[Engineering Version] Daily Question 20180202
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A company built a new office building in the Beijing area, with a construction area of 20,000 square meters. The construction began on June 20, 2001, and was completed on November 20, 2003. The project commenced as scheduled in accordance with the contract terms. When the construction of the structure was halfway complete, the client and the contractor entered into negotiations and reached the following agreement: the client would assign the tasks of installing glass facades on the building’s exterior walls and constructing interior partition walls to specialized companies for execution, and would pay those companies 1.5% of the cost of those subtasks as a fee for management and coordination services. The specialized companies were required to start work on the dates specified by the contractor, and the client would pay them directly for the work done. The specialized company tasked with the installation of the exterior glass curtain wall began work on April 20, 2002, as required by the relevant contractor. However, on June 10, 2002, after starting work, the company halted its operations because the client failed to pay the agreed amounts as stipulated in the contract signed between them. As a result of this suspension of work on the exterior decoration, other exterior construction projects that were scheduled to begin on October 20, 2002, could not proceed. Work on the exterior wall renovation project resumed in June 2003. On May 20, 2002, in accordance with the schedule, the contractor requested that the construction party responsible for the interior partition wall work commence work, with the completion date set for November 20, 2002. The construction contractor for this project arrived on site on time as stipulated in the contract. During the construction process, substandard work quality required multiple reworks, which affected the contractor’s mechanical and electrical installation work. It was not until March 20, 2003, that the masonry work was completed satisfactorily, resulting in a 5-month delay in the construction of the mechanical and electrical components. Questions: (1) Can the contractor file claims for extended project duration and compensation for economic losses from the employer due to the suspension of work on the exterior wall renovation project? (2) Can the employer file claims for economic losses against the company responsible for the exterior glass curtain wall installation due to the suspension of work? Why? (3) Can the contractor file claims for extended project duration and compensation for lost time due to the slow progress of interior wall construction? Answer: (1) The contractor can file claims for extended project duration and financial compensation from the employer, as the delay in completion and the resulting increased costs are not caused by the contractor’s own faults. (2) Since the employer failed to pay the project funds as stipulated in the contract due to its own reasons, this caused economic losses to the construction contractor responsible for the exterior glass curtain wall installation project; therefore, the employer cannot file a claim against that contractor. Moreover, the construction contractor can submit claims to the employer for extended project duration and compensation for the economic losses incurred. (3) Due to the slow progress of interior masonry work, the contractor may submit claims to the employer for extension of time and compensation for lost labor costs.
(1) The contractor may submit time claims and cost claims to the employer, as the extension of the project duration and the resulting increase in costs are not caused by the contractor’s own faults. (2) Since the employer failed to pay the project funds as stipulated in the contract due to its own reasons, this caused economic losses to the construction contractor responsible for the exterior glass curtain wall installation project; therefore, the employer cannot file a claim against that contractor. Moreover, the construction contractor can submit claims to the employer for extended project duration and compensation for the economic losses incurred. (3) Due to the slow progress of interior masonry work, the contractor may submit claims to the employer for extension of time and compensation for lost labor costs.
(1) The contractor may submit time claims and cost claims to the employer, as the extension of the project duration and the resulting increase in costs are not caused by the contractor’s own faults. (2) Since the employer failed to pay the project funds as stipulated in the contract due to its own reasons, this caused economic losses to the construction contractor responsible for the exterior glass curtain wall installation project; therefore, the employer cannot file a claim against that contractor. Moreover, the construction contractor can submit claims to the employer for extended project duration and compensation for the economic losses incurred. (3) Due to the slow progress of interior masonry work, the contractor may submit claims to the employer for extension of time and compensation for lost labor costs.
(1) The contractor may submit time claims and cost claims to the employer, as the extension of the project duration and the resulting increase in costs are not caused by the contractor’s own faults. (2) Since the employer failed to pay the project funds as stipulated in the contract due to its own reasons, this caused economic losses to the construction contractor responsible for the exterior glass curtain wall installation project; therefore, the employer cannot file a claim against that contractor. Moreover, the construction contractor can submit claims to the employer for extended project duration and compensation for the economic losses incurred. (3) Due to the slow progress of interior masonry work, the contractor may submit claims to the employer for extension of time and compensation for lost labor costs.
(1) The contractor may submit time claims and cost claims to the employer, as the extension of the project duration and the resulting increase in costs are not caused by the contractor’s own faults. (2) Since the employer failed to pay the project funds as stipulated in the contract due to its own reasons, this caused economic losses to the construction contractor responsible for the exterior glass curtain wall installation project; therefore, the employer cannot file a claim against that contractor. Moreover, the construction contractor can submit claims to the employer for extended project duration and compensation for the economic losses incurred. (3) Due to the slow progress of interior masonry work, the contractor may submit claims to the employer for extension of time and compensation for lost labor costs.
(1) The contractor may submit time claims and cost claims to the employer, as the extension of the project duration and the resulting increase in costs are not caused by the contractor’s own faults. (2) Since the employer failed to pay the project funds as stipulated in the contract due to its own reasons, this caused economic losses to the construction contractor responsible for the exterior glass curtain wall installation project; therefore, the employer cannot file a claim against that contractor. Moreover, the construction contractor can submit claims to the employer for extended project duration and compensation for the economic losses incurred. (3) Due to the slow progress of interior masonry work, the contractor may submit claims to the employer for extension of time and compensation for lost labor costs.
(1) The contractor may submit time claims and cost claims to the employer, as the extension of the project duration and the resulting increase in costs are not caused by the contractor’s own faults. (2) Since the employer failed to pay the project funds as stipulated in the contract due to its own reasons, this caused economic losses to the construction contractor responsible for the exterior glass curtain wall installation project; therefore, the employer cannot file a claim against that contractor. Moreover, the construction contractor can submit claims to the employer for extended project duration and compensation for the economic losses incurred. (3) Due to the slow progress of interior masonry work, the contractor may submit claims to the employer for extension of time and compensation for lost labor costs.
(1) The contractor may submit time claims and cost claims to the employer, as the extension of the project duration and the resulting increase in costs are not caused by the contractor’s own faults. (2) Since the employer failed to pay the project funds as stipulated in the contract due to its own reasons, this caused economic losses to the construction contractor responsible for the exterior glass curtain wall installation project; therefore, the employer cannot file a claim against that contractor. Moreover, the construction contractor can submit claims to the employer for extended project duration and compensation for the economic losses incurred. (3) Due to the slow progress of interior masonry work, the contractor may submit claims to the employer for extension of time and compensation for lost labor costs.
(1) The contractor may submit time claims and cost claims to the employer, as the extension of the project duration and the resulting increase in costs are not caused by the contractor’s own faults. (2) Since the employer failed to pay the project funds as stipulated in the contract due to its own reasons, this caused economic losses to the construction contractor responsible for the exterior glass curtain wall installation project; therefore, the employer cannot file a claim against that contractor. Moreover, the construction contractor can submit claims to the employer for extended project duration and compensation for the economic losses incurred. (3) Due to the slow progress of interior masonry work, the contractor may submit claims to the employer for extension of time and compensation for lost labor costs.
Answer: (1) The contractor may submit claims for extension of time and financial compensation to the employer, as the delay in completion and the resulting increase in costs were not caused by the contractor’s own faults. (2) Since the employer failed to pay the project funds as stipulated in the contract due to its own reasons, this caused economic losses to the construction contractor responsible for the exterior glass curtain wall installation project; therefore, the employer cannot file a claim against that contractor. Moreover, the construction contractor can submit claims to the employer for extended project duration and compensation for the economic losses incurred. (3) Due to the slow progress of interior masonry work, the contractor may submit claims to the employer for extension of time and compensation for lost labor costs.
Answer: 1. The contractor may submit claims for extension of time and financial compensation to the employer, as the delay in completion and the resulting increase in costs are not caused by the contractor’s own faults. 2. Since the employer failed to pay the project funds as stipulated in the contract due to its own reasons, this caused economic losses to the construction unit responsible for the exterior glass curtain wall installation project; therefore, the employer cannot file a claim against that construction unit. On the other hand, the construction unit can submit claims to the employer for delays in the project timeline as well as for the economic losses incurred. 3. Due to the slow progress of interior masonry work, the contractor may submit claims to the employer for extended construction time and losses resulting from idled labor.