Question
Review the following and then analyze the conditions listed below and present how these conditions should be dealt with as claims to an Owner, that
Review the following and then analyze the conditions listed below and present how these conditions should be dealt with as claims to an Owner, that is what types of money cost/delay, etc., should be submitted as requests for change orders or claims:
Base contract = $77,000,000 to build a twenty story building
Contract schedule: Complete in 300 days
Liquidated damages = $7000/day
Owner issued notice to proceed and the contractor started work on September 9, 2013
Contractor could not access the site due to property rights issues until November 20, 2013
Excessive rain and storms prevented work from proceeding for one week in November, 2013
Excavation contractor did not begin work until December 12, 2013, two weeks after being asked to start work
Excavation contractor started work and encountered soil containing cyanide and stopped work.
Contractor notified owner of cyanide soil and indicated a change order for time and material costs were required to remove the cyanide soil
Owner stopped the work to analyze the cyanide condition
Owner issued a change order pricing request after two months of time
Contractor responded to the pricing request indicating 3 months of extra time and $2,000,000 of cost was required
Owner accepted cost request but denied extra time request
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