Better Roads

September 2013

Better Roads Digital Magazine

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Page 19 of 82

InCourt awarded Fluor $1,253,710 for constructive acceleration costs incurred in constructing a new embassy in Haiti. On Jan. 14, 2005, Fluor and the Department of State (Agency) entered a firm, fixed-price, design-build contract with a total price of $74,408,634 to construct a new embassy compound on 10 acres in Port-au-Prince, Haiti. The contract included a performance period of 851 days from the notice to proceed, thus requiring substantial completion on July 3, 2007. Later, the Agency extended the performance period by 210 days, resulting in a revised date for substantial completion of Jan. 29, 2008. Ultimately, substantial completion was achieved on March 31, 2008. Although the parties entered a design-build contract that placed most of the risk for delays on Fluor, the contract contained an excusable delays clause that allowed time, but not money, for excusable delays as defined in the Federal Acquisition Regulations (FAR). Excusable delays included acts of God or the public enemy, acts of the United States (government), acts of the host country government and unusually severe weather. In addition, the contractor had to establish any delays were without his fault, unforeseeable, could not be overcome by re-scheduling and affected the final completion of the project. During the project, the security situation in Haiti significantly deteriorated, due to the departure of President Jean-Bertrand Aristide in February 2004, about one year before the contract was entered. While preparing its proposal, Fluor was aware of the tenuous and unpredictable nature of the security situation in Haiti and made its own assessments and conclusions. Nonetheless, during its contract performance, Fluor sought time extensions for excusable delays due to the security situation and actions of the government. In May 2005, a few months after the contract was entered, the government ordered the departure of nonemergency personnel from the embassy. In response, Fluor followed the government's order. The departure of personnel resulted in Fluor being unable to perform work on the critical path. On June 1, 2005, Fluor departed the site and ceased work on the critical path. Later, Fluor returned in Smooth as glass. It's time. Text INFO to 205-289-3789 or visit 18 September 2013 Better Roads Untitled-7 1 InCourt_BR0913.indd 18 8/26/13 9:26 AM 8/28/13 2:10 PM

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