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Constructive [overtime] acceleration - Opinions?

3 replies [Last post]
Thu, 2012-05-03 12:12
Aidan Kelly
User offline. Last seen 11 years 48 weeks ago. Offline
Joined: 5 May 2011
Posts: 24
Groups: Petro-Chem / Oil & Gas

Hi All

A topic im sure has been discussed many times before but as new judgments are provided in court and the industry evoles maybe opinions/outlooks change.

In terms of constructive accleration such as performing overtime without an official request from the client to mitigate delays [both excuseable and not] , what are your thoughts in relation to cliaming for these costs?

Assume lump sum contract model and a Shut-down milestone in contract. The Shut down having an influence on the scenario as  a Company would have to plan their shutdowns 'down to a tee' and advise suppliers and customers etc.

Yes we have a similar problem and are going ahead with the claim as we must, but curious to see what the difference of opinions are on this topic.

Thanks in advnace.

Regards

Aidan

 

 

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Replies

Sat, 2012-05-05 08:28
#1
Aidan Kelly
User offline. Last seen 11 years 48 weeks ago. Offline
Joined: 5 May 2011
Posts: 24
Groups: Petro-Chem / Oil & Gas

Thanks Mike/Daniel

Great info as always.

Regards

Aidan

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Sat, 2012-05-05 05:19
#2
Daniel Limson
User offline. Last seen 4 years 42 weeks ago. Offline
Joined: 13 Oct 2001
Posts: 318
Groups: None

Hi Aidan,

In adiition to Mikes' excellent advice, I think you need to play your cards well, by that I mean you need to build-up your case by documentation and keeping proper records of events, especially "excusable delays" mind you, not all excusable delays are compensable.

Regards,
Daniel

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Fri, 2012-05-04 10:10
#3
Mike Testro
User offline. Last seen 8 weeks 1 day ago. Offline
Joined: 14 Dec 2005
Posts: 4418
Groups: Building Information Modelling, Content Moderators, GPCCAR Editors

Hi Aidan.

If there is no acceleration clause in the contract AND the client has delayed the works AND the client insists that the original milestones be met THEN you have constructive acceleration.

In which case you will probably have a Time at Large situation.

The best route from here is to negotiate a change in the contract for an agreed acceleration cost and period - Time at Large puts the contractor in a strong negotiating position.

If that does not work then the contractor has a reasonable time to complete the works and the employer loses his right to LaD's - Penalties.

Best regards

Mike Testro

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