Australia, we have a problem…
August 19, 2015 by Mr Job Done
These progress claim related articles are just from the last few months. Think of the masses that happen on a daily basis and don’t make the press….
Progress claim issues are a real problem in our construction industry – need proof?
Here’s three news articles that have appeared over the past few months that are related to progress claims. Now we’re not saying that using Progressclaim.com would have stopped every dispute, but we’re very confident it would have reduced risk, reduced stress and reduced the need for litigation or legal proceedings. How? Read on and you’ll find out…..
WICET fights back in Monadelphous claims over cost blowouts
The Wiggins Island Coal Export Terminal has hit back at the Monadelphous Group in a dispute over hundreds of millions of dollars in cost blowouts, alleging the engineering group has not been able to prove its claims.
Monadelphous said on Monday it was pursuing more than $200 million in claims to recover costs associated with “changes in scope and nature of the works” for a jetty, ship berth and ship loader it has built for the Queensland coal terminal in a 50-50 joint venture with Malaysian group Muhibbah Construction.
WICET chief executive Robert Barnes said he had held three meetings with Monadelphous’s top executives in Sydney, Darwin and Singapore to discuss the engineering group’s claims.
“It was difficult to have proper negotiation with them,” he said. “We’ve had real clarity about what our claims have been and what we should pay them. If they could substantiate their claims we would be happy to pay them, but it’s just been a struggle to get them to substantiate their claim.”
Monadelphous needed to provide documents, including time-sheets, to show how much work it had done and how many people it had employed, Mr Barnes said.
Read more: http://www.smh.com.au/business/wicet-fights-back-in-monadelphous-claims-over-cost-blowouts-20150616-ghp6pz.html#ixzz3jEQw81jx
In a nutshell this issue is about substantiating variation claims, proving the out of scope work has been done. With Progressclaim.com variations are clearly defined as a seperate line in the claim and you can attach supporting documents be that time sheets or photographic evidence (which you can take on-site, on the mobile device you’re creating the claim with!).
Subbies dispute ‘unfair’ contracts in Perth
Subcontractors on government-backed projects in Perth say they are owed millions of dollars and are subject to unfair contracts and needless litigation.
Tuss Concrete director Phil Jack, who has worked on state-government backed projects, said the company was owed several hundreds of thousands of dollars.
“We as subbies are taking on all the risk and all the responsibility – what’s the builder even there for?” Mr Jack said.
“When builders want to back charge they just hold our money, then we the subbies spend countless hours and thousands of dollars proving our innocence. Even then, the builders still refuse to accept it unless it goes before a judge.” ….
….The claims appear to stem from one-sided contractual clauses that Perth companies need to sign to secure work on the state government-backed projects. These include requiring trades to make variation claims within just a couple of days, or risk not being able to charge for additional work.
A small operation must then dedicate significant time to prepare the variation claim immediately, with appropriate documentation, while still fulfilling work duties on site.
Many subcontractors are also required to put “retention money” aside, but this does not go into a separate trust. Rather, it goes straight to the head contractor and is proving difficult to retrieve.
We’re not saying we agree with contractual terms requiring trades to make variation claims within just a couple of days, but at least with Progressclaim.com you can easily do your variation claim at the end of the day, on-site, on your mobile with just a few clicks of our super, simple interface. You can support it with photographic evidence taken there and then on your mobile device, hit submit and it’s in the headcontractors inbox. We also manage retention through the defects liability period and with automated email reminders so you never forget to get that money back!
NRW takes Roy Hill pay row to court
NRW Holdings has resorted to court action in a protracted payment dispute over work on the Roy Hill iron ore project.
The contractor has called on the Supreme Court to force project manager Samsung C&T to make a payment of about $20 million awarded by an adjudicator.
The two companies have been at loggerheads over NRW’s $620 million railway formation contract since last year.
Samsung has allegedly refused to pay the amount awarded to the WA company by an adjudicator on July 1.
A ruling by the adjudicator on another NRW payment claim is understood to have favoured Samsung.
NRW in May said Samsung had made progress payments on the completed project until February but had not made payments since then. The two sides are in dispute over NRW’s claims of extra work and scope at the $10 billion Roy Hill project in the Pilbara.
The contractor’s shares were down 1 cent, or 5 per cent, to 18.5 cents at 11.10am.
NRW yesterday broke a year-long drought in significant new contract wins with by announcing a $140 million iron ore mining and haulage contract at Rio Tinto’s Nammuldi mine in the Pilbara.
Once again, the dispute is over variation claims (extra work and scope). Once again a solution that allows you to both have exposure, in real time, with real evidence on all variations would help. And guess who does that?