varion and account force

Member for

19 years 10 months

Hi Prastya

Your cost heads on acceleration would be:

1.  Non productive overtime for tradesmen.

2.  Increase in supervision

3.  Productivity drop for:

3.1  Excessive hours per week

3.2  Overcrowded work space

Note: this could be around 5 to 8% productivity drop.

4. Optimum gang make up - imbalance: ie before 3 masons to 1 labourer > now 5 masons to 2 labourers.

5.  Similarly extra plant and facilities provisions.

6.  Purchase of materials - increased costs for accelerated supply.

7.  Extra recruitment costs - deployment and induction time.

Your cost heads on delay would be the usual extra time of deployment of site staff - facilities and dedicated plant.

Best regards

Mike Testroo

Member for

13 years 6 months

hi chris and mike

thank you for your replay, my instruction is valid and my project is EPC contract, i will try to made the calculation for that as your your suggest to me.

Member for

19 years 10 months

Hi Prastya

Not many forms of contract give the Employer the right to order an acceleration - so check if the instruction to accelerate is valid.

if it is a valid instruction then you have two possible claim heads.

1. Loss of productivity on the accelerated building.

2. Further delay and extension costs on the delayed building.

If it is not a valid instruction then you do not have to act upon it but you can negotiate a new agreement outside the contract - for both buildings.

Best regards

Mike Testro