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In a design and built contract, the contractor submitted a eot claim due to delay in a permit. A revised completion date was awarded to the contractor.
Since it is a design & built contractor the real quanties and clear scope was not defined in the beginning. But with the contractor's experience he submitted the baseline and got approved.
Now the contractor wants to add few more activities in the eot approved baseline, but he will finish all activities within the revised completion date.
Can the contractor add those activities or the client can approve it?
Best Regards
Kannan
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You cannot manage the changed conditions if you do not include them in your schedule as well as in your baseline. If there is a change in conditions you shall not deny him his right to inclde the changed conditions in his plans. He needs approval because he must submit a revised schedule that meets the revised contractual conditions.
As long at the revised baseline meets revised conditions and is feasible you shall approve it.
If using EVM the DOD [the father of the creature] allows for several options about how to track variance, essentially at the contractors choice to be mutually agreed, if no agreement is made then eliminate all variance proceeds. My choice would be eliminate al variance, so it would be no issue for me.
http://www.acq.osd.mil/evm/docs/OTB-OTS%20Guide%20121205.pdf
3.5.6.2 Adjusting Variances: A key consideration in implementing an OTB is to determine what to do with the variances against the pre-OTB b aseline. There are essentially five basic options.
As you can see from the reference the DOD warns against using EVM on fixed price contracts, they know the issues with variance can be problematic. Problematic to the extent many who do not understand EVM issues with variance prohibit changes to the baseline preventing the contractor to use a realistic schedule and baseline in accordance to changed conditions.
My life is simple, I do not use EVM as only DOD requires such thing, and only in non-fixed-price contracts.
Email: PPadmin@planningplanet.com
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