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Construction Law/Delay in progress, claim

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Question
Dear Sir,

I am working on construction plant where we have deployed subcontractors in which one of the Subcontractors submitted claim due progress delay.
As per Subcontract Agreement Contractor has to provide certain materials as per schedule and failed in providing the same and delay has been occurred, the Subcontractor submit a claim asking for loss of productivity due to Contractor's delays in providing the material on time,
But the project has sufficient time to complete in its completion target almost a year, my question is that since Subcontractor has not substantiate any delays only base on planed manpower to the lost manpower ratio he created a huge amount against direct works ( direct labors) and to the indirect cost, is it the right claim without substantiation of any delays and approval of EOT etc. and if contractor is on default then Subcontractor has rights to claim against prolongation cost and loss of productivity after EOT grants as a prolongation cost what I understand and further he warned to stop the works if there is no satisfactory conclusion. Please advise me.

Answer
Dear Mohd

Thanks for your question.

You need to proove that the delay which has occured can be compensated by using float already available in the programme and as such there wont be any delay in overall completion of the Project.

If you as a Main Contractor have been notified or threatened by the Engineer/Employer to induce Delay Damages, then this sub-contractor might be trying to get himself out of any such delays.....but if there are no recorded events which can delay overall completion of the project and any minor delays can be mitigated; I do not think you have any obligation to pay such claim to that SC.

Hope this helps otherwise please revert with a folloup question with more details.

Thanks

Manish Gupta

Construction Law

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Manish Gupta

Expertise

I can answer questions related to Cost Planning, Contract Administration, Construction Law & Other Post Contract QS related areas.

Experience

7 Years with Contractors 12 plus Years with Owners & Consultants

Organizations
Calgary Project Consultants, Jacobs International, Turner International, J Ray McDermott Inc. Hindustan Construction Company

Education/Credentials
MRICS, MCIArb, BE (Civil), PGDCM LLM-Constuction Law in Arbitration and Adjudication

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