Aeglow Engineering, a contractor was awarded a $100 million contract to build a water treatment plant in Singapore. The Public Sector Standard Conditions of Contract (PSSCOC) for construction works (8th Edition) was used for the contract. A group of consultants was engaged by the plant owner to design and supervise the construction of the water treatment plant. A Superintending Officer (SO) was appointed as the contract administrator. Answer the following questions in the context of the PSSCOC.

While excavating for foundation, the contractor encountered underground boulders that obstructed the foundation work. It was found that both the owner's soil investigation report (included in the tender document) and the contractor's own soil investigation report (undertaken by reputable soil specialist contractor) did not show the presence of boulders.

The contractor wrote to the SO to request for EOT as the project was likely to be delayed by 6 months. He also submitted a quote of $368,000 for the affected works as variation works. However, the SO was of the opinion that the contractor should be made responsible for the delay and hence rejected the contractor's claim. Left with no choice, the contractor threatened to sue the plant owner for compensation.

• Discuss the above circumstances and advise the SO on what he should do. 
• Propose what can the contractor do if the SO refuses to compensate the contractor.