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News & Press: 2017 News Items

The right road to termination

Thursday, 13 July 2017  
Posted by: Bert vd Heever
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In the latest copy of the RICS Construction Journal David Falkenstern and Ilke Sahin offer advice on how to ensure contract termination is the last resort.

They say: ..."Manipulating the programme to show an artificially early completion date will likely lead to an inaccurate critical path, yet this is a common feature of construction disputes that exaggerates their scope. Therefore, clients should not pressure contractors to show no delay in their updates when delay is inevitable. Inaccurate programme updates will also cause erroneous project forecasting, including financial forecasting. Consequentially, this can exacerbate cash-flow problems for both contractors and clients and lead to further dispute."

They go on to make a case for proactive clauses that help limit the scope for dispute that may result in termination, such as:

  • defining the method of analysis to be used in an extension-of-time request made soon after the parties first become aware of the delay, and possibly an alternative method to be used after the completion of the affected works
  • ownership of programme float, the spare capacity built into the programme
  • how concurrency – that is, when two delays simultaneously affect the critical path – should be analysed.
We strongly urge you to read the full article by accessing the Construction Journal and then turning to page 15