Narender KumarDelivery Head| L&T Technologies ServicesDelhi, Delhi, India
Is it possible to claim overheads due to time overrun during project execution which is attributed to other agencies / client himself even if it is not mentioned OR doesn't permitted in contract agreement? Saving Changes...
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Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
I will answer based in what I understand. If your contract or agreement is fixed price or it is not in the contract it will be difficult but I was in situations where it had been negotiable and we did that. Overrun are always a matter to be claim if you have the justification, objective justifications. In the cases where I was involved one way was to demostrate "the pain" it will cause to the project. Saving Changes...
If it is clearly stated in the contract what costs are/are not to be included then follow that first.
If is not clearly stated and it looks like a grey area then start with a discussion with the customer to see if they are willing to either compensate for the additional work or at least cost share.
If not, then it is a judgment call for you and your leadership team whether they wish to pursue this as a claim against the contract taking into account a number of short and longer term factors.
Kiron Saving Changes...
MARK A ANNUNZIATA, SrVP/EXPERT CONSULTANCY TO THE CONSTRUCTION INDUSTRY| ROMAN STRUCTURES, INC WELLINGTON FLDammam, Eastern Province, Saudi Arabia
NK-
Good advice from K and S. We would need more data to provide specific suggestions for you. Considerations are:
1) Does the Main Contract contain a Schedule of values that can be translated into Cost O&P and communicated to the Owner?
2) Does the Contract contain a schedule of values for additional work requested by the Owner?
3) Do you have great documentation of the Root Cause of the delay and the impacts to the Schedule Performance Index?
4) My personal advice (from Lessons Learned experiences) remember that you request must be carefully crafted and communicated, if not collaborated with the Owner and his reps. Ultimately, Egos are involved and must be managed. Your request may be perceived as a failure on the side of the Owner. Do not let that happen!
