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Hi all,
In a remeasurable contract, can the contractor claim for EOT based on more work required during execution than planned. or a new basline(time) to be fixed accordingly, everytime the planned quantity changes?
For eg:
In the plan, there was 40LM of cable pulling. now during the execution it changed to 100LM and required more time to complete the work (assuming with the same resource as planned in baseline). This delayed the termination of cables, testing & commissioning etc and the contract completion date. can the contractor raise a claim for EOT?
Regards
Kannan
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Hi Hamid
Point 1 - This would work if there is sufficient float.
Point 2 - This is acceleration which costs money & there would be an argument about who pays the cost.
Best regards
Mike Testro
Hi Mike
Please correct me if my below understandings are wrong.
1 - If the Cable linear meter has increased from 1000 LM to 1500 LM and the activity is not on the CP and can be completed within the project time frame then there is no case for EOT at all.
2 - If the activity is on the CP and with the same resources would delay the project (lets say for 5 days) then Contarctor should allocate additional resources or increase number of working hours, without claiming for acceleration cost becuase he is getting money for the extra linear meter (that money includes the profit as well) ... actually the increase in the quantity is in his benefit subject to the avaialbility of additionall resources or overtime arrangement.
regards
hamid
Thanks mike,
now it more clear to me.
Regards
Kannan
Hi Kannan
It all depends on who take the risk of the quantities being correct.
On an EPC the contractor has the design obligation so if the quantities increase for the same project then there is no grounds for an EoT.
If the Employer has prepared a BoQ and the quantities are re measurable then increased quantities will take longer to complete.
However a 50% increase in volume will not necessarily generate 50% increase in time.
In order to calculate the extra time you must have a fully resource modelled programme at level 4 where the resources are extracted from the BoQ / Cost Plan.
Best regards
Mike Testro
Thanks Shahul...
Mike..
Thanks for the reply.
Actually this is not a real case scenario, but to understand if the concept of claim is same for the Fixed Price Contract and the remeasurable contract.
My thinking was- the contractor can justify the claim by explaining that now the actual quantity is more that the plan quantiry as per the drawing provided by the Employer. Therefore by keeping the same logic and the same resources it would push the contract completion date. The contractor should ask for the acceleration cost, If the Employer wants to keep the same contract completion date.
Now in the Employer's determination, can he say that the remeasurement will be applied only on the cost to be paid and the completion date should be the same regardless of the revised quantity, by allocating more resources to manage the revised quantity.
Regards
Kannan
Hi Kannan
In usual circumstances extra work takes longer to complete.
Whether the extra work causes a delay to the critical path and therefore the project is another matter.
You have to consider where the cable pulling task was in respect of the critical path and how much total float it has.
Do you have a detailed level 4 pogramme that actually shows the cable pulling task or is it all wrapped up in MEP First Fix?
To go back to your example 40lm of cable pulling would take at most .5 working days for two electricians to complete @ 10 lm per hour - a low production rate.
Therefore 100lm would take 1.25 days using the same resources.
If there was more than 1 cable route then they can be laid concurrently.
At most you would expect an EoT of .75 days if everything falls on the critical path and there is no chance of mitigation.
Best regards
Mike Testro
Yes, Contractor can claim for EOT as per FIDIC under sub-clause 8.4 (Extension of time for completion) of the condition of contract and subject to sub-clause 20.1 ( Contractor's Claim)
Email: PPadmin@planningplanet.com
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