Construction Law/PG n PB


QUESTION: Dear Florin,
I have some  issue here.I hope your kind advice.
1.During our tender stage,we was told to take out a section of the works like "Signage" in cost saving for the clients since there was 1 package of work with 2 Main subcontractor- A and B,which we are "B" eventually  we was awarded the work and all signage shall be by subcontractor 'A"
2.Hence this signage is a standard requirement of the "Authority",which the consultant has all time known it...
3.However,after the award we was told it an standard requirement and inherent of the "Authority" we have to provide them and bear the cost for this.
4.Meanhile,in our contract it has also mentioned that we have to meet all "local Authority" requirement.As we was told the "Omission" was an contractual requirement while "the signage was an inherent authority requirement"
5.Please advice us,does we have the rights to claim this"signage"

Thank you.

ANSWER: Dear Lim,

Thank you for your question.

I understand that prior submission of offers, you were requested to omit a certain section of the works, i.e. "Signage" and contract was signed, without that part of the works.

I also understand that after contract signature, you were requested to comply with original requirements, including that Signage.

If that understanding is correct, it means you were requested ADDITIONAL works and hence, that is a variation and should be paid additional money.

There is still to be clarified the issue of "an inherent authority requirement". For that I need additional details to be able to provide a complete answer.

It is unclear what do they mean by that, while the signage works themselves,were excluded from the Contract.

Hope that helps.

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

QUESTION: Dear Florin,
1. Yes,the signage was exclude from our Contract when we was informed of the omission as mentioned to be provide  by Main Contractor"A" in tender stages pre to award.
2.Yes,later we was told to comply to the original requirement including the signage upon award.
3.We are still puzzle of what they meant by "inherent authority" requirement..
4.In all "projects is an standard requirement of the local Authority", due to cost saving to the client recommended earlier by the consultant.

ANSWER: Hello Lim,

Thank yoy for coming back.

It is still unclear and for a fully fledged answer, you need to go back to your contract and see what exactly is and what isn't included in the original contract.

Basically, as previously mentioned, if something has been deleted at tendering/ contracting phase and then required again, after contract signature, it becomes subject to a variation.

Whatever you have to execute, the Employer must pay for.

Since that signage was a specific part of the original tender dossier, which was excluded, it can not be something that can be self-understood as mandatory under the law.

That is what you need to clarify. I suspect is just an Employer's strategy to get things done for free.

You have the basic principle and you know what you need to clarify.

Hope I clarified at least a line of action for you, good luck!

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

QUESTION: Dear  Florin,
Our LOA mentioned a lump sum of 10million for all building works.WHile the Mep works and mentioned  30million.The clients wants us to provide a PB & PG 0f 10% from the 40million  as main contractor ( 10+30 ).,while in our letter before the awards(LOA ) it has mention the MEP and is not our scope of works as stated in the contract price.please advice thanks.

Dear Lim,

Glad to  hear again from you, thank you for that question, but please send it again, clarifying what all those PB, PG, etc, are.

Also, the contractual case you describe, is not as clear. Unclear what are you actually requested and where that 30/ 40 difference is coming for.

Please thus help me to help you and describe a bit clearer your case.

PS I am currently travelling and may not be able to answer very quick.

Best regards

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Questions related to Civil Engineering Contracts, using FIDIC or other Conditions of Contract, concerning Procurement procedures and documents (pre-qualification, tendering and contracting) and Services/ Works Contracts implementation matters including Determinations, Payments, Time Extensions, VOs, Claims/Disputes. Additionally, questions related to dealing with International Financing Institutions. Can also answer questions in Romanian. Can not answer improperly formulated questions.


Over 20 years of experience in the field of design, works supervision, construction, management of aid funds and technical assistance for various types of contracts implementation, including severe conflictual contractual situations leading to Claims and disputes. Claims/ Contract management, Disputes adjudication, Arbitration.

Member of Romanian Professional Association of Roads and Bridges; Listed on President's List of Adjudicators of Romanian Association of Consulting Engineers Former member of the Disputes Resolution Board Foundation (DRBF) of United States – nominee on DRBF President’s Disputes Board Members List and of DRBF Chapter for Eastern Europe Former member of Polish Association of Consulting Engineers (SIDiR) – nominee on SIDiR President’s Disputes Board Members National List Member of “” volunteers pool Member of the "Constructions Disputes Resolution Services” International Panel of Construction ADR Specialists" of United States

- Graduate in 1994 the Construction Institute - Graduate of several FIDIC,Procurement and other courses - Graduate of first Disputes Board Members Mentoring Scheme ( - FIDIC Accredited Adjudicator

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