Notice of Delay¶
Introduction¶
This document outlines the standardized procedure for handling project delays, including notification protocols, delay recognition criteria, and compensation options. The procedure ensures that Ohio Valley Installers (OVI) maintains appropriate documentation and compensation for delays that are not our responsibility.
Workspace Preparation Requirements¶
Critical Requirement
The workspace must be fully prepared and free of obstructions for our team to begin work. Any delay or obstruction that is not OVI's responsibility will be considered a contract modification.
Notification and Recognition Procedure¶
Recognizing a Delay¶
A delay condition exists when:
- The workspace contains obstructions caused by:
- Issues caused by other subcontractors
- Pending RFIs
- Pending change orders
- Unsuitable workspace conditions
- OVI is working below our standard production rate due to interference
Notification Protocol¶
graph TD
A[Obstruction or Delay Identified] --> B[Immediate Notification to Site Supervisor]
B --> C[Document Delay in Daily Report]
C --> D{Site Supervisor Response}
D -->|Accept Daily Rate| E[Crew Remains on Site]
D -->|Accept Demobilization| F[Team Demobilizes]When a delay occurs:
- Immediate Notification: OVI will immediately notify the site supervisor that we are obstructed and in delay
- Documentation: Record the nature of the delay, time impact, and any associated costs
- Resolution Options: Present the site supervisor with compensation options
Best Practice
Always document delays with photos when possible and include them in your daily reports.
Compensation Options¶
Daily Rate¶
- Keeps OVI crew on-site during the delay
- Crew works at reduced production rates
- Calculated based on crew size and hourly rates
- Formula: Number of crew members × 8 hours × Hourly rate
- Standard rate: $65/hour (bid rate)
- Preferred rate: $75/hour (change order rate)
Demobilization Fee¶
- $1,000 base charge to cover costs associated with an unproductive workday
- Additional charges for lift costs (whether kept onsite or returned)
- OVI will return once obstructions are resolved
- Return schedule is subject to:
- OVI's availability
- Prior commitments
- Project scheduling requirements
Delay Cost Calculation¶
The total delay cost is calculated based on the extra days worked due to interference:
Example Calculation
If a job was bid for 5 days but takes 7 days due to delays, the General Contractor (GC) would be responsible for paying the equivalent of 2 additional days.
Daily Rate Calculation¶
The daily rate is based on the original bid parameters:
Daily Rate = Number of crew members × 8 hours × Hourly rate
For example, if the job was bid with: * 3-person crew * 8-hour workday * $65 per hour rate
Then:
Good Faith Provisions¶
OVI will make reasonable efforts to: * Reassign extra crew members to other tasks or projects when possible * Adjust the daily rate to reflect the reduced workload when reassignment is possible
Important Note
If reassignment is not possible, the GC will be responsible for paying the full daily rate.
Key Principles¶
Fundamental Principle
The subcontractor has no obligation to assume costs caused by the General Contractor. OVI will not donate time to projects.
Checklist for Processing a Notice of Delay¶
- Identify the delay condition
- Notify site supervisor immediately
- Document the delay with photos when possible
- Present compensation options (Daily Rate or Demobilization)
- Record supervisor's decision
- Calculate appropriate compensation
- Submit documentation for payment
- Follow up to ensure payment is received
Supporting Artifacts¶
Input Artifacts¶
- Project schedule
- Original bid documentation
- Daily work reports
Output Artifacts¶
- Notice of Delay documentation
- Photos of delay conditions
- Updated project timeline
- Compensation calculations
Effective Implementation
When properly implemented, this Notice of Delay procedure ensures fair compensation for all parties and maintains clear documentation of project timeline impacts.
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