IACCM Contract Management Forum

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2017-09-24 22:01:31

Failure to implement a variation

Based on the facts, that a VO was agreed for both time, cost and a date for implementation.

If the VO was not implemented on the agreed date by a contractor, is there a recourse for principal to pass costs [ ie take over that portion of the scope] on to the contractor.
 •   2017-09-26 04:55:06

The answer depends on the exact wordings of the variation order. Does it explicitly provides that principal can take over that portion of work not done / delayed by contractor, at the cost and risk of contractor? It also depends upon the nature of work. Generally contracts provide for such an eventuality by giving notice (30 days or so) to contractor.
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