Construction delays on Ionia Motorway, Greece
There were two primary issues causing construction delays on this Ionia Motorway in Greece – they lead to an increase in the constructor’s cost and a series of secondary issues that largely related to increased costs.
The primary issues were the timely possession of the land made available and later the suspension of the works.
The secondary issues related to problems experienced once possession of land was made and related to archaeology; utilities; the sequencing of the work and change in law.
It was the constructor’s contention that the Hellenic State bore the risk of these events.
They sought to claim their entitlement for time and money under the contract.
Amongst other things the challenge was to:
- marshal the records required to make and prove the case as contended;
- the Greek language and
- to define a method and scope of work that used this data and that met the requirements of the jurisdiction in which the case would be heard should it be allowed to run its course.
All of this was done in Athens within offices used by the constructor.
As many of the site personnel were unavailable for a variety of reasons, the interpretation and understanding of the data available became one of the greatest challenges we faced.
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We first examined the documents available to make the claim and that would provide the proofs.
We established a list of events that had a hook under the contract and for which there was a time or cost effect.
Thereafter, we drafted a method statement for the joint venture and their legal advisors to accept as appropriate within the jurisdiction in which the claim would be heard.
Our work was produced in three stages and each more detailed than that which went before.
It established as a matter of fact that from December 2007 the constructor’s progress was delayed by a series of events including:
- the non-availability of land (the project site);
- more extensive and prolonged archaeological investigations;
- failure by Public Utility Organisations to divert their apparatus;
- suspension of elements of the works;
- changes in law;
- suspension of the entire project; and
- a variety of other matters.
The work was submitted to the Hellenic State in 2012 and after a lengthy period of negotiation over the contentions made by the constructor, the matter was settled to the full satisfaction of our client.