Delay Event -Payment?
In the Open Standard
Shah. HBMember for 17 years 10 months
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Hi
In Time impact method ,for example Nov 2009 on wards payment was not paid by the client to the general contractor .The programme used to demonstrate the dealy is consented programme of works with cost loaded .
In that case updating the programme up to November and then introducing delay event as payment [ From Nov to JAN 2010] and activities whcih has not started due to delay in payment are tied with the delay event.
Is this way of presenting the delay will be acceptable by consultant ?
In Time impact method ,for example Nov 2009 on wards payment was not paid by the client to the general contractor .The programme used to demonstrate the dealy is consented programme of works with cost loaded .
In that case updating the programme up to November and then introducing delay event as payment [ From Nov to JAN 2010] and activities whcih has not started due to delay in payment are tied with the delay event.
Is this way of presenting the delay will be acceptable by consultant ?
5 replies
Oldest first- 0Samer Zawaydeh ·Dear Shahul,
The Client must pay for completed works as per the Condition of Contract.
If the project duration has ended, then the delay penalties starts. In this case, you need to have a proper time extension request submitted in a timely manner in order to increase the project duration.
Holding payments and delays are two separate issues that are Controlled by the Conditions of Contract that you have.
With kind regards,
Samer
- 0Samer Zawaydeh ·Dear Shahul,
These are two different roads.
The work complete should be invoice and paid within the time limits set in the Conditions of Contract. The client will be liable to pay finance charges automatically if the do not pay on time.
On the other hand, if this is your final payment, and you have delayed the handing over by a number of days, then the Delay penalties will be calculated depending on your Conditions of Contract and deducted from your last payment due.
With kind regards,
Samer - 0Abhishek Chhangani ·
Hi All,I am working on an EPC
Hi All,
I am working on an EPC lumpsum Contract from Client side. Project has expected delayed of 7 months and Contractual completion date has passed. No extension of time and or extra claim has been approved yet.
Issue is Contractor wants to invoice all the balance amount under "Site Running Cost" and Client's Project Manager is reluctant to approve as no money will be left for subsequent months for Contractor to run the show.
How should one go about it?
Thanks
Abhishek
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