I would go for a combination of both suggestions. Try and assist where possible at the same time look to carve out some of their work load (preferably something of a stand-alone nature - less problems with the liability issue as you have commissioning included).
The only other suggestion I would make is to remove some of their people from the work. If they are hindering the progress and not being proactive in trying to succeed then use your contract to get them out of the way.
You also need to get your upper management to engage theirs with more frequency than a sponsors meeting every three months or so. With seven months to go you need to show some urgency.
Provided that you have given sufficient notice to the Contractor and provided that he has not acted with sufficient response to your notices, then you must call upon the Performance Bond.
Use this money to engage other Contractors to carry out the work that is in delay. I suggest that you do not remove the defaulting Contractor from site, but he will have to work with any other Contractors that you have brought in to "help" him catch up with his schedule.
It may well be messy, but you only have less than seven months to do anything, and every day that passes makes it more difficult for any of your own measures to be effective.
I think Damian is right in his approach. Find out how you can help the contractor, after all you both want to get the work finished on time. If they dont or wont respond to this approach, then you will have to pressure them in the way Stuart described. The only thing you cant afford to do is take no action.
Regards
Chris Oggham
Member for
19 years 10 months
Member for19 years10 months
Submitted by Norzul Ibrahim on Thu, 2006-07-27 08:40
I have been in this situation, meeting is not the answer. The ideal way is drive them what to do today, control time and monitor closely by each ativities every day, ask the contractor to report their achievement every evening(have short meeting 1/2 hour). Another try to do double shift if required.
Try for one week what is the achievement. I hope this method will help.
Regards
Member for
19 years 10 months
Member for19 years10 months
Submitted by Norzul Ibrahim on Sat, 2006-07-08 12:10
fyi, this is an EPCC lump sum turnkey contract. The deadline (or what we call the provisional acceptance (PA)) of the project will be about 7 months from now. Yeah, we did send several letters starting with highlighting the potential delay, quoting contract requirements, and lately threatening with the LAD. Every week (for the past six months), during the weekly engineering meeting, weekly site progress meeting and weekly project management meeting the issue on schedule delay is clearly mentioned and highlighted to the contractor.
In addition, we had also the quarterly project sponsor meeting attended by the contractors and our board of directors. The issue on schedule was one of the top priorities.
Recovery plans, project risk assessments, monte carlo analysis, commitment from the contractors top management, promises, etc, etc....all seems not effective at the moment.
Member for
19 years 10 months
Member for19 years10 months
Submitted by Norzul Ibrahim on Sat, 2006-07-08 11:51
Are you telling us that because you have done nothing other than sit on your hands for eight weeks, the Contractors schedule has been allowed to slip further behind??
Actually its very difficult to understand the real problem if not elaborate or not self involve in that project but try to imagine.
Just an Idea, Define every interfacing point at site and analyse, then do the window schedule for each interfacing point, also what u can do take your schedule copy it to yourself include the interfacing activities in it with te duration and analyse the impact.
example:
pripority Area, Try minimize the scattered work, do the priority works first, identified how many person at each area then .
manpower skills, suppose can weld 40 dia inch per day but only 12 dia can achieve.
access, block by bulk material.
regards
Member for
19 years 10 months
Member for19 years10 months
Submitted by Norzul Ibrahim on Sat, 2006-07-08 01:44
On the other hand, while i agree with the above post, i think another step shall be donr before really commencing the work to other Contractor, thsi step is sending him a letter that his imperformance will delay his payment, but you have to check the Contract first.
Member for
19 years 10 months
Member for19 years10 months
Submitted by Norzul Ibrahim on Fri, 2006-05-26 06:09
First, you will probably have to give the Contractor a Default Notice in which you tell him to improve performance (be specific!!!) or that you will apply the contractual remedy of having the work that he cannot (or will not) do by others, and charge him the costs. Give him some time (10 days???) to comply.
If he shows no sign of improving, then send the Contractor a Change Order removing part of the Works from his workscope, and give it to someone else (it doesn’t have to be a big part of the Works, but enough to show that you mean business!). The Change Order should be valued at whatever the replacement Contractor’s costs are plus a modest percentage uplift.
Second, pull in part (not all) of his Performance Bond. That will shake him (and his Board of Directors!)
If neither of these tactics work, then you really do have a problem, and you may have to consider replacing him completely! And pull the balance of the Performance Bond!
The worst thing that YOU can do, is nothing, since your current situation will not improve!
Member for
21 years 5 monthsRE: What else can be done?
Narzul
I would go for a combination of both suggestions. Try and assist where possible at the same time look to carve out some of their work load (preferably something of a stand-alone nature - less problems with the liability issue as you have commissioning included).
The only other suggestion I would make is to remove some of their people from the work. If they are hindering the progress and not being proactive in trying to succeed then use your contract to get them out of the way.
You also need to get your upper management to engage theirs with more frequency than a sponsors meeting every three months or so. With seven months to go you need to show some urgency.
Member for
21 years 4 monthsRE: What else can be done?
Norzul,
Provided that you have given sufficient notice to the Contractor and provided that he has not acted with sufficient response to your notices, then you must call upon the Performance Bond.
Use this money to engage other Contractors to carry out the work that is in delay. I suggest that you do not remove the defaulting Contractor from site, but he will have to work with any other Contractors that you have brought in to "help" him catch up with his schedule.
It may well be messy, but you only have less than seven months to do anything, and every day that passes makes it more difficult for any of your own measures to be effective.
Hope this helps,
Stuart
www.rosmartin.com
Member for
21 years 5 monthsRE: What else can be done?
Hi Norzul,
I think Damian is right in his approach. Find out how you can help the contractor, after all you both want to get the work finished on time. If they dont or wont respond to this approach, then you will have to pressure them in the way Stuart described. The only thing you cant afford to do is take no action.
Regards
Chris Oggham
Member for
19 years 10 monthsRE: What else can be done?
main cause of delay, resources...knowledge also contribute
Member for
20 years 5 monthsRE: What else can be done?
Hi Norzul,
I have been in this situation, meeting is not the answer. The ideal way is drive them what to do today, control time and monitor closely by each ativities every day, ask the contractor to report their achievement every evening(have short meeting 1/2 hour). Another try to do double shift if required.
Try for one week what is the achievement. I hope this method will help.
Regards
Member for
19 years 10 monthsRE: What else can be done?
fyi, this is an EPCC lump sum turnkey contract. The deadline (or what we call the provisional acceptance (PA)) of the project will be about 7 months from now. Yeah, we did send several letters starting with highlighting the potential delay, quoting contract requirements, and lately threatening with the LAD. Every week (for the past six months), during the weekly engineering meeting, weekly site progress meeting and weekly project management meeting the issue on schedule delay is clearly mentioned and highlighted to the contractor.
In addition, we had also the quarterly project sponsor meeting attended by the contractors and our board of directors. The issue on schedule was one of the top priorities.
Recovery plans, project risk assessments, monte carlo analysis, commitment from the contractors top management, promises, etc, etc....all seems not effective at the moment.
Member for
19 years 10 monthsRE: What else can be done?
wish I could have a magic wand that could hit the contractor and everything goes back according to schedule..
Member for
21 years 4 monthsRE: What else can be done?
Norzul,
Are you telling us that because you have done nothing other than sit on your hands for eight weeks, the Contractors schedule has been allowed to slip further behind??
Cheers,
Stuart
www.rosmartin.com
Member for
20 years 1 monthRE: What else can be done?
Norzul
Assume you have followed MR Ness advice
Go to stage 2 and remove some work from them
PS make sure they have no excusese caused by you first
Member for
20 years 5 monthsRE: What else can be done?
Hi,
Actually its very difficult to understand the real problem if not elaborate or not self involve in that project but try to imagine.
Just an Idea, Define every interfacing point at site and analyse, then do the window schedule for each interfacing point, also what u can do take your schedule copy it to yourself include the interfacing activities in it with te duration and analyse the impact.
example:
pripority Area, Try minimize the scattered work, do the priority works first, identified how many person at each area then .
manpower skills, suppose can weld 40 dia inch per day but only 12 dia can achieve.
access, block by bulk material.
regards
Member for
19 years 10 monthsRE: What else can be done?
now the delay has increased from 6 to 7-8 weeks. This is based on optimistic schedule...
Member for
19 years 5 monthsRE: What else can be done?
hey Nourzel, what is the situation now?
update us please,
On the other hand, while i agree with the above post, i think another step shall be donr before really commencing the work to other Contractor, thsi step is sending him a letter that his imperformance will delay his payment, but you have to check the Contract first.
Member for
19 years 10 monthsRE: What else can be done?
Dear Stuart,
TQ very much...
norzul
Member for
21 years 4 monthsRE: What else can be done?
Norzul,
First, you will probably have to give the Contractor a Default Notice in which you tell him to improve performance (be specific!!!) or that you will apply the contractual remedy of having the work that he cannot (or will not) do by others, and charge him the costs. Give him some time (10 days???) to comply.
If he shows no sign of improving, then send the Contractor a Change Order removing part of the Works from his workscope, and give it to someone else (it doesn’t have to be a big part of the Works, but enough to show that you mean business!). The Change Order should be valued at whatever the replacement Contractor’s costs are plus a modest percentage uplift.
Second, pull in part (not all) of his Performance Bond. That will shake him (and his Board of Directors!)
If neither of these tactics work, then you really do have a problem, and you may have to consider replacing him completely! And pull the balance of the Performance Bond!
The worst thing that YOU can do, is nothing, since your current situation will not improve!
Good luck!
Stuart
www.rosmartin.com
Member for
20 years 5 monthsRE: What else can be done?
Try to trap/Block him under Monthly RA Bill
It is the only way u can really control him if u want instantenous action.
Member for
19 years 10 monthsRE: What else can be done?
yes we do have LAD clause due to schedule delay and fall short of performance guarantee.
Member for
19 years 11 monthsRE: What else can be done?
does contract foresees any punishment? in last case ...