Expiry of the Construction Permit
In the Open Standard
Jihad DanielMember for 21 years 5 months
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Dear Colleagues,
If the Construction Permit (which falls under the Owner’s responsibility) expired and the Contractor notified this matter in several occasions before. When expiry date occured, the Contractor raised his concerns in an offical letter but did not stop the work. The Owner could not arrange for a renewed permit for months. The decision to continue work was taken solely by the Contractor for the sake of completing work on time as per the Contract Milestone date. This contractual date could not be met due to several reasons including the fact of unavailability of permit (which for example restricted the site working hours). The Engineer after consulting with the Owner decided to apply liquidated damages as the Contractor could not finish as per the Contract finish date. For months after submittal of Contractor’s time claim, the Engineer did not release any extension of time.
What in your opinion the Contractor should do in this case?
Regards,
J. Daniel
If the Construction Permit (which falls under the Owner’s responsibility) expired and the Contractor notified this matter in several occasions before. When expiry date occured, the Contractor raised his concerns in an offical letter but did not stop the work. The Owner could not arrange for a renewed permit for months. The decision to continue work was taken solely by the Contractor for the sake of completing work on time as per the Contract Milestone date. This contractual date could not be met due to several reasons including the fact of unavailability of permit (which for example restricted the site working hours). The Engineer after consulting with the Owner decided to apply liquidated damages as the Contractor could not finish as per the Contract finish date. For months after submittal of Contractor’s time claim, the Engineer did not release any extension of time.
What in your opinion the Contractor should do in this case?
Regards,
J. Daniel
3 replies
Oldest first- 0Rashid Iqbal ·As the Contractor never stopped working, you can’t realy ask for a delay due to the lack of a ’real’ stoppage. Though you can make devlope the claim on the basis of ’Disruptions’ orginating from the non-availability of permits. And please be advised that disruptions are nearly impossible to prove on CPM, you might have to go for techniques like measured mile.
Regards
Rashid - 0Waseem Saber ·hi,
i think there is some confusion here,as i believe it is strange to have the work permit expire and there is still time to complete within the contractual period of completion as the workpermits are issued upto the period of completion,in this case,as the contractor is continuing to complete the works to complete on time as per the milestone of the contract,however it is worth mentioning that there are instances if the client happen to be one of the governing body of the state they have the legal right to issue the workpermit at any instance in time and at the same time it is the responciblity of the contractor to notify the status for official purposes,please be reminded to check your insurances clauses and notify your insurance company to accomodate such instances as they will refuse to compensate for any eventuality WHICH IS BIG CONCERN THEN CLAIM,
ANY SIMILAR VIEWS ARE SOLICITED
Cheers!!! - 0Jihad Daniel ·Hi,
A Construction Permit may be of several types: Permit for phase up to the ground level, Permit for partial occupancy, etc. so it’s not limited to the end of the Project. The case cited is that the Employer got the permit for 4 years but tendered work 3 years after to the Contractor. The Owner hoped that work would be completed earlier than contract completion date but this could not happen. Therefore, the Owner faced problems in renewing the permit but during that period, the Contractor had incurred delays from his S/Cs as well.
Regards,
J. Daniel
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