Deletion of scope of work

Dear Karim,



What actions have you taken so far?



Best,



Samer

Dear Karim,



If you can type the exact instructions in your Engineer’s letter, we can assist more.



Best Regards,



Samer

Karim,



Back to your first post –



“He [the Engineer/Employer] wants us [YOU] to advise about the time and cost impact of this alteration.



It sounds like the Engineer/Employer is asking for YOUR proposal as per Cl13.3. (Red Book) – he’s currently not seeking to try and impose something on you, he’s asking you what you think the effects are.



So first things, first - submit your proposal. Unless the landscaping works are on the critical path there will be no reduction in time required to complete the project, therefore your submission as per Cl 13.3(b) will show no change to the completion date.



If the works are on the critical path you will have to think about it a bit more but it’s possibly not an insurmountable problem if other events have caused delays, etc.



Then see what the reply is and go from there.

Dear Karim,



I would like to bring to your attention that in submitting you Cost for this variation, you will need to report the following on a monthly basis:



1. Direct Cost.

2. Site Overheads

3. Head Office overheads



Then you can report the profit based on the above cost. You will need to present all the supporting documents of course and then add the % profit.



Good luck,



Samer

Dear Karim,



Stay within the time frame for responses required by FIDIC. Otherwise, the Client can reject your claims and your job will become more difficult.



Yes you are correct, you will need to study the Time impact well and present it to your client. Try to use more than one method to study the impact.



The DAB is the cheapest method to solve disputes. Canceling it and going to another entity might be a local method to resolve disputes. The spirit of method on the other hand would be very similar. FIDIC calls its DAB, and your locals call it Chamber of Commerce. In essence, you will have a wise/ expert person for solving these issues. Make sure that you prepare for all the requirements of DAB while you study the requirements of the Chamber of Commerce.



Good luck,



Samer

Dear Karim,



You can also ask the Engineer to make a determination under clause 3.5. This is the first thing that a dispute board will be asking for in case that you want to take it into the next level.



Good Luck,



Samer

What if client is not sure, when he has to start the landscaping works? Consider the following classic example:



In one of the existing project in UAE, water level has increased from 1.8m to 0.6m. This is a major problem in low lying areas and because of which water is not draining out. It has resulted in creation of lake instead of a garden. May be because there is no sub-surface drainage. Client is now studying weather by just providing a perforated pipe and then connecting to sewarage line, will solve the problem or not. That means there will be change in teh sewarage netywork design. If sewarage network construction is already completed, then where water shud b discharged out?



Theren r lot of options, which client hav to look for. If its going to take time, then there is no point in giving them suspension of works instruction, and increase the contractors overhead and leading to further claim and so, building up more frustration for both contractor as well as client.



Neway, as far as karim’s query is concerned, post # 6 and post # 13 are more relevant.



Cheers,

Dear Karim,



If the development is going to end at one point in the future, and the Landscape works should be executed as per your scope of work, then it is prudent to issue a suspension of works under clause 8.8 instead of omission of your scope.



It depends on the time frame of course, but he basic idea is that your company has a Contract to complete that scope.



What is the best interest of both parties?



Best Regards,



Samer

Karim,



May i ask you on which development project u r working on??

Dear Karim,



Your client can not omit your scope of work and give it to another Contractor. This is a legal issue. You know that, correct?



Best Regards,



Samer

Dear Karim



You have not indicated whether the FIDIC contract has been amended by Conditions of Particular Application, which is very common. Accordingly I can only advise in respect of the standard provisions.



Pursuant to sub-clause 13.1 (Variation and Adjustment - Right to vary) of the FIDIC 1999 form of contract, variations may be initiated by the Engineer. I note your indication that the letter is from the Employer. If this is the case, perhaps the first action ought to be to confirm with the Engineer that this is intended as an Engineer’s variation.



A variation can be a change to exclude work (reference sub-clause 13.1(d)) and, pursuant to sub-clause 13.3 (variation procedure), the Contractor in the absence of a request for a proposal should be considering necessary modifications to the programme and evaluation of the Variation.



Omission of work can, in the proper circumstances, warrant a reduction in the Time for Completion. If you consider that it should not, I would suggest that you ought to be issuing a notification of claim pursuant to sub-clause 20.1 (CLAIMS, DISPUTE & ARBITRATION - CONTRACTOR’S CLAIM) and preparing your documentation to evidence that a reduction in the Time for Completion is not warranted, or is limited despite the extent of the proposed scope reduction.



This would apply even if the original Time for Completion has been extended under sub-clause 8.4(EXTENSION OF TIME FOR COMPLETION)



In my experience it is often the case that an earlier extension of Time has benefited both Parties by remedying what might otherwise have been a difficult situation of resolving the respective liabilities in circumstances where each Party has contributed to a delay. Does the potential reduction in time affect you in this way?





Best regards,

Rajeshkumar

(after discussed with experienced peoples)

Dear Karim,



You can use the following clauses in FIDIC 1999:



(1/7) Assignment: where both parties must agree to the reduction of the scope of work.



(8/3) Program: since the orginal program of works does not represent the current scope, you will need to submit a new program of works.



(13/3) Variation Procedure: Since the Engineer informed you with the requested reduction in scope, the Contractor must response as soon as possible with three actions:

a) Description of Works to be omitted.

b) Modification needed to Program of Works and its effect on the Duration of the Contract.

c) Contractor proposal for the cost of this variation.



Good luck,



Samer

The employer have full rights to delete some part of work

at the same time the contractor have rights to claim for General overheads & site Overheads for the full contract period

Dear Karim,



What are you going to do at site if your scope is reduced by 13%? You want to complete as quick as possible to reduce your overheads and close the project with a profit.



There are many different ways to ask for EOT, and you want to present what is favorable to you. And of course, the Client has the right to submit their own claims for a -ve time extension, if that is what they want, to handover the project at an earlier date.



It is better to work a plan to the agreement of all sides.



Good luck,



Samer

Hi Karim



My earlier response still holds - your EOT award sets your new contract completion date.



This cannot be reduced by ommission of work unless it is wrapped up in a new EOT claim for delaying events.



Best regards



Mike Testro

Hi Karim,



Plz check Clause 13.3: Variation procedure



First of all, variation can be a omission of part of works.



Employer can ask for a proposal showing time and cost impact for any omission of works.



The Contractor shall respond in writing as soon as practicable, either by giving reasons why he cannot comply by submitting a proposal for any modification to the programme according to Sub-Clause 8.3 and to the Time for Completion.



U just cant simply ask for the increase in duration for the remaning activities because u have float in your hand. You can either explain that equipemnets/resources are not available to do a particyular task before so and so date OR can prove that ommitted works are not in the critical path and so, there wont be any change in duratuion of the project.



But, yes, CLIENT can always ask for the proposal if a part of the works are omitted from the original scope of work, but it is not mandatory for a contractor to reduce the timeframe because of a ommission.



Cheers,



rav

Hi Karim,



Plz check Clause 13.3: Variation procedure



First of all, variation can be a omission of part of works.



Employer can ask for a proposal showing time and cost impact for any omission of works.



The Contractor shall respond in writing as soon as practicable, either by giving reasons why he cannot comply by submitting a proposal for any modification to the programme according to Sub-Clause 8.3 and to the Time for Completion.



U just cant simply ask for the increase in duration for the remaning activities because u have float in your hand. You can either explain that equipemnets/resources are not available to do a particyular task before so and so date OR can prove that ommitted works are not in the critical path and so, there wont be any change in duratuion of the project.



But, yes, Contractor can always ask for the proposal if a part of the works are omitted from the original scope of work, but it is not mandatory for a contractor to reduce the timeframe because of a ommission.



Cheers,



rav

Dear Karim,



For each project, you have the triple constraints; time, cost and scope.



If you have an approved schedule, and the deleted activities are Critical Path Activities, then deleting them will change the duration of the project.



The best option here is to do "As-Planned/ Impacted" analysis. Start with deleting every activity and checking the impact, and evaluate the final impacted schedule if it makes sense.



Good luck,



Samer

Hi Karim



The only way an ommission of works can reduce the contract period is when the ommission is taken into account when assessing an extension of time.



So the simple answer is - No EOT - No time reduction.



Best regards



Mike Testro