The Open University of Sri Lanka

P.G. Diploma in Construction Management Programme – Level 7

CEX 7105 –Construction Contracts and Claims

Assignment 2- Academic year 2010 / 2011

Submit answers to: Course Coordinator CEX 7105,

Department of Civil Engineering, The Open University of Sri Lanka, Nawala, Nugegoda.

State explicitly the Conditions of Contract in accordance with which you have answered the
questions. Provide a comprehensive answer using relevant examples from the industry for
clarity.

Q.1.0 A Contractor to a construction of a medium rise building was in doubt of the adequacy
of the foundation designed by the Consultant and brings this to the notice of the
Engineer. Disagreeing with the opinion of the Contractor, the Engineer ordered in
writing that foundation work shall be carried out as designed. Not heeding the order
issued by the Engineer the Contractor referred the matter to an independent competent
party for a report. The report confirmed the view expressed by the Contractor. But the
Engineer insisted that the work be executed as per the contract drawings, and warned the
Contractor that stern action would be taken if the Contractor did not recommence
construction work immediately.
Assuming that you are the Site Engineer of the Contractor explain how you would advise
the Contractor in resolving the dispute in the best interest of the parties concerned.
Q.2.0 A contract was awarded to a Contractor, the Letter of Acceptance of which required the
Contractor to commence work within 14 days from the date of issue of the Letter of
Acceptance. The Contractor failed to commence work as stipulated and the work was
actually commenced 45 Days from the date of receipt of the Letter of Acceptance. The
Time for Completion of the Works was 270 Days.
The progress of work had been generally unsatisfactory and according to the Engineer the
reasons for delays had been totally attributable to the Contractor. The total delay
amounted to 80 Days. Towards the latter part of the Contract, the work was further
delayed due to unusual adverse weather conditions. The work was suspended by the
Engineer. The order to recommence work could not be issued even after 100 Days of
suspension order as the effects of adverse weather condition still prevailed. In relation to
the above occurrences, discuss the Rights, Obligations and Responsibilities of the
Engineer and the Contractor `under the Contract.