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Prolongation/Disruption Cost

2 replies [Last post]
Kannan CP
User offline. Last seen 6 weeks 13 min ago. Offline
Joined: 12 Jun 2008
Posts: 290
Groups: None

Hi All,

I have the following scenario to discuss.

1. In the schedule, through the Path 1 the Employer delay event impact the progress of the Contractor. The Contractor uses heavy machine (high rent cost) to execute the activity. Due to the delay by Employer, it took 1 month more than the planned date.

2. In the mean time, through Path 2 there is concurrent delay from the Contractor which leads to the project completion date. Eventhough there is link between Path1 and Path 2 activity, the Path1 will not be driving.

In normal case due to the concurrent delay by the Contractor, he is not entitled for any prolongation cost.

But due to the huge loss in the rental of heavy machine because of the Employer delay in Path 1, can the contractor claim the money loss on the basis of disruption by Employer (only my guess) or any other terms.

 

Regards

Kannan

Replies

Kannan CP
User offline. Last seen 6 weeks 13 min ago. Offline
Joined: 12 Jun 2008
Posts: 290
Groups: None

Thanks Mike

Mike Testro
User offline. Last seen 22 weeks 3 days ago. Offline
Joined: 14 Dec 2005
Posts: 4418

Hi Kannan

What you have described is the difference between prolongation and disruption.

Not everybody understands this.

Time and money are separate entities and you do not need an extension of time to claim disruption.

So - If the employer has by his action or inaction caused the contractor to deploy resources inefficiently then the contractor is to be compensated.

Best regards

Mike Testro