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Project Management _ BLDG 6571 1 Claim Case Study Submitted By: Hossein Abaeian 7119852 Waad Alghazi 6697658

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Claim Case Study2
INTRODUCTION
The project includes the erection of mechanical equipment and installs piping included in
the SAG MILL MECHANICAL contract. The history of the project is summarized as the
following:
Project start date: 30 April, 1990
Actual Project start date: 3 May, 1990
Project planned finishing date: 31 August, 1990
Actual Project finishing date: 14 December, 1990
Type of the contract: Lump Sum
Total amount of contract: $2,549,130
On January 31st 1990, owner invites the contractor for bidders list for SAG mill
mechanical contract. Contractor qualifies for the project at the plant. Proposal request for
SAG mill mechanical contract was issued by the owner on the 19th of March 1990.
Contractor submitted the proposal on the 17th of April 1990. Between 17th of April 1990
and May 3rd, 1990 owner and contractor exchanged correspondence relative to the
proposal and participated in bid clarification meeting. On May 3rd 1990 the owner
granted the contractor the SAG mill mechanical contract for $2,549,130. The contract
duration time March 1990 to August 1990 (20 weeks). Upon the award of the contract the
contractor mobilized its forces to the project site immediately. However the contractor
was prevented to execute the work as settled with the contract. The claim is conducted
because of several reasons. One the contractor was not able to access the work areas as
planned date. Second, late delivery of equipment and some of the equipment were
delivered damaged or with deficiencies. Third, construction drawings, vendor drawings
and revisions of drawings were submitted late. These changes were imposed upon
Contractor without the prior issue of a Change Order. These problems impacted the time,
Project Management _ BLDG 6571
3
productivity and cost of construction. The engineer advised the contractor to complete the
contract without deficiencies by 13th of December 1990. Refer to the history and key
communication summary between the owner/engineer and contractor.
Picture bellow shows the work breakdown structure of the project:
Project Management _ BLDG 6571
SCOPE ANALYSIS:
The mechanical equipment erection work in the contract was divided into six main
physical areas of the site excluding the piping. The piping work was spread out over all
the areas and is considered as the 7th area. The six areas with the relative volume of
labour content are described briefly.
CHANGES TO THE CONTRACT:
The changes made to the contract are divided into 5 main categories as described below:
1. Changes in information regarding delivery of equipment (shell delivery changed
from June to July, then to the end of August), changes of equipment delivery
dates varied between one and six months later than the specified delivery dates
(most of which the contractor was not notified of)
2. Changes of the erection work caused by change in delivery of equipment
3. Changes in access for unloading equipment and erection work due to late
completion of work to be performed by owner’s forces or other contractors
4. Changes to the methods specified (to ease the effects of lack of access and late
deliveries and to correct defects on equipment supplied by owner)
5. Changes in the scope of work to be performed (including changes and revisions in
the designs done after the contract was awarded and correctional work)
Project Management _ BLDG 6571
5
MAN-HOUR:
In the case of actual man-hours spent on site, they have been divided to two main
sections:
1. Man-hours spent on the works assigned in the original contract
2. Man-hours spent on the extra work added to the original contract afterwards The two
man-hour sections are further divided into three subsections that include the premium
hours, regular hours and shift differential hours. In order to calculate the total man-hour
value of the project, the labour cost was assumed to be $40/hour for the regular hours and
$50/hour for the shift differential and extra-work hours.By subtracting the amount of
earned man-hours in the billing file from the amount of actual man-hours, the claim
balance for the man-hour section is found.
CHANGE ORDERS:
The original contract was signed based on the given drawings at the time, and the
contract price that was used for bidding was found through studying the drawings and
determining the required scope for the project. Afterwards, some changes to the project
schedule were made due to changes in the scope of the work and the occurrence of
several delays. These changes caused major loss in productivity, which needs to be added
to the claim. Based on the communication between the owner/engineer and the contractor
some of the drawings had to be redrawn or revised, adding more value to the claim
requested. Also, several change orders were issued due to delays and changes made,
which had been calculated and provided to the engineer. The total loss in productivity
due to the points mentioned above is estimated based on the Charles Leonard method by
using the Charles Leonard charts. To find the effect of changes on the productivity, the
costs of change orders and reissuing of drawings were added and divided by the contract
price. From the charts, using the line with two major causes for drawings and change
orders, the amount due to loss in productivity is determined.
Project Management _ BLDG 6571
Man-hours
1 Mobilization 1,211 84.75
72 Demobilization 0 0
72 Demobilization Demobilization - LABOUR
As-Built Dates
Item # Item
72 Demobilization Demobilization - LABOUR
As-Planned vs As-Built Schedule (Area_0)
Delay: 3.50 M
Area # 1 – Crusher Building
This area includes an existing building housing the storage bin for the CLARABELLE
MILL that receives the ore directly from the mine. By means of apron feeders the ore is
extracted from the base of the bin which is fed to the conveyors. The conveyors then
transport the ore to a series of cone crushers in the building, where it is reduced in size
and is then fed elsewhere in the mill for further processing. There are 6 apron feeders at
the base of the bin; where each apron feeder feeds its own conveyor belt. The purpose of
the work in this area is to redirect some of the ore of this bin to the new SAG mill using
only 2 of the apron feeders. This is done by taking 2 apron feeders out of service,
removing the conveyor and installing new ones and hence modifying the apron feeders to
ensemble the direction and capacity of the new conveyors.
Scope Of Work:
1. Remove the existing belt conveyors 1 and 2 (which take the ore from
apron feeder1)
2. Remove the existing belt conveyor 9 (which takes the ore from apron
feeder 6)
3. Remove the existing drive (gear box and couplings), motor and base plate
for apron feeders 1 and 6
4. Break out the existing concrete bases for the drive, motor and base plate
for apron feeders 1 and 6
5. Form and pour new concrete bases for the drives and motors for apron
feeders 1 and 6
6. Install, align and couple the new drives and motors
7. Modify existing chute work for apron feeders 1 and 6.
Project Management _ BLDG 6571
hours
11 Modify existing feeders plate work & concrete pads
296 97.50
Delay Analysis:
As-Planned Dates
Item # Item
11
Modify existing plate work
As-Built Dates
Item # Item
Finish Date
work & concrete pads
Modify existing feeders
10 SEP 1990
07 NOV 1990
28 SEP 1990
30 NOV 1990
Project Management _ BLDG 6571
Delay: 3.71
Cause Effect Relationship
the equipment
conveyors
Late access to work area Lack of access during extra work on
feeder #6 by others
Extra work due to
structural steel work by
to feeder #6 & #1
Project Management _ BLDG 6571
Impact Analysis: (Refer to Daily Site Report)
Late Delivery of Equipment: Row code number: 197 Requirement to Salvage Conveyors: Row code number: 192 to 196, 198 to 201
Access Problem to Conveyors: Row code number: 190 to 191
Extra Work due to Modifications: Row code number: 192 to 196, 198 t0 201
Change Orders:
Area # 2 – Conveyors
The new SAG mill is housed in the mill building. The ore is transported from the
Crusher Building to the mill building through the Coarse Ore Silo. Ore transportation
is done by 2 exterior conveyors: the ore silo feed conveyor and the SAG mill feed
conveyor.
First is the ore silo feed conveyor that has a total length of 560 feet. This conveyor
starts at the upper level of the crusher building. About 124 feet long of the conveyor
section is included in the crusher building. At around 41 feet above the ground, the
conveyor leaves the building with length of approximately 436 feet. Then continues
upwards to an elevation of about 118 feet above ground elevation where it ties in at
the top of a second ore storage bin. This second bin is referred to as the "Coarse Ore
Silo".
The second conveyor, the SAG mill feed conveyor, originates at the base of the
Coarse ore silo (85 feet) and continues into the new mill building (45 feet) where it
Project Management _ BLDG 6571
13
discharges into the SAG mill. About 95 feet of this conveyor is outside and is fully
enclosed in a steel structure.
Scope Of Work:
1. Off-load the conveyors, drives and accessories from railcars at the
designated rail delivery point about 6 miles from the site;
2. Transport to site;
3. Assemble the bents;
4. Erect the bents;
7. Install drives, motors and chutes;
8. Install conveyor belts.
belting
Install sag mill feed conveyor
935 935 0
hours
18 Install pebble conveyor – sag 132 13
19 Install sag mill feed conveyor 259 39
20 Install conveyor belting 0 0
Total 1558 314.5
24-BC-101 1 MAY 1990 24 AUG 1990 115 Days
24-BC-101BLT 1 JUL 1990 22 AUG 1990 52 Days
24-BC-101M 28 MAY 1990 17 JUL 1990 50 Days
18
19
33-BC-101 1 MAY 1990 8 NOV 1990 191 Days
33-BC-101M 30 JUN 1990 17 JUL 1990 17 Days
33-CH-105 1 MAY 1990 10 JUL 1990 70 Days
800-BC-101BLT 1 JUL 1990 24 JUL 1990 23 Days
20 Install conveyor belting
33-BC-101BLT 1 JUL 1990 22 AUG 1990 1 M + 23
Days
Item # Item Description Detail Planned Start Date Planned Finish Date
7 Install ore silo feed conveyor
Line 1 to 5
Line 2 to 25
Install pebble conveyor –
Install sag mill feed conveyor
30 APR 1990 20 JUN 1990
As-Built Dates
Item # Item Description Detail Actual Start Date Actual Finish Date
7
Line 1 to 5
Line 2 to 25
Install pebble conveyor – sag
19
30 MAY 1990
Delay: 1.37 M
Cause Effect Relationship
Is Delayed
Others On Feeder #6
Is Delayed
Gear Box
Conveyor’s Installation Is
Is Delayed
Suit Foundations
Crusher Building- access problem: Row code number: 447,452, 459, 477
Late Delivery of Equipment: Row code number: 439, 446
Extra Work on Galleries: Row code number: 440 to 445, 453 to 489, 461 to 464, 466 to 476, 478 to 494, 499 to 507, 509 to 517
Extra Work on Foundation: Row code number: 465, 495, 508
Change Orders:
Project Management _ BLDG 6571
Area # 3 – Coarse Ore Silo
The point of the Coarse Ore Silo is to supply a flow capacity between the SAG mill
and the existing crusher building. The Coarse Ore Silo is a cylinder made of concrete
having a diameter of 64 feet and a height of 118 feet. The interior surface of the silo
is lined with steel rail track. On top of the silo is a structural steel penthouse with
about 38 feet long by 22 feet wide and 18 feet in height. The ore enters via the Coarse
Ore Silo feed conveyor at the top of the silo inside the penthouse structure and is
discharged into the silo. The ore falls through a series of chutes; in the lower part of
the silo; then passes onto one of the 2 apron feeders. At the base of the Coarse Ore
Silo the feeders release the ore onto the SAG mill.
Scope Of Work:
1. Erect the penthouse steel, roofing and siding;
2. Install the apron feeders including drives and associated plate work, and
3. Erect the silo crane hoist in the penthouse.
Project Management _ BLDG 6571
87 87 0
Install conveyor belting
24 24 0
4 Penthouse steel erection 24 19
5 Install plate work feeders & motors 218 14
12 Erect silo crane hoists 16 0
15 Install pumps – ore storage 0 0
Total 258 33
Date
33-Ch-101 5 Jun 1990 20 Aug 1990 2M +16 Days
33-Ch-102 5 Jun 1990 20 Aug 1990 2M +16 Days
33-Ch-103 5 Jun 1990 26 Jul 1990 2M +16 Days
33-Ch-104 5 Jun 1990 26 Jul 1990 2M +16 Days
33-Fdr-101 20 Apr 1990 15 Jun 1990 1 M +25 days
33-Fdr-102 20 Apr 1990 15 Jun 1990 1 M +25 days
12
24-Cn-101 20 May 1990 3 Aug 1990 2M +14 DAYS
24-Cn-101m 20 Jun 1990 9 Aug 1990 1M +20 Days
24-Cn-101m1 20 Jun 1990 9 Aug 1990 1M +20 Days
24-Cn-101m2 20 Jun 1990 9 Aug 1990 1M +20 Days
24-Cn-104 30 Jun 1990 3 Aug 1990 34 Days
33-Cn-102 30 Jun 1990 3 Aug 1990 34 Days
33-Cn-102m1 20 Jun 1990 9 Aug 1990 1M +20 Days
33-Cn-102m2 20 Jun 1990 9 Aug 1990 1M +20 Days
15 Install Pumps – Ore Storage
33-P-112 30 Jun 1990 11 Jul 1990 11 Days
Project Management _ BLDG 6571
Date
5
Install ore silo feeders 30 APR 1990
30 MAY 1990
02 JUL 1990
Install plate work- ore storage
Install pump ore storage
Install conveyor belting 23 JUL 1990 27 JUL 1990
As-Built Dates
Date
5
Install ore silo feeders 13 JUN 1990
04 SEP 1990
20 JUN 1990
Install pump ore storage
Install conveyor belting
Project Management _ BLDG 6571
Delay: 2.80 M
Causes & Effects Relationship:
Cause Effect Relationship
Penthouse Steel – Access
Delayed
Pouring Of Concrete Bin, Supply Of
Steel Decks
Feeders – Access
Late Delivery Of Silo
Delayed
Modifications To Crane Trolley
Project Management _ BLDG 6571
Penthouse Steel- Access Problems: Row code number: 606 to 607
Feeders – Access Problems: Row code number: 608 to 621
Late Delivery of Soil Crane Hoists: Row code number: 622
Change Orders:
Area # 4 – Sag Mill
This area includes the largest item of work, the installation of the SAG mill. The SAG
mill consists of a center shell and 2 heads, one at each end: the feed head and the
discharge head. The shell and the 2 heads consist of three sections. At the centre of the
head section a trunnion is bolted. The trunnion supports the mill and the mill rotates on
the trunnion. The trunnion rests on pedestals.Coarse ore from the Coarse Ore Silo is fed
into the SAG mill via the SAG feed conveyor. The SAG mill rotates and breaks this
coarse ore down into smaller pieces.
Scope Of Work:
1. Install the 32 foot diameter SAG mill including sole plates, turn-on bearings,
head and shell sections, discharge trammel, drive gear and pinions, pinion
shaft bearings and sole plates and plate work;
2. Align the SAG mill as per the manufacturer's requirements;
3. Sandblast the SAG mill shell interior and install rubber lining;
4. Install the SAG mill lube system;
5. Install SAG mill lining, grates, lifters and turn-on liners;
6. Install and commission liner handling machine and mill jacking cradles;
Project Management _ BLDG 6571
24
7. Install SAG mill main driver motors, cooling fans with drives, motors and
cooling coils, and
8. Supply and install connecting ducts between cooling fans and mill motors.
Unpaid Man-hours:
Item # Item
Total Unpaid Man-hours 689
30 Sag mill installation 2,554.5 927.5
Total 2,554.5 927.5
33-SM-101MA 30 MAY 1990 12 NOV 1990 5M +13 days
33-SM-101MB 15 JUN 1990 12 NOV 1990 150 Days
33-SM-101C 30 MAR 1990 13 JUN 1990 75 Days
33-TS-101 30 APR 1990 13 JUN 1990 44 Days
Discharge Head Section D, E, F
31 MAY 1990 31 AUG 1990 1M +14 days
Delay Analysis:
As-Planned Dates
Item # Item
Assemble Components
Install Ring Gear 30 MAY 1990 15 JUN 1990
Install Motors 11JUN 1990 26 JUN 1990
Install Pinions 18 JUN 1990 22 JUN 1990
Install Liner Handler
Erect Mill Crane Hoist
Install Clutch 27 JUN 1990 4 JULY 1990
Install Guards 02 JUL 1990 13 JULY 1990
Install Liners 11 JUL 1990 14 AUG 1990
Install Trommel 06 AUG 1990 15 AUG 1990
Commission 20 AUG 1990 31 AUG 1990
Project Management _ BLDG 6571
Date
30
Assemble Components
Install Ring Gear 08 OCT 1990 17 OCT 1990
Install Motors 04 SEP 1990 21 SEP 1990
Install Pinions 08 OCT1990 24 OCT 1990
Install Liner Handler
Erect Mill Crane Hoist
Install Clutch 15 NOV 1990 09 NOV 1990
Install Guards 10 SEP 1990 14 SEP 1990
Install Liners 17 OCT 1990 21 NOV 1990
Install Trommel 07 NOV 1990 16 NOV 1990
Commission 21 NOV 1990 28 NOV 1990
As Planned vs As Built Schedule (Area_4)
Delay: 3.00M
Incomplete
For Mill Assembly
Overcasting Of Discharge
Time
Time
Construction Needs Extra Time
Delayed
Work
Problem #1: Sole Plates
Problem #3: Overcasting of discharge head sections
Problem #4: Discharge trunnion misalignment
Problem #5: Bull gear- extra alignment/conflict in installation method
Problem #6: Late delivery of motors
Change Orders:
Project Management _ BLDG 6571
Area # 5 – Sag Mill – Other
This area includes components other than the SAG mill itself that are related to the
operation of the SAG mill.
Scope Of Work:
4. Install pumps
d Man-
Install plate work – sag
Receive/assemble crusher/lube
43 Install pump – sag Install pump – sag 487 487 0
44 Install vibrating screens
24 & 49 Install lube system & cone crusher 515.50 71
28 Install magnets/associated 32 2
43 Install pump – sag 30 4
44 Install vibrating screens 166 14
Total 1,245.5 135
Delivery Date
Delay Time
33-CH-108 30 MAY 1990 6 JUL 1990 1M + 7 days
33-CH-110 15 JUN 1990 01 AUG 1990 1M + 15 Days
33-CH-113 15 JUN 1990 22 JUN 1990 7 Days
33-CH-117? 30 MAY 1990 27 JUN 1990 33 Days
33-CH-123? 30 MAY 1990 22 JUN 1990 28 days
33-DI-101 20 JUN 1990 08 AUG 1990 1M + 18 Days
33-DI-103 20 JUN 1990 12 JUL 1990 22 Days
33-DI-105 20 JUN 1990 27 JUN 1990 7 days
33-LR-106 30 JUN 1990 26 JUL 1990 25Days
33-LR-110 30 APR 1990 09 JUL 1990 2M + 16 days
33-PB-101 15 MAY 1990 09 JUL 1990 1M + 24 days
24 &
49
cone crusher
33-LU-101 01 APR 1990 14 SEP 1990 5 M +13 days
33-LU-102 01 APR 1990 13 JUN 1990 2M + 11 days
33-LU-103 15 MAR 1990 12 JUN 1990 2 M +27 days
33-LU-104 15 APR 1990 15 JUN 1990 2 M +27 days
28 Install magnets/associated
33-CH-115 30 MAY 1990 31 JUL 1990 2M + 1 day
33-CH-116 30 MAY 1990 31 JUL 1990 2M + 1 day
43 Install pump – sag
33-P-101 31 MAY 1990 24 AUG 1990 2 M+ 23 days
33-P-102 31 MAY 1990 24 AUG 1990 2 M+ 23 days
33-P-103 31 MAY 1990 24 OCT 1990 2 M + 23 days
33-P-104 31 MAY 1990 24 OCT 1990 2 M+ 23 days
33-P-105 30 JUN 1990 11 JUL 1990 11 days
33-P-106 30 JUN 1990 11 JUL 1990 11 days
33-P-107 30 JUN 1990 12 OCT 1990 3M+ 13 days
33-P-108 30 JUN 1990 12 OCT 1990 3M+ 13 days
33-P-109 31 MAY 1990 24 AUG 1990 2 M + 23 days
33-P-110 31 MAY 1990 24 AUG 1990 2 M + 23 days
Project Management _ BLDG 6571
44 Install vibrating screens
33-CH-114 30 MAY 1990 09 AUG 1990 2M + 10 days
33-CH-125 30 MAY 1990 09 AUG 1990 2M + 10 days
33-LU-104-H 15 APR 1990 15 JUN 1990 2M
33-LU-104-H2 15 APR 1990 15 JUN 1990 2M
33-LU-105 15 APR 1990 15 JUN 1990 2M
33-LU-105-H 15 APR 1990 15 JUN 1990 2M
33-LU-105-H2 15 APR 1990 15 JUN 1990 2M
33-VS-101 30 APR 1990 15 JUN 1990 1M+ 16 days
33-VS-102 30 APR 1990 15 JUN 1990 1M + 16 days
Delay Analysis:
As-Planned Dates
Erect crane hoist sag Install plate work –sag
20 JUN 1990
11 JUL 1990
27 JUN 1990
08 AUG 1990
Receive/assemble crusher/lube system
04 JUN 1990
19 JUL 1990
28 Install magnets/associate
Install magnets/associated 02 JUL 1990 11 JUL 1990
43 Install pump – sag Install pump – sag 06 JUN 1990 06 AUG 1990
44 Install vibrating screens
As-Built Dates
17 Install plate work – sag
Install plate work – sag
24 &
49
Receive/assemble crusher/lube system
13 AUG 1990
17 AUG 1990
28 Install magnets/associated
43 Install pump – sag Install pump – sag 19 JUL 1990
04 SEP 1990
15 AUG 1990
14 SEP 1990
Project Management _ BLDG 6571
Delay: 3.43M
Delayed
Installation
Install The Plate work
Hold Placed By WelOn-Cone
Construction Needs Extra Time
Crusher Delayed The Installation
Installation Is Delayed
Lube System
Delayed Access to Magnets: Row code number: 1331 to 1332
Delayed Access and Availability of Cone Crusher: Row code number: 1348 to 1355
Hold Placed by Wel on Cone Crusher Assemble and Installation: Row code number: 1348 to 1355
Non-Availability of Cone Crusher Components: Row code number: 1356 to 1358, 1363
Availability of Lube Unit: Row code number: 1325 to 1330
Change Orders:
Project Management _ BLDG 6571
Area # 6 – Secondary Grinding
This is an existing area where Contractor was required to carry out modifications to
existing equipment, removal of existing equipment, and installation of new
equipment. Ore, in the form of a slurry, originating from the SAG mill is fed into the
cyclone clusters and then into the ball mills. There is one ball mill for each cyclone
cluster. The ball buckets feed steel balls into the ball mills. The ball mills rotate and
break the slurry down into finer material for further processing.
Scope Of Work:
1. Remove one existing cyclone cluster;
2. Receive and install 3 new cyclone clusters (each consists of a combination of
steel cones, bowls and basins and is about 13 feet in diameter, is about 14
feet high and weighs about 3 tons);
3. Remove the existing pinion and bearings and replace these with new
assembly components on ball mills 4 and 5;
4. Remove the discharge trommel from ball mill 4;
5. Carry out piping work on ball mill 3, 4 and 5;
6. Install a reservoir and a series of chutes to feed balls into ball mills 3, 4 and 5.
Unpaid Man-hours:
Item # Item
mills 3 & 4
383 214 169
hours
26 Modify existing mills 3 & 4 227 7
Total 227 7
22 Install cyclone clusters
N/A N/A N/A N/A
26 Modify existing mills 3 & 4
N/A N/A N/A N/A
Item # Item Description Detail Planned Start Date Planned Finish Date
22 Install cyclone clusters
23 Ball mill # 5 Modify existing mill # 5
09 JUL 1990 23 JUL 1990
Install ball mill equipment
Modify existing mills 3
Modify existing mills 4
Project Management _ BLDG 6571
Item # Item Description Detail Actual Start Date Actual Finish Date
22 Install cyclone clusters
23 Ball mill # 5 Modify existing mill # 5
23 JUL 1990 29 AUG 1990
Install ball mill equipment
Modify existing mills 3
Modify existing mills 4
Delay: 3.90 M
Cyclones Were Delivered In A Broken State
Access Problems To Install Ball
Mill # 5
Delayed
Alignment Of The Mill
Clusters Installation Is
Unavailability Of Inco Overhead Crane, &
Incorrect Bolts Supplied
Delayed
Additional Work: Repositioning
Delayed
Impact Analysis: (Refer to Daily Site Report)
Access Problems to Install Cyclone: Row code number: 1410
Access Problems to Install Ball Mill #5: Row code number: 1412 to 1414
Extra Work Done By INCO: Row code number: 1411, 1415
Late Delivery of Pinion Assembles: Row code number: 1416 to 1417
Additional Work: Repositioning of Ball Mill #5 :Row code number: 1418
Change Orders:
Project Management _ BLDG 6571
1,255 1,255 0
775 775 0
14 Fab/erect utility piping 108 4
25 Install hydraulics 38 13
41 Process piping 932.5 44
Total 1,078.5 61
Date
33-HU-102 01 JUN 1990 07 DEC 1990 3M +17DAYS
33-HU-102M 01 JUN 1990 17 OCT 1990 4M +16DAYS
33-HU-103 01 JUN 1990 7 DEC 1990 3M +17DAYS
33-HU-103M 01 JUN 1990 17 OCT 1990 4M +16DAYS
33-ZN-101 30 JUN 1990 17 OCT 1990 3M +17days
33-ZN-102 30 JUN 1990 17 OCT 1990 3M +17days
33-ZN-103 30 JUN 1990 17 OCT 1990 3M +17days
33-ZN-104 30 JUN 1990 17 OCT 1990 3M +17days
33-ZN-105 30 JUN 1990 17 OCT 1990 3M +17days
33-ZN-106 30 JUN 1990 17 OCT 1990 3M +17days
33-ZN-107 30 JUN 1990 17 OCT 1990 3M +17days 41 Process Piping N/A N/A N/A N/A
Delay Analysis:
As-Planned Dates
Item # Item
14 Fab/erect utility piping
Fab/erect utility piping – ore
Fab/erect utility piping – sag
25 Install hydraulics
41 Process piping Fab/erect process piping - sag
30 APR 1990 24 AUG 1990
As-Built Dates
Item # Item
14 Fab/erect utility piping
Fab/erect utility piping – ore
Fab/erect utility piping – sag
25 Install hydraulics
Project Management _ BLDG 6571
16 JUL 1990 21 DEC 1990
As-Planned vs As-Built Schedule (Area _7)
Delay: 3.90
Routings
Delayed
Lack Of Support Steel
Utility Piping Access Utility Piping Is Delayed Difficulty In Obtaining Routing & Lack Of
Drawings For Routings
Project Management _ BLDG 6571
Total Delay:
Contract Start Date: 30 APR 1990 Actual Start Date: 03 MAY 1990
Contract Finish Date: 31 AUG 1990 Actual Finish Date: 14 DEC 1990
Contract Total Duration = 4 months (124 days)
Actual Total Duration = 7.5 months (229 days)
Total Delay = 229 – 124 = 105 days
Contractor’s Delay = 7 days (According to the labor strike on November for one week)
Owner’s Delay = 98 days
Charged Delay In DAYS Charged Delay In WEEKS Charged Delay In MONTHS
98 14 3.27
Delay: 3.50 M
Unpaid 1730 40 69,200
Extra Premium 1,659.25 40 x 1.5 99,555
Total 506,535
OVERHEAD COSTS:
The several delays that occurred in this project caused the overhead costs of the
contractor’s site and headquarter offices to increase dramatically. The amount of the
overhead claim is equal to the fixed cost of the site office plus the portion of the fixed
cost of the head office for this specific project.
The fixed cost of the site includes the telephone billing, transportation, equipment, site
office cost, salary of the general foreman as well as the salary of the project manager for
the delay period.The headquarter cost regarding this specific project is equal to the
portion of the headquarter work on this project times the total billing for this specific
project. Portion of the work regarding the project is simply equal to the total head office
overhead divided by the total company billing.
Site Overheads:
($)
Phone/Utilities on Site 400 / month 3.27 months 1,308
Site Office Trailer &
Crane/Tools 250 / day 98 days 24,500
Total 47,523
Contract Amount = $ 2,500,000
Allocable Overhead = (2,500,000 / 8,000,000) x 600,000 = $ 187,500
Daily Allocable Overhead Rate = 187,500 / 229 = $ 818.8/ day
Office Overhead Rate Per Period ($ / Period) Charged Delay Period Cost ($)
Project Manager 6,250 / month 3.27 months 20,437.55
Head Office 818.8 / day 98 days 80,242.45
Total 100,680
Change Orders:
Total 662,557
Total 1,177,257
Loss of Productivity:
There are different methods to calculate the efficiency of the crews working on each
project. The total loss in productivity due to the points mentioned before is estimated
based on the Charles Leonard method by using the Charles Leonard charts. To find the
effect of changes on the productivity, the costs of change orders and reissuing of
drawings were added and divided by the contract price. From the charts, using the line
with two major causes for drawings and change orders, the amount due to loss in
productivity is determined
Total Number of Orders: 1,541
% Of Change Orders: (403 / 1,541) x 100 = 26.15 %
% Of Loss of Productivity: 20%
26.15
Loss of Productivity Cost = % loss of productivity x Total Costs
= 0.20 x 2,494,552 = $ 498, 910
Interest (2%):
Total Costs from = $2,494,552 +$498, 910= $2,993,462
Total Interest Cost = % of interest x Total Cost = 0.02 x 2,993,462= $59, 869
Total Claim Cost:
Project Management _ BLDG 6571
7 Interest (2%) 59,869
3,053,331
Two Legal parties signed a Lump Sum contract. The job consists of erecting a
erect mechanical equipment and install piping included in the SAG MILL
MECHANICAL contract. As every construction job, both entities encountered
several obstacles during construction, which led to problems, delays and
claims. The amount claimed by the contractor from the owner is mainly for the
reason that the progress of work was affected throughout the whole project by
the following:
Changes in information regarding delivery of equipment,
Changes in access for unloading equipment, changes in access for the
erection work,
Changes to the scope of work to be performed.
These changes decrease the effectiveness of the work force, which had been
mobilized. The lack of advance information regarding the changes prevented
Contractor from optimizing changes in their planning, such as postponing part
of their mobilization, and optimizing the use of its resources, which resulted in
additional costs.