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Construction Industry/monthly progress payment for preliminaries

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Question
Dear Sir/Madam,
I have a question regarding the above matters. Before I proceed, I just would like to inform you that I'm working in Quantity Surveying (QS) Firm in Malaysia. The question that I need to raise up is regarding my Project in Malaysia i.e. Hotel and Serviced Apartment Project. Condition of Contract for this Project is based on Agreement And Conditions of PAM (Pertubuhan Arkitek Malaysia) Contract 2006 (Without Quantities). My questions as follows:-
- In the Progress Claim No. 1-3 submitted by Contractor, in the Preliminaries, the Contractor already claimed item Temporary Mobile Crane & Temporary Buildings. Suddenly, in the Progress Claim No. 4, either Contractor don't want to claim or overlooked, they did not claim both of the said items.
- I, as a Assistant Quantity Surveyor in the QS Firm, took decision not to pay the said items (i.e. Temporary Mobile Crane & Temporary Buildings) based on Contractor's claim No. 4 even though I already paid their claim for the said items in my Interim Valuation No. 1-3.
- My question, is it correct not to pay their claim on that two (2) items based on Contractor's Claim No. 4 even though already paid in the previous Interim Valuation ? or just remain as previous Interim Valuation ?

Hope you can reply my question as soon as possible because I'm not clear either I took my decision in order or otherwise.

Thank you.

Answer
Dear Zulkifli,

Thanks for your question.

The standard of good professional practice is consistency and except where it is not applicable. In the valuation of preliminary items during progress claims or applications, the consultant quantity surveyor must do things rightly even if the contractor does it wrongly. if the contractor is entitled to a payment or compensation, the principle of contract does not permit that, such contractor should be denied of the entitlement except when it could not be justifiably defended or has not bee ascertained.
If the contractor has been paid in the first 3 previous valuations and if he is also due on progress claim no 4 and has not claim for it, you have the transparent right to call his attention to it and ask for clarification on whether the Contractor has any reason why he has not claimed for the payment. If yes, he will let you know and if no, and that, it was an error of omission, then, you may request him to update his submission and re-submit.
In practice, the amount included in the contract for plant items or other preliminaries items should have been apportioned at the commencement of the execution of the works into their respective payment period either monthly based on time-related or value-related or progress-related basis.
The summary of my answer is, check, if he is entitled, ask him if it is an omission and if yes, let him re-submit his progress claims otherwise, it could be generate to a potential dispute or conflict which could be rather avoided. In any case, if you don't pay now, you will pay later.

Hope this clears your doubt?

Thanks.

'Femi

Construction Industry

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Femi Alofe

Expertise

All questions relating to construction management, contracts management, contracts practice and standards and procedure compliance in contracts administration.

Experience

Contracts Administration, Construction & Commercial management within the Construction Industry.

Organizations
RICS (UK) AIQS (Australia) PQS (Canada) CCE (USA) CIOB (UK) NIQS (Nigeria)

Education/Credentials
B.Tech (QS) Msc (2013)

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