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Dear All,
In my project, there is a contravercy, that
This project is being handed over to us by part by part with delay by other parties/contractor. The project completion time as per contract was completed (one year before) and not yet handed over completely and works by other parties and contractor is going on.
The Project management consultant, who is a owner's representative did not provide any time extention as well as there is no proper handing over dates at present available. PM consultant did not approve any schedule and every time new milestone without handing over dates.
1. They (PM consultant) started the penality against us and keep on deducting month by month. But they are not willing to pay full preliminaries (i.e Overhead Amount) even the contract period was over.
2. What is the procdure to claim the full and more preliminarie
3. What is the procedure to inform the failure of project management consultant to claim with Owner/arbitration.
Please give your valuable suggestion/provision/reference
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Hi Ganesan
Adding to Gary's advice -
Have you followed the correct contractual procedure for notifying and presenting your case for an EoT?
Have you analysed direct Cause and Effect and shown that the Client did cause the delays?
Has the Client made any response at all?
The main purpose of the EoT clauses in the contract is to protect the Clients right to deduct LAD's.
If the Client causes a delay and does not issue an EoT then he has forfeited the right to impose LAD's on the contractor.
As Gary says this condition is known as Time at Large in English law.
The problem remains that a "reasonable" time for completion still has to be established and this would be derived from your Delay Analysis presentation.
A good starting point would be to send a notice to the client and/or Engineer stating that the failure to issue an EoT following delays caused by relevant events have created a situation where time is at large. Furthermore the client has forfeited his right to deduct LAD's.
Best regards
Mike Testro
As I said previously, check your contract for procedures to follow in the event of a dispute.
However, a letter addressed to both the PM consultant and Client outlining the relevant breaches of contract and failures in contract administration, and explaining your position and claim may be a way forward.
It would probably be wise to get some specific advice from a contracts expert with some local knowledge who can advise in detail on the strength of your claim, based on your contract and local legal issues.
Dear Gary,
Thanks for your inputs.
Dear All,
I need some more information in "PM consultant did not provide and does not like to provide EOT becasue of their delay and no resonble/identified handing over dates. How the contractor can complete the project and what about addional money and time ".
How to address this issue to owner or make it clear legally.
Thanks
G.Karthikeyan
A lot will depend on what the contract says, and possibly which legal jurisdiction the contract is administered under, but if you are abeyond contract completion date and some of the client obligations (e.g. handing over sections of the works) have not yet been met, and no EOT has been granted, then this sounds like a classic case of "Time at Large"
If Time is at Large, then your only obligation is to complete the works in a "reasonable" time period, and it is up to the client to prove that you have not done so should he wish to impose any penalty on you.
Your contract should outline procedures to follow in the event of a dispute. I can't advise you of that.
Email: PPadmin@planningplanet.com
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