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Forensic Claims Analysis

Post tensioning works-Supporting documents for claims

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Harish GopalanMember for 18 years 1 month
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Hi we are doing post tensioning works for a commercial complex...The total agreed price for completing the work was 50 million.Totally there are 4 buildings one food court and one podium area where the works needs to be executed..For podium area foodcourt and other 2 buildings we have successfully carried out the work..For the other 2 buildings we had received a letter from the client stating that they wanted to execute the works with flat slab without post tensioning.Which is actually a reduction in scope of work.Actually we havent started the works for those 2 buildings...General criteria for using Post tensioning is to reduce the over all cost incurred by traditional method...Now if we execute the work by normal design without post tensioning the cost incurred will be more...There is a seperate clause in CoC which clearly states that the employer shall give notice in writing to that effect to the contractor and the contractor shall have no claim of whatsoever nature consequent to abandoning and thus resulting in foreclosure of the whole or part of works.Upon such intimation this contract shall stand cancelled and terminated..What are the additional clauses which has to be given importance..and supporting documents which i need to attach along with the claim document...I am very new to claim analysis kindly advice
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  1. 0
    Samer Zawaydeh ·
    #1
    Dear Harish,

    The supporting documents are the following:

    1. Conditions of Contract + Contract agreement
    2. IFC Drawings
    3. Letter of commencement
    4. Program of Works
    5. Approved material submittals
    6. Approved Shop drawings.
    7. Any material procured and delivered at site.
    8. Any construction/ demolition done at site.

    You will need to review the documents submitted during the contruction phase and if anyone has provided you with approvals to shop drawings or material submittals to the last 2 buildings.

    Basically, if they are changing the design, then you can get your profit and/or overheads on the reduced amount depending on what the CoC is stating.

    With kind regards,

    Samer
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  2. 0
    Satish Kumar ·
    #2

    Hi again, Harish,refer you

    Hi again, Harish,

    refer you sentence:

    ....Upon such intimation this contract shall stand cancelled and terminated.

     

    I guess you have typed it incorrectly.

     

    it should be otherwise. Reduction in scope should not affect the other terms of the contract.

     

    Check the following:

    1) " Variations " Clause -- Regarding the right of client to alter scope. Check whether the client can de-scope your work without any claims from your side.

     2) Claims Clause: did u raise the claim in time? did u procure the material, if any, for the other buildings as per time stated in the approved program?

     

     

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  3. 0
    Satish Kumar ·
    #3

    Hi again, Harish,refer you

    Hi again, Harish,

    refer you sentence:

    ....Upon such intimation this contract shall stand cancelled and terminated.

     

    I guess you have typed it incorrectly.

     

    it should be otherwise. Reduction in scope should not affect the other terms of the contract.

     

    Check the following:

    1) " Variations " Clause -- Regarding the right of client to alter scope. Check whether the client can de-scope your work without any claims from your side.

     2) Claims Clause: did u raise the claim in time? did u procure the material, if any, for the other buildings as per time stated in the approved program?

     

     

    Report
  4. 0
    Daniel Limson ·
    #4

    Post tensioning works-Supporting documents for claims

    Harish,

    Based on your statements, the variation resulted from a Design Change from a post tension slab to a flat slab without post tensioning. Based on the design change you need to price the variation in terms of resources (Labour & Materials) and the time impact if any? You also need to consider materials procured and sub-contractors (if any)

    Now if there is variance in price (The change will cost you more) and a time impact, you need to read your contract clauses pertaining to variations and claims and just follow the contract. If the contract clauses are unreasonable such as the one you stated above, then your only option is through arbitration or legal later on, but you need to file the claim anyway.

    You can substantiate your claim by the following:

    You need to demostrate the time impact on your baseline programme (If any)

    IFC Drawings showing (before and after design change)

    Quantities of conrete and reinforcement (before and after)

    Additional Labour as a result of the change

    PO and reciepts of materials procured.

    Sub-contractors agreement if already awarded

    Good Luck!

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