Hi all,
Our project has been delayed by major design changes by the client. We have submitted an EOT which indisputable. The client is asking us to accelerate with cost implication. We have calculated acceleration cost based on
1. Increase in manpower / supervision.
2. Overtime for extended hours of working.
3. Non cost effective use of machinery
4. Wastage in materials and protective works for the out os sequence works. etc
client’s suggestion is " the above mentioned causes are difficult to quantify instead willing to pay the actual cost above which we are supposed to have spent as per the contract.
Is it ok.?
Second point is , since he is compensating the accelerative measures ,He is proposing to cut the benefit of earlier completion on our EOT cost ( ie prorate management cost )
In that case we are the losers ! What is your assessment of our case please
Our project has been delayed by major design changes by the client. We have submitted an EOT which indisputable. The client is asking us to accelerate with cost implication. We have calculated acceleration cost based on
1. Increase in manpower / supervision.
2. Overtime for extended hours of working.
3. Non cost effective use of machinery
4. Wastage in materials and protective works for the out os sequence works. etc
client’s suggestion is " the above mentioned causes are difficult to quantify instead willing to pay the actual cost above which we are supposed to have spent as per the contract.
Is it ok.?
Second point is , since he is compensating the accelerative measures ,He is proposing to cut the benefit of earlier completion on our EOT cost ( ie prorate management cost )
In that case we are the losers ! What is your assessment of our case please