Firm foundations year in review_19-01-16_FB

the parties, and any slip up would amount to a breach of contract that will allow a claim for damages if the disgruntled party can prove additional costs and/or delay to completion. This can go both ways and it is not always the employer who suffers. From the employer’s perspective, the programme sets out the steps and time it will take to complete the various components of the works. On the other hand, since the contractor develops the programme, he will know the employer’s expectations throughout the build period as these will be set out in the programme. However having the programme as a part of the contract documents can impose additional obligations and responsibilities for both the employer and the contractor. This can result in a higher contract sum, a higher propensity for disputes and delay in achieving milestone dates. If the contractor is in breach of the programme he can be liable for liquidated damages. If the employer is in breach the contractor could be entitled to an extension of time and cost. Therefore it is important to think carefully about whether the programme should be incorporated into the building contract. application for an extension of time to the employer’s project management team, which is unaccompanied by any supporting programme, or programme information is supplied with an application, but can’t be tracked against previous versions of the programme. Alternatively a programme may have been prepared solely to justify Effective working arrangements All too often a contractor submits an

the submitted application but lacks any objective data. Unfortunately this practice is common, given the adversarial approach of the construction industry in certain jurisdictions. Equally it’s probably not surprising that a contractor may be reluctant to supply information that might reveal its own contribution to the delay in question. Meanwhile the employer’s project management team, faced with such an application and thin programme information, can often simply put off reaching a decision acceptable to both parties in order to encourage continued focus on the project, while holding out for more information to support the application. It’s fair to say that the likelihood of disputes increases by engaging in this practice. By postponing an extension of time award, the unresolved part of the entitlement will continue to accumulate. By the end of the works, the employer is looking at a substantial claim. Given its complexity, a claim of this type is more difficult to compromise. However, by granting an extension, the early resolution of disputes of this nature can be facilitated if the parties, at an early stage, exchange their respective delay analyses for assessment, thus revealing the strengths and weaknesses in each. Without satisfactory programmes in the hands of both parties, it is difficult for this process to take place.

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