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Construction Law/Delay and Disruption Claim

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Question
Dear Sir
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?

Answer
Hi Surya

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.

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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