Dear Friends,
I am working in MEP contractor company in dubai.We got a project in Fujaira which started on oct 2010.It is 18 months project which is to be completed by MAR 2012.Main contractor revised the baseline program & submitted to us. When i reviewed the program, i found that the project has been extended for 3 months.As per contract we got 18 months for the work completion. In this case what we have to do?
Regards,
MOHAMMED SAUD
Hi Mohammed,
You can not accept the revised baseline from your contractor unless you have the blessing from your project sponsor / client as the delay suggested by the contractor will mean a revised scope to the proposed works (delivering the programme late). Be very careful and ensure that the change has been accepted and subject to due process otherwise the project will not meet the expectations of the client and will invariably incur extra cost.
An updated schedule is not the same as a revised baseline, assuming the submitted was clearly a revised baseline.
From: www.ronwinterconsulting.com/rabaseline.htm
The acceptance of a Baseline Schedule legally constitutes an amendment to the basic contract.
BE CARFUL BEFORE ACCEPTING OR REJECTING THE BASELINE SCHEDULE.
Make clear what pending EOT and/or Claims are included and which are left out. This applies also to contractual, intermediate milestones dates.
Please note the above is a general rule in US jurisdictions, perhaps in the absence of a contractual clause stating it is not binding.
A wrong determination might mean you are giving time for free or if you insist on a date without due consideration to pending claims then it might represent a Directive for Acceleration and you might be liable for such a claim.