Hi,
How to deal with the inexusable delay if the contractor does not deserve extension of time and money compensation? I mean if the contractor does not deserve the EOTand he can not meet the completion date, what does the owner do?
best,
Muataz
Inexusable Delay
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Thank you for this thread that helped brainstorming about anomalies in schedules such as inexcusable delays.
Also remember that they fall under agreed damages clauses which can vary from...
- liquidated damages
- penalty damages
- unliquidated damages
- ascertained damages [...]
If you are late there should be no punition on you (in general it is not enforceable except if it was enclosed in the contract; the enforceability goes case by case).
"Logically", it is the contractor's responsability to inform the owner as soon as any possible delay pops out.
The owner can recover through LAD calculations and substractions.
If there was no information, look back at the contract's specifications and deliver the work according to Mike's and Zoltan's tips which put forward (i) communication, (ii) courtesy and (iii) 'rational' calculations.
glad we could help
Thanks Zoltan and Mike, clear
Hi Moutaz
As well as the advice given by Zoltan a lot depends on whether the Contractor has passed the completion date.
If not then ask for a recovery programme.
If yes then
1. Send a Notice of Non Completion.
2. Deduct LAD's
Best regards
Mike T.
1. Ask for a recovery schedule
2. issue a cure letter (look it up)
3. withhold retention on the progress payment equal to the number of days that he is behind times the liquidated damages amount.
say he is behind 20 days and the lquidated damages is $1,000/per day then 20*$1,000 =$20,000