Main Contract: Option A Amended
Subcontract: Option A Amended
Scenario: Client led changes via PMI’s on site resulting in the main contractors subcontractors changing their programme.
Issue: In the compensation events what cost is allowable.
The main Contractor on site is receiving instructions from the Project Manager which is changing the works information. This has led to the subcontractor having to demobilize and remobilize to site. Three issues I would like to get advice on.
Travelling time - the site is based is a very remote location approx. 1 days drive - the subcontractor is claiming travel time however I believe under the contract this should be included within the rates for people as per SoCC but it is known this has not been - if this is to be removed from the compensation event then it could cause issue with the subcontractor and lead to further delays/issues on the project.
There is also debate to whether the people charging travel time are a subcontractor or people - they are paid day rates while in the Working Area -
“People who are not directly employed by the Contractor [and who are not
Subcontractors as defined], but are paid by the Contractor according to the
time worked while they are within the Working Areas, for example, consultants.”
I found the following article useful yet still confusing:
- Mitigation: As the subcontractor has now had to demobilize and remobilize at short notice they are now claiming they cannot redeploy for 5 days to other work projects and therefore are claiming 5 days standing time for 4 men. In terms of the Contract payments are only to be made for providing the works within the Working Areas - I would argue this would not fall under this SoCc but as above if not paid this would strain relationships - would standing time outside of the Working Area costs associated with the Subcontractor from an element which was not their risk be an allowable cost in any form under the Contract?