Construction Law/Claim against idle of resources
As a principle contractor I am involved in a housing project in India worth of nearly 70 million USD. I am trying to identify and establish "Claim against Idle of resources" for several reasons not attributable to us so that amount could be asked for compensation. The project belongs to Govt of India and there is no clear provision in the contract. How can I establish such claim logically , what steps should I need to follow - if you kindly advise ,
Thanks & Regards -
Your situation is common when you quote a price for work to be paid by a rate of productivity and you pay for it by way of hourly wages - usually known as disruption.
One possibility is that your price was too low to start with which is the normal defence for not paying any extra.
You cannot just say this was my price and this is my costs so pay the difference - you have to show cause and effect was due to the client.
Proving your entitlement is never easy but it can be done if you have good records of labour deployment and a detailed construction programme approved before you started work.
Step 1 Is to create a schedule of everything that your client did to cause a delay and relate it to work that was in progress at that time.
Step 2 If you have a detailed construction programme then link the delay events onto the programme tasks to see how your progress was disrupted - this may also show an entitlement to an EoT.
If you do not have a detailed programme then you will have to create one retrospectively - but do this BEFORE you create the list of events otherwise you will be charged with rigging the result.
Step 3. Look for patterns of events and delays - if you have a period when there were very few delay events then link that period to the wages records to show what production you achieved without disruption. This is usually called a "Measured Mile".
Step 4 Compare this to other periods where there were a lot of delay events and disruption and you can start to correlate cause and effects of delay events and low productivity.
Step 5 Calculate the Idle Hours from this comparison.
You will not recover everything because your price will b e deemed to include normal Idle hours that is built into your contract total - usually about 20%.
I wish you the best of luck with your claim against the government of India - in my experience getting any money out of them will take years and end in a High Court Case.
If you need any further professional help in planning or recovering costs then please get in touch email@example.com or check my linked in profile.