Riad AlhammoudProject management| LanganAbu Dhabi, United Arab Emirates
In a small construction project with a 30 days duration. The client had sent a letter of award to the contractor to start the work while there is no any action from the contractor side since a week. What is the procedure that the project manager to take against the contractor ?
Send an email asking them to start the work with explaining them that they are held responsible for the delay mad, or an official warning letter. Saving Changes...
If it is a small project and your contractor has not started work 25% into the duration, I would start with a phone call. Email and "snail mail" isn't the first step. It could take a week or more just for them to respond, and you need answers before the project is due to finish.
Plan the specific questions you need addressed, such as can they absorb the schedule slide, and call them directly. They may want to set up a meeting to discuss with more people and facts. That is fine as hopefully they will be prepared with answers, but you need the back-and-forth dialogue to get a recovery plan in place quickly.
Absolutely follow up with an email to document the discussion in case their are disagreements. If they don't respond to your requests, then you have to start with more official communications regarding potential breach of contract. Saving Changes...
It must be specified what is the relationship of the contract. Does the client communicate directly with the contractor or the PM? The PM must be aware of what the communication channels are, must have knowledge of the schedule and when the contractor should initiate activities. If the delay of the contractor can not be recovered and the project is seriously affected and it is determined that the contractor is responsible, the PM should make use of clauses of breach of contract. If the delay does not seriously affect the project and the time can be recovered, the PM must address a warning to the contractor and discuss the actions to be followed and record the situation and the degree of responsibility that the contractor must assume. The level of communication with the contractor must be very well handled by the PM. Saving Changes...
I would first make verbal contact as the letter of awarding the contract could of got lost in the post. I would not escalate anything until you know why the contractor has not replied. One reasons could be that the contractor has not got all the resources in place to complete the contract and is stalling until such time as resources finish other projects and are freed up. This is one reason that I have seen for contractor not responding to the awarding of contract notice. Also in the meantime review the second and third best bid just in case the contractor falls through and cannot commence the contract. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Take a look about what the contract stated in this situation. Saving Changes...
RAJON BANERJEEKalyani, District: Nadia, West Bengal, India
Take a look of agreement & contract. Saving Changes...
If its a letter of award then no contract has been signed so there are no stated agreed terms and conditions. A letter of award is not a contract in itself so it looks for whatever reason a stalling mechanism by the contractor. It would be interesting if the contractor awarded the contract was the lowest price bid for the project. Saving Changes...
I agree with Daire. The contrat is possibly not signed. You may have to look at the RFP or proposal to better understand the situation. Saving Changes...
Khai Ng.IT PMO | IT Project Manager| TTGROUPHanoi, Viet Nam
I think the best way to solve this issue is to call for a face-to-face meeting with representative from contractor to uncover the reasons behind. Maybe because of the small project so they did not really care about it; they did not reserve resource for it. A letter of award is not an official contract so client will not be able to request them responsible for the delay as
Daire pointed out. Saving Changes...
