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Hi all, I need your thought regarding a situation in a project.
Does a project schedule that has been accepted by a client which shows a contractor having finished a design goes ahead and places an order for the designed asset, overrides the normal engineering process (not written in contract though) which requires client to review and approve the design? Basically, a contractor is claiming to be right because their schedule shows the relationship i.e. after design, procurement starts, and it means the client accepts that since client did not dispute the schedule. But the client did not focus on the activity relationships and insists it is not liable for breach of process. So, whose side are you on?
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A schedule is perhaps one of the requirements of the contract which maybe variable but does not form part of the contract in the first place (that's my opinion and I maybe wrong). As a contract maybe changed at anytime when perhaps deemed necessary.
Hi Anoon,
The issue is not where we are as per engineering stages. But to mention, the outline design was completed by the contractor and they proceeded to place an order. Basically, there is an understanding that the project has very short time scales and lots of activities would have to overlapp to achieve the key project milestone.
You have said the contractor schedule is never part of the contract. I am not sure which contract you are familiar with, but the NEC contract recognises a schedule as part of the contract. Also, a schedule would be valid in a court of law. If a schedule is not a valid contract document, what is the essence of delay/claims analysis, you can't reach a conclusion without a schedule.
What is exactly written in your Contract? There should be no breach if the Contractor followed everything in the contract.
Engineering Process are not just Design, Review and Approve. There are a lot more to it.
FEED - Front End Engineering Design
Basic Engineering
Detailed Engineering
Where are you exactly? (on the above)
By the way, a contractor's schedule is never a part of the Contract (even if approved by the Client).
Thanks for your response Zoltan.
I understand the point you have made. The project is time constrained so both the contractor and client agree that things would have to move quickly but obvioulsy not to breach a process like design and review.
So the contractor is liable even though he has indicated in his approved schedule that after design he proceeds to procurement. This brings the question, at which point is a schedule a valid and trusted document to be used for say claims or dispute resolution or as a valid contract document?
Let's assume the process is not written in the contract, does the schedule or the engineering process holds sway?
without going through the approval process he is proceeding at his own risk whether or not the review and approval activities are listed in the schedule. This is a typical industry standard design, review, approve, procure.
I highly doubt that the approval process is no written somewhere in the specifications look again for it.
So in theory he could have a very bad design and this same thing can happen over and over again.
The review and approval process is used for thsi very reason as a checks and blances.
Typical Cycle
Design = I think this is what you want.
Review = Owber I am Looking at what YOU think that I want.
Approval = Yes this is what I want go ahead and procure it.
vs
Design = You want this nothing else so I am going to procure it NOW = MIND READER
just becasue the activity is not in the schedule does not mean that he is not required to do it.
for example if he did not put an activity in the schedule for detailing the steel does not alleviate him from his responisbility to perfom the work.
Email: PPadmin@planningplanet.com
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