Construction Law/Deletion form Preliminaries
I have two questions, I am currently working as a Senior Quantity Surveyor with the Engineer's on the construction project.
The project is Lump Sum Contract and mainly based on Fidic 87 but slightly modified and now can be said as Bespoke Contract.
Question 1:- In the BOQ under the prelims, there is an provision to provide car (as required) for Engineer on site for inspections. The prelims is all priced as Lump Sum Amount.
The Employer has now requested Engineers to Instruct Main Contractors to remove the car from the prelims and provide saving to the Client. He is assuming that the cost of the car shall be deducted as a new car from the showroom.
Please advice if Client has and entitlement to do this.
2)In the BOQ at the end of the section, there is an item for all other items missed in the BOQ shall be priced here and the contractor has priced Lump Sum 20 million without listing any details for the items. Now after signing the contract and project commenced we have noticed this and asked the contractor to justify the amount and provide the breakdown of the items, but Contractor insists that irrespective of the items he has an entitlement to the amount even if does not justify. Please advice if we were right to ask breakdown or Main Contractor can claim in the interim payment without giving justification related to the items.
Thanks for your question.
1. If these Cars are not provided, the contract needs to be adjusted by omitting the said item. The Engineer shall provide their instruction under sub-clause 51.1 (b). Yes the Client is entitled to deduct this. You may use an average car rate from the Show Room or consider rental car rate for the entire duration of your project as this will include servicing, repairs and maintenance etc. You may also add daily fuel costs to these deductions.
2. During the tender analysis the Engineer or the Employer should have questioned this amount. The Contractor must have considered many unknown risks under this item, which he will claim to be unaware of.
However the item description says "all other items missed in the BOQ shall be priced here"; the Contractor must have some basis for this amount. Under sub-clause 57.2, the Engineer shall ask the Contractor for breakdown and shall not certify any amounts unless the Contractor claims any such items under this bill reference, which are really missed out by him.
Furthermore this item may be advantageous to the Engineer and Employer to be used as a Contingency to offset all variations against this amount and maintain original budget.
Hope this helps.