Construction Law/Idle Cost Claim

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Question
Dear Alina
Please comment, what type of method(s) shall be used for calculation of delay cost claim?
Is it logically not correct to use Day Work Schedule for Labour and Equipments rates, in respect of calculation of idle cost claim? Because these rates are given in the contract.
Is it necessary to use Construction Equipment Ownership and Operating Expense Schedule of U.S. Army Corps of Engineers for idle equipment cost claim?

regards
jawaid

Answer
Hi, Jawaid,
The Dayworks are meant to be used for minor works. When claiming the delay costs, it os about Costs as defined in 1.1.4.3: "Cost means all expenditure reasonably incurred (or to be incurred) by the Contractor, whether on or off the Site, including overhead and similar charges, but does not include profit."
Therefore, the actual supplementary costs, as defined in 1.1.4.3, incurred because of the delay caused by the Employer should be proven and asked in a claim.
In a claim, it is about actual costs, not calculated amounts.
Different methods to estimate the value of a (delay) claim can be used - could be, also, those mentioned by you - but when claiming or accepting a claim the actual Costs are to be considered.
Hope it helps.
Best regards,
Alina

Construction Law

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Alina Valentina Oprea

Expertise

I can answer to questions regarding FIDIC 1999 contracts, including practical use of these conditions of contract, as well as to questions regarding dispute boards, both from theoretical and practical point of view. I cannot answer to questions related to other kind of contracts or to procurement process, except to some (limited) extent.

Experience

Implementation of works contracts (FIDIC 1999) financed by different financial institutions, including European Union; claims and disputes; dispute boards See more on www.alinaoprea.com

Organizations
Dispute Resolution Board Foundation

Publications
see http://alinaoprea.com/publications/ ; DRBF Forum Newsletter; Drumuri si Poduri; Revista Constructiilor; SIDiR Newsletter

Education/Credentials
Graduated the University of Civil Engineering Bucharest, Faculty of Railways, Roads and Bridges (1985-1990); Trained under Mr. Gwyn Owen’s pupilage program for arbitrators/adjudicators under FIDIC mentoring program (2006 – 2007)

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