lecture 18

Question 1

1. Typically given in calendar days (including holidays and weekends), unless otherwise clearly stated.
2. Work Day
3. Not universally defined (8 hours? One shift? 2 shifts? 24 hours?).
4. Any day except Saturdays, Sundays, and holidays.
5. Most appropriate when the site conditions are subject to delays caused by weather, differing site conditions, etc.
6. Typically extend ____________
   for severe weather delays

Answer 1

Construction duration

Question 2

1. is defined in the contract as the day the contractor
   receives the notice to proceed(NTP), the day of having acquired the site free from any encumbrances, or any other agreed upon date stated in the contract.
2. The time counter starts to count the project duration from the start
   date.

Answer 2

Start Date

Question 3

1. is the start date + the project duration as stated in
   the contract.
2. Can be a Fixed completion day in case of calendar days, or when
   owner needs completed project by a specific date, or a floating date if project duration is given in workdays.
3. There is risk involved in the project execution, especially if the contractor fails to meet the milestones and the completion date.

Answer 3

Completion Date

Question 4

1. in this case means something
   less than absolute or final, but almost final.
2. Different from the actual construction completion date stated in the contract.
3. Project can be occupied and used by the owner with minor items to be corrected.
4. Same as practical completion.
5. Last periodic payment is made to the contractor except retainage which is released after punch list items are corrected.
6. Usually, liquidated damages are not assessed beyond _______, unless otherwise stated.

Answer 4

Substantial completion

Question 5

1. Also known as snag list.
2. Document containing remaining work items to address after substantial completion, or defective items to be completed before project handover.
3. Retainage is usually released after correction of _____ items.
4. Once the items on the _____ have been completed, the project can be handed over, and reaches Final Completion.

Answer 5

Punch List

Question 6

Expediting the work progress, usually to recover from a

delay.

Answer 6

Acceleration

Question 7

Consists of a direct order by owner to
hire additional workers, work overtime,
or work extra shifts on the project. Can convert an excusable delay into a compensable delay.

Answer 7

Owner initiated or Actual acceleration

Question 8

Does not result from direct order. Initiated by the contractor to avoid paying liquidated damages after Owner’s refusal to permit or grant time extensions for a delay.

Answer 8

Contractor initiated or Construction acceleration

Question 9

1. Provide compensation to the owner
   for financial and other losses resulting from delayed completion beyond the contractual completion date.
2. Avoids lawsuits since the concept and amount are agreed upon at contract signing.
3. Predetermined cost per day of late completion
   is used in lieu of actual damages. In extreme cases, may be assessed on minutes of delay rather than days.
4. Not constituting penalty. Penalty provisions generally are not enforceable unless a bonus clause also exists.
5. Must be reasonable anticipated costs of late completion reflecting the actual damages the owner suffered, not punitive damages.

Answer 9

Liquidated Damages

Question 10

1. Contractor or Contractor’s agent
2. Owner’s or Owner’s agent
3. Forced majeure or acts of God.
4. Unforeseen events or conditions

Answer 10

Sources of delays

Question 11

1. May result in extreme cases in contract termination.

2. Owner will claim damages against contractor.

Answer 11

Contractor or contractor’s agent delay

Question 12

1. Extension of contract time.
2. Contract amount can be changed.
3. Contractor can claim damages against owner

Answer 12

Owner or owner’s agent delay

Question 13

Events or actions beyond the control of any of the contract parties

Answer 13

Force majeure or acts of God delay

Question 14

1. Excusable delays
2. Compensable delays
3. Non-Excusable/Non-Compensable delays
4. Concurrent delays

Answer 14

four types of delays

Question 15

1. These are usually delays resulting from 3rd party or
   “Force Majeure” reasons.
2. Since it is not the fault of any of the 2 main
   contract parties (Owner or Contractor), the
   owner can only excuse the contractor from any
   damages resulting from the delay, and grant the
   contractor an extension of time equal to the
   delayed amount and any additional impact
   delays.

Answer 15

Excusable delays

Question 16

1. Resulting mainly from an error of the Owner or
   any of his agents (A/E, or CM).
2. The contractor is therefore entitled to damages
   resulting from this delay, in the form of an
   extension of time equal to the delay and its time
   impact, in addition to a cost reimbursement for
   any additional costs incurred due to the delay
   (Impact cost).

Answer 16

Compensable delays

Question 17

1. As it appears from the title, these are purely contractor-caused delays. The contractor is not entitled to any time extensions or cost reimbursement.
2. The Contractor will incur Liquidated Damages in case the delay is not recaptured before the project time elapses.

Answer 17

Non-Excusable/Non-Compensable delays

Question 18

1. Any combination of 2 or more of the aforementioned
   types of delays will result in concurrent delays.
2. The fault in this case is shared between 2 or more of the project parties.
3. Unless properly evaluated and resolved, usually results in claims leading to probable disputes and litigation.

Answer 18

Concurrent delays

Question 19

The main rule used to resolve and evaluate concurrent

delays is:

Answer 19

“If the project is already delayed due to a certain reason, no other problem will cause this delay to increase until the delay from the first reason is over.”

Question 20

Interpret this: “If the project is already delayed due to a certain reason, no other problem will cause this delay to increase until the delay from the first reason is over.”

Answer 20

The interpretation of the previous rule is that if, for
example, the owner was the reason for a certain delay,
no other delay, contractor-caused or otherwise, will be
considered effective until the reason or problem causing the first delay is over.

Question 21

1. A storm caused delays in the outdoor activities from day 15 till day 21.
2. On day 17, a major piece of the contractor’s equipment used for the
   outdoor activities went down till day 23. Liquidated damages were
   initially estimated as $1200/day
3. The shop drawings that the A/E was supposed to return back to the
   contractor were delayed from day 19 till day 22.

Answer 21

1. force majeure delay = excusable delay = 7
   days. (15,16,17,18,19,20,21)
2. Equipment Failure = NE/NC delay = 2 days (22,23) = $1200 x 2 = $2400 (LD)
3. Late approval = Compensable delay = 0 days (since the project was already delayed due to contractor’s fault).
4. Net: Contractor has to pay $2400 in LD.

Question 22

1. Exculpatory clauses such as “ No Damage For Delay” might convert a compensable delay to a merely _________ .
2. To avoid late completion, an Owner might issue
   an acceleration order for the contractor to finish
   on time, thus converting an excusable delay to a ______.
3. To avoid paying LD’s , a contractor may initiate
   acceleration to finish on time.

Answer 22

1. excusable delay
2. compensable delay
3. acceleration

Question 23

1. For an activity to be considered in concurrent
   delays, it has to be on the critical path of the
   project _________.
2. The rule for the float utilization within the project
   is that it is a common property to _________. Whoever reaches it first can use it
   completely or partially before affecting the
   project completion date.

Answer 23

(Zero Total Float)

all Project parties

Question 24

Other examples of exculpatory clauses include:

Answer 24

1. No-pay until paid
2. Broad indemnification
3. Waiver of lien rights

Question 25

A court might disregard a No-Damage-For-Delay clause under one of the following
circumstances:

Answer 25

1. Delays not contemplated (I.e. unusual, and unprepared for. E.g. denial
   of access to the job site).
2. Active Interference of the owner (Whether intentional or not).
3. Delays of unreasonable duration.
4. Fraud or bad faith, including misrepresentation.