Friday, April 19, 2024

Commencement of Works vs commencement of Works Program (FIDIC Rainbow Conditions of Contracts)



The important milestones in the implementation of construction project are the dates which are related to time constraint, first is the Letter of Acceptance, and then Commencement of Works and Time for Completion. Commencement of Works is contractually the Commencement Date of the Project, where all the times and activities needed to complete the Works are contractually started at this date and Time for Completion are the time needed for completing the Works or a section including any contractual extension, which is calculated from the Commencement Date. Another important things is the Works Program and time to commence the Works
Program physically. There are six milestones related with Commencement of Works and commencement of the Works Program based on FIDIC Condition of Contract Rainbow Edition 1999, the latest updated edition, there are Letter of Acceptance, Signing of the Contract Agreement, Commencement Date, Notice on Commencement Date, Detailed Program submission from the Contractor, Contractor to commence the Works Program. From the analysis on the timelines related to the above milestones, the results showed that there are possibilities that commencement of the Works Program for some projects are earlier and the rest are later than the
Commencement Date which is the contractual date of commencement. The first is not allowed contractually, the second means there is the consequence that contractor should adjust the program soon after the Contractor commence the Works Programed, to rectify the time loss in relation with the time for completing the Works, where they should then accelerate the progress to catch the contractual Date of Completion. This is the common problem faced by the contractor, that is why the writer try to find the way out, or at least to give the contractor early warning that approval on the Works Program does not mean that extension of time granted. Based on the result of the conducted study, it was found that in order to minimize disputes, the Date of Completion should be
specified in the Contract, instead of Time for Completion, which is a time needed to complete the Works.
KEYWORDS: Commencement Date, commencement of the Works

Download: JAEBS Commencement

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