Delay at the notification of client for start a part of

Hi,

I will go for A. The time related cost is only Prelims.

My humble opinion is base on the strict parameters of your given information.

If what actually happened is more than what you stated, then, i reserved the right to change my opinion.

Charlie

agreed with A, play save.

Thanks Raja and charlie

Can we always simplify the formula of cost of delay with preliminaries costs?

The scale of the delay from client is also a factor that may change the cost formula?

if client delays contractor for 5 days or 5 months? Shall contractor face with extra risk costs such as price changes in market, not to start new projects?

Regards

Emre

a) “A” option is more workable than “B” as notification and back up is secondary things at this stage.

b) Yes, you can claim Escalation costs of construction commodities due to Employer’s defaults of delaying the project .

Hi Emre,

If you have not started anything as of today, 30 September 2005, due to insuffcient elements that we can say will make a complete handover of the site for an effective start date, then, what we are discussing here in PP are pre-mature.

It should never guide you in your future actions. It will jeopardise your relationship with the client or the succussful completion of the project itself.

However, if your have started worked and you were delayed in the start date due to late handover by the client, then, hire a claim specialist.

The claim specialist will look at the whole contract documents including current documents related to the project and will make evaluation on where you stand with respect to claim for time extension including associated cost.

There are a lot of them here in UAE. You can hire them in hourly basis or lump sum (per head of claims) or you can look for independent claim consultant.

Cheers,

Charlie

Emre,

There is a lost of sense in what Clive has written.
Read the Contract carefully, but in any event, make sure that you have given notice of your intention to claim; hopefully you have already done this, but if not is should be done asap.! ;-)

Your grounds for claim appear to be straightforward – lack of notice to proceed or commence with the Works. You don’t have to be too fussy at this stage about quoting Contract clauses – just submit the notice of claim, noting that you intend to claim the additional direct costs and time consequences arising out of the lack of any formal notice to commence with the Works.

In your original post, you gave two options for consideration: A and B.

In reality, the Employer is unlikely to agree to any “future anticipated costs” no matter what criteria they are based on, especially if it involves crystal ball gazing! And in particular if there is no clear indication as to when notification to proceed with the Works will be granted!
So in my view, and contrary to some of the previous comments below, that deletes option “A”.


Once you are confident of the extent and nature of your additional costs and time consequences (and also making sure that you are within the contractual time requirement for submission), then submit your claim even if it is incomplete in terms of future costs. You then have to submit periodic updates once your costs and time consequences become confirmed. Maybe you should think about making these interim submissions every two weeks or so; this will keep the matter of your claim near the top of the Employer’s in-tray and you can track changes to your situation as you go along!

Your main categories of cost will be time-related, such as on-going running costs of your site establishment, consumables, site staff, specially hired-in equipment, etc., and you may have to pay for standing time of labour if this is unavoidable. Also, don’t forget to claim your Head Office overheads!
In addition, you should also identify any steps that you have taken to mitigate the effect of the delay, as this may be one of the Employer’s defences when he gets round to agreeing your claim.

Hope this helps

Cheers,

Stuart

www.rosmartin.com