Professional Documents
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CL-001 - Compensation For Cost and Time
CL-001 - Compensation For Cost and Time
CL-001 - Compensation For Cost and Time
Contractual Claim
Compensation for Cost and Time Implications due to Suspension of Work
CL-001
Version 1.0
08 June 2012
Appendices
Version Control
Ve rs io ns
Da te s 1 2 3 4 5 6
P re pa re d 16-J a n-10
Is s ue d 20-J a n-10
Re turne d
Re je c te d
Approve d
1. Introduction
1.1 The Project
This document deals with the Contract for the construction of the Kempinski Gold
Coast Hotel which is to be built on an 8.4 acre site located within the previous
racecourse grounds off Gamel Abdel Nasser Road in Accra, Ghana. The total built
up area of the Hotel is approx. 37,000 sq.m. with an additional separate 10,000
sq.m., two level car park structure.
The Scope of Work under this Contract comprises the Engineering, Procurement
and Construction of a 269 bedroom, five star hotel complex that will include a 1,000
sg.m. function hall, fitness, SPA and leisure facilities.
The FIDIC form of Contract for EPC/Turnkey Projects was signed on 7 th September
2007, between the GCC Resorts Limited ("the Employer") and Zakhem International
Construction Limited ("the Contractor"). The Contract Price agreed by the parties is
$ 46,518,866.00 and this includes Variation Order No.1.
The letter to commence the Works was issued on 30 July 2008 with a start date of
07 October 2008. The whole of the Works are to be completed within a period of 20
months from the effective date of commencement.
Item Description
1 Suspension of work – 118 days.
2. Contractual background
This section provides an explanation of the Conditions of Contract that have general
application to this Claim. The provisions contained herein constitute the basis of the
Contractor's entitlement to extensions of time and/or additional payment.
“If the Contractor suffers delay and/or incurs Cost from complying with the
Employer’s instructions under Sub-Clause 8.8 [Suspension of Work] and/or from
resuming the work, the Contractor shall give notice to the Employer and shall be
entitled subject to Sub-Clause 20.1 [Contractor’s Claims] to:
(a) An extension of time for any such delay, if completion is or will be delayed,
under Sub-Clause 8.4 [Extension of Time for Completion], and
(b) Payment of any cost, which shall be added to the Contract Price”.
This clause provides for rules for claiming additional costs and requires Contractor
to provide Notice within 28 days or as soon as practical.
Cause Description
1 Official Notification for Suspension of work from NSCS - GoG – 11 Sep 20091
2 Suspension of work on site by NSCS - GoG – 19 Sep 2009
3 Official Notification of Demobilization from the Employer – 02 Nov 20092.
4 Idling of resources from 19 Sep 2009 to 30 Oct 2009 – 30 working days
5 Demobilization from 03 Nov 2009 to 15 Nov 2009 – 12 days
6 Maintaining work site in a demobilized condition from 01 Nov 2009 to 30 Dec 2009 – 44
working days
7 Official Notification for No objection to work from NSCS – GoG – 30 Dec 20093
8 Official Notification for Remobilization of work from the Employer – 30 Dec 20094
9 Remobilization from 01 Jan 2010 to 15 Jan 2010 – 15 days
The delay caused by suspension has attracted following charges for which the
Contractor is entitled to receive compensation for loss of time and cost.
1
Letter number NSCS 382V13/2738 dated September 11, 2009
2
Letter number GCC/09-21/MZ dated November 2, 2009
3
Letter number NSCS 382V15/3736 dated December 30, 2009
4
Letter number *** dated December 30, 2009
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Construction work Stoppage 19-Sep-09
4.2 Summary
4.2.1 Extension of time
The Contractor seeks an extension of time of 118 calendar days.
This calculated delay is based on the above given information and history of causes
and delay.
Item Description
1 Cost of Staff Idling from 19 Sep 09 to 30 Oct 09 – 30 working days
2 Cost of Labour Idling from 19 Sep 09 to 30 Oct 09 – 30 working days
3 Cost associated with Plant & Equipment Idling from 19 Sep 09 to 30 Oct 09 – 30
working days
4 Overrun Preliminaries / Office running cost from 19 Sep 09 to 30 Oct 09 – 30 days
5 Profit and Overheads on above costs
6 Demurrage Charges
7 Cost of Labour Demobilization
8 Cost of Plant & Equipment Demobilization
9 Cost for maintaining the site in a demobilized condition from 01 Nov 09 to 31 Dec 09 – 44
working days
10 Cost of Remobilization
Ite m De s c riptio n Co s t in US D
Unit Qty Da y s Ra te / d To ta l
C o s t o f S ta ff Id lin g
1.01 P roje ct Ma na ge r da y 1.00 30.00 800.00 24,000
1.02 Cons truction Ma na ge r da y 1.00 30.00 500.00 15,000
1.03 S e nior S ite Engine e r da y 1.00 30.00 550.00 16,500
1.04 P la nne r da y 1.00 30.00 500.00 15,000
1.05 Civil Engine e r da y 1.00 30.00 500.00 15,000
1.06 S e nior Qua ntity S urve yor da y 1.00 30.00 60.00 1,800
1.07 S ite Engine e rs da y 3.00 30.00 60.00 5,400
1.08 De s ign Engine e r da y 1.00 30.00 40.00 1,200
1.09 S urve yor da y 1.00 30.00 40.00 1,200
1.10 S upe rvis ors da y 6.00 30.00 35.00 6,300
1.11 S e nior Ma te ria ls Controlle r da y 1.00 30.00 40.00 1,200
1.12 Adm ins tra tion da y 7.00 30.00 25.00 5,250
1.13 S a fe ty Office r da y 1.00 30.00 30.00 900
C o s t o f La b o u r Id lin g
2.01 Ca rpe nte rs da y 20.00 30.00 20.00 12,000
2.02 S te e lfixe r/Be nde rs da y 16.00 30.00 20.00 9,600
2.03 Ma s ons da y 6.00 30.00 20.00 3,600
2.04 Cha inm a n da y 2.00 30.00 15.00 900
2.05 La boure rs da y 35.00 30.00 15.00 15,750
2.06 Me cha nics da y 2.00 30.00 15.00 900
2.07 Ele ctricia n/Auto Ele ctricia ns da y 1.00 30.00 15.00 450
2.08 We lde rs da y 1.00 30.00 20.00 600
2.09 P lum be r da y 1.00 30.00 20.00 600
2.10 Office Ca re ta ke r da y 1.00 30.00 15.00 450
2.11 Hous e ke e pe r da y 3.00 30.00 15.00 1,350
2.12 S tore ke e pe rs da y 1.00 30.00 20.00 600
2.13 Kitche n s ta ff da y 2.00 30.00 15.00 900
2.14 Tippe r Drive rs da y 4.00 30.00 20.00 2,400
2.15 P la nt Ope ra tors da y 11.00 30.00 20.00 6,600
2.16 Ve hicle Drive rs da y 4.00 30.00 20.00 2,400
5.1.3 Cost associated with Plant & Equipment Idling from 19 Sep 09 to 30 Oct
09
This section covers the cost related to idling of plant & equipment on site from
19 Sep 09 to 30 Oct 09 – 30 working days.
Ite m De s c riptio n Co s t in US D
Unit Qty Da y s Ra te / d To ta l
C o s t o f P la n t a n d Eq u ip m e n t Id lin g
3.01 CATERP ILLAR D8 da y 1.00 30.00 904.00 27,120
3.02 J CB 3CX da y 1.00 30.00 247.00 7,410
3.03 CATERP ILLAR 325B EXCAVATEOR da y 1.00 30.00 640.00 19,200
3.04 CATERP ILLAR 966F P AYLOADER da y 1.00 30.00 625.00 18,750
3.05 CATERP ILLAR ROLLER 140H da y 1.00 30.00 550.00 16,500
3.06 TEREX CRANE RT700 da y 1.00 30.00 695.00 20,850
3.07 AXOS TIP P ER da y 1.00 30.00 173.00 5,190
3.08 AXOS TIP P ER da y 1.00 30.00 173.00 5,190
3.09 AXOS TIP P ER da y 1.00 30.00 173.00 5,190
3.10 ACTROS TIP P ER da y 1.00 30.00 301.00 9,030
3.11 CONCRETE MIXER TRUCKS da y 5.00 30.00 100.00 15,000
3.12 BATCHING P LANT da y 1.00 30.00 1,250.00 37,500
3.13 BENDER da y 1.00 30.00 53.00 1,590
3.14 CUTTER da y 1.00 30.00 53.00 1,590
3.15 CONCRETE MIXER da y 1.00 30.00 15.00 450
3.16 CONCRETE S KIP da y 1.00 30.00 8.00 240
3.17 250 GALLON TOW WATER BOWS ER da y 1.00 30.00 10.00 300
3.18 500 LTR DRINKING WATER BOWS ER da y 1.00 30.00 10.00 300
3.19 950 LTR DIES EL BOWS ER da y 1.00 30.00 10.00 300
3.20 1,125 LTR P RES S URE WAS HER da y 1.00 30.00 10.00 300
3.21 4TON TWAITES DUMP ER da y 1.00 30.00 12.00 360
3.22 240V BOS CH HAMMER DRILL da y 2.00 30.00 5.00 300
3.23 110V BOS CH HAMMER DRILL da y 1.00 30.00 5.00 150
3.24 240V BENCH S AW da y 3.00 30.00 8.00 720
3.25 240V 9" ANGLE GRINDER da y 1.00 30.00 8.00 240
3.26 110V 9" ANGLE GRINDER 230MM da y 1.00 30.00 8.00 240
3.27 110V J IGS AW BOS CH F/W BLOWER da y 1.00 30.00 8.00 240
3.28 240V EXTENS ION LEAD da y 1.00 30.00 5.00 150
3.29 2" KOS HIN WATER P UMP da y 1.00 30.00 12.00 360
3.30 3" ROBIN WATER P UMP da y 2.00 30.00 12.00 720
3.31 4" WATER P UMP da y 3.00 30.00 15.00 1,350
3.32 CONCRETE P UMP da y 1.00 30.00 104.00 3,120
3.33 125 cfm COMP RES S OR da y 1.00 30.00 35.00 1,050
3.34 2" KOS HIN WATER P UMP da y 1.00 30.00 12.00 360
3.35 3" ROBIN WATER P UMP da y 2.00 30.00 12.00 720
3.36 4" WATER P UMP da y 3.00 30.00 15.00 1,350
3.37 CONCRETE P UMP da y 1.00 30.00 104.00 3,120
3.38 COMP RES S OR da y 1.00 30.00 35.00 1,050
3.39 TEX 90S BREAKER da y 2.00 30.00 40.00 2,400
3.40 P OKER UNIT da y 2.00 30.00 25.00 1,500
3.41 AIR P OKER da y 4.00 30.00 5.00 600
3.42 1UFTVR 3 HEAD HAND S CRUBBLER da y 1.00 30.00 5.00 150
3.43 9 HEAD P OLE S CABBLER da y 1.00 30.00 5.00 150
3.44 4 X 4 P AJ ERO da y 1.00 30.00 91.00 2,730
3.45 4 X 2 P ICKUP da y 1.00 30.00 50.00 1,500
3.46 4 X 4 P ICKUP da y 4.00 30.00 60.00 7,200
3.47 4 X 4 LAND CRUIS ER P RADO da y 1.00 30.00 110.00 3,300
Ite m De s c riptio n Co s t in US D
Unit Qty Da y s Ra te / d To ta l
Ite m De s c riptio n Co s t in US D
Unit Qty Da y s Ra te / d To ta l
P ro fit a n d Ove rh e a d
5.01 P rofit a nd Ove rhe a d % 15% 68,337
Ite m De s c riptio n Co s t in US D
Unit Qty Da y s Ra te / d To ta l
D e m u rra g e C h a rg e s
6.01 Towe r Cra ne s da y 18.00 7.00 24 3,024
6.02 Towe r Cra ne s da y 1.00 9.00 50 450
6.03 Towe r Cra ne s da y 18.00 31.00 60 33,480
6.04 Towe r Cra ne s da y 1.00 31.00 100 3,100
6.05 Adjus ta ble P rop da y 1.00 7.00 24 168
6.06 Adjus ta ble P rop da y 1.00 14.00 60 840
Ite m De s c riptio n Co s t in US D
Unit Qty Da y s Ra te / Q To ta l
C o s t o f La b o u r D e m o b iliz a tio n
7.01 Cons truction Ma na ge r da y 1.00 - 14,000.00 14,000
7.02 S urve yor da y 1.00 - 1,200.00 1,200
7.03 S upe rvis ors da y 6.00 - 1,200.00 7,200
7.04 Adm inis tra tion da y 4.00 - 900.00 3,600
7.05 Ca rpe nte rs da y 20.00 - 320.00 6,400
7.06 S te e lfixe r/Be nde rs da y 16.00 - 320.00 5,120
7.07 Ma s ons da y 6.00 - 320.00 1,920
7.08 Cha inm a n da y 2.00 - 320.00 640
7.09 La boure rs da y 35.00 - 284.00 9,940
7.10 Me cha nics da y 2.00 - 320.00 640
7.11 Ele ctricia n/Auto Ele ctricia ns da y 1.00 - 320.00 320
7.12 We lde rs da y 1.00 - 320.00 320
7.13 P lum be r da y 1.00 - 320.00 320
7.14 Office Ca re ta ke r da y 1.00 - 284.00 284
7.15 Hous e ke e pe r da y 3.00 - 284.00 852
7.16 S tore ke e pe rs da y 1.00 - 284.00 284
7.17 Tippe r Drive rs da y 4.00 - 520.00 2,080
7.18 P la nt Ope ra tors da y 11.00 - 520.00 5,720
7.19 Ve hicle Drive rs da y 2.00 - 450.00 900
Ite m De s c riptio n Co s t in US D
Unit Qty Da y s Ra te / d To ta l
5.1.9 Cost for maintaining the site in a demobilized condition from 01 Nov 09
to 31 Dec 09
This section covers the cost for maintaining the site in a demobilized condition from
01 Nov 09 to 31 Dec 09.
Ite m De s c riptio n Co s t in US D
Unit Qty Da y s Ra te / d To ta l
S ubtota l - Cos t for m a inta ining the s ite in a de m obilize d condition 272,800
Ite m De s c riptio n Co s t in US D
Unit Qty Da y s Ra te / d To ta l
C o s t o f R e m o b iliz a tio n
P la n t
10.01 Hiring of Low Loa de r da y 2.00 15.00 300.00 9,000
10.02 Hiring of Fla t Be d Tra ile r da y 3.00 15.00 300.00 13,500
10.03 Mobile Cra ne da y 2.00 15.00 850.00 25,500
10.04 Fue ld Cos ts da y 14800 Ltr. 1.8 c/Ltr. 26,640
10.05 Lubrica nt for s e rvicing pla nt da y 208 Ltr. 8.0 c/Ltr. 1,664
La b o u r
10.06 Expa tria te S upe rvis ion da y 2.00 15.00 476.00 14,280
10.07 S upe rvis ion da y 2.00 15.00 45.00 1,350
10.08 Loca l La bour da y 35.00 15.00 9.00 4,725
Ge n e ra l Ite m s
10.09 Re -e re ction of contra ctor's s ign pos t 650
10.10 P rovis ion of ne w HS E Equipm e nt 20,000
10.11 Re -e re ction of Working pla tform s a nd 4,000
s ca ffolding
10.12 Re cruitm e nt a nd a ccom m oda tion for 21,300
e xpa tria te s
10.13 Cle a n / De s ca le re inforce m e nt 5,000
Any Taxes and/or Duties that will be due or require payment will either need to be
paid for by the Employer directly or be paid by the Contractor and duly compensated
in the Application for Interim Payment.
S u m m a ry o f C o s t a n d C o m p e n s a tio n
1 Cos t of S ta ff Idling 108,750
2 Cos t of La bour Idling 59,100
3 Cos t of P la nt a nd Equipm e nt Idling 227,130
4 Cos t of P re lim ina rie s a nd Office Running cos t 60,600
5 P rofit a nd Ove rhe a d @ 15% 68,337
6 De m urra ge Cha rge s 41,062
7 Cos t of La bour De m obiliza tion 61,740
8 Cos t of P la nt & Equipm e nt De m obiliza tion 38,640
9 Cos t for m a inta ining the s ite in a de m obilize d condition 272,800
10 Cos t of Re m obiliza tion 147,609
Va lu e o f C la im 1 ,0 8 5 ,7 6 8
6. Summary
6.1 Time impacts
S u m m a ry o f C o s t a n d C o m p e n s a tio n
1 Cos t of S ta ff Idling 108,750
2 Cos t of La bour Idling 59,100
3 Cos t of P la nt a nd Equipm e nt Idling 227,130
4 Cos t of P re lim ina rie s a nd Office Running cos t 60,600
5 P rofit a nd Ove rhe a d @ 15% 68,337
6 De m urra ge Cha rge s 41,062
7 Cos t of La bour De m obiliza tion 61,740
8 Cos t of P la nt & Equipm e nt De m obiliza tion 38,640
9 Cos t for m a inta ining the s ite in a de m obilize d condition 272,800
10 Cos t of Re m obiliza tion 147,609
Va lu e o f C la im 1 ,0 8 5 ,7 6 8