Average Haul Distance - Mass Balance
Average Haul Distance - Mass Balance
(OP)
I am working on an issue where the developer has completed the construction of 195 kilometres of 4 lane highway. It negotiated with a contractor new unit rates based on an increased average haul, this before construction. It was later found that the as-built mass-haul indicated that the average distance had in fact not increased as much as originally thought. The developer is now looking for a credit, it paid overhaul and wants the underhaul credit back. In all fairness, the contractor was paid to haul on average 1000 metres but only actually haul 600 metres. Large savings for the contractor. Has this been done before or need it be negotiated and written into the contract??





RE: Average Haul Distance - Mass Balance
Was the unit price for excavation changed to reflect the expected overhaul increase? If so, I don't think I've ever heard of an "underhaul credit" and I can't see the contractor agreeing to it.
Overhaul is generally its own bid item and is measured from the mass-haul diagrams generated following final cross-sections. This usually means that payment for overhaul is not made until finals (as builts) are performed and the true overhaul determined.
If haul was considered incidental to the excavation (regardless of whether the unit price was adjusted) then I doubt your client is entitled to any credit from the contractor unless this provision was included in the tender.
This situation could have easily gone the other way (the overhaul far exceeded the estimate) in which case the contractor would have a case to enter a claim against the developer for the extra costs. Doesn't really seem fair, its just one of the perks of being the contractor, I guess.
Krautso
RE: Average Haul Distance - Mass Balance
RE: Average Haul Distance - Mass Balance
If your contract does not spell out what to do you are left with good faith negotiation. The current trend is to use 3rd party arbitration if necessary and avoid adversarial lawyers at all costs.
RE: Average Haul Distance - Mass Balance
I am not familiar with a tendering structure which allows the contractor to bid items after the contract is awarded (unless its extra work). If these prices were negotiated instead of bid upon, perhaps somewhere in the agreeement the basis for the increase in the unit price for excavation (increased haul) was documented and a provision exists detailing how the unit prices was determined?
I would expect that without a provision in the agreement for using measured average haul to determine adjustments to the unit price for excavation after construction, the developer really can't hold the contractor responsible for design flaws or material variations making the work easier for him and might have to be content with having the work done at the agreed upon price.
To answer your original question - I doubt it has been done before and yes, it had to of been negotiated beforehand.
My thoughts, for what they're worth.
Krautso
RE: Average Haul Distance - Mass Balance
RE: Average Haul Distance - Mass Balance
RE: Average Haul Distance - Mass Balance
RE: Average Haul Distance - Mass Balance