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Although each work is awarded along with the works agreement, which includes various clauses to handled various situations for the proper execution of the work, but before that different measures could be adopted to resolve the issue depending upon:
1. Size of the Project
2. Stage of the Project
3. Importance of the Project
Looking to the size, time remaining, and the importance of the project, the first measure could be arranging a meeting with the contractor to know the actual cause of the problem. So that main cause of the problem if possible could be resolved.
At the same time if a project is important we should start exploring other alternatives for the early completion of the project like exploring other agency for the execution of remaining work or checking whether sub-contractor is capable of carrying out remaining work at the cost of the main contractor or not etc.
If after meeting with the contractor there is no positive outcome, action, as prescribed in the contract agreement, should be initiated. In all case, a timely decision in the interest of the project should be taken. The main aim should be to complete the project as soon as possible.
Call up for a immediate meeting with the concern manager and staffs and explain them the contractual liabilities which them wants to bear if they delay further more and give them motivation to cope with the project schedule and above all get the exact reason for the delay and the constrains they are facing to overcome it. If you figure out the reason for delay from the contractor then help them to sort the situation by proposing suitable solutions to them and encourage them to suggest their solution too.
Few steps, assuming that delays were already noticed, causes of delay analyzed, discussed with the contractor and found that it is his fault and he did nothing about it ..the next step is to send a contractual notice and to follow the contractual procedures established in the contract agreement.
Every contractor is your partner in a complex project, Your first step is to meet your partner (contractor) and try to understand the root cause of the delays.
Most of the time you have to update your communication plan. You always have to keep on eye at the financial condition of your contractor and if it is possible to give him an extra push in order to have him pleased and be ready to fast track his work. If none of them doesn't work, then the next step is to give him a formal warning. At this stage, you have to be prepared to put another contractor, parallel with the official contractor to handle some work and to gain an aspect of the future work. if your official contractor doesn't show any effort to mitigate the delays, then you have to replace him.
The lesson learned from this situation is that contract manager and the project manager must always have to scan and carefully award the contract.
You have to update the source selection criteria and also update your weighting and seller rating system.
Normally, in the contract, there are clear guidelines about financial penaties if the contract is not delivered on time. Hopefully you would have tendered out to a number of companies who would have quoted, I would not be adverse to inviting a differnt contractor onsite to look to taking over, If the price is right, get security to eject the former and assure future business to the latter, but this has to be an honerable promise. Might not work for your industries though.
