Some very basic questions about delay claims

Dear Mimoune,
The best way to learn is to ask questions and learn from people working in the same files.

Answer 1: read the contract well and check under which conditions you can ask for extension of time. You assumed that you will not finish on time based on the late ending of mobilization. Ask you Construction Manager to think of ways to reduce this delay. It is known to work :) in many cases, that a late start can end in On Time delivery.

Answer 2: Always monitor your activities and send the client notice when it starts. The best way is to support it with "Inspection Reports" signed by the Engineer.

Answer 2a: If the Client delayed you because of late arrival of his equipment, etc, then you need to do a "Delay Analysis" and confirm that this delay led to the delay of the Critical Activities and overall delay of the project.

Answer 3: Updating the program of works should be done on a periodic basis. If your project is under FIDIC clauses, then you have to submit your monthly report within 7 days from the start of each month with a detailed progress summary. Hence, you will need the update.

Hope that you will benefit from the answers.

Best Regards,

Samer

Hi Mimmoune

Samer is giving you good advice - I would just like to add a few things.

Do your milestones have seperate Liquidated and Ascertained Damages (LAD’s) attached to them or is there only one at the end?

The employer can only start deducting LAD’s when you have not completed a section by the contract date.

Your late start will be reflected in your regular progress update - make sure your drop down line is straight and not jagged.

If the contractor caused the delays then you can look at ways to speed up. Overtime working is on way but you have to balance the costs against potential damages.

Delays due to the Employers interface works have to be reported immediately they start.

For instance if the Employer is responsible for pipeline bases before you can lay your pipes then you have a date on your programme that cannot be exceeded - after taking into account any available float.

If you are approaching that date and it is obvious that it is not going to be achieved you must send a delay notice at once.

Move the interface date every week and keep reporting the delay effect until the bases have been completed.

Best Regards

Mike Testro