Picture this: you were the successful bidder on a state highway project. The project is scheduled to take about two years. Notice to proceed was issued six months ago, you have procured equipment and supplies, your subcontractors are lined up, and work is underway. The project is off to a great start. But a storm is brewing.

A couple days ago you received an e-mail from the project engineer showing “minor” adjustments to the project plans and specifications. On closer inspection, you realize this “minor” update could result in at least three months of delay on the project, and your suppliers have given you a four-week lead time on the materials you need to accomplish the change. You just finished a conference call with the owner and the engineer where you explained the three-month delay. The owner’s reply: “It’s still early. I think you can get it done within the existing schedule. Let’s move forward and see how it works out.” You have a schedule update due next week. What do you do? Do you move forward, hope for the best, and risk being placed in default when the schedule runs over? Do you accelerate the project?

Reprinted courtesy of Curt Martin, Peckar & Abramson PC and Joshua Pruett, Peckar & Abramson PC

Mr. Martin may be contacted at cmartin@pecklaw.com
Mr. Pruett may be contacted at jpruett@pecklaw.com