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Delay due to increase in rebar size and qty

8 replies [Last post]
TII WS
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Joined: 5 Feb 2010
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Groups: GPC Malaysia

Hi,

Can I have advice on the impact to installation for increase in rebar density? Can I argue that it will increase in construction time?

Also kindly advice if I can use productivity of rebar which is tonnes/day to fight for EOT if the overall weight of rebar increase?

Seem like I can ask for more time if I use productivity of rebar tonnes/day as measure of time impact on schedule rather than rebar density. Although I feel it sound unconvincing

Please let me know your opinon on this issue

Br

TII WS

Replies

sathis jayaweera
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Joined: 25 Oct 2007
Posts: 48

Depent on a form  and type of contract  answer may varied   ex - FIDIC 99 1st Edt. there is a EOT Sub - clause 8.1(a), If quantities change due to the variation and it's prove there is deay of a project, then the contractor is entitle EOT

Rafael Davila
User offline. Last seen 6 weeks 4 days ago. Offline
Joined: 1 Mar 2004
Posts: 5241

Mike,

The AIA-A101 [Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum] provides for the quantities as per contract documents on the traditional Owner-GC contract, if there is an increase due to a re-design and the designer duplicates reinforcing steel say on footings because he missed negative reinforcement it is extra, otherwise why not to forget positive reinforcement and install no reinforcement at all?

A Design Build Contract is another thing, but the most common contract type is the traditional where the design is by a third party and the contractor is responsible for what is on bid documents, not a penny more not a penny less.

By the way the question was issued referring to an " increase in rebar density" I understand we are talking about the most common contract type, Owner-GC contract where the designer is a third party and the original contract includes only what is as per design prior to bid award. Shall I say a fraction of one cent?

I understand we are talking about the most specific and deterministic contract type, where you bid based on a completed design. The Errors and Omissions insurance pay for it if no due care was executed, if due care was executed the risk is on the Owner who selected the designer, otherwise why not triplicate the reinforcing steel at the expense of the contractor after he bid for one third of the reinforcement? Or even better, build with one third of the reiforcing steel required on bid documents.

Our contracts are usually not ambiguous, even design build are clear about the scope of work even when some specific quantities can be subject to some variation. Here ambiguous clauses are interpreted against the one who wrote the contract, no explanation needed for this reasoning, it is obvious and basic jurisprudence.

About Sandy it was not even close to home, but some relatives that live at Guilford, Conn. are still without power.

Rafael

Mike Testro
User offline. Last seen 11 weeks 5 days ago. Offline
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Posts: 4420

Hi Rafael

So you never have a fixed price contract where the contractor takes on the quantities risk?

I thought that was the basis of the AIA form.

In the ICE - FIDIC forms increased quantities on a remeasured basis are specifically NOT variations.

Best regards

Mike Testro

PS - I trust you missed the worst of Sandy.

Rafael Davila
User offline. Last seen 6 weeks 4 days ago. Offline
Joined: 1 Mar 2004
Posts: 5241

Mike,

Almost always there is a cost associated with quantities and someone must pay, let the Owner pay, and when there is a reduction in quantity never ever require a credit from the Contractor.

At home our contracts are different, a change in quantities do represent a change in scope, no matter how much or how little, there is not a formula to define when it is irrelevant. A change in scope even when there is no adjustment in contract price or contract duration must be formalized through a Change Order.

Best regards,

Rafael

Rafael Davila
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Posts: 5241

Even a reduction in quantities represent a changed scope of work and therefore a Change Order shall follow, though I would like not to apply any credit to reduction in quantities.

Upon receipt of revised drawings the contractor usually have a limited time as established in the contract to warn the Owner of possible changes or he might waive his right but I do not know a single contractor that as soon as he receive a drawing that have revised quantities do not follow the procedure.

I wonder what if there is a substantial reduction in quantities and the owner was not notified. Did the revised drawing automatically changed the contract with no reduction in price? What if the Owner changes opinion, no credit for the reduction plus an increase to get it back?

Until there is an agreement there are no changes realized to the Contract, perhaps pending claims. Even Constructive Changes must be formalized. Most contracts I know prohibit informalities.

A Change Order is usually the required document to formalize any changes to the contract, no matter if there is no change in cost or contract time.

Mike Testro
User offline. Last seen 11 weeks 5 days ago. Offline
Joined: 14 Dec 2005
Posts: 4420

Hi Rafael

An increase in quantity is not necessarily a change order or variation.

Best regards

Mike Testro

Rafael Davila
User offline. Last seen 6 weeks 4 days ago. Offline
Joined: 1 Mar 2004
Posts: 5241

An increase in quantity represents a change order.

Usually change orders must be negotiated before going ahead. You shall negotiate change in cost as well as change in project duration.

If there is no agreement then if the owner insist on the change he must issue a Change Directive, otherwise you are not obliged to execute the request. Contracts are not a one way street.

Usually change directives are solved by some cost plus rule as defined on the contract documents. The issue on duration can be solved once you know how much it took and compare to baseline schedule. An increase in contract duration shall follow if the increased duration represents an increase in project duration.

I cannot understand why contractors do not use this approach more often. Owners and inspectors do not like the idea and prefer to negotiate. Of course there are contractors that are masters at the art of negotiation. Some will send a letter saying that as there is no agreement they will continue with the contract as per original drawings forcing the Owner either to negotiate or to recur to a change directive.

Mike Testro
User offline. Last seen 11 weeks 5 days ago. Offline
Joined: 14 Dec 2005
Posts: 4420

Hi TII

The productivity route is the easiest BUT:

You have to demonstrate that the current rebar durations are based on the intended output rates and quantities.

For this it is ideal that your rebar tasks are resource modelled and this should have been done at the beginning.

If you are going to do it retrospectively then you will be challenged that you have rigged to result.

To make things easier you must go back to the contract price and extract the labour hours attached to the rebar installation - exclude any off site pre-fabrication - and then apply a reasonable gang size to generate the planned durations of rebar fixing.

Make absolutely sure that you record all your calculations and reasoning behind any assumptions you have made.

When you resource model your rebar the durations will be different - either longer or shorter - the only adjustment you can make is in the gang size provided it is reasonable for the workfront.

You will then get a different end date and you have to live with that result.

You must NOT fiddle it to fit.

Now you can can calculate the different resource hours and enter them into the resource model and the durations will change.

Reschedule to see the change in the contract date.

Best regards

Mike Testro