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We do fairly large scale projects ($10M-$80M constr. cost) using AIA B101. Though rare, we've just experienced (thru no fault of Architect) Owner's suspension of a Project for more than 3 months.
Now the Project is back on.
When the "hold" occurred, we notified the Owner in writing there would most likely be a restart cost as we had to re-assign the project team (incl SMEP subconsultants) to other projects
and spend additional time to re-mobilize and re-familiarize our team and Owner w/where we left off regarding key assumptions and construction cost increases.
In cases like this, have you have been able to communicate a successful rationale for re-start costs w/your Clients? What aspects did you include in calculating that additional cost?
I sincerely appreciate the wisdom of this forum and thank you for your thoughts.
Larry H. Adams, Jr. AIA
955 North Pennsylvania Avenue
Winter Park, FL 32789 USA
w 407 . 740 . 8405
Yes, this extra cost can be successfully negotiated. In my experience, clients accept that a delay increases cost to deliver; the sticking point is how to value that delay. An approach that's worked for me is this:
1 Start with the earned value of the work delivered to date
2 Offer a 'credit' to reuse some portion of that work
For example, say project was 15% complete when placed on hold. You could offer client that you can reuse 60% of the completed work, which is 9%. The additional cost of the delay is the delta to get team back to 15%; in this case, 6% of total fee.
This approach works because its easy for owner to agree that a new team is reusing the work of another. In this case, they both just happen to work for the same practice.
Hope this helps.
Sam Spata, AIA Owner | Principal Method Lean +1 9176648900
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