Review the following and then analyze the conditions listed

Review the following and then analyze the conditions listed below and present how these conditions should be dealt with asclaims to an Owner, that is what types of delay, etc. Base contact- $77,000,000 to build a twenty story building Contract schedule: complete in 300 days Liquidated damages $7000/day Owner issued notice to proceed and contractor started work on September 9, 2013 Contractor could not access site due to property rights issues until November 20, 2013 Excessive rain and storms prevented work from proceeding for one week in November, 2013 Excavation contractor did not begin work until December 12, 2013, two weeks after being asked to start work Excavation contractor started work and encountered soil containing cyanide and stopped work. Contractor notified owner of cyanide soil and indicated a change order for time and material costs were required to remove the cyanide soil Owner stopped the work to analyze the cyanide condition Owner issued a change order pricing reuest after two months of time Contractor responded to the pricing reuest indicating 3 months of extra time and $2,000,000 of cost was reuired Owner accepted cost request but denied extra time request

Solution

The data given shows that there are delays in three respects that are

1. delay in site visit

2. delay in excavation

3. delay in change order pricing request

the dalay in site visits is as follows

72 days(since 9 sep to 20 november)+ 7 days (excessive rain storm delay)= 79 days

the delay in excavation are as follows

15 days(contractor delay)+ 14 days(contactor delay mentioned in line 11)= 29 days

the delay in change order pricing request are

60 days( owner delays)

the total number of days can be summed up as 79+29+60=168 days

now the contactor has been refused by the owner to delay the project so the work now needs to be completed in 300-168= 132 days, compensation for the late performance granted( liquidated damages) asked are $7000 per day

so the total amount to be paid for delays = 168*7000+ $1176000.

the amount reimberced by the owner is $2000000

the amount left with contractor after compensation for the delays are 1176000-2000000= $824000, this indicates enough extention despite the grant for time is denied.