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Construction Law/Coordination charges


Dear Sir,

I have signed a contract with agreement for civil and finishing works and to get coordination charges in general for all other works such as MEP, aluminum, swimming pool, etc., and agreed during the project to claim the amount of such fee after handing over the work.

then client management replaced their staff with new personals.

Some of the materials were supplied by the client.

Upon requesting the amounts of all subcontractor that I have coordinated with and equipment supplied by the clients such AC Units and doors, to enable me claim the coordinated charges of 3%.

then I was surprised from the new representative asking me to clarify the definition of coordination charges, and asking me to support this by which standards or common practice.

Note that some subcontractors were using my equipment and scaffolding materials.

My question.
1- What or where I can find documents(standard codes or practice, Fidic or ...) explain for him the meaning of coordination charges and what it should get.
2- Do I apply 3% in all materials by subcontractors and/also the equipment supplied by the client.

please advice me of reference or documents support my claim.



Dear Ashraf,

Thank you for your questions.

I would advise that, the first point of examination for dealing with the query raised by the new representative is to bring the facts out from the contract you signed. Secondly, i believe that, if you check through the contract, there would be the definition of the "coordination", that is, if the actual word used in your contract is "coordination" and if the amount you have quoted in the contract is "3%". In case, your contract has no definition or clue to the meaning of the "coordination", then, following the FIDIC standard condition of contract, you would see the term "provision sum". I will refer you to FIDIC 1999 - Red book for example, in Clause 13.5 where you see the term "provisional sum...". the word "overhead charges and profit" under this clause is similar to what you have described as "coordination" under the your contract and is meant to describe the "main contractor" carrying out a service in aiding and assisting in the delivery of the subcontractor's scope of works.

As described under the FIDIC, part of the services that is expected of the main contractor for "overhead charges and profit" which is similar to your "coordination" are to cover for the use of main contractor's equipment, provision of storage facilities (or space for such) for the subcontractor to store his materials, subcontractor's workmen using the main contractor's offices, rest rooms and site facilities, transportation or movement of subcontractor's materials to point of use, insurance covers for any materials of the subcontractor's stored on the site, first aids and safety issues for the subcontractors...etc. For added help, the definition of a subcontractor is as per Clause of the FIDIC referred to above.

Another authority you can site to support your case is Clause 59.4 of FIDIC - RED BOOK 4TH EDITION 1987 which also mention a certain sum (as would have been agreed) to be paid to the contractor based on subcontractor's sum.

Hope  this answer your question?



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Femi Alofe


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


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.

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