Returned Risk & EOT Assessment

Yes there is a set of relations of Risks and EOT assessment affect your fairness and honesty of your EOT decision for projects with type of lump sum construction contracts and how you awarded the Contract to the potential contractor from tenderers.

The common practice of lump sum contracts is to delegate the Risks to Contractor, The experienced Contractors prized well those Risks in their submitted tender offer, while the Client/ Engineer tender team evaluate those offers they mandatory ensure that the potential selected Contractor consider to response to the delegated Risks when materialized without impact the Contractual milestone(s).

Otherwise the project management team of the Client/Engineer will face certain issues/problems driven the project away from its Contract obligations due to acceptance of Contractor who forgot to address the delegated Risk(s) in their offer.

Why Contractor Not Addressed Risks in their Offer?

• Contractor's Tender team not professional personnel to catch those risks
• Gulf of Evaluation, miscommunication and misunderstanding of the project needs between Contractor's top management and tender team
• Task switching, might be the tender team not focus properly in the tender processes.
• improper database of Contractor's procurement team.

What happened with Client/Engineer Tender Team?

• One of the Tenderers (The Awarded Contractor!) their offer less than Engineer estimation within 35%
• Plus the next tenderer offer (whom MUST award the Contract) is higher than the awarded Contract with 40%
• They thought that they are lucky to find such awarded Contractor and deny what will happen to their colleagues to deliver impossible prized facility

The Result of that Practice

• Contractor project management team missing skills of executing the project, due to hire candidates with lowest rates (and they accepted better than nothing)
• Contractor unable to paying their vendors, suppliers or subcontractors
• Work quality not match the required agreed specs, How to got gold plate with silver rate!!
• Engineer suffering to convert project to facility.
• The worst result when supplier(s) hold the warranty certificate(s)

Learnt Lessons

Projects done by People for People

• Client ensure to hire high skilled staff have the ability to deliver gold from Nothing;
• Client to recommend his disputes committee take their consideration while applying penalty against the Contractor in case of project team convert project to facility;
• Client accepted to get the Risk(s) back to him, thou reassess the project requirements and do their best to mitigate those Risks.

Fail Quickly with Learning

• Client to accept the situation if the project delivered with EOT with non prolongation cost and think to the future with awarded Contractor to get fair low offer from him in future BUT with working with them to increase their abilities to deliver project(s) in time.

Customer Collaboration over Contract Negotiation

The future of construction niche need positive views from all parties Clients/ Engineers/ Contractors/ Suppliers/Venders with code of ethics Responsibility, Respect, Fairness & Honesty which the Agile Management practice came quickly with potential suitable environment for sustainable works.