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2. Another Day on the Job
3. An Unforeseen Condition?
4. A Force Majeure Event?
5. Dealing With Mid-Course Adjustments
6. Project Overview Project: Condominium
Value: $30 Million
Scope of Work: Concrete superstructure, steel frame penthouse and roof
Contract Completion: 22 Months
Interstate Land Sales Act (ILSA) Deadline: 24 Months
Liquidated Damages: $10,000/day
7. Project Overview Delay & Disruption Issues:
Late approval of schedule
Differing site conditions
Acceleration/re-sequencing of work
Penthouse and roof steel design errors
Late delivery of windows
Clerestory window design errors
9. Mid-Course AdjustmentMonth 3 Contractor alleges differing site conditions
Baseline schedule not approved
Owner’s Rep wants additional detail
Owner alleges bias
Constructive Acceleration – Compensable?
11. Mid-Course Adjustment Month 4 Schedule approved 3˝ months after NTP
Update shows 3-month delay to project completion due to differing site conditions
Owner disputes differing site conditions
12. Mid-Course Adjustment Time Extension Request Project 3 months behind schedule
Contractor prepares time impact analysis and submits time extension request
14. Mid-Course AdjustmentRecovery Schedule Owner refuses to grant time extension
Mid-Course ADR? DRB? Mediation?
Contractor develops recovery schedule to meet original completion date
Recovery of 3 months
Accelerate concrete superstructure (1 mo.)
Use temporary enclosures to start interior finishes before window delivery (1 mo.)
Accelerate interior finishes (1 mo.)
18. Mid-Course AdjustmentMonth 12 Contractor accelerates concrete placement – recovers 1 month
Owner agrees to pay for acceleration to date
Owner grants 2-month time extension
Contractor relieved of liquidated damages
21. Mid-course AdjustmentsDesign Errors
22. Mid-Course AdjustmentMonth 14 Design errors
Redesigning penthouse slabs
Conflicting design to support elevator equipment
Missing clerestory window beams
Owner issues Stop Work Order
Project delayed 2 months
Contractual notice of delay and claim required?
24. Mid-Course AdjustmentSecond Recovery Schedule Stop Work Order delays project completion 1 month to Month 25
Owner directs contractor to accelerate to complete by Month 24
Effect of window delivery delay – a concurrent non-compensable delay?
27. Resultant ClaimsOriginal Contract to Change Orders
28. Mid-Course AdjustmentsResultant Claims Determining responsibility for delay and disruption
Excusable vs. non-excusable delay
Concurrent delay as a defense
Compensable vs. non-compensable
Time Impact Analysis
29. Mid-Course AdjustmentsDispute Resolution of Claims Methods of Alternative Dispute Resolution (ADR)
Mediation
Arbitration
DRBs
During progress of the job
After Substantial Completion