What risks do contractors take when contracts contain a No Damage for Delay clause?
Chapter: 17 lin Yates for undergrads; Chapters 15 – 19 in Batholomew for grad students.
Review the following
Assignment – 6
Due at midnight MST on the last day of the week.
Review the following and then analyze the conditions listed below and present how these conditions should be dealt with as claims to an Owner, that is what types of delay, etc.
· Base contact- $77,000,000 to build a twenty story building
· Contract schedule: complete in 300 days
· Liquidated damages = $7000/day
· Owner issued notice to proceed and contractor started work on September 9, 2013
· Contractor could not access site due to property rights issues until November 20, 2013
· Excessive rain and storms prevented work from proceeding for one week in November, 2013
· Excavation contractor did not begin work until December 12, 2013, two weeks after being asked to start work
· Excavation contractor started work and encountered soil containing cyanide and stopped work.
· Contractor notified owner of cyanide soil and indicated a change order for time and material costs were required to remove the cyanide soil
· Owner stopped the work to analyze the cyanide condition
· Owner issued a change order pricing reuest after two months of time
· Contractor responded to the pricing reuest indicating 3 months of extra time and $2,000,000 of cost was reuired
· Owner accepted cost request but denied extra time request
1. Why is it critical to notify an owner quickly if situations change on a project from what was required in the contract?
2. What is required in documenting a formal claim for extra money and time?
3. Discuss some examples of excusable and non-excusable delay.
4. What risks do contractors take when
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