A) TO IDENTIFY THE MEASURES OR STEPS WHICH YOU NEED TO

TAKE IN ORDER TO CONTINUE COMPLETING THE CONTRACT

WITHOUT FURTHER DELAY.

When a construction project delay occurred, the contractor will loss a lot of money as need
to pay the penalty to the owner and complete the project as soon as possible to decrease
the loss of owner as well.
In order to continue with the construction without further ado, the few measures to be taken
are listed as below.
1. Send a delay notice to inform the owner and told them the date of time the project could
be finished.
2. Notify and consult with the Superintending Officer (S.O.) and request for time
extension for the possession of site in order to allow work to be carry on and not
involving termination of contracts.
3. Providing sufficient references and reasons in the notices to be given to the
Superintending Officer.
4. Notify the Superintending Officer in writing if the contractor thinks that the project
work requires or do not require a variation.
5. Submit quotations for any proposed variations to the Superintending Officer.
6. Hiring alternate subcontractors to complete the work, coming up with effective
strategic planning to avoid further delay of work
7. Sourcing materials (in this case, cement supply and high tensile bars supply) from
alternate supplier.
8. Consider number of labor/worker is sufficient to be assigned during the duration of
construction.
9. Ensure the motivation of the employees and improve productivity.
10. As the contractor of the project, manage my financial resources and plan cash flow by
utilizing progress payment.
11. Ensure frequent progress meetings with employees and district engineer to avoid any
misunderstandings or misinterpretation of instructions.
12. Monitor the project on and on-going basis by senior management by keeping detailed
daily reports documenting both normal and abnormal activities.
13. Re-evaluate construction schedule, monitor and re-evaluate work critical path.
14. Adjust and update construction schedule to reflect changes in the project, inform the
S.O. in advance whenever daywork is required.

B) IF HOWEVER, YOU FAIL TO COMPLETE THE SAID CONTRACT, WHAT

ARE THE ACTIONS THAT THE D.E. CAN TAKE AGAINST YOU AS THE
MAIN CONTRACTOR?

A delay claim is the most common action asserted by contractors to recover additional
costs incurred on a project. A contractor may bring a traditional delay claim against another
contractor or owner whose acts or omissions caused the contractors work to be delayed.
Proof that the defendant caused the delay is the crucial element of a delay claim. If the
plaintiff can carry the burden of proving its performance was wrongfully delayed by the
defendant, then plaintiff can recover the accumulated additional cost of performance
occurring as of the date that the delay commenced.

Generally, a contractor is entitled to recover any damages for any delay caused by the
owner. In pursuing a delay claim, a contractor generally can recover overhead costs
attributable to the operation of a field office during the period of delay. In certain
circumstances, home office overhead can be recovered when properly attributable to a
specific construction project. There are various methods utilized by courts to calculate and
allocate overhead expenses, with the so-called Eichleay formula being the general rule.
Contractors have been able to recover, as a consequential damage, loss of ability to obtain
performance bonds, stemming from a breach of contract. However, as with any breach of
contract action, the contractor has a duty to mitigate damages and must take other work, if
able, to minimize the potential damages caused by a construction delay.

-Acceleration

Related to delay damages are damages resulting from acceleration. Acceleration damages
are the extra expenses incurred by the contractor when the owner requires it to complete
the project, or a portion thereof, in less time than provided in the contract documents. The
contractor may be instructed to finish the project before the specified completion date, or
when the owner requires the contractor to finish the work by the completion date even
though the contractor may otherwise have a right to an extension. The latter is referred to
as a constructive acceleration. Damages recoverable based on acceleration include
additional labor costs, overtime, costs of rental equipment and other expenses incurred by
the contractor in its attempt to finish the project in a compressed period of time.

-Loss and expense

Construction contracts will generally provide for the contractor to claim direct loss and /
or expense as a result of the progress of the works being materially affected by relevant
matters for which the client is responsible, such as:

Failure to give the contractor possession of the site.

Failure to give the contractor access to and from the site.
Delays in receiving instructions.
Opening up works or testing works that then prove to have been carried out in
accordance with the contract.
Discrepancies in the contract documents.
Disruption caused by works being carried out by the client.
Failure by the client to supply goods or materials.
Instructions relating to variations and expenditure of provisional sums.
Inaccurate forecasting of works described by approximate quantities.
Issues relating to CDM.

-Extension of time EOT in construction contracts

Many construction contracts allow the construction period to be extended where there are
delays that are not the contractor's fault. This is described as an extension of time (EOT).
When it becomes reasonably apparent that there is a delay, or that there is likely to be a
delay that could merit an extension of time, the contractor gives written notice to the
contract administrator identifying the relevant event that has caused the delay. If the
contract administrator accepts that the delay was caused by a relevant event, then they
may grant an extension of time and the completion date is adjusted.

-Failure to complete work on time

Should the Contractor fail to complete the work within the time agreed upon in the
contract or within such extra time as may have been allowed by the extensions, there
shall be deducted from any moneys due or that may become due the Contractor the sum
set forth in the following schedule for each and every calendar day, including Sundays
and Holidays, that the work shall remain uncompleted. This sum shall be considered and
treated not as a penalty by as fixed, agreed and liquidated damages due the Owner from
the Contractor by reason of inconvenience to the public, added cost of engineering and
supervision, maintenance of detours and other items which have caused an expenditure of
public funds resulting from his failure to complete the work within the time specified in
the contract.

C) IF ON THE OTHER HAND, YOU FINALLY ARE ABLE TO COMPLETE

THE SAID CONTRACT, WHAT ARE THE CONDITIONS WHICH YOU NEED
TO SATISFY BEFORE THE D.E. CAN RELEASE YOUR PERFORMANCE BOND

In order for the District Engineer to fully release the contractor of the project, the few
conditions to be satisfied are listed as below.
1. Review and acceptance of construction, including punch list items.
2. Receipt of as-built plans (if necessary due to changes).
3. The Engineer of record submits a statement certifying that the completed project
is in accordance with Access Permit terms and conditions.
4. Pass the inspection and evaluation of the reclamation work involved by regulatory
authorities.
 5. File an application with the regulatory authority for the release of the entire
performance bond.
6. Ensured the successful completion of the Defects Liability Period.

References:

Divya.R, S.Ramya, 2015. Causes, Effects and Minimization of Delays in Construction

Projects [Internet]. Retrieved from:
http://www.internationaljournalssrg.org/IJCE/2015/Special-Issue/NCRACCESS-
2015/Part-2/IJCE-NCRACCESS-P107.pdf [accessed February 2017].
How Your General Contractor Will Deal With Delays [Internet]. TrustedPros. Retrieved
from: https://trustedpros.ca/articles/general-contracting/how-your-general-
contractor-will-deal-with-delays [accessed February 2017].
M.S. Mohd Danuri, M.E. Che Munaaim, H. Abdul-Rahman, S.B. Abd Karim and L.P.
Liew, 2007. A Study On The Contractors Perspections Towards The Duties Of
Superintending Officer (Supeintendent) [Internet]. Faculty of the Built
Environment, University of Malaya, Malaysia. Retrieved from:
http://www.academia.edu/172855/Study_on_Contractors_Perception_Towards_D
uties_of_S.O [accessed February 2017].
Performance Bond Process Guidelines [Internet]. Access Management Unit, CDOT.
Retrieved from:
https://www.codot.gov/business/permits/accesspermits/references/bonding-for-
access-projects.pdf [accessed February 2017].