Construction Law/Inclusive Day Rates In a Lump Sum Subcontract
I am working in a project governed by a Lump sum contract, my company is Subcontractor for Construction and there is a Main EPIC Contractor who is doing the E, P & Commissioning.
My question is, despite the "No interparty claims" as well as various protective in clause with respect to engineering & procurement delays & faults, we have a mechanism for additional works which has unit rates and Day rates to evaluate it, however, in the description of “Construction personnel Day Rates” and “Equipment Day rates” the below is stated:
"The rates for labour shall include for the cost of wages, accommodation, messing, all
insurance required in the General Conditions of Subcontract, all indemnities and
additional payments required under any laws, resolutions or orders of the State of Qatar
relating to the employment of labour, recruiting, transport and repatriation of expatriate
labour, transporting labour to and around the construction site, site supervision and staff
(including but not Limited to engineers, site agent management, head of office
management, general foremen, other foremen and charge hands, timekeepers, surveyors
and clerks), small tools (including but not limited to picks, shovels, barrows, trowels
ladders, hand saws, buckets, chisels, screwdrivers, hand-held instruments and all items of
a like nature), head office and other overhead charges and profit, and other costs and
charges not specifically detailed above but are required for Subcontractor to undertake
The reference table for Manpower in the Subcontract includes Foreman, Charge Hands, Operators etc., however, the client deducts the same on the grounds that they are included in the rate as described above.
Please advise if there is a justifiable basis for Subcontractor to claim those trades other than the fact that they are mentioned in the reference table, which the Contractor justify by answering that those are mentioned in case we request manpower supply.
You feedback is appreciated in advance.
Thank you for the question.
As for as I could understand your question and from the info provided,your rate include rates for work on lumpsum basis and cover all indirect expenses detailed above.I do not think that reference table data can change this clear understanding unless provided otherwise in the sub-contract and need to studied carefully again .'Site supervision and staff' wording included above make it amply clear as included please.