Construction Law/Provision of Vechicles to Engineer
I'm working for Consulting Supervision Firm as a QS.
According to Contract between Employer and Contractor, Contractor has to provide vehicles for Engineer.
During bidding it was assumed that vehicles must be Toyotas or similar.
During the signing of the Contract, both parties agreed that vehicles for Engineer must be from local producer, which are less expensive like 3 times.But it no where says that rate for vehicle provision must be reduced and rate includes buying vehicles, registration and insurance.
At the time of provision Contractor has claimed only actual cost of vehicles, now after 14 months Contractor claiming for the rest of the money.
Is there any way not to pay rest of the money?
Thank you for this question.
If the make of vehicle was not specified in the tender documents then the choice to meet the specified requirements would be at the Contractor's discretion and no price adjustment would be necessary if the Contractor chose to use a different, cheaper brand than was assumed.
If the tender documents did specify Toyota vehicles and it is now agreed that a cheaper brand is to be used then I suggest such is dealt with as a variation under the contract and the contract rules for evaluation of variations will apply.
Whichever applies the scope of items to be included should remain; the Contractor should provide the vehicles registered and insured if that was the specified requirement and it will be entitled to payment of the costs of those elements providing it had included such within its original price (for Toyota vehicles). If the Contractor had missed those elements from its original pricing then it should now provide registration and insurance at its own cost; only the make of vehicle has changed, not the scope of works and, therefore, the change relates only to the base vehicle cost.
It is arguable that a cheaper vehicle would carry lower costs in registration and insurance and those factors may also be factored into the total price that the Employer should pay; but the Employer cannot, in my opinion based upon the information you have provided, avoid paying the cost of registration and insurance (except if the contractor failed originally to make allowance).
I hope that this assists you.
Follow me on Twitter: @CernoOrg
For my regular industry newsletter e-mail to email@example.com, stating SUBSCRIBE in the subject line
Training and consulting services are available, bespoke to companies and individuals.
John Dowse can be contacted by e-mail to firstname.lastname@example.org (When e-mailing, please include “AllExperts” in the subject line.)