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Regarding progress penalties

2009-04-15View Original

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Let’s discuss this: during construction, if a construction team fails to complete its tasks on time, thereby delaying the project schedule, is it reasonable to impose a financial penalty as a form of punishment? 2. If a fine is to be imposed, should it not be specified in advance in the contract signed with the construction team? As a basis for fining? 3. If the above conditions are met, then how much in fines would be reasonable – one that is effective without causing dissatisfaction among the contractors? 4. If no fines are imposed, are there any other measures that can be used to punish the contractor? Should these also be specified in the contract? 5. If all of the above measures are to be specified in the contract, how should they be written? Should they be included in the main text, or in the technical provisions or supplementary clauses?
Reply #22009-04-15
A good manager does not wait until the construction team has failed to complete the task before imposing fines. Instead, take measures to get him to complete the task before it’s finished.
Reply #32009-04-15
During construction, the schedule is often exaggerated; work that should take 2 months is planned to take 3 months. As long as the funds are available, isn’t it only fair to offer a progress bonus? However, in order to meet tight deadlines, some force the winning contractor to complete work that is scheduled for 3 months into 2 months; in such cases, care must be taken to avoid facing fines as stipulated in the contract. The explanation is as follows: 1. The fine amount depends on your relationship with the property owner. 2. Penalties for delays are generally specified in the contract (contracts that don’t cover this aspect are incomplete, as the management is not aware of it). 3. The fine amount is generally 0.1% per day (of the contract value). 4. Fines are the best way to punish the construction party. There is no other way.
Reply #42009-04-15
“A good manager does not wait until the construction team has failed to complete the task before imposing fines. Instead, take measures to get him to complete the task before it’s finished. ” Right! In case such a situation occurs! Fine, switch to another construction team! There must be a legal basis—a contract! The contract should state that a penalty of 10,000 will be imposed for a 5-day delay in completion, 20,000 for a 10-day delay; if the delay exceeds 10 days, Party B shall voluntarily terminate the contract and replace the construction team! ” You can write it in more detail! If it’s not in the contract, write more! !
Reply #52009-04-15
I think fines are an effective form of punishment; after all, the goal these days is to pursue economic benefits. Fines can urge construction site managers to pay attention and do their job properly.
Reply #62009-04-15
Fines should be specified in advance in the relevant clauses of the contract, rather than being thought of only when such a situation arises during the project. It is specified in the contract to prevent such situations from occurring. As a competent project manager, it is necessary to continuously monitor the quality, schedule, and costs of a project throughout its implementation, and to carry out timely coordination.
Reply #72009-04-15
There must be better ways to address the issue of project timelines or to minimize fines. Our on-site management imposes fines only in one case, and it’s a heavy fine – that is for safety issues~
Reply #82009-04-15
1. Is the fine reasonable? ——Reasonable. 2. If a fine is to be imposed, shouldn’t it be specified in advance in the contract signed with the construction team? As a basis for fining? ——Of course. 3. If the above conditions are met, then how much penalty would be reasonable – one that is effective without causing dissatisfaction among the contractors? ——'Don’t be afraid of them; you are the owner, the money is in your hands – why should you still be subject to them? As for the amount of the penalty, it depends on the provisions in the contract as well as the total value of your project.
Reply #92009-04-15
If the scheduled deadline is reasonable, a delay in completion is a loss for both the owner and the contractor. So what was said on the second floor is correct: it is necessary to develop a more reasonable schedule breakdown plan, make timely adjustments, and take preventive measures.
Reply #102009-04-15
Fines are indeed an effective management approach, but they must be practical. Otherwise, punishing the construction unit too harshly will have a negative impact on the quality of the work.
Reply #112009-04-15
There have been discussions on this topic in the forum; you may want to take a look: 1. Regarding project progress control: http://bbs.hcbbs.com/viewthread.php?tid=362245 2. Regarding progress and safety penalties: http://bbs.hcbbs.com/viewthread.php?tid=403829
Reply #122009-04-15
Fining is illegal here; unless punitive clauses are stipulated in advance in the contract, only compensation for damages resulting from the delay can be claimed. “\"Fine\" is an administrative term; only certain **authorities have the power to impose fines.
Reply #132009-04-15
1. Is the fine reasonable? It’s certainly reasonable, but generally we rarely call it a fine; instead, we refer to it as a “delay penalty,” which is deducted from the payable fees. 2. If a fine is to be imposed, should it not be specified in advance in the contract signed with the construction team? As a basis for fining? ) Of course, it should be agreed upon; if not specified in the contract, the two parties can also agree on it at any formal meeting, but it must be signed by both parties. 3. If the above conditions are met, then how much in fines would be reasonable – one that is effective without causing dissatisfaction among the contractors? It is generally 0.1% of the payment amount, with a ceiling set according to actual circumstances. No matter how much the penalty is, the construction party will be dissatisfied, but as long as it can accept or tolerate it, that’s fine. 4. If no fines are imposed, are there any other measures that can be used to punish the contractor? Should these also be specified in the contract? Generally, no. Unless you can threaten his position in some way, such as removing him from his role as project manager, etc. If all of the above measures are to be specified in the contract, how exactly should they be written? Should they be included in the main text, or in the technical provisions or supplementary clauses? It is generally written in the formal terms.
Reply #142009-04-15
I believe that, regarding the construction progress of a project, the best approach is to take measures for control throughout the process. Since there are many factors that cause delays in project timelines, it’s not fair to blame the construction company for everything ; If the main responsibility does not lie with the constructor, imposing fines is not only ineffective but also counterproductive. Our company also uses the fines mainly for quality control. The contract may not specify anything regarding this either; a fine of up to 1,000 yuan per incident works quite well.
Reply #152009-04-15
I believe that, regarding the construction progress of a project, the best approach is to take measures for control throughout the process. Since there are many factors that cause delays in project timelines, it’s not fair to blame the construction company for everything ; If the main responsibility does not lie with the constructor, imposing fines is not only ineffective but also counterproductive. Our company also uses the fines mainly for quality control. The contract may not specify anything regarding this either; a fine of up to 1,000 yuan per incident works quite well.
Reply #162009-04-15
Fines are an effective means, but it is recommended to agree on them in advance; otherwise, it is quite unreasonable. It is likely to provoke resentment and resistance from the construction party, which is entirely counterproductive. If the two parties agree in advance, then it is their obligation to abide by that agreement. :)
Reply #172009-04-15
There must be a system for imposing fines; fines should not be imposed arbitrarily
Reply #182009-04-15
The contract should originally include provisions regarding penalties for delays in progress; usually, important milestone dates need to be specified in the contract. But this is merely a tactic, not an effective solution; progress needs to be controlled during regular construction. By the time fines have to be imposed because the progress does not meet the requirements, it means that the project manager has failed in their duties.
Reply #192009-04-16
Generally, fines are specified in the contract; otherwise, fines should not be imposed arbitrarily. Domestic construction entities generally impose arbitrary penalties on contractors, which is not allowed internationally.

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