Professional Documents
Culture Documents
1. A Contract for the Construction of a Bridge at Addis Ababa was signed between the Employer and the
Contractor on September 19,2007 with the following facts:
VO1: During the excavation of Abutment 1, the soil was found to be weak and a variation order i.e additional work is given for a
masonry wall and rock fill up to the design level. This activity takes 29 working days and the contractor executes the excavation of
Abutment 2 which amounts 200,000.
VO2:the soil besides the Abutment was found unstable and the consultant orders to excavate and cart it away.
VO3: the masonry construction for the Abutment was omitted.
ChO.1(Extra Works): A change order was given for the abutments from stone Masonry to Reinforced Concrete works.
The work is suspended by the the consultant for 16 Cal. Days for considering new design change.
The characterstics of the VOs and Ch.O1 are indicated in the table below:
Description Variation Amounts Change order
The following payment certificates are paid to the contractor as given in the table below:
A change order was given for the abutments from stone Masonry to Reinforced Concrete works
2. Suspension by the contractor: The work is suspended by the the consultant for 16 Cal. Days for considering new design change.
As a delay analyst we can calculate the justified delay and we can distinguish who takes the liability.
The fore the employer will be subjected to pay the contractor in terms of (1) extension of time and/or (2) payment
But, during the excavation of Abutment 1, the soil was found to be weak and a variation
order i.e additional work is given for a masonry wall and rock fill up to the design level.
This activity takes 29 working days and the contractor executes the excavation of
Abutment 2 which amounts
200,000 which saves (200,000 / 8,400,000) *180= 5 Cal. days.
In addition, the work is suspended by the consultant for 16 Cal. Days for considering new
design change. Therefore, delay to be justified should be
= 99+16=115 Cal. days.
In this condition according to clause 8.4, the contractor will be entitled to extension of time. The
contractor has the right to claim for 132 cal. days justified delays.
According to clause 8.4, the Contractor shall be entitled to an extension of the Time for Completion if and to the extent that
completion for the purposes of Taking-Over of the Works and Sections is or will be delayed by any of the following causes:
(a) a Variation (unless an adjustment to the Time for Completion has been agreed under Variation Procedure or other substantial
change in the quantity of an item of work included in the Contract,
(b) a cause of delay giving an entitlement to extension of time under a Sub-Clause
According to clause 20.1, the contractor can also claim for additional cost for the justified delays caused by the employer or the
engineer.
According to clause 8.7, If the Contractor fails to comply with Time for Completion, the Contractor shall subject to pay delay
damages to the Employer for this default.
These delay damages shall be the sum stated in the Contract Data, which shall be paid for every day which shall elapse between the
relevant Time for Completion and the date stated in the Taking-Over Certificate. However, the total amount due under this Sub-Clause
shall not exceed the maximum amount of delay damages (if any) stated in the Contract Data.
Total delay of the project = 75 % Actual Progress of the Work for Completion - Completion Date as per the contract.
Therefore; the total delay of the project was 455 Cal. days.
Therefore; the delay to be considered for this part is 323 Cal. days.
Therefore, the employer can claim for 323 calendar days unjustified delays of cost 840,000 birr.
Liquidated damage = 1/ 1000 per unjustified delay of that part of the contract price.
Unjustified delay = 323 Cal. days.
The part of the contract price included in the unjustified delay is:
= 15,073,333.33
= 4,868,686.67
=840,000<4,868,686.67
According to clause 14.8, If the Contractor does not receive payment in accordance with Sub-Clause 14.7 [ Payment], the
Contractor shall be entitled to receive financing charges compounded monthly on the amount unpaid during the period of delay. This
period shall be deemed to commence on the date for payment.
= 25315.07