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Construction Claims Analysis and Examples

1. A contractor was hired to construct a health center. The dimensions for columns in the bill of quantities and elevations differed, with the contractor building to the elevation dimensions. The engineer ordered the columns demolished but the contractor failed to comply in time. 2. A second contractor was hired to construct a gravel road near the Somali border. Issues included decreased productivity from hot weather, a two-week suspension when no war occurred, excavation delays from soil conditions and equipment issues, and termination of a supplementary access road contract due to security fears despite warnings. 3. The document asks how the contractors and employers could raise claims based on applicable contract clauses, and how an engineer would decide on the claims.

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Hayelom Tadesse Gebre
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141 views2 pages

Construction Claims Analysis and Examples

1. A contractor was hired to construct a health center. The dimensions for columns in the bill of quantities and elevations differed, with the contractor building to the elevation dimensions. The engineer ordered the columns demolished but the contractor failed to comply in time. 2. A second contractor was hired to construct a gravel road near the Somali border. Issues included decreased productivity from hot weather, a two-week suspension when no war occurred, excavation delays from soil conditions and equipment issues, and termination of a supplementary access road contract due to security fears despite warnings. 3. The document asks how the contractors and employers could raise claims based on applicable contract clauses, and how an engineer would decide on the claims.

Uploaded by

Hayelom Tadesse Gebre
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Construction Claims

1. A contract has been made between Ministry of Health and BGH Construction for the
construction of a Health Center with a contract amount of 18 million ETB on Lump sum basis.
SPARK Consulting Architects and Engineers took services of design and contract administration.
During the course of construction the following scenario were happened.

 The dimension of the columns on elevation part and bill of quantities is 20*20cm where
as on the cross-section part is 25*25cm. the contractor is already executed concrete
work on some of elevation columns by using dimension of the elevation part i.e
20*20cm. the Engineer ordered the contractor to demolish executed work and the
contractor failed to precede the order within the time given.

Questions
1. What are the possible claims that could be raised by the Contractor and/ or Employer?
2. Select and argue on the claims based the applicable PPA condition of contract clauses
on the contractor and Employer side.

2. A contractor signed a contract with the government to construct 220km Gravel road from
Borena to Dolo Ado, which is located near the border of Somalia under complete security.
Consequently, during the project execution period the following issues had been raised.

Claim Issues

 The contractor had claimed about the hot weather condition that decreased the
construction productivity, resulting an additional incurred cost and delay.

 The Engineer suspended the project for two weeks based suspecting a sudden war could
happen. However, there was no war noticed.

 Excavation work, which is a critical work, had been delayed due to unexpected soil
condition and in adequate servicing of heavy machineries when dealing with the
situation.

 Supplementary contract was made for an access road from the town of Baidewa to the
nearby quarry site which was to be completed. Nevertheless, the contractor has
terminated the supplementary contract since he could not handle the fear that Ambush
attacks could happen at any time. The employer warned the contractor not to terminate
but the contractor failed to do so.
Questions
1. Argue on the claims based the applicable PPA condition of contract clauses on the contractor
and Employer side.
2. What will be your decision as an Engineer to those claims?
Construction Claims

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