Hi dears :

Is this right ? that the Delay cannot be concurrent with Excusable /Non-compensable delay.


regards

Hi Dears:

Everyone consider that the LD should be only % X Penalties , but am telling everyone that the LDs as umbrella for many, we can use the performance bond to penal the contractor against any delay damages , some countries the delay damages can be adding black points on contactor trade license to punish him if he caused a huge delay damages especially in a projects are belong to the government.

Regards.

Hi All

The significance of LAD’s was brought home to a Contractor recently on a large Oil & Gas installation.

I was assessing his entitlement for an EoT.

There were LAD’s attached to a number of Stage Milestones but none on the final completion date.

The Contractor was ahead on the milestones but was due to miss the final completion by about 6 weeks - but he wasn’t bothered because there were no LAD’s applied.

My team amd I did a quick calculation and told the Contractor that the unlimited damages that he faced were in the region of $80 million.

That focused his attention on an EoT quite rapidly.

Best regards

Mike Testro

I’ll throw in my 2 cents worth from New York City -

Every project that I have worked on has contained a Liquidated Damages clause. Of course, almost all of my projects were on operating subways or railroads where the late return of a particular area or track would delay revenue service. Years ago, if it was determined that the Contractor was late, he was assesed L.D.s per day, with no limit. Nowadays, they are "capped" at a certain percentage of the Contract value. I once worked on a bridge rehab project where the L.D.s were $100,000/day. Needless to say the contractor finished early, collecting a early finish incentive of $100,000/day.

As far as dealing with a non-reponsive contractor, I rarely encounter that these days. The contracting community for rail projects is small and all the contractors are well known. No contractor wants to jeopardize their reputation and be disqualified from bidding on a future project because of their failure to comply with the Contract. When the contractor fails to supply a required "recovery" schedule or is not serious about the schedule, we can actually withhold any progress payments until there is compliance. That clause is contained in our Contract’s "Terms & Conditions". As I previously mentioned, very few contractors around here ignore the scheduling provisions of the specifications. Oh, they may jerk you around a bit, but they know they have to comply.

Lawrence

Thanks Samer:

All that is acceptable if we are using FIDIC or referring in Contract Conditions to which FIDIC shall be applied , but in case this and this not existed , can we still dealing with contractor failing in achieving by same wise.

Regards.

Hi:

Notification of Delay .

For example : I have send NOD this week and in each time am receiving progress report am sending other one back to back , is it right way ? or notifying the contractor has to be selectively, once a month .
Keeping in mind that the most NOD have not responded by the contractor even some time the contractor fully ignore it with no reaction .

regards.

Dear Samir:

When we mention (Provision for liquidated Damages) what we mean exactly ? and how could be ? .
please give me example...!


regards

Hi Samer

Hopefully it will benefit many.

Much respect and best regards

Mike Testro.

Hi Samer

A very ambitious topic.

A form of contract is a means of sharing and distributing risk - and construction is a very risky enterprise.

Claims happen when the contract is not applied as it was intended to be - or at least how one of the parties thought it was intended to be.

Every claim stems from an unforeseen event that should have been covered in the text of the contract.

It all depends on what the words mean in whatever category the claim may fall.

Good luck with your topic.

Best regards

Mike Testro