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Construction Law/lump sum items in BOQ

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Question
QUESTION: Dear Sir,
With reference to highway project and FIDIC 99 (Design Build), what should be the procedure for payment of lump sum items in BOQ like Environment Protection, Traffic Management etc?
I'll ask another question based on your answer...
Regards
Sohail

ANSWER: Dear sir,
The normal procedure is that contractor submits a breakdown of lumpsum item rates  mentioned in BOQ in  certain period after commencement of work as mentioned in the contract for Engineer's approval.For reffered items,contractor must have covered in a lumpsum item and its approved breakdown should be the basis of paymentThis is my view in general.
Regards-liaqat hayat

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

QUESTION: Sir,
It is comprehensible that the payment of lump sum items like maintaining laboratory, site office and maintenance of traffic, the breakdown should be the basis. But at the start of the project I'm involved in, it was decided jointly by the Employer , the Engineer and the Contractor that contractor shall take all necessary steps for maintaining traffic and environment protection measures during project. The same items shall be paid as a percentage of amount of work done.
In normal routine the contractor works on half width of road and remaining half width of road remains open for traffic. But during construction of culvert on a sharp curve it was impracticable, so the contractor had to build temporary detour for traffic to pass on recommendation of the Engineer. Now contractor is demanding extra payment for construction of temporary detour & Engineer is insisting that the it is already being paid under Traffic Management & Maintenance. I would like to know your opinion in this matter.
Thank you in advance for paying attention.
Regards
Sohail

Answer
Dear sir,
I am inclined to agree with Engineer's views unless mentioned in contract specifically that such detours are payable in special circumstances and if instructed by the Engineer in writing as instructions.Is the agreement to pay as a percentage is in writing? and if so  ,an amendment to the the contract can be also signed through an amendment ,if not provided for.The two parties to the contract can agree to anything as long as it is legal.
Regards-Liaqat Hayat

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Liaqat Hayat

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I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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