Construction of a highway in Ohio for the Federal Highway Authority (FHWA)

  

Consider the following project: Construction of a highway in Ohio for the Federal Highway Authority (FHWA). Main issues:The employer is responsible for obtaining the construction permit and land expropriation for the temporary and permanent site.According to the contractor’s schedule (as submitted in the bid), handover of the complete site by the employer to the contractor should have taken place in January 2015 where the completion terms of the works are stipulated as particular dates.The employer was supposed to hand over the site to the contractor as a whole. However, the site was handed over gradually (part-by-part). Some parts were missing because they had not been handed over.The employer also failed to obtain the construction permit in time and negotiations with the owner of one section of land became unexpectedly complicated. Construction should have been completed by October 2016.After failing to receive hand over of the complete site, the contractor notified the employer of its claim for an extension of time for completion and for additional payment in compliance with the contract.All sites were gradually handed over to the contractor (the last being in June 2015). A new time for completion was submitted for May 2017 by the contractor.The employer was in urgent need to complete the project and instructed the contractor to accelerate and complete the work within the original timeframe.From the Owner’s perspective, write a 1,000-word essay defending your position and discussing how you will proceed with the claims. Take into consideration:The requested new time for completionThe request for accelerationFloat within the scheduleMobilization in light of the gradual site hand overWhat your defense of the claims will contain, including any increases in:Schedule durationDirect costsIndirect costsProductivity lossesLoss of profitLoss of potential businessCost of extending financing, insurance, and bonding

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