A planned expansion of the Panama Canal may be halted because of a dispute between the building consortium and canal authorities over $1.6 billion in extra costs. (NYTimes)
Sacyr said the Panama Canal Authority was responsible for serious breaches of the terms of the contract and that it has been asking the managers to meet the cost overrun. The Panama Canal Authority, […] “categorically rejects the pressure” from the builders group. (Bloomberg)
[…] the president said Thursday he will travel to Spain “to defend Panama’s interests in the expansion of the canal” by demanding the Spanish company and other firms involved in the project honor conditions already agreed to in signed contracts. (WSJ)
To take into account:
- Unexpected overruns and delays can hit any kind of project. You must search for them daily and react in time. Late projects are late one day at a time.
- A contract won’t save you from occasional disagreements. If you don’t trust your partner from the beginning, no contract will build that trust for you.