Spec Finish

Contractors Corner 20 www.thefis.org R ecent reports that Build UK Contractor members havemaintained an average of 36 days to pay invoices and that 75% pay within terms is not altogether bad news, but the terms ‘fair’ and ‘late’ often become conflated and confused and fair payment remains an issue endemic in construction. Discussions around productivity could be another place to hide poor payment practices – here claims are often complex, difficult and time-consuming to prove. In this article we look at a number of recognised options to substantiate a claim, including the measured mile approach, industry study or total cost method. Loss of productivity post COVID-19 When considered in general terms it is often stated that the main cause of construction disputes in 2020 is poorly drafted or incomplete and unsubstantiated claims 1 . Delay and quantum expert, Damian James , sets out the information you need to provide if you make a claim for loss of productivity resulting from the pandemic. FAIR PAYMENT AND MANAGING PRODUCTIVITY If we look specifically at restrictions imposed as a result of the COVID-19 pandemic they may not automatically result in delay/disruption 2 or additional costs in the form of losses to productivity. The restrictions are of specific and generic nature, but the impacts vary depending on the complexity of the works, location, suppliers, resources, design and project considerations. New Site Operating Procedures have imposed greater focus on generic issues such as: • Handwashing • ‘Site distancing’ (those operations that require more than one operative in close proximity e.g. dryliners, plasterers) • Welfare facilities on sites being reduced/closed or expensively expanded • The increased requirement for PPE and the necessity to renew it 1 Arcadis, Global Construction Disputes Report 2020 2 SCL Delay and Disruption Protocol defines disruption as: “a disturbance, hindrance or interruption to a Contractor’s normal working methods, resulting in lower efficiency. Disruption claims relate to loss of productivity in the execution of particular activities. Because of the disruption, these work activities are not able to be carried out as efficiently as reasonably planned (or as possible).”