QUESTION

The contractor is on hold since the BC Hydro design was delayed, which now also delayed the required Telus design. We determined that this is an Owner caused delay since the design work was the responsibility of the Owner, or rather the consultant. On that basis, the contractor is submitting daily delay claims, which are reasonable. Generally, the Owner and consultant did not cause the delay but a 3rd party, in this case BC Hydro. With that, is the contractor entitled to monetary compensation or only eligible for a time extension? Further, what is a common approach in dealing with Utility caused delays?

COMMENTS

GC13.3.1 sets out the approach for unavoidable delays. The Contract Considerations video “Dealing With Delays” discusses the three principle sources and remedies for delays. Probably good to review this video. It is a judgement call whether the third party delay was attributable to the Owner/Consultant, or was beyond the control and influence of either.