Farjad HasanProject Controls & Risk Manager| Bin Quraya Company Ltd.Saudi Arabia
It is reported to client that several number of workers were sitting idle due to the reasons which were only in client's control. Client is on the opinion that since the workers were engaged in other work so the lost man-hours can't be reported and claimed.
My point is this since the planned work could not be carried out for which the workers were allocated so there is a loss of man-hour in that particular work package which will account to overall negative variance, so the lost man-hour are claimable to client.
What do you think whats the correct way? Saving Changes...
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Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Farjad,
legally it depends on the type of contract, and this depends on your local legislation. T&M contracts may include the provision that the client is responsible to assign meaningful work to contractor staff who is present at the normal working hours. Then you could charge the hours. Since you are talking about work packages and variance, I assume you have a cost re-imbursable contract - this type normally assumes that only cost worked on the contract is billable. Check the contract and it's T&C and ask a lawyer.
Relationshipwise it is another story. Since your staff worked on something else, it is understandable that the client does not want to pay, it would look unfair. I would recommend to look for a relationship that does not need looking at contracts. Saving Changes...
Riad AlhammoudProject management| LanganAbu Dhabi, United Arab Emirates
Since the delay to deliver the work as planned is caused by the client so you should be eligible for time extension and cost impact/lost man hours. Saving Changes...
Luis BrancoCEO| Business Insight, Consultores de Gestão, LdªCarcavelos, Lisboa, Portugal
Dear Farjad
Interesting your question
Thanks for sharing
It's a subject that deserves to be considered between your company and the client's company from two perspectives:
1. Contract and type of contract
2. Relational
I am convinced that the outcome of a negotiation is always better than a judge's decision
When the judge decides, the client is usually lost. Saving Changes...
