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At what point on the project is agreement on schedule delay finalised?

4 replies [Last post]
Peter Holroyd
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Joined: 6 Jun 2005
Posts: 132

So you've completed the project and handed it over to the Client and the commercial team are working on the final account which is proving difficult as the project was signed off 6 months late to latest contract end date. Overall the project went well, with good client/contractor cooperation, delay notices were put in and responded to by the Client and the delays and values settled and paid and were covered by VO's as the project proceeded.

Under senior management pressure the commercial team now want to back track on all this and submit delay notices to cover the LD period and Global disruption claim as a negotiation ploy - How do you respond? Is everything up for grabs in the Final account? Did accepting the VO's mean they could not be reopened? Can you "invent" more delays with the benefit of hindsight?Did handover shut the door on delay submissions?

Peter

Replies

Rodel Marasigan
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Joined: 25 Oct 2006
Posts: 1685

Yes, if the final settlement is not yet agreed, you can always build a case for negotations and backup the claim. Once agreed and signed, then that's final. It's very rare that another opportunity came to open the case.

Peter Holroyd
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Joined: 6 Jun 2005
Posts: 132

Rodel, yes we did all that as we progressed the work. But is it legitimate to have a second go at the end of the project as a negotiating ploy with the global delay claim to settle the final account?

Peter Holroyd
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Joined: 6 Jun 2005
Posts: 132

Zoltan, but are things settled. Only the Final account settles things contractually. 

If a Client issues a number of VO's they must have an accumulated effect on resources and progress which you could not have anticipated when the first ones were priced.

Surely you can accept a VO with conditions?

Zoltan Palffy
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if delay notices were put in and responded to by the Client and the delays and values settled and paid and were covered by VO's as the project proceeded I dont see where the owner has a case you cant back tarck on all of this agreed to and SETTLED delays.

Thats like buying a car or a house and going back and say hey I want to renegoiate the price again. 

You are just burning everyones money to crete this and then review this. So if you go through with this are they going to come back again and say oh wait I want to look at it this way. 

There are no mulligans or do overs. Let sleeping dogs lay 

Rodel Marasigan
User offline. Last seen 22 hours 39 min ago. Offline
Joined: 25 Oct 2006
Posts: 1685

You can use all the approved VO's to build your EOT claims inlcuding the trends. It should be a strong case as the VO's are not part of the original contract. Build a story using delay analysis based on the raised NOD's, TQ's, Queries, Daily Reports, VO's, SI's and any documentations that can proved that the project has been delayed. Weekly Time Impact Analysis (TIA) is a good approach to build the story and how the delay impact the project. Then create an overall as-built of the schedule for comparison.