear Safak,

I would suggest that you start working on your "As Built" program. This will assist with your monitoring of the program and the overall comparison of the effects of the VOs on the project.

Best Regards,

Samer
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Wed, 2009-02-18 05:29
#3
Karim Mounir
User offline. Last seen 9 years 37 weeks ago. Offline
Joined: 5 Apr 2006
Posts: 314
Groups: None
Hi Safak,

You have to assess the impact of addition the VO on your latest approved program.

One of the ways is to take a window from your updated schedule (i.e. from period 1 to period 2, weekly or monthly periods), period 2 should be the nearest date to the receipt of the VO instruction, once you update the program you have to check the total float/longest path to see whether you are behind the schedule or on the right track (i.e. has the completion date shifted or not?).

After this exercise, you need to insert a fragnet for the VO on this updated program to see its impact on the total float/longest path.

Then you can measure the impact of this VO in view of the concurrent delays (if any).

Regards,
Karim
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Wed, 2009-02-18 00:19
#4
Safak Vural
User offline. Last seen 3 years 45 weeks ago. Offline
Joined: 12 May 2008
Posts: 117
Groups: Petro-Chem / Oil & Gas
Thank you for your interest,

We have a system to control claims and we are regularly isuing variation orders. My real problem is that I cannot value the variations effect to the programme clearly. And there are no systems for that in the contract.

I am keeping some instructions variation order requests and waiting to clarify the impact to the PROGRAMME. Whenever I can value the impact of a programme I will issue the order request. (I think there will be negotiations). Then I respond to the liquidated damages for the delay.

Regards,

Safak
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Tue, 2009-02-17 14:41
#5
Samer Zawaydeh
User offline. Last seen 5 years 8 weeks ago. Offline
Joined: 3 Aug 2008
Posts: 1664
Groups: Civil Engineering, Regional Representatives
Dear Safak,

It seems that you have some kind of system but it is not well protecting your interest.

When the client gives you "Verbal Instructions" you need to respond as soon as possible with the impact (cost+time). If the client approves your claim. Then you can proceed, otherwise you need to negotiate your case and achieve your quest.

Depending on the Contact that you have, you need to formalize a plan to start building your claims against all the verbal instructions that you received. Read the contract and act accordingly.

If you give us more details about the type of the Contract and the variation procedure outlined in it, we can comment more.

Best Regards,

Samer
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