Imminent Contract Execution with insufficient escalation costs and time baseline - what should l do as the Contract Manager?
We are nearing the end of the bid period for a major alliance project, and it would now appear that there is a high likelihood of the project requiring an additional 6 to 12 months to deliver based upon their project directors opinion. In addition, the escalation cost built into the bid appears low and I know that considerable portions of our costs are escalating at 4% to 5% per annum. Our bid team advised that the escalation costs were calculated by the other alliance partners. Our Project Director wants to submit the bid as presented for Board endorsement and doesn't want to delay commencement of the project. Any advice would be greatly appreciated.......