Common Situation

A subcontractor begins work on a large project, ready to meet agreed deadlines. However, the project faces multiple delays due to site access issues and scheduling changes caused by the main contractor. The subcontractor incurs significant stand-down hours as their team is left waiting, unable to proceed with their work as planned. Believing these delays are the main contractor’s responsibility, the subcontractor includes a claim for stand-down hours in their monthly progress claim, expecting to be compensated for lost time and productivity.

Problem

The main contractor rejects the claim outright, stating that the subcontractor failed to provide formal notices of delay according to the contract’s procedures. Because the subcontractor wasn’t familiar with the specific notification requirements in their contract, they didn’t document or notify the main contractor at each instance of delay. As a result, they have no formal record of the delays, nor the proper documentation to support their claim. The subcontractor is left without compensation for the stand-down hours, resulting in a significant financial loss on the project.

Outcome Without Commercial Ready

Without a commercial manager or clear guidance, the subcontractor’s claim is dismissed due to procedural non-compliance. Although the delays were beyond their control, the lack of formal notices and documentation renders their claim invalid under the contract. Facing an unrecoverable loss of time and labor costs, the subcontractor absorbs the hit to their bottom line, impacting their cash flow and reducing profitability on the project.

Outcome With Commercial Ready

Contractual Guidance
With Commercial Mate, the subcontractor would have access to guidance on contract requirements for submitting delay notices, giving them a clear understanding of the process to secure compensation for stand-down hours.

Proactive Delay Documentation
Using Commercial Mate’s templates and tracking tools, the subcontractor could log each instance of delay caused by the main contractor, providing a documented timeline that complies with contract requirements. This record would strengthen their position when submitting claims.

Expert Notification Advice
Through unlimited consultations, the subcontractor could reach out to Commercial Mate’s experts for real-time advice on documenting delays and submitting notices to the main contractor, ensuring each step is taken accurately and on time.

Claims Management Strategy
With insights on claims strategy, the subcontractor would be well-prepared to protect their financial interests, maintaining compliance and ensuring fair compensation for delays.

With Commercial Mate, the subcontractor would have the knowledge, tools, and expert advice to submit a compliant claim, preserving their right to compensation and protecting their project profits.

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