Construction Law/Dayworks rate

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Question
QUESTION: Dear Florin,

Please tell if Pn formula aplicable to Dayworks rate.In the Contract Dayworks are provisional sum.

Best Regards,

Aslan

ANSWER: Dear Aslan,


Thank you for your question.

Firstly, please let me know what Conditions of Contract are you using.

Secondly, please indicate what formula are you talking about. Is it the one under Sub-Clause 13.8 [Adjustments for Changes in Cost] of FIDIC '99?

If yes, as that Sub-Clause reads, “Pn" is the adjustment multiplier to be applied to the estimated contract value in the relevant currency of the work carried out in period "n".

Hence, normally, if there would be works carried out and valued under dayworks rates, then such value would be included in the value of works carried out in the related period "n".

But you say that ".In the Contract Dayworks are provisional sum.", which sounds strange. Can you please clarify that too?

Please thus read again carefully the Contract, provide above requested clarifications and as the case may be, revise your own question.

Look forward hearing again from you.

---------- FOLLOW-UP ----------

QUESTION: Dear Florin,

Sorry that I did not mention about Contract Conditions.
We working under FIDIC 2006.
Pn formula under Subclause 13.8.
Yes in the BOQ it mentioned that Dayworks sum is provisional sum.
What about provisional sum is it subjected to Price Adujstment by Pn formula?

Best Regards,

Aslan

Answer
Dear Aslan,


Thank you for coming back. That must be the Pink Book.

In theory, Provisional Sums should not be included in that Pn, but to me it is still weird how can someone define the daywork rates as Provisional Sum.


Something is just not right.

Please send me that definition of the Dayworks.

Will reply sometimes later this evening, as now I have to go away from my computer.

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Florin NICULESCU

Expertise

Questions related to Civil Engineering Contracts, using FIDIC or other Conditions of Contract, concerning Procurement procedures and documents (pre-qualification, tendering and contracting) and Services/ Works Contracts implementation matters including Determinations, Payments, Time Extensions, VOs, Claims/Disputes. Additionally, questions related to dealing with International Financing Institutions. Can also answer questions in Romanian. Can not answer improperly formulated questions.

Experience

Over 20 years of experience in the field of design, works supervision, construction, management of aid funds and technical assistance for various types of contracts implementation, including severe conflictual contractual situations leading to Claims and disputes. Claims/ Contract management, Disputes adjudication, Arbitration.

Organizations
Member of Romanian Professional Association of Roads and Bridges; Listed on President's List of Adjudicators of Romanian Association of Consulting Engineers www.aric.org Former member of the Disputes Resolution Board Foundation (DRBF) of United States – nominee on DRBF President’s Disputes Board Members List www.drb.org and of DRBF Chapter for Eastern Europe http://dabdrb.googlepages.com Former member of Polish Association of Consulting Engineers (SIDiR) – nominee on SIDiR President’s Disputes Board Members National List http://www.sidir.pl/sidir/index.php?action=czlonkowie&a2=r Member of “AllExperts.com” volunteers pool http://www.allexperts.com/user.cgi?m=4&expID=85358&catID=914 Member of the "Constructions Disputes Resolution Services” International Panel of Construction ADR Specialists" of United States www.constructiondisputes-cdrs.com

Education/Credentials
- Graduate in 1994 the Construction Institute - Graduate of several FIDIC,Procurement and other courses - Graduate of first Disputes Board Members Mentoring Scheme (http://www1.fidic.org/resources/adjudicators/pupilage.html) - FIDIC Accredited Adjudicator

Past/Present Clients
- Several State organisations/Ministries , such as Ministry of Transport, National Admistration of Roads, Ministry of Regional Development (former Ministry of European Integration), Public Works and Housing, Central Contracting and Financing Unit in Romania and also in Turkey, Croatia and Macedonia - Numerous Western based private consultancy companies - full CV and other relevant information available at www.abinitio.ro

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