Construction Law/Contract Performance
Would you mind provining me some ideas about the follow quesions?
In the tender preparation meeting No. 1, the Client (Star) requests the contract consultant (ZERO) to provide them advice to address the following issues in the Main Contract tender documents:
(a) The uncertain date of site possession because of some outstanding issue of the land grant.
(b) Star intends to purchase directly from an overseas manufacturer for special raise-up flooring system. This system is to be handed over to and installed by the Main Contractor (Build) as part of the Main Contract Works.
Thank you very much.
These are quite common factors and need to be addressed pre tender.
1. The tenderer should be told that the start date is uncertain and the BoQ should contain an Item:
"The site handover date may be later than stated in the Contract Document - the contractor is to state his price per week for late handover" | 10 | Weeks | Rate | Total
This solves the problem of a delay claim and the Contractor will either price it very low or set at Zero.
There may be a problem if the delay is greater than 10 weeks.
2. The matter of free issue materials always causes problems when they are delivered late. The small saving of the Contractor's profit on the deal is wiped out many times over by delay claims. Better to specify the flooring supplier as a named supplier and leave the delivery risk with the contractor.
I hope this helps