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Dear Doc,
We have a D&B Contract with some PC items. Now we have nominated
the supplier for these PC items. For the adjustment of contract sum
accordingly I am facing following problem. There appears to be a big
flaw in the procurement route. In Design & Build Contracts, the
Employer does not provide a BOQ. Assuming that the D&B Contractor
produced the BOQ, the following comments are made.
The B.O.Q Qty is more than actual quantity based on contract drawing.
For eg. We have ceramic tiles with 124 sqm with the rate of 95 Dhs
while the actual quantity as per contract drawing comes with 83 sqm
with new rate of 87.2 Dhs based on suppliers rate. Please advice while
reconciliating the contract price I should omit the 124 sqm with 95 Dhs
or 83 sqm with 95 Dhs. To get the adjusted contract sum. ( please note
that there is no adjustment item nor p>S in the B.O.Q)
Omit 83 x 95 and add 83 x 87.2 and also adjust the Overheads and
profit accordingly. (This is the way PC rate adjustment is made under
Lump Sum Contracts. For Re-measure contracts 124 x 95 should be
omitted and 83 x 87.2 should be added and OH&P adjusted
accordingly, but since D&B contracts are generally not re-measure
type, this method is not applicable)
Regards,
Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Quantity Surveyor and Registered Arbitrator / Expert
Australian Inst.of Qty.Surveyors-Middle East Representative
PO Box 23461, Dubai, UAE. T +971504588949 F +97143378668
Respected Sir,
I have the following query regarding Clause 52.3 :
In FIDIC 1987, the manner in which Clause 52.3 is written is ambiguous. I do not agree. True that it is
difficult to understand but it is not ambiguous. The Sub-Clause was explained in detail during the course.
There is lot of incorrect applications of this Sub-Clause in this part of the world because almost all (other
than trained) Contract Administrators are ignorant about its correct application). In our Contract, work has
been deleted by an amount such that it exceeds the 15% mentioned in this Clause. Due to the above, the
Contractor has claimed for overheads which far exceed the allowable overheads (16.7%) (which have to be
added to the Effective Contract Price) for our project. Now, it is required by myself to write a letter back to
the Contractor confuting his claim quoting Clause 52.3. As per normal procedure, the above letter is to be
signed by the Resident Engineer but I found it very difficult to explain the operation of the Clause 52.3 and at
the end he was not convinced due to the ambiguity of the wording of this Clause. My question is that is there
any other certified / recognised book which substantiates FIDIC 1987 and explains clearly this Clause? I am
afraid there are no books written on this subject. If not, then can you advise on how I should convince my
R.E. regarding the operation of this Clause? You can suggest him to attend the next CA training programme
starting on 20th April where he would gain full knowledge on the correct application of Sub-Clause 52.3. This
is why I have previously circulated the following email among the Alumni in order to make their lives easier.
Regards,
Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Quantity Surveyor and Registered Arbitrator / Expert
Australian Inst.of Qty.Surveyors-Middle East Representative
PO Box 23461, Dubai, UAE. T +971504588949 F +97143378668
Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Quantity Surveyor and Registered Arbitrator / Expert
Australian Inst.of Qty.Surveyors-Middle East Representative
PO Box 23461, Dubai, UAE. T +971504588949 F +97143378668
If the consultant did not provide the detailed specification of irrigation works for tender
and as an experienced contractor we priced it You should also have stated in the Tender,
your assumptions regarding the specification that you priced. If you did not do this, then
you will have a difficulty to refuse to provide the standard of material and workmanship
that the Engineer may subsequently specify. But during execution stage we are in need
of it for the material submittals and other references, can i ask for it officially ? I suggest
that you first submit your material samples for approval, according to your Tender
assumptions, and see whether they would be approved by the Engineer.
How can i defend myself if any variation arises due to the new specification ? Since your
Tender assumptions should have been for material generally suitable for the intended
work, if the Engineer/Employer now requests for material of a higher standard, you
should try to argue that such high standard could not be inferred from the tender
documents and therefore it constitutes a variation.
Regards,
Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Quantity Surveyor and Registered Arbitrator / Expert
Australian Inst.of Qty.Surveyors-Middle East Representative
PO Box 23461, Dubai, UAE. T +971504588949 F +97143378668
regards
-----Original Message----From: sini noushad [mailto:sini2050@hotmail.com]
Sent: 02 April 2008 17:05
To: Prof. Sam
Subject: More Q&A
Sir,
Is the Engineer can issue the Letter of intent to the Nominated sub contractor if
employer delays the same?. The Sub contract would be between the Contractor and
the Nominated Subcontractor and therefore the LOI or the LOA should be issued by
the Contractor to the Subcontractor, after the Contractor has been informed by the
Engineer of the nomination. The Engineer can issue only a letter to the Nominated
Subcontractor informing him that his bid documents have been forwarded to the
Contractor for them to enter into a Subcontract. (However, if according to the
consultancy agreement between the Employer and the Engineer, if Engineer is
required to obtain Employers approval before making a nomination, then the
Engineer should neither write to the Contractor nor to the Subcontractor until such
approval is in place.)
Also what is the difference of letter of intent and letter of acceptance? On the issue of
a Letter of Acceptance, the contract is formed. On the issue of a Letter of Intent, the
contract is not formed and therefore, the Contractor should proceed only with what
has been stated in the LOI and if the Contract is not subsequently signed, then the
parties are not bound by the provisions in the Tender, and the payment would be on a
quantum meruit basis.
Regards,
Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Quantity Surveyor and Registered Arbitrator / Expert
Australian Inst.of Qty.Surveyors-Middle East Representative
PO Box 23461, Dubai, UAE. T +971504588949 F +97143378668
Dear Sir,
We were discussing as engineers in RTA during rest time lot of
contractual issues. The following questions were raised but dispute
took place due to different opinions.
Can you please clarify?
Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Quantity Surveyor and Registered Arbitrator / Expert
Australian Inst.of Qty.Surveyors-Middle East Representative
PO Box 23461, Dubai, UAE. T +971504588949 F +97143378668