Managing Project and Contract Management

Ahmad,

A Dam is a large construction project. Adding to Sergio comments, you need to see the contract with that contractor, get all change regarding that contract. Analyze what did append, what side is the cause for what. I currently completing a similar analysis for the office of the auditor general.

The key is in your title - Contract Management. To manage the contract you have to know the contract and the history of the contract. Does the contract remain enforceable? Have past decisions and acceptance essentially voided the terms of the contract? Has the owner caused the delays and how were those delays recognized? Have there been delay claims? Have there been requests for extensions (and approvals)? Has the initial scope changed?
You have essentially two options: 1) try to get the contract back on the rails through enforcement, or 2) start with a new slate - put the project past behind and start anew from where you are, renegotiate the contract to reflect the new reality and go forward. My guess is that either way its going to cost a tonne of money and considerable effort. Good luck.

Noted and yeah they think more delays will pay them more which is mot possible

The key is in your title - Contract Management. To manage the contract you have to know the contract and the history of the contract. Does the contract remain enforceable? Have past decisions and acceptance essentially voided the terms of the contract? Has the owner caused the delays and how were those delays recognized? Have there been delay claims? Have there been requests for extensions (and approvals)? Has the initial scope changed?
You have essentially two options: 1) try to get the contract back on the rails through enforcement, or 2) start with a new slate - put the project past behind and start anew from where you are, renegotiate the contract to reflect the new reality and go forward. My guess is that either way its going to cost a tonne of money and considerable effort. Good luck.

Noted and yeah they think more delays will pay them more which is mot possible

When you say "... is not possible", is it not possible because of the terms of the contract OR because funding is limited? The contract rules. Unless there is a specific condition in the contract that ties it to available funding the contractor can and will submit claims which will be successful if validated regardless of funding limitations. "I have no money" is not a recognized defense.

Is the contract time and material?
You need to see if they have contractual conditions to increase your cost for the same work in more time.

hi Ahmad

I would suggest get a member of your Legal and Procurement team to look at this contract terms and conditions in minute details and see how you can address the contractor issue.

If your legal team says that the contractor is entitled to extra money to finish the work , you then need to approach your sponsor to release the additional funds and help complete the project.

You may not be able to do a lot of Forensic work on what went wrong and why the delay and it is not suggested to use up your valuable time in doing so. It is now important for you to complete the project and close this contract.

It may end up being a meeting between you , the legal and procurement team and this contractor to try and arbitrate and resolve the issue .

If arbitration or negotiation does not resolve it , a formal letter of dispute resolution from your legal team to this contractor may be the way to go.