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Construction Law/Payment to Contractore

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Question
If one hires a Firm to handle its Project Management Services (namely preparation of Scope of Works or Bills of Quantities, going out to tenders award of Contracts and Project Supervision). However, upon receipt of invoices for payments to the Contractors it is observed that the rates inserted in the Scopes/Bills of Quantities are highly inflated what recourse does one have given the fact that the Contractors would of had signed contracts and also would have completed the works by the time the Invoice have been present to Us for payment. The Form of Contract being FIDIC First Edition 1999 Short Form of Contract.

Thank you in Advance

Answer
Dear Ronald,
Thanks for your question.
Firstly, I would like you to know that recourse available to a party to a contract are usually specified in their contract and where such recourse is not stated, it will be a challenge to follow a unilateral recourse not agreed to by both parties rather, the best source to identify any other available recourse would be in the applicable laws.
But in this particular instance, I expect that the client would have entered into a formal agreement with the Consultants on the project management procedure and other terms of the contract. One instrument used for this is the provisions in the agreement for professional indemnity insurance which is actually protecting the client against any misrepresentation,  misconduct and or professional negligence of the Consultant to the extent which cam be evidenced. So, if you have such instrument and you can justify that "a deliberate unprofessional  action and or inactions of the consultant which led to the inflated rates. You may then surcharge the consultant and call in their PII bond for reimbursement of any loss or damages suffered by the client.

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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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