Expert: jonewall - 12/22/2011

Question
QUESTION: Dear Mr. Jonewall:

First I would like to thank you in advance for replying my message.

Second, I work in a construction contracting company in Lebanon, and need to know if there is a rule or law mentioned in Fidic or any other international document, regarding the % of waste for steel reinforcement to be added to the net quantity used, for invoicing purposes.

Awaiting your reply the soonest, and if my question needs to be more clarified, please do tell me.

Best regards,

Darine

ANSWER: DARINE

''if there is a rule or law mentioned in Fidic or any other international document, ''
I HAVE NO KNOWLEDGE OF THE MENTIONED LAWS
HERE IN THE US  steel bids are bid with a waste factor  if you have a contract # lump sum # than  to estimate a billing  use the cost of material plus labor costs plus a mark up for overhead and profit.
If there is a retainer percentage to be deducted from your invoice, consider that in your invoicing # if you can #. The manager in charge , if experienced, can determine the right amount to bill.

If you working on a cost plus contract, one must try to bill as accurate as possible according to the contract terms

Good Luck    Sorry I can't be of assistance.  

JON E

---------- FOLLOW-UP ----------

QUESTION: Thank you Jon for your prompt reply.

well in fact the issue i have, is that the client is buying the steel reinforcement and we are installing it. I need to know the margin of waste allowable, so the client won't claim the quantity difference between the paid invoices and the installed weight, other wise we shall pay them.

Thank you again.

Answer
 Darine

THE OWNER '' client is buying the steel ''
we are installing it  YOU HAVE A LABOR CONTRACT BASED ON INSTALLED WGTS??/ YES OR NO
WGT TICKETS ACCOMPANY DELIVERIES  COPIES OF WGT TICKETS= TOTALS

1. DO YOU HAVE A LUMP SUM CONTRACT ??? MEANING A SET PRICE
2. DO YOU HAVE A UNIT PRICE CONTRACT   MEANING YOU GET PAID BY THE WEIGHT INSTALLED.

''client won't claim the quantity difference between the paid invoices and the installed weight ( WGT ), other wise we shall pay them.''   
WHO PAYS THE INVOICES ?????     WHY THE DIFFERENCES ?????   ALLOWABLE WASTE CONFUSING ONLY BECAUSE YOU ARE FURNISHING LABOR TO INSTALL??? MEANING YOUR BILL SHOULD BE BASED ON TICKET DELIVERIES???

IS THE CLIENT''  OWNER PAYING FOR THE STEEL OR IS YOUR FIRM ???
NOTE YOUR CONTRACT DETERMINES IN MANY CASES THE PAYMENT RULES.

JON E