Writing a letter vs. Monthly Report

Mr. Se de leon

Monthly reports are important documents and it can defintly support claims, for that matter weather conditions recorded in daily reports can support claims on extension of time.

Why don you ask them to sent you notice of claim with in the contractural time frame, and make it point to note it down in the minutes of meetings.

Hi Mohdammed,

We have the same view on this. I also believe that statements in monthly reports, daily reports etc. can be use for further and better particulars in claims as the need arises even if it is not backed up by a letter.

The reason I asked this question is because, there is a contrary opinion with regards to this that I encountered today. Í just want to get the views of specialists on this issue.

Se

It is not sufficient to tell the Owner of a potential delay issue once a month. It must be made in a timely manner so that the Owner has a chance to mitigate or avoid the delay altogether. Look at it from their standpoint; if they are going to pay money to fix a delay issue, why not spend it early and at least not have the delay along with the expense!

Also, many contracts actually specify a maximum period for delay notification (normally 2 weeks) and if you exceed this limit, then your ability to be compensated for the delay is lost. The Owner assumes that if you didn’t complain at the time, then either you do not think of it as a project delay or you must feel that the responsibility for the delay is yours. Good luck!

Notification of delay must be issued in accordance with Contractual provisions rather than issue on monthly basis and accordingly a summary of these issues be included in your Monthly Report otherwise most of delay events will become time barred.

Shazad and Ronald have got it spot on.

Hi Ronald, Shahzad and Andrew,

Thanks for your replies.

Does this contractual view apply when there is no notification and delay clause in the contract?

Was there a case precedent already that will tell us that contractors can not just put their delay claims statements in their reports but they should give notice in that regard?

Hi,

I think if the contractor wants to issue a claim, then he will not wait till the issuance of the monthly report to declare his intentions, i think this subject will be aroused in the progress meetings and also in correspondences (eg. letters).

also if there is no notification and delay clause in the contract, then the contractor will submit his claim in the right time which is (from his point of view) make him gain alot from this claim.

Hi Se,

I agree to all.

The monthly report will only be used as a reference to a notification of delay.

In the event that there was no notice of delay or notification to claim for delays and associated cost, then, what the heck are you wasting your time for.


Cheers,

Charlie

Se,

If there is no formal contractual notice requirement then as Charlie put it, why worry - at least as far as when you get to put your claim in as you won’t be time barred for no notice.

Actually Ronald is nearer the mark. Even if there is no formal requirement there most definitely is an implied obligation on all parties to a contract to mitigate any delays.

Hence, from the contractors point of view there is an obligation to tell the client as soon as it is reasonably apparent that there will be a delay. The client can then do something about it if he chooses as per Ronalds post.

When it is reasonably apparent is obviously open to a bit of interpretation and potential argument and raising the issues at the monthly progress meeting may be sufficient in the circumstances, it may be not. I’m sure that statement helps you not at all!!!! I think things like the potential cost, duration and timing of the delay and the event causing it would have to be considered. ie, the bigger and more expensive the delay is going to be, the sooner you should tell the client and not wait until the monthly meeting.

Safer way in all cases would be that when you first realise that there’s a delay or potential future delay is to tell the client as soon as possible. You can’t tell him sooner than you actually know yourself although I’m sure there’s some lawyers out there that would disagree with that and will argue that you should of known about it earlier. But that’s another story.

How I wish all of you guys are correct. In the absence of a case precedent, I’m having a hard time to be convinced.

BTW, Andrew, I’m not working for the contractor. I should be more delightted to hear all your arguments and not worry as Professor Charlie suggested, but it seems there still something missing here. Actually I’m more of wondering why our contractor is not worried not to notify us on their claims.

That’s the problem here, as you said if things are open to interpretation and potential argument.

Se

Se,

In the common law world at least, even if the contract states there is a notice requirement and the contractor gives none at all during the contract, there is nothing to stop the contractor from rolling up all his claims and relying solely on his common law rights to claim damages for any breach of contract at the end of the contract.

If you want case law on that, then have a read of the judgement in London Borough of Merton v Leach (1985) 2 Const L J 189 at para 219.

That’s the bad old days tactic where the contractor says nothing, gets to the end of the contract and realises he’s ot made as much money as he thought and puts in claim to the surprise and annoyance of the client.

You say the contractor is not telling you about claims - what’s he telling you about at the monthly progress meetings then!!!!!! I think he is telling you, he’s just not providing additional information to substantiate what he’s telling you - which begs the question, in the apparent absence of any contractual requirement to do so, of whether you’ve asked him for the information or are just sitting there waiting.