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.
topconpositioning.com/mmgps-paving
Text INFO to 205-289-3789 or visit www.betterroads.com/info
18 September 2013 Better Roads
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