Construction Law/Daywork

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Question
Dear Sir,
I want to know whether there is a limit or a percentage for dayworks in a Contract. If not, normally what is the maximum percentage for dayworks in a project?

Answer
Dear Madusha,

Good afternoon.

Permit me to apologise for delay in response.

I guess your question is relating to the percentage applicable as mark-up over and above the daywork rate or cost under a contract. If this is the question, then, my number would be as follows (if not let me know):

Regarding your question, ordinarily saying, there is no limit to the percentage mark-up upon day work rates. It varies from Contractor to Contractor or rather where it is the client that is specifying it, it varies from Client to Client as well. Similar to tender adjudication within Contractor's or Client's organisation where profit and overheads components are being decided, there are lot of factors being considered in the determination of the percentage. factors like risk components, infalation or escalation probabilities and also availabilities of of resources and logistics cost in relation to limited quantities which differ from bulk quantities in the original scope that could have been ordered in bulk orders. To the best of my experience, i have only seen up to 300% mark-up applied.

I hope this is clear?

Thanks.
Femi

Construction Law

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Femi Alofe

Expertise

I can answer all questions relating to the followings: 1. Contract Administration - variations, contract clauses interpretation, all post contract procedures, valuations and certificates questions, extension of time issues and prolongation cost matters. 2. Contract Practice - Any questions regarding forms of contract like JCT, FIDIC & other Bespoke forms. 3. Quantification, measurements and Estimating questions 4. Contracts and construction law questions and dispute resolutions problems. 5. All FIDIC Conditions of contracts

Experience

Out of my 24 years experience in construction industry, i have the following specific experience: 1. Contract Administration - 15 years in contract administration with over 10yrs in Managerial positions covering africa and the middleeast. 2. Contract Practice - 15 years experience with over 10yrs in Managerial and expert positions covering africa, north america and the middleeast. 3. All pre-contract procedures, Tendering, Quantification, measurements and Estimating questions - 20 years experience. 4. Contracts and construction law questions and dispute resolutions problems - 15 years experience with over 10yrs in Managerial and expert positions and 5 years expert witness and active practice in arbitration proceedings covering africa and the middleeast.

Organizations
1. FAIQS - Fellow, Australian Institute of Quantity Surveyors, Australia 2. FRICS - Fellow, Royal Institution of Chartered Surveyors, UK 3. CCP - Certified Cost Professional AACEI, USA 4. PQS - CIQS, CANADA 5. ACIArb. - CIArb, UK 6. MNIQS - NIQS, NIGERIA 7. RQS - QSRBN, NIGERIA

Publications
1. AACEI RP on Estimating, 2010

Education/Credentials
1. B.Tech (QS) 2. RICS professional course, CEM - UK 3. MSc , UK NARIC 4. Professional Doctorate ( to commence 2016)

Past/Present Clients
1. Larsen & Toubro Ltd, Dubai UAE 2. Larsen & Toubro (oman) LLC 3. Archi + Web consortium, Abuja Nigeria 4. George Dike & Associates, Minna Nigeria 5. Public works Authority (Ashghal), Doha Qatar

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