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Retroactive Adjustment order

2 replies [Last post]
Betsy Joseph
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Joined: 21 Oct 2010
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For an LSTK contract, if an item is deleted from the Scope of work, after the Contractual completion date, is the Adjustment order retroactive???  Actual completion certificate has not yet been issued

Replies

Betsy Joseph
User offline. Last seen 12 years 4 weeks ago. Offline
Joined: 21 Oct 2010
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Hi Mike,

This omission of work as you rightly pointed out, doen't have a time impact. The proposed Adjustment order is for the Cost impact only. Since it is a deletion, I personally feel that this is not retroactive.

 

Regards

 

Betsy

Mike Testro
User offline. Last seen 35 weeks 5 days ago. Offline
Joined: 14 Dec 2005
Posts: 4418

Hi Betsy

An ommission of work from the agreed scope will not normally reduce the time for completion.

However an adjustment can often be made if there is a claim for extension of time in place.

Best regards

Mike Testro