Guild of Project Controls: Compendium | Roles | Assessment | Certifications | Membership

Tips on using this forum..

(1) Explain your problem, don't simply post "This isn't working". What were you doing when you faced the problem? What have you tried to resolve - did you look for a solution using "Search" ? Has it happened just once or several times?

(2) It's also good to get feedback when a solution is found, return to the original post to explain how it was resolved so that more people can also use the results.

impact due to deletion in the scope of works

7 replies [Last post]
Mon, 2005-04-11 05:20
Waseem Saber
User offline. Last seen 2 years 4 weeks ago. Offline
Joined: 1 Dec 2004
Posts: 63
Groups: None
hi, philip,
my project is 15 months duration and after almost 5 months elapsed the client have issued an instruction to reduce the scope by making deletion of the important element of the project (i,e equipment and furniture for the laboratory.and these items were long delivery items and has a lead time of alomost 8-10 months) remaining duration of the project is 8 months as of today.
i have a situation where in the client has deleted the scope of the work due to changes in his masterplan of the project, thus affecting our project considerably by more than 20% of the contract value, moreover the revised scope will result in more delays to the project as the engineering part is not yet finalized by the consultant and it is expected to be delivered in 1 month time (by may’05.

we need to initiate a claim for the delays already occured, these delays as per the program are to be reocvered due to the deletion of the above referred items we have been highlighting these impacts in the monthly updates.

could you please suggest a better way to initiate our case and make it more reasonable.

you reply is solicited

thanks

waseem


Top

Replies

Wed, 2005-04-13 03:56
#1
Jaco Stadler
User offline. Last seen 17 years 49 weeks ago. Offline
Joined: 9 Sep 2004
Posts: 299
Groups: None
Hi Waseem

What is the Impact on your schedule if the scope the client has deleted is taken away.

Do you finish on time. If Yes why are you trying to claim extension of time.

If No Why not is this due to the a client decision.

You only need to show the relevant information from a schedule point of view.

If you feel you are going to do a Loss of profit claim this has nothing to do with the schedule remember this is a commercial Issue. And should be treated in that manner.

I hope this helps
Top
Wed, 2005-04-13 01:32
#2
Waseem Saber
User offline. Last seen 2 years 4 weeks ago. Offline
Joined: 1 Dec 2004
Posts: 63
Groups: None
thanks Andrew,

now the client insists,the impact on the program due to this deletion should be able to recover the delays, as so far our first submission for the approval was done in nov’04 and since last 4 months the client was sleeping on this issue and did not grant any approval, eventhough there were periodic reminders throug meetings and letters for the consequencetial repurcurssions in delayed decision,

my question is how to tackle this situation and highlight this issue in the program as i have already showing the delay impact with a total -ve float of 92 days as of 31.3.05, do i delete this activity from the program or do i show a suspended period of no action from the client or is there a better way to show my case ?

all ppr’s requested to share thier experience,

regards

waseem
Top
Tue, 2005-04-12 20:34
#3
Andrew Flowerdew
User offline. Last seen 2 years 46 weeks ago. Offline
Joined: 14 Dec 2004
Posts: 960
Groups: None
Waseem,

Your starting point is always the contract. (which is a legal document)Your client can add to, omit from or vary the works as he wishes, however in doing so he may incur additional costs and or time claims from yourselves. Starting point:

1. What does the contract state regarding deletion of the works and reduction in value?
2. What does the contract state regarding late supply of information?
3. What are the actual time implications regarding the late supply of design information?
4. What are the actual time implications regarding the deletion of the works?
5. What are the other implications regarding the deletion of the works? eg was the furniture already ordered, being manufactured, etc.

When you have an answer to the above questions, which I imagine will all be generally in your favour, you can form the basis of an entitlement to claim additional money and or time.
Top
Tue, 2005-04-12 11:34
#4
Waseem Saber
User offline. Last seen 2 years 4 weeks ago. Offline
Joined: 1 Dec 2004
Posts: 63
Groups: None
thanks uri,

it all under as per the contract and as per the FIDIC and UAE law,hope you got the clear understanding and as per ur intrepetation of being legal questions i belive its all contractual which is beign asked nothing legal about it, however our legal consultants will also work w.r.t contract.

hope it helps to help me.

thanks to all ppr’s

waseem
Top
Mon, 2005-04-11 23:35
#5
Uri Shachar
User offline. Last seen 7 years 11 weeks ago. Offline
Joined: 11 May 2003
Posts: 82
Groups: None
Waseem,

You are asking legal rather than programming questions. Have you considered the legal aspects of your claim? If you have, what is the opinion of your legal consultants?

Are you claimimg under the contract?

If not, what is the basis for your claim? common law?

As per the Contract, What is the governing law?

I think you have to sort out the legal issues first, and then start worrying about programming (and possibly also qs).
Top
Mon, 2005-04-11 09:24
#6
Waseem Saber
User offline. Last seen 2 years 4 weeks ago. Offline
Joined: 1 Dec 2004
Posts: 63
Groups: None
hi philip jonker,

thanks for your quick response and i was intending to receive reply from you,thanks again.

with regards to claim we shall be pursuing for both EOT and financial settlement, my concern here is the EOT as you are aware that the reduction in scope has negated the impact that already had caused to the project completion by deletion of the said equipments n furniture,n the client is of the view that since these items are deleted and therefore your chances for any EOT are minimized, the furniture and equipment are mostly free standing and some special ones have some foundation and platforms to be constructed, my request is to get some clarifications of similar situations occured for other planners, how to pursue this.

i am working on the following grounds for the claim.

1loss of oppurtunity
2loss of time and effort to pursue and source these special equipments and loss of reputation of our company in the international market and i am expecting my suppliers to claim against us.
3reduction in scope by more than 20%
4 adjustment to the performence bond value and insurance etc...
Top
Mon, 2005-04-11 07:47
#7
Philip Jonker
User offline. Last seen 15 years 43 weeks ago. Offline
Joined: 7 Nov 2004
Posts: 852
Groups: None
Hi Waseem,

I am not sure which Philip, you are asking the question, as there are a lot of them on the site. But with a 20% reduction in scope, normally, anything more than 12 to 15% depending on the spesific contract, the contractor would be entitled to remeasure and re-price the contract, and as such, re-scheduling, should also be done, taking into account the delays in issueing of the design, and reduction in scope.

It is not clear whether the furniture you refer to is free-standing, or built in. This obviously will have an effect.

Also are you claiming EOT, Financial Compensation or both?
Top