Delays to Programme - option A

We are on a Option A contract. We have 2 projects for different clients. One has been delayed since March 2020(covid & overseas) and is due to start back up in May 2021. The other is also Option A and overseas and is working but has recently had a 2 week closure due to Covid and weather. Our works have continued during this period but the local main contractors works haven’t so they are behind. Our end date is now very close to the start date of the 2nd project and as our labour resource is limited due to the nature of our work we do we are concerned we cannot keep both clients happy.
We may need to send new resource out to finish the project that is currently ongoing but would these costs be ours to absorb as the current delay is outside of our control?

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Without giving me the details, it is highly likely that you will have a compensation event (or two or three or more!) on you overseas contract. That will entitle you to additional time and cost e.g. an increase to the Prices and delay to the contract Completion Date.

However, how the overseas client wants you to manage it - say for least cost - may not be the same as how you want it to be managed - to finish in time for your other project to re-mobilise.

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I would consider raising early warnings on both contracts. Then arrange risk reduction meetings to talk through the issues being faced. There could be an amicable resolution that suits all. If you don’t discuss you will only be second guessing, you will also see where action is needed and whether compensation will be difficult to obtain.

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