Guidelines for the Management of Delays, Disruptions and Compensation

Guidelines for the Management of Delays, Disruptions and Compensation (Word 207Kb)

General Guidelines

(Project managers must manage claims for extensions of time (EOT) and resulting compensation claims effectively at the time of occurrence, to the extent possible. The cost of preparation of delay claims is normally not reimbursable, unless the contractor can demonstrate that they has been subjected to additional cost as a result of unreasonable actions or inactions of Public Services and Procurement Canada (PSPC) in dealing with the claim, or has been forced to use extraordinary measures to substantiate their case, for example, having to hire specialist consultants, etc.)

Delay Guidelines

(Delays result in prolongation and additional cost. Responsibility for the cost of delay is contentious. Causes of delay, fall into three categories: caused by PSPC, caused by the contractor or caused by a neutral cause "force majeure". Delay claims paid to contractors may be recoverable from the consultants if it is determined that consultant errors and omissions were partly or entirely responsible for the events that led to damages.)

Disruption Guidelines

(Disruption to construction work may or may not lead to late completion of the work. It is possible for work to be disrupted and for the contract to be completed on time. In this situation, the contractor will not have a claim for an EOT, but it may have a claim for the cost of the reduced efficiency of its workforce, if it can demonstrate that the disruptions were caused by PSPC.)

Compensation Guidelines

(The granting of an EOT does not automatically lead to entitlement to compensation and vise versa)

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