varion and account force

Dear All,

I am prastya from indonesia

If the owner request to acceleration for one building (BSDG) of CFSPP project (not incritical path) but the other building incritical path still on going and the building have already delayed from schedule. Some manpower and equipment from jobs at critical path used to the BSDG acceleration. as this matter my company proposed claim to owner regarding acceleration, what the best explanation to owner for this claim?

I highly appreciate yours prompt reply

Regards,

prastya

 

 

 

M
Mike Testro 👤 Member for 20 years 5 months

Hi Prastya

Your cost heads on acceleration would be:

1.  Non productive overtime for tradesmen.

2.  Increase in supervision

3.  Productivity drop for:

3.1  Excessive hours per week

3.2  Overcrowded work space

Note: this could be around 5 to 8% productivity drop.

4. Optimum gang make up - imbalance: ie before 3 masons to 1 labourer > now 5 masons to 2 labourers.

5.  Similarly extra plant and facilities provisions.

6.  Purchase of materials - increased costs for accelerated supply.

7.  Extra recruitment costs - deployment and induction time.

Your cost heads on delay would be the usual extra time of deployment of site staff - facilities and dedicated plant.

Best regards

Mike Testroo

D
dwi jaka prastya 👤 Member for 14 years 1 month

hi chris and mike

thank you for your replay, my instruction is valid and my project is EPC contract, i will try to made the calculation for that as your your suggest to me.

M
Mike Testro 👤 Member for 20 years 5 months

Hi Prastya

Not many forms of contract give the Employer the right to order an acceleration - so check if the instruction to accelerate is valid.

if it is a valid instruction then you have two possible claim heads.

1. Loss of productivity on the accelerated building.

2. Further delay and extension costs on the delayed building.

If it is not a valid instruction then you do not have to act upon it but you can negotiate a new agreement outside the contract - for both buildings.

Best regards

Mike Testro

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