Friday, September 21, 2007

Contract Information

Below is a report on the information we found in the contract. Please note that we were not given a signature page and we are uncertain of who “the engineer” is. In fact, we are even making assumptions as to who the “owner” and “contractor” are.

Also, engineer seems to play a powerful role in renegotiation and/or monetary issues.


In summary:
OWNER: City of Beacon
CONTRACTOR: Sun up
ENGINEER: UNKNOWN

The contract OWNER is entitled to suspend the contract for a period of up to 90 days.
If the contract is suspended the CONTRACTOR is entitled to appeal to the ENGINEER for an adjustment in schedule or contract price relating to such delays.

The ENGINEER is entitled to render a decision on such adjustments.

There is no provision in the contract for dispute resolution should the CONTRACTOR dispute the ENGINEER’S decision regarding a request for changes in fee or schedule. The only recourse would be a court within Duchess County.

The OWNER has the absolute right to issue change orders relating to the scope of work including deletions or reductions in the scope.

The ENGINEER would render on opinion in regards to any change in contract price or schedule due to such change orders.

Nothing within the contract directly entitles the CONTRACTOR to adjustments in contract price due to days by the OWNER, in fact, such a provision was explicitly deleted and deletion of that paragraph was accepted by the contractor. (paragraph 12.06.B)


Per 15.01, The OWNER may suspend work for up to 90 days. The CONTRACTOR may be entitled to an adjustment in contract price, contract schedule and may make such a claim to the ENGINEER per paragraph 10.05.

Per section 10.01.A the Owner “Without invalidating the Agreement and without notice to any surety, OWNER may, at any time or from time to time, order additions, deletions, or revisions in the work by a Written Amendment, a Change Order, or a Work Change Directive. Upon receipt of any such document, CONTRACTOR shall promptly proceed with the Work involved which will be performed under the applicable conditions of the Contract Documents (except as otherwise specifically provided).”

The change in the contract price is dealt with in the following paragraph, 10.01.B; “If OWNER and CONTRACTOR are unable to agree on entitlement to, or on the amount or extent, if any, of an adjustment in the Contract Price or Contract Times, or both, that should be allowed as a result of a Work Change Directive, A Claim may be made therefore as provided in paragraph 10.05.”

10.05 states that that the CONTRACTOR will give general written notice of such claim to the ENGINEER within 30 days (which it has), that it will provide supporting data within 60 days after the event. The opposing party has 30 days to respond. The ENGINEER will render a written decision within 30 days. If the ENGINEER does not issue such a written decision the claim will be deemed to be rejected in it’s entirety.

1 comment:

dzdt said...

So what happened at the meeting Monday night?