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Forensic Claims Analysis

Claim on Decrease in Scope and non validity on Completion Date

In the Open Standard
Jithin KambhikanamMember for 15 years 6 months
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Hello Eveyone, 

Just a doubt and the situation is a little bit different. "Mike" Probably you might know if its a valid point to ask for Claim. The situation is (Example)..

In the original Scope from Client - 4 Wells will be drilled and given. You have to do the Pipeline work from the 4 wells to the Tank where the Oil would be Stored and the completion date as per the Contract for this work is 30th April 17.

Actual Scenario - The Client was not able to drill the 4 well but was able to complete on 3 well. So the Client is asking to do the Pipeileline from the 3 wells to the Tank for now. 

The Question,

From the above scenario is the Completion date of the Contract of 30th April still valid or we can ask for an Extension of Time.

When I look at it, I feel that it is Valid as 3 or 4 well you can still send the Oil to the Tank. So the scope has reduced. So isnt the 30th April date as per the Contract still valid.

Regards

Jithin

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4 replies

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  1. 0
    Gary Whitehead ·
    #1

    Possibly if the change from

     

    Possibly if the change from 4 weels to 3 required some redesign of the pipework which delayed construction there might be a case for EOT.

     

    But other than that, I can't see a valid claim.

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  2. 0
    Mike Testro ·
    #2

    Hi JithinOne thing is certain

    Hi Jithin

    One thing is certain and that is the completion date cannot be reducedd.

    There may be scope for an EoT if the instruction to switch from 4 to 3 pipelines was issued late.

    You may have scope for a rate increase if the cost of fixed price equipment is not covered on 3 pipelines when it was deployed for 4. This would be applicable for both onshore and offshore pipes.

    Best regards

    Mike Testro

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  3. 0
    Jithin Kambhikanam ·
    #3

    Ok Mike and Gary, So Only if

    Ok Mike and Gary,

     

    So Only if the scope is increased or as You have said if the instruction to reduce was given late and then their is a change in design which will delay the construction then this case is applicable for EOT.

     

    Regards

    Jithin

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  4. 0
    Mike Testro ·
    #4

    Hi JithinThere may be many

    Hi Jithin

    There may be many more delay events that are involved - only you will know if there are any.

    Gary and I have given you two possible examples to look for - you have to find them.

    Best regards

    Mike Testro

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