Civil Engineering Project Management (4th Edition)
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176 <strong>Civil</strong> <strong>Engineering</strong> <strong>Project</strong> <strong>Management</strong><br />
Assessment of extensions of time may have to be made several times during<br />
a long contract and their cumulative effect will have to be assessed at or<br />
near completion. The assessment needs to take account of all known circumstances<br />
at the time, independently of what may happen later. Also the estimate<br />
is unlikely to be precise because of complicating factors, such as delay<br />
periods overlapping. The engineer has to decide whether delays fairly entitle<br />
the contractor to an extension, so it may be that reference only to the contractor’s<br />
programme is insufficient, since other factors need to be taken into<br />
account to produce a fair result. To make this judgment the engineer needs<br />
experience of constructional processes and their limitations.<br />
An early look at a delay with reference to the contractor’s initial programme,<br />
should take into account that this is only a statement of intent and<br />
that the contractor is at liberty to change his programme. Some operations will,<br />
in the nature of events, take longer or shorter to complete than anticipated.<br />
A more realistic approach is to examine the as-built record of construction to see<br />
if – had the delay not occurred – the construction could have been completed<br />
faster, taking into account any changes made by the employer which have<br />
caused delay. The advantage of this approach is that it is based on actual performance<br />
including any mitigating measures that were taken to reduce delay.<br />
A further discussion of assessing delay and evaluating any payment due is<br />
given in Sections 17.10 and 17.11.<br />
14.9 Estimating probable final cost of works<br />
When a construction project is moving towards completion the employer may<br />
ask for an estimate of its probable final cost. To deal with this it is a help if the bill<br />
of quantities for the project is divided into separate bills for separate structures.<br />
This makes it easier to identify where extra costs have arisen and where further<br />
extras can be expected. The following type of analysis may then be adopted:<br />
• An analysis of amounts incurred under variation orders is made, dividing<br />
them out over the separate bills. The analysis should include VOs pending.<br />
If a VO covers many items spread over several bills, it can be allocated<br />
to general contingency money, to save time on too much detailed analysis.<br />
• The page totals in the original priced bill of quantities should be compared<br />
with the latest page totals for interim payments certified to date. Additions<br />
should be made where, by examination, it is thought payment for items on<br />
that page will come to £500 or more than the original page total shown.<br />
Deductions will be made where it is expected a page total will reduce by<br />
£500 or more because of items omitted, or for which payment under a VO<br />
has been substituted. Smaller differences are ignored. The total for each bill<br />
for a separate structure is then derived by adding up the revised page totals.<br />
• The probable final cost outcome of the main construction contract can then<br />
be assessed as shown in Table 14.1.