Muhammad AliSr. Planning | Hitachi Rail STS AustraliaTalagang, Punjab, Pakistan
What should be included in the "suspension plan". The Contractor is in breach of the contract, and a notice was sent to him that the subcontractor will be suspending all the works if the breach of the contract is not addressed. No action has been taken from the Contractor. So, the subcontractor is proceeding with the suspensions of work. as per the contract, the subcontractor shall be submitting a "suspension plan". So, my question is, what should be the part of the "suspension Plan"? Saving Changes...
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Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
It should outline the reason for the suspension, how the suspension will occur (activities and schedule), and what it will take to lift the suspension. Saving Changes...
To add to Stéphane's feedback, I'd want it to also clearly articulate the communication channels over the suspension period - e.g. who is the primary point of contact, what escalation options are available.
And it goes without saying that this should be a formal, written document with signatures from all key stakeholders.
Kiron Saving Changes...
Peter RapinSubject Matter Expect; Project Delivery| Independent ConsultantOntario, Canada
First a warning: ultimately the negotiations, court action and resolution will revolve around the alleged breach. If the subcontractor suspends without being able to prove breach on the part of the contractor, the sub will be exposed to all damages, not only from the contractor but also the Owner.
The suspension plan may want to identify alternative action to suspension, action which may have lesser impact on the project. Try to find a solution without threat of disruption. You want to avoid full conflict mode if at all possible. Don't forget the objective - to mitigate damages. Saving Changes...
Luis BrancoCEO| Business Insight, Consultores de Gestão, LdªCarcavelos, Lisboa, Portugal
Dear Muhammad
Interesting your question
Thanks for sharing
I am of the same opinion as Peter:
"Try to find a solution without threat of disruption. You want to avoid full conflict mode if at all possible. Don't forget the objective - to mitigate damages" Saving Changes...
Muhammad AliSr. Planning | Hitachi Rail STS AustraliaTalagang, Punjab, Pakistan
Thanks everyone for your input.
An advance notice of suspension was already sent, which outlines the required actions from the contractors.
As mentioned by Peter and Luis, by all means the intention of the sub contractor is to avoid conflict and mitigate all the damages.
As the contract allows the suspension in case of the breach pf contract by the contractor, the subcontractor has no option but to proceed with the suspension.
What I was thinking to include in the suspension plan is
. Date when the suspension will start
.available resources/services during suspension
.unavailable resources/ services during suspension
.intention to claim additional cost of re-mobilization in case we have to
Each legal jurisdiction has their own written and interpretation of the law so you should always consult with a legal council before you implement any suspension plan. A simple typo, missing key text or how and to whom the suspension plan is served to could be a case in court for the subcontractor in which you could be the losing party.
My first question would be, if the contractor is in breach of contract, why are you only implementing a suspension plan and not a termination of contract?
Secondly, in the notice sent to the contractor, how did you address escalation of breach of contract if failure to comply by contractor was the resulting action apart from the suspension plan?
Also your question asks what should be "part" of the suspension plan as opposed to what should be contained in the suspension plan. Does this mean you already have written the suspension plan and are asking what supporting documentation should be included with the suspension plan?
Some contracts are automatically invalid if the contractor fails to agree to the terms of the contract and thus nulls the contract. If you want the contractor to still continue to be on the project you will need to draw up new contracts and agreed terms and conditions.
