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Forensic Claims Analysis

Extended Overhead Cost Payment due on what time?

In the Open Standard
Christian NiedoMember for 18 years 5 months
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Let me state our case... Our claim for Extended Overhead Cost was reconciled and approved 1.5 years after the delaying incident. We decided to bill it on the client since it is only proper that we reimburse the unbudgeted overhead cost during the work disruption but the client disputed this and said that this should be billed after the contract completion. As I’ve explained it, the delaying incident happened sometime at the course of the contract and money spent unwantedly (Overhead Cost) evidently not a compensation for activities on the last part of the project since we have resource loading for that.
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  1. 0
    Samer Zawaydeh ·
    #1
    Dear Christina,

    This should be paid, if already approved by the client, through the regular Interium Payment Certificates in the variation orders line budget.

    If they are delaying payment, then you can treat it like a delayed payment as ask for the interest to be paid as well.

    With kind regards,

    Samer
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  2. 0
    Christian Niedo ·
    #2

    Thanks for the Response kind sir.

    Maybe the client didn’t anticipate it in their cash flow...

    Regards,

    Christian
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  3. 0
    Samer Zawaydeh ·
    #3
    Dear Christian,

    Please read the claim closure agreement carefully especially the terms of payment. Maybe they stated that it will be paid at the end of the Contract.

    Best Regards,

    Samer
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