What is the best way to demonstrate de-mobilisation costs, re-mobilisation costs and any further associated costs that come with project Suspension?

Question

A project we are contracted to deliver (JCT) is being suspended for around 3 months, following closure by the customer. Therefore, I would be grateful for any assistance on what can be claimed in a reasonable manner and the best way to demonstrate the entitlement.

Tom Spilsted · Accepted Answer

Gavin this can be straight forward or a bit of a bun fight depending on the Employer’s team approach.

I would suggest breaking your proposal into key headings for demobilisation and remobilisation
1. Preliminaries
2. Subcontract costs
3. Materials
4. Plant and equipment

In each case a simple look at the element such as
Staff - can we redeploy them? Do we need to make them redundant? In either case any period before redeployment or notice period would be chargeable.
Subcontract materials ordered and in manufacture costs of cancelation or storage.
Subcontractor abortive costs for staff and labour redeployment.
Materials - as above
Plant and equipment costs of returning to the plant yard.

Loss of overheads and profit, always tricky - profit unlikely to be recoverable under JCT, loss of overheads - please see paper in our resources section re caselaw and formulas.

Remobilisation would follow the above logic with in my view additional costs for inflation on the remaining contract value and any making good as a result of the site not being maintained such as hoarding damage. etc.

I would ensure that you formally agree an extension of time assuming the contract has been signed.

Hope that helps.

What is the best way to demonstrate de-mobilisation costs, re-mobilisation costs and any further associated costs that come with project Suspension?

cost

site

suspension

Gavin Brown

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