Unforeseen Obstruction at Site

Member for

17 years 4 months

Thanks Mike and Raymund,

Sorry for late. I was out of office.

Mike: In the Contract it is not clearly mentioned who owns the risk of unforeseen obstruction. Instead it is mentioned that for the awarded scope of works as per tender/contract drawings, it will be the responsibility of the Contractor to rerout the existing utilities (if required).

Raymund: If the rerouting works is added to the Contract baseline programme(with enough float), it will not impact the Contract completion date. Delay will be reflected after considering the actual start of the work by Contractor.

The Contract should give proper justification for the late start of that activity. The available float was reduced, just before the starting of the event- because the Contractor didn't assign the resources as per the baseline.

So I think the parties should go for a compromise on the delay days.

Best Regards

Kannan

Member for

15 years 11 months

Mike,

During the Planning and Scheduling of Activities, the contractor is solely responsible in calculating and allocating the Labor required for a certain activity. The contractor may prolong or shorten duration of activity in respect to their capacity or availability of Resource.

If an activity schedule can be delayed to a certain period it is the contractor’s discretion. The Contractor planned and scheduled the project based on what they possess.

Regards,

Member for

19 years 10 months

Hi Raymund

What is your authority on the different "ownership" of total and free float?

I have never come across this distinction before so I am interested to learn.

If as you say the Project owns the float then by what right does the Contractor take use of it for his own purposes.

Best regards

Mike Testro

Member for

15 years 11 months

Hi Kannan,

In my own Opinion.

The Total Float of the entire Project or it may be termed as Buffer Time is owned by Both the Owner and Contractor while Total float or Free Float for individual Activity is owned solely by the Contractor.

There are some valid reasons in the delay of start of an activity which is sometimes beyond the contractor's control.

The Site have to be Handed Over to Contractor free of obstructions. Rerouting of all existing underground services shall have been done prior to Issuance of Notice to Proceed.

I assume that the entire Project was disturbed with the presence of the Unforseen.

Therefore, the re-routing duration shall be added to the Contract Project Duration.

 

Regards,

Member for

19 years 10 months

Hi Kannan

This is the perrenial question "Who Owns the Float" and have to say that the Employer has a point.

Other things to consider are:

1. Who carries the risk of unknown underground obstructions in the contract. (see FIDIC clause 14)

2. Should a reasonable contractor investigate for live services - declared or not - before starting any excavations.

I have just completed a delay analysis on a similar situation where the unknown service diversion stopped piling works - but that was on the critical path. The Employer awarded a full EoT.

If there was available float then the result would have been different.

Best regards

Mike Testro