Progress Reports – stick to the facts

One way Contractors can cause themselves difficulty with claims is by not being completely truthful in progress reports to the Employer’s team. It can be tempting to report good news and an inexpert Consultant may even believe such reports because good news will save them work. The problem with this is that even if the Contractor is entitled to an extension of time, it will be difficult for him to later ask the Employer’s team for that entitlement after repeatedly denying there was any delay to the completion date. Progress update, as-built programme, or updated programme - whatever you call it, it is created by using the latest agreed programme, converting the planned start and finish dates and the percentage progress for any activity started but not finished to actual dates up to the data-date of the update. The logic contained in the programme and the programming software will then predict the completion date based on progress to date. Before specialising in contractual matters and…

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Q&A: Delays, Variations, and Revised Programmes

The following questions were answered by Steering Committee member, Lee Sporle during Construction Clinic 11, recorded on 9 June 2020. The responses have been summarized from the original. The entire webinar may be viewed on-demand on YouTube. Question 1 Question: We have a project timeline from January 2020 to July 2020. By March 2020, the project was running behind schedule by 60 days and we had an extension for 30 days. Our revised programme was submitted with a cut-off date in March 2020 and the new completion date set to August 2020 instead of July 2020, and the Contractor recovered his 30 days delay. We have another claim event started just after the data date of March 2020. Which version of programme update do we use to analyse the delay using the TIA method: the revised programme, which the Contractor has delayed due to the recovery made, or the normal update on the baseline programme, the revised programme, which shows the real Contractor delay at this time? Answer: OK. So,…

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How to Administer the Contractor’s Programme

One of our blog followers asked for some advice on the administration of the Contractor’s programme. The questions raised relate to fairly frequently occurring situations, so this subject is definitely worthy of a blog post. I have reproduced the queries below and I will refer to the FIDIC forms of contract and terminology when providing my advice. Requested Advice: A summary of general principles which would avoid the Contractor submitting erroneous programme updates, for example, don’t be bullied by the Engineer into submitting a programme based on the original completion dates and which therefore absorbs the impacts of delay events (thus losing entitlement). So, let’s be clear what a programme update actually is. First, we must establish the Contractor’s programme, which is often referred to as the baseline programme. This programme should be the Contractor’s best estimate of the sequence and timing of how he intends to carry out the Works and should be based on the Contract at…

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Programmes & Planning

In the case of delays, programmes will become an essential means of demonstrating the effects of the delays on the completion date and hence, the contractor’s entitlement to an extension of time. The contractor’s intended programme should be prepared and agreed early in the contract period. Those responsible for administering the contract on behalf of the Employer should not insist on an unreasonable level of detail, bearing in mind the timeframe for submission of the programme. The programme is supposed to reflect the intentions of the parties at the time of contract and should not include post-contract events. Updated programmes that record progress to date and predict the completion date should be produced and agreed on a periodic basis. If the ‘ownership’ of float is not stipulated in the contract, early agreement between the parties on its allocation is recommended. The Institute of Construction Claims Practitioners has a detailed paper on this subject. To request a…

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