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Question
Dear Mike,

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.

Answer
Hi Lo
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
Best regards
Mike Testro

Construction Law

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Mike Testro

Expertise

Anything related to extensions of time and delay analysis.

Experience

45 years in the Construction Industry 15 Years as a consultant delay analyst - I now hold myself to be expert in this field.

Organizations
Society of Construction Law Adjudication Society ex Planning Engineers Organisation

Publications
6 articles on the relevance of the India Contract Act 1872 and its relevance to modern construction in India. Waiting Publication

Education/Credentials
Associate Member of the Institue of Building

Past/Present Clients
Currently employed in India by Punj Lloyd as expert delay analyst. Engaged in ongoing arbitrations and EoT claims. Prior an Indepenent consultant in delay analysis.

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