Construction Law/Replacement of

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Question
Dear Jonathan,

Please guide on how to approach a cost proposal wherein an existing part of an equipment has to be removed & retrofitted with a new part as requested by the Client.

How do you omit the existing part from the equipment considering the cost of the equipment is a lump sum value & incorporating a cost of the new part to the equipment?

Thank you.

Regards,
Antonio

Answer
Dear Antonio,


I apologize for the late reply due to a bad internet connection (im planning to change ISP).

You forgot to mention the form of contract you are using, thus my reply will be general in nature.

What was the reason for Client's request ?

In general, the Contractor shall provide the required equipment in accordance with the specification (performance) and Conditions of Contract.

If the Client requested any replacement, change,removal, retrofitting,upgrading and or degrading of any or all parts of the equipment which either increase or decrease the performance of such equipment compared to the original specification, then it shall be considered as a variation. The Contractor shall submit quotations to the Engineer of the equipment parts from at least 3 suppliers afterwhich the Engineer shall proceed with assessment. The procedure for evaluating any variation either omission or addition shall depend on what is written under the Conditions of Contract.

If there is cost incurred due to such request of the Client, the Contractor shall be entitled to additional claim.

Hope the above helps and you can rate me.

Regards,

Jonathan L. Peralta

Construction Law

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Jonathan L. Peralta

Expertise

Questions relating to construction claims, Extension of Time, Variations, Interim Payment and delay analysis under FIDIC Form of Contracts.

Experience

Experience in the following sectors: buildings, residential, infrastructure, civil and marine works. Have worked for different international contractors in Myanmar, Vietnam and the Philippines.

Organizations
AACEI, U.S.A., Dispute Resolution Board Foundation,U.S.A., ASCE, U.S.A., PICE,Philippines

Education/Credentials
Bachelor of Science in Civil Engineering, Registered Civil Engineer in the Philippines

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