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Dear all
I have received an EOT request from one of my contractor due to delay in delivery of material due to heavy traffic in duabi jabal ali port.
All materil has been now delivered at site which resulted 30 day in project completion. The document shows that contractor has placed LPO in time and loaded in the vessal also in time (as per schedule), delay occured in transit.
Is this comes under force majure? can I recommend to my client to grant EOT to the contractor. Your expert advice is required. (BTW no concurrent delay or no other bottle necks from client side)
Regards
Santhosh - Qatar
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I am working on an EOT claim to submit it to the client The project was suspended for 7working days by client
My question is how can I analyze this claim in P6. can any body help me
Hi Dominador
It is the contractor's duty to mitigate all delays provided it does not cost anything.
This can be done by actions such as adjusting the programme logic or a moderate increase in resources.
A contractor may opt to spend money on acceleration so as to reduce his exposure to LD's but very few contracts will allow the employer to issue an acceleration instruction and if the costs are more than the LD's then the contractor can refuse the instruction.
If the delay - such as port congestion - is the contractor's rsk then the contractor will be exposed to LD's and it would be against the employers valid commercial interests to award an EoT.
Best regards
Mike Testro
Hi Santosh,
If there is a delay in delivery of materials, try to advise the contractor to catch up with the schedule by adding more manpower or require the contractor to work night shift.
Try to review also the the risk analysis on the delivery of materials.
If it is really justified to give EOT, why not?
Regards,
Dominador Santos
Hi Sudharma
Your approach is justified if the delay is beyond reasonable expectations - similar to unforeseen exceptional weather conditions - sometimes known as "neutral causation".
This allows time but no costs.
Few employers however would allow your enlightened approach.
Best regards
Mike Testro
Mike
I read your advise to Santhosh on material at port.
As the the delay is not an Employer delay event, I agree that there should be no grounds for EOT entitlement. However it is also not a Contractor delay event, so the contractor is not at fault either, if everything went as schedule.
This is a contractor risk event and he should have planned for it, albeit reasonably.
On some of the projects i have been involved in, i have found that the authorities have delayed the contractor, due to no fault of the contractor. And this kind of delay events usually get me thinking if i should grant any EOT or not, as i try to be fair and reasonable.
In most cases if the contractor proves that he has done everything that is reasonably required by him, and the authorities have caused a delay, i would give a nett EOT instead of gross EOT.
rgds
sudharma
Hi Santosh
I would not expect this to be a relevant event allowing an EoT because it is not due to any default of the Employer.
It does not qualify as a Force Majeure either and would most likely be a Contractor's Risk event as he has the responsibility to deliver the materials to site on time.
The schedule should allow for such risks which are not uncommon in UEA.
Best regards
Mike Testro
Email: PPadmin@planningplanet.com
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