Q5.
The project is a ‘drive-through’ fast food restaurant with much of the
construction undertaken off Site in modules. The work has been procured
under ECC Option A and secondary Options X2, X6, X7 and X20 are
incorporated.
Time is critical and the Client wants the restaurant open as soon as
possible. The contract strategy contains both delay damages and a bonus
for early Completion.
The Contractor has just submitted its second programme which shows
that planned Completion will be after the Completion Date due to delays
in the factories manufacturing the modules. The Project Manager expects
that the Client will be extremely concerned by this.
a. What should have occurred before the programme (showing
that the Contractor will be late) was submitted? Also, should
the Project Manager accept the programme?
[5 marks]
A few months later the Contractor has brought the project back on track.
Its latest programme shows planned Completion prior to the Completion
Date. The Client sees the programme and wants to add in additional
landscaping works which will be on the critical path.
b. What would the effect be on planned Completion and the
Completion Date by including the additional work and which
clauses confirm this?
[3 marks]
The Client decides not to instruct the additional work but wants
confidence in the earlier Completion by the Contractor. This will allow the
initial staff training and familiarisation to be planned.
c. Can the Completion Date be brought forward and can this be
forced upon the Contractor? Is this a compensation event?
[4 marks]
The original Scope stated that the Client wanted to use the restaurant to
train staff before Completion. The staff are now on Site much to the
annoyance of the Contractor. The Contractor notifies a compensation
event.
d. Is this a compensation event? Would it be a compensation
event if the original Scope did not mention the requirement?
[6 marks]
Towards the end of the project, the Contractor has a number of problems
with Subcontractors and ultimately the project is two weeks late. The
specialist installing point of sale equipment and safes (employed by
the Client) has a small window of opportunity when it can do the work. If it
does not undertake the work in the next week it will be six months before
it is back in the same country.
e. If the specialist does the work after the Completion Date
(the Contractor is two weeks late) is it a compensation event?
What steps might the Project Manager take to mitigate the
impact?
[7 marks]
