Tips on using this forum..

(1) Explain your problem, don't simply post "This isn't working". What were you doing when you faced the problem? What have you tried to resolve - did you look for a solution using "Search" ? Has it happened just once or several times?

(2) It's also good to get feedback when a solution is found, return to the original post to explain how it was resolved so that more people can also use the results.

Client Instruction of Variation

14 replies [Last post]
Samer Salma
User offline. Last seen 35 weeks 1 day ago. Offline
Joined: 19 Jan 2011
Posts: 28
Groups: GPC Qatar

Dear All,

We have 4 delay events in our project. First event has currently an impact of 124 days delay and is still not completed and it is the Client's reponsibililty of the delay. The other three events have been finalized and awarded 60 days EoT by the Client and stated by the Client the following, "The (60) days EoT shall cover any delay in the project prior the date of signing this document. As for delay event No.04, the (60) days shall be part of any claim in the past or future (any time-related claim conerning delay event No.04 shall consider the above 60 days as a grace period to the benifit of the client)".

 

The Client is instructing the Contractor to submit a revised Baseline Programme for the project considering the Actual Progress prior the date of this document and the additional 60 days related to the above mentioned delay events No.01, 02 & 03 which shall be added to the contractual completion date.

 

The issue is, how can the contractor submit a revised baseline programme with the instructions of the Client above while he still has (124-60 = 64) days delay not covered? In other words, how the contractor can keep his right of the the (64) days delay by following the Client's instruction?

 

Thanks.

Replies

Anoon Iimos
User offline. Last seen 26 weeks 6 days ago. Offline
Joined: 22 Sep 2006
Posts: 1416
Samer, That will make it much easier. Anyway, as your project is in-progress, it simply means that you have to consider the facts or actuals. And the fact is, your project is delayed, so naturally, your schedule will yield "negative float". Now the question is: What or Who causes the delays (or negative float)? This is simply what you need to prove to all the project stakeholders. My advice is: Do not attempt to alter any fact(s) within your schedule just to make it appear better, or to satisfy any individual or personal interest (That's ideal anyway). However, real life is a so volatile game that you must play your best, which means a lot of flexibility would be necessary. In other words, just be honest on a polite manner. Earn the Trust of the stakeholders. Hope this helps.
Kannan CP
User offline. Last seen 2 weeks 1 day ago. Offline
Joined: 12 Jun 2008
Posts: 280
Groups: None

Hi Samer,

1. In my understanding, the impact on the Programme due to the ongoing delay event, as of instruction date is 124 days. 

2. As per the awarded EOT for other 3 events, an interim agreed revised completion date is original contract completion +60days.

3. The data date of interim revised baseline is the instruction date. So this program will definitely shows a negative float of minimum duration of 64 days.

4. or you have to either reduce the duration for the sequence of activities due to the ongoing delay event or not to show these activities in the interim baseline, in order to have zero TF. Both of these are not standard planning practices. Removing these activities will affect the overall progress measurement. Reducing the duration will reflect unrealistic productivity against the quantity.
5. Therefore in my opinion, there is no harm in showing the negative float in this interim baseline programme, and it is your right to inform the Client about the delay event impacting the Programme, which is beyond your control. Also these details to be reflected properly in the narrative anlong with the submittal. 

6. Meantime submit the interim EOT claim until the closing of the ongoing delay event. 

BR

Kannan

Samer Salma
User offline. Last seen 35 weeks 1 day ago. Offline
Joined: 19 Jan 2011
Posts: 28
Groups: GPC Qatar
Anoon, The Programme is simply has only two contractual milestones, i.e. commencement and completion dates.
Samer Salma
User offline. Last seen 35 weeks 1 day ago. Offline
Joined: 19 Jan 2011
Posts: 28
Groups: GPC Qatar
Thank you Kannan for your explanation. However, can I really submit a revised (interim) baseline Programme with negative total float? What about submitting a revised baseline Programme with zero total float along with an interim EoT claim of the not covered period (-64) and every month I submit the updated revised baseline Programme with new interim EoT claim adding the new delays to (-64) until the delay event closed? Your thoughts will be highly appreciated Best regards, Samer
Samer Salma
User offline. Last seen 35 weeks 1 day ago. Offline
Joined: 19 Jan 2011
Posts: 28
Groups: GPC Qatar
Yes Anoon you are right. However, my question was what to submit afte I do all the backups that I have already done. Yes the total float now is excatly -64 days.
Anoon Iimos
User offline. Last seen 26 weeks 6 days ago. Offline
Joined: 22 Sep 2006
Posts: 1416
Samer & Kannan, Really, it gets more complicated to me, especially Kannan's item 4. Perhaps I cannot figure it out until I've seen the schedule itself. Anyway, in my opinion, what matters most is: What event really is driving or pushing the contract completion date? The four (4) events I supposed cannot be open-ended, which means, individually or independently, may drive or push-forward the contract completion date. However, there should be one event that must govern these group of delaying events, assuming that we're talking of only one affected milestone (contract completion). It gets more complicated when your contract is dealing with "interim milestones" and have independent considerations, but shall ultimately form parts of the whole contract or project. Samer, your problem I guess will depend on how you had structured your existing schedule, considering the "interim milestones", if this is really the case.
Kannan CP
User offline. Last seen 2 weeks 1 day ago. Offline
Joined: 12 Jun 2008
Posts: 280
Groups: None

Hi Samer,

For the interim Revised Baseline I suggest as follows:-

1. Use the data date as the instruction signed letter.

2. Show the completion date of sections with already awarded EOT as 60 days from the instruction date.

3. Use the Project finish constraint as Finish on or before -the above said date ie 60 days + instruction date.

4. For the non closed event, assume the closing of the event on the data date (instruction signed date). I assume this will drive the Project completion date, most probably after the above said 60 days duration completion date. This is to inform the Client about the interim completion date of the Project, due to the ongoing delay event.

5. This interim revised baseline will  show negative float, as the ongoing delay event will drive the completion date beyond the above said 60 days of awarded EOT.

6. Use this interim Programme until the closure of the ongoing delay event. Submit the final EOT claim and upon the approval of the Client, submit the final revised baseline programe. This time no negative float, as the completion date is finalized.

BR

Kannan

Anoon Iimos
User offline. Last seen 26 weeks 6 days ago. Offline
Joined: 22 Sep 2006
Posts: 1416
Samer, Ok, as I understand (please correct me if I'm wrong), on the date of the signing of the client's instruction, you got a negative float of 124 days. The date of the instruction should be the new reckoning point of your schedule (new data date), of course considering all actual data in the left of the data date. Now as perhaps a way for recovery, the client granted you with 60 days. So you still have -64 days balance. I'm not sure if you were working on calendar days (continuous without non working day) or not, otherwise, I guess you have to consider non-working days as well. Anyway, I would suggest two (2) scenarios: 1. Update your schedule up to the date of the instruction (data date), to show -124 days (negative float), save and make several copies as back-up. 2. On the same schedule (and data date), apply the 60 days as granted by the client, run the schedule and see what would be the total float (my guess it's not -64), again make back-up copies. Now, you got two types of schedules, make sure you have stand-alone back up copies. To be continued...depending on your own strategy from here. By the way, make sure that your client is aware of what you're doing. For me there's nothing wrong with being transparent as regards the works.
Samer Salma
User offline. Last seen 35 weeks 1 day ago. Offline
Joined: 19 Jan 2011
Posts: 28
Groups: GPC Qatar
Anoon, As I explained in my first post 124 days delay came from the on going delay event that has yet to be closed by the client and as of the document signature date. And yes the 124 days are being increased every day by one day from the document signature date. The client is being reported about this on going delay related to that event on monthly basis by a notification of delay letter. The Programme on the date of the document signature has been pushed forward by 124 days because of that delay event.
Anoon Iimos
User offline. Last seen 26 weeks 6 days ago. Offline
Joined: 22 Sep 2006
Posts: 1416
Samer, I cannot understand how did you arrive to a figure of 124 days delay or impact when you said the event is still continuous? Is it an on-going or in-progress activity? If it is, then the 124 days may not be correct. Or in the end or once completed, you might get more delays, or perhaps less than 124 days. Or have you reported this figure (124 days) to the client on a certain period or data date, and the client acknowledge it? Otherwise, or if the client is not aware of it, then (for me) still you cannot be certain about this figure (124 days or 64 days as you had been granted with 60 days as you mentioned). And how did you calculate the 124 days by the way?
Samer Salma
User offline. Last seen 35 weeks 1 day ago. Offline
Joined: 19 Jan 2011
Posts: 28
Groups: GPC Qatar
Thank you Kannan, Could you please explain how the Interim Revised Baseline Programme looks like? Does it show total float duration equals zero? If yes, how can I update it and show the delays coming from the non- resolved delay event? If no, is it acceptable to submit a revised baseline Programme with total float duration less than zero? Thank you for your advise about interim notifications, actually I am doing that every month.
Kannan CP
User offline. Last seen 2 weeks 1 day ago. Offline
Joined: 12 Jun 2008
Posts: 280
Groups: None

In that case, why cant you submit an Interim Revised Baseline Programme for progress monitoring purpose only, reserving your rights for the EOT claim once the last event is closed. This should be recorded in minutes , official letter etc.

Mean time submit the interim EOT claims every month for the open delay event until it is closed.

BR

Kannan

Samer Salma
User offline. Last seen 35 weeks 1 day ago. Offline
Joined: 19 Jan 2011
Posts: 28
Groups: GPC Qatar
Hi Anoon and thanks for your reply. Events 1, 2 & 3 have no relationship with no.4. All delay events are totally independent. The only reason that the Client did not include no.4 is it still continues and he has no decision right now. I hope it is clear.
Anoon Iimos
User offline. Last seen 26 weeks 6 days ago. Offline
Joined: 22 Sep 2006
Posts: 1416
If you got 4 delay events, I wonder why the client acted on the other three and disregard the first one? If it is a series or sequence of events, then perhaps it can be counted as just one delay event? Maybe if you can elaborate further about the relationships or logics of these events (if any), then perhaps the readers may able to give you with best advices.