Hi all,
I am extremely confused with the term contract programme. Below the scenario, please help.
I am currently working as a nominated specialist subcontractor on a building project.
Based on letter of award, it specifics that we are suppose to work towards this contract milestone. However the defined milestones doesn't specific our start and completion date, instead the milestones are for the structural main contractor.
It states the milestone for dismantle of tower crane, man hoist, completion date of building for the main contractor. Thus we prepare a tender programme (REV A) to dovetail to these milestone at tender stage without any reply or consent from the client.
The problem came during the contract signing stage, that was like 5 months later which begin the regularization of work. According to contract, we are suppose to submit a contract programme within 7 days of contract signing. The contract programme (REV B) we submitted is block shift accordingly to the tender programme (REV A) by 5 months. Again no response from the client.
However contract milestone for main contractor remain the same. REV B submitted show our work finish after dismantle of tower crane and after their TOP inspection which is simply out of logic.
My question is contractually where do my company stand?
Can I say REV A is our contractual basis and due to late award we are entitled to block shift accordingly which none is formally recognised. If there are risk to LD, what is this link to ? I have no subcontract completion in my contract.
Kindly assist.
Hi CH
I am assuming that there is some sort of interface between construction phases and your subcontract work so that anything that will delay the start of your phases will automatically delay your start and all subsequent stage starts.
If however you only have one start interface and you are on your own from that point then it is much simpler - if your single start date is delayed because the interface was not ready then ypur single finish date will be delayed commensurately.
Time at Large is a simple principle that is based on the fact that the sole purpose of the extension of time clause in any contract is to protect the employers right to levy LD's.
If there is no EoT clause and the Employer delays the work then he cannot award an EoT for his own breach so time is Set at Large - it follows the principle of unjust enrichment whereby one party to the contract cannot gain by way of his own breach.
When time is set at large the delayed party has a "Reasonable Time" to complete which then has to be demonstrated - usually by fact.
The same thing is triggered if you make a justified claim and it is ignored - if you get a reasoned rejection then you are in dispute territory.
Also if your work is rendered impossible by premature removal of the tower crane then you have the option to void the contract when time may be set at large.
Beware however the difference of Impossible and More Difficult.
But beware that you do not tarry wthe work when time is at large because if your final completion date is found to be unreasonable then the damages to the employer are not liquidated but they become at large too.
Best regards
Mike Testro
Hi
Thanks Mike.
My company has no proper programme management and contract management at all. This is diaster when I am expected to claim EOT, where there's no basis.
Can you briefly explain the term Time is now set at large ?
For risk of LD, what will be the trigger point be ? I have no specific sub-contract completion date in my LOA. I am assuming it has to be the completion date as indicated in REV B which I submitted as contract programme
Br
Lim CH
Hi CH
I should have read this before answering you later query.
It seems you are in a bit of a mess programme wise - it also seems that you have no agreed programme.
It appears that the tower crane is an essential element to your work and the main contractor is intending to dismantle it before you finish.
Your programme REV B represents the reality of the late start so use that to demonstrate your current situation.
Link your end date to the removal of the tower crane and resubmit with a notice that the delay is not your making.
Include a phrase such as "premature removal of the crane would render our work impossible to complete" - and that will lead to a later statement that "Time is now Set at Large".
Good luck and keep in touch.
Best regards
Mike Testro