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Construction Claims Mitigation Owner’s Schedule Approvals

The Holloway Consulting Group is an international construction consulting firm, and one of our roles is serving clients as Scheduling Consultants. Some of The Holloway Consulting Group’s experiences as Scheduling Consultants are shown at Construction Design, Schedule Delay and Damages Claims and our blog at Construction Schedule Delay Claims covers some of the basic schedule delay concepts that we use as Scheduling Consultants.

CONSTRUCTION CLAIMS MITIGATION

SCHEDULE ADMINISTRATION

THE OWNER’S SCHEDULE APPROVAL

The owner’s review and approval of the baseline schedule brings into play both implied and express warranties. Implied warranties arise out of the working relationship between the parties and the relationship the law gives to them. Of particular importance is the effect of schedule approval. Some contracts state that the schedule will be submitted to the owner purely for informational purposes. Other contracts provide for formal schedule approval by the owner (we prefer this approach).

On the other hand, by approving the schedule, the owner is expressly obligated to perform to meet schedule dates and milestones, and perform within the time frame and logic established by the schedule that are the owner’s responsibility. The general rule is that if the owner approves or does not reject or raise timely objections to a contractor’s schedule specifying certain dates for owner performance, the owner will be bound by the schedule and expected to meet its obligations.

An owner who does not require submittal and approval of schedules, and does not provide clear delineation of its performance requirements, places itself in a passive role and hampers its ability to monitor and expedite the work. In the absence of a formal rejection, failure to approve the schedule may be found to constitute implied acceptance, and an owner may be bound to the terms of the schedule.

The Holloway Consulting Group, LLC
Construction Advisers, Managers, Consultants and Experts
10885 W. Beloit Pl.
Lakewood, CO 80227
Phone: (303) 984-1941
Fax: (303) 716-0432

Email: steve.holloway@disputesinconstruction.com
Blog: disputesinconstruction.com
Web: hcgexperts.com

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