Construction Law/Delay and Disruption Claim
My Question is as follow;
We are using FIDIC 1987 red book, for Hydropower Project in Nepal. Project is supposed to be completed on May9, 2011 but due to design change in powerhouse and squeezing problem in headrace tunnel, Project is extended i.e EoT is given to the contractor till May 10, 2015. The contractor claimed prolongation as well as disruption cost. if both are given to the contractor than duplication of claim will happen. Under the situation, how can prolongation and disruption cost is separated and finalized?
First you must check if the Contractor has caused any delay by his own default and then check if his delays are concurrent with the events that lead to the EoT award. If there are concurrent contractor delays then any costs will be affected.
Prolongation and disruption are two different calculations and there should be no overlapping.
The prolongation costs are a simple linear calculation of the cost of running the site "prelims" for each week of a delay event.
Disruption is different and much harder to establish.
First the Contractor has to show that he has expended costs on disrupted work. This only applies if he has his own directly employed labour. If the work has been sub-contracted then it is not the Contractor who has paid for the disruption so he has no claim.
In calculating the cost of disruption the Contractor cannot just state what his costs are and deduct the comparable value in his tender - that is a global claim.
He has to show the cost arising from each delay event and that is not easy.
I have a paper on "Disruption for Subbies" which can be downloaded from my website www.expertdelayanalysis.com for £20.00.