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Acceleration Cost

7 replies [Last post]
Sun, 2007-06-10 01:24
Mohamed Basheer
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Hi, I am in a situation which needs help from our experts...

In our Infrastructure Project, The project is delayed due to changes in design and we have applied for an EOT. Meanwhile Employer wants a priority portion of the project to be accelerated to complete. We fail to agree on a lumpsum price and agreed to work on "Actual accelerative measure will be compensted " basis.

Now without awarding EOT, Employer wants a revised completion programme discounting the accelerated measures proposed to be taken...( Sounds very complicated right - for me too )How to go about it.
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Replies

Fri, 2007-07-27 09:19
#1
David Andreotti
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This has to be approached seperately. Show the design impact in the existing schedule, then roll the file and show how acceleration will get you back to your original completion date (assuming it’s possible).

So true to document delays as they happen.
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Thu, 2007-07-26 02:21
#2
Ismail Vandeliwala
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Joined: 11 May 2004
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Dear Basheer,

If i understand right, then u have to prepare an EOT claim programme to justify that the project shall be extended beyond the required date.

If the client has instructed you that he needs acceleration then u need to devise an acceleration plan and show it as a comparision to the EOT claims programme to indicate the acceleration. Further more u need to substantiate that actual acceleration cost is being incurred by maintaining accurate and up to date records such as daily reports, productivity calculations, introduction of extra man-power, equipment, comparision of original planned histograms to the accelerated planned and actual histograms etc.

I donot believe that once the client has issued the acceleration instruction he will grant an EOT.

Regards
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Tue, 2007-06-26 08:07
#3
ashraf alawady
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Joined: 26 Aug 2006
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Dear all
as per the condition of contract , No acceleration to be carried out without clear instruction fromthe client/Engineer.

The contractor has to stick to do the works as per the production rates mentioned in the original approved programme.

if there is no delays from the contractor side, no body can foce him to submit any other programme without clear instruction .

if the client issued an instruction to accelerate the works
by adding more resources and extending the working hours and working in fridays and other public holidays then, the contractor is clearly entitled for reasonable acceleration cost .
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Sun, 2007-06-10 06:52
#4
Karim Mounir
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Joined: 5 Apr 2006
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Hi Mohamed,

U’ve to separate between the 2 issues that u are facing here.
1- The EOT due to the changes in design.
2- The acceleration that the client want in the whole or part of the works has to be reimbursed (u’ve to read the contract to know whether u’ve priorities in the project or not in order to know whether u are obliged to complete certain part of the project before another).

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Sun, 2007-06-10 06:44
#5
Ashraf Jahangeer
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Joined: 8 May 2007
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Groups: Petro-Chem / Oil & Gas
Hi Basheer,

I have similar type of experience as we were delayed by the client due to design change, material shortage, acess release.We were first asked to provide a revised plan then we were asked to submit an accelaration plan. The issue dragged for almost eight months and was only resolved with the intervention of the honor.

The lesson learnt for me was that, success for Contractor lies in submitting theor calims early and regularly and sicking their ground for the cost of accelaration as you cannot sustain the work if profitability is not there. As far as you keep on submitting the claims one day or another it will be resolved and you will get your money.

Use the unit rates in the Contract and build your claim and try first to convince your management then they shall take on with the client.


Hope this may be of some help to you,

Regards,


Ashraf
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Sun, 2007-06-10 01:52
#6
Mohamed Basheer
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Joined: 1 Apr 2004
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I am mot that lucky Mr.Anoon Iimos
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Sun, 2007-06-10 01:38
#7
Anoon Iimos
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Joined: 22 Sep 2006
Posts: 1422
Groups: Pinoy Planning Planet Community
i suggest you keep cool!, go to the middle of the Causeway, breath the air and drink tea!
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