04 Oct Construction Projects – Delay
Any construction delay has ripple effect and mostly is it seen as increased cost and customer suffers from loss of profit due to late completion. With this delay contractors, sub-contractors also faces extra expenses to cover cost of rentals of equipment and labor payments. A proper documentation of provisions which address and allocate liability for loses which may incur due to delay in schedule construction. Such provision properly drafted by lawyer which has included liquidated damage provision and proper allocation of such cost to delay causing party. In mutual benefit of project’s stake holder, delay attributing to “Act of God” may be equally shared, such clauses can also be stipulated.
A Rupee saved is Rupee Earned.
Accurate and timely record keeping also allows us to identify clearly excusable delays and non-excusable ones. Certain delay which are clearly due to failure on part of contractor’s poor management of manpower, under-estimating cost or non availability or failur of right equipment, such delays are termed as non excusable ones. Detail record by supersiors, accountant and project managers also helps to track delays related cost. Detailed record and proper drafted agreement makes easier for stake holder to claim damages from responsible party without getting into legal affairs. With changing time, now it is much easier to keep tracks by having such software backed with smartphone application. Such application when updated with DATA on regular basis with its own predefined check points rings alarm when such cost is escalating due to delays.