Project Delays
Contents
Project Delays, Disruptions, and Changes 2
TYPES OF PROJECT DELAYS 2
Delays fall into three general categories: 2
Excusable/Non-Compensable Delays 2
Compensable (Owner Caused) Delay 2
Non Excusable (Contractor Caused) Delay 3
DOCUMENTATION OF DELAYS, DISRUPTIONS AND CHANGES 3
The Current State of Washington Law Regarding Notice. 3
Proposed procedure and process 5
Proposed Legislation 6
DAMAGES FOR DELAY - New Developments 6
RCW 4.24.360 6
In the Scoccolo case 6
The City’s franchise agreement with Puget stated in part 7
The TCI franchise agreement 7
RESOLVING DISPUTES THROUGH MEDIATION AND ARBITRATION 7
Tips For Mediating Disputes 7
Arbitration 8
Dispute Resolution Using Project Controls 9
PROJECT CONTROL SYSTEMS 9
Cost Control Systems 9
Network Scheduling 10
Time impact analysis 10
Project Delays, Disruptions, and Changes
In a perfect world, all construction projects would finish on time, without changes or disruptions. Despite the common public perception that contractors cannot wait for the changes to start on a project because that is where they allegedly “make their money”, most contractors would prefer their projects to complete without changes. Changed work complicates a project, invites delays and increases the project cost — all things that make owners unhappy.
In reality, nearly all projects of any substantial size experience changes and/or delays, therefore the parties are well served by thinking about how they will handle changes and delays prior to the start of construction. Setting out a framework in the contract for dealing with this inevitability is in the interest of both the contractor and the owner.
TYPES OF PROJECT DELAYS
Delays fall into three general categories:
Excusable/Non-Compensable Delays.
In these situations neither party is responsible to the other for any costs associated with the delay. These delays are those that are typically included in force majeure clauses — abnormal
Project Delays, Disruptions, and Changes 2
TYPES OF PROJECT DELAYS 2
Delays fall into three general categories: 2
Excusable/Non-Compensable Delays 2
Compensable (Owner Caused) Delay 2
Non Excusable (Contractor Caused) Delay 3
DOCUMENTATION OF DELAYS, DISRUPTIONS AND CHANGES 3
The Current State of Washington Law Regarding Notice. 3
Proposed procedure and process 5
Proposed Legislation 6
DAMAGES FOR DELAY - New Developments 6
RCW 4.24.360 6
In the Scoccolo case 6
The City’s franchise agreement with Puget stated in part 7
The TCI franchise agreement 7
RESOLVING DISPUTES THROUGH MEDIATION AND ARBITRATION 7
Tips For Mediating Disputes 7
Arbitration 8
Dispute Resolution Using Project Controls 9
PROJECT CONTROL SYSTEMS 9
Cost Control Systems 9
Network Scheduling 10
Time impact analysis 10
Project Delays, Disruptions, and Changes
In a perfect world, all construction projects would finish on time, without changes or disruptions. Despite the common public perception that contractors cannot wait for the changes to start on a project because that is where they allegedly “make their money”, most contractors would prefer their projects to complete without changes. Changed work complicates a project, invites delays and increases the project cost — all things that make owners unhappy.
In reality, nearly all projects of any substantial size experience changes and/or delays, therefore the parties are well served by thinking about how they will handle changes and delays prior to the start of construction. Setting out a framework in the contract for dealing with this inevitability is in the interest of both the contractor and the owner.
TYPES OF PROJECT DELAYS
Delays fall into three general categories:
Excusable/Non-Compensable Delays.
In these situations neither party is responsible to the other for any costs associated with the delay. These delays are those that are typically included in force majeure clauses — abnormal