You are here:

Construction Law/Disruption costs and Time Schedule/float

Advertisement


Question
Dear Mr. Peter

If a Contractor claims for disruption costs (which is allowed for in the contract) which he has already incurred due to interruption happened to his equipment and man-power and stopped his work on site and such interruption is attributable to the Employer, logically, legally and practically, shall he be entitled to this claim in the following cases:
1- Checking the Base-line time Schedule, I found out that the early start date of the activity interrupted has not come yet?
2- The early start date has come but there is some float in this activity? i.e. Who has the right to make use of the float time, Employer or Contractor?

I am the Engineer CA and i need your reply for the both cases please.

Thank you Sir

Answer
Dear Khaled,

Difficult questions and the jury is divided.  As always the Contractor has to prove his case.  Disruption cases are always difficult, unless the contractor has really really good paperwork.  

1.  You seem to imply that the Contractor had started the activity early.  We are not talking about an EoT but extra costs arising out of disruption due to the Employer's actions or inactions.  The fact that the work has started earlier than expected by the Base-line Time Schedule is irrelevant.  

2. The general view now is that float belongs to the project and it is a case of first come first served.  

There is a good paper published by the Society of Construction Law on the costs of delay and disruption if you google 'construction cost of delay and disruption'  

Construction Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


Peter M. Elliott

Expertise

First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol www.eotprotocol.com before submitting a question.

Experience

Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Organizations
Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

Education/Credentials
B Sc(Hons) in Civil Engineering

©2016 About.com. All rights reserved.