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Construction Law/Delay in Site Handover

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Question
Hi Mike

I am working in Saudi Arabia on a Large Airport project.Client is a Semi Govt Entity.Contractually we were suppose to be handed over the site within 60 days of award of contract.Contract was awarded in April this year.However till date we have no access to site.Contract Simply mentions Contractor to put forward claim if Employer is in breach of Contract.However there is no exact mechanism.We are working on bespoke terms of Contract governed by Saudi Procurement and Tender Laws.

My Question is what Claim we can put forward.which costs should we include besides office rent, staff salaries, office overheads etc.....Please Advise

Answer
Hi Saifee.
This is very similar to a suspension of the works - so if your contract allows you may consider that route to put some pressure on the employer.
Alternatively if the Contract Completion Date is linked to possession of the site then you should be claiming an extension of time for completion.
Start the process now and roll out the notices until you get possession.
If you have already set up a site establishment while waiting for possession you can claim for the cost that has been directly incurred.
If you have staff sitting around in the cabin then you have to prove that there was no other deployment available elsewhere AND that they are essential for start up when it happens - you cannot just pad out the costs without just cause.
You should also give warning that engaged sub-contractors may not be ready for an immediate start if they have taken on work elsewhere.
You should be using this time to finalise design and procurement items so that you are ready to hit the deck running when you do get permission.
Other cost claim heads that you can flag up for the late start include:
1. Increased costs of materials due to late placing of orders.
2. Increased labour rates
3. Work shifting into hot weather / Ramadan periods
4. Change in exchange rates for cash flow.
Best regards
Mike Testro

Construction Law

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Mike Testro

Expertise

Anything related to extensions of time and delay analysis.

Experience

45 years in the Construction Industry 15 Years as a consultant delay analyst - I now hold myself to be expert in this field.

Organizations
Society of Construction Law Adjudication Society ex Planning Engineers Organisation

Publications
6 articles on the relevance of the India Contract Act 1872 and its relevance to modern construction in India. Waiting Publication

Education/Credentials
Associate Member of the Institue of Building

Past/Present Clients
Currently employed in India by Punj Lloyd as expert delay analyst. Engaged in ongoing arbitrations and EoT claims. Prior an Indepenent consultant in delay analysis.

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