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IACCM Contract Management Forum

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ATCO Electric
2019-09-10 14:54:12

Acceleration Claims Vs Delay Backcharges

Did someone face a situation for a construction contract, when contract has submitted claims for delays from Owner and acceleration efforts, and on the other hand Owner wants to backcharge contractor for delays penalty and additional management expense to expedite and overall delay in the completion of the project.

Another question, if contract terms stipulate clearly that any delay form clients' of the owner is not owner's responsibility, then acceleration effort to recover these delays is payable by owner or contractor.
 
 •  Air Liquide  •   2019-09-19 05:26:46
1) Yes. It often happens when the parties reject delay and extra costs to each other. It also happens that each party terminates the contract because of the the other party breaches.

2) Provided that this clause is valid (client's client delay is not client's responsibility), I would depend of the existence of a "time is of the essence clause" and upon the governing law.
 
 
 •  Rajit Padmakant Consultants Pvt Ltd  •   2019-09-21 08:34:54
1. Reply - Yes It happens when contractor's payment is to be made based on milestone basis and where delay from contractor's side concurrently delay from employer's side also during contract administration stage both parities contracts manager and PM don't sit to-gather to establish the delay attributed to which party, on other hand employer want the work to be completed with in laid completion dates. with found delay employ deploys third party manpower to complete work and adjust this cost from Contractor's Accounts under Employer's Claims.

2. Reply - can be replied based on type of contract is formed.

You can reach me offline over the email: pm@rpcpl.com (Rajit Shah - Founder and Director, RPCPL)
 
 
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