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How deep the WBS shall be put in to the EPC contract

3 replies [Last post]
Alex Iskandar
User offline. Last seen 3 years 40 weeks ago. Offline
Joined: 2 Jan 2004
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All, reference to the forensic claims analysis, it is known that the main basis of the claims shall be refered to the Contract it self as legally binding by both parties.

I've found some EPC contract (particularly in the Lump Sum type of contract) noted that in the Contract  Schedule only attached some milestones and put the Delay Liquidated Damages (LD) on the main Milestones such as : Final Acceptance of the works etc..

The schedule which was attached on the Contract document is only showed the WBS until level 2 (High Level schedule)

(Level 0 - Project, level 1 (E,P,C,I) , Level 2 Contract Object / Unit ).

My question is how deep the appropriate WBS to be putted in to the Contract Schedule (levle 2/ 3 or higher) ?

Thanks in advance for your responses....

 

Alex Iskandar

Indonesia

Replies

Mike Testro
User offline. Last seen 21 weeks 5 days ago. Offline
Joined: 14 Dec 2005
Posts: 4418

Hi Alex

It all depends on whether the Contract Programme is incorporated as a Contract Document.

Usually the Contractor agrees to complete the Works in an agreed period - that is a Contract Term.

Outside of the Contract he then submits a contract programme which describes how the dates are to be met.

It is unusual for the Programme to be incorporated as a Contract Document - if it is then all sorts of contractual shenanigins occur when a change order requires a change in the programme.

Unless your are in the NEC family when changes in the programme are accomodated.

As to the level of detail I would suggest you read some of my earlier threads - search on "Planning Abominations" to get the drift - all submitted programmes should be level 4.

Best regards

Mike Testro

moe barkouky
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what does the word forensic mean? is it a legal term? i worked my life in claims but never heared of the word forensic claims.. i know that forensic means debatable .. but i mean is it a new expression?

 

 

Thanks

 

Moe

Daniel Limson
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Joined: 13 Oct 2001
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Hi Alex,

On forensic claims and your subject question, normally you need to proved or demostrate on the programme on how the event or events (if mulitple) has impacted the programme / project completion date or any milestones subject to LDs and this will largely depend on how deep or detailed your approved baseline programme is.

Regards,

Daniel