Construction Law/Letter or award
I'm a project manager working in Dubai ... We are on stage to enroll into project and the owner's representative issued to use letter of award.
The contract is based on forms of fidic red book 1999
He ( owner's representative ) mentioned the scope of work and he in one part defined the scope by referring to general requirements section A of the (POMI) principles of measurements international 1979 for quantity surveyors institution !!! I wanna reply to his letter and reject such reference to define scope of work.
My question : is it normal to refer to POMI to define a scope of work?!!
Other question is .. In the same LOA he mentioned the special conditions and he said all other conditions apart of this special conditions to be as per fidic red book 19999 and the remaining items ( I.e the general conditions apart of special ) to be mutually agreed !!?? Isn't that wrong? I mean it is not logic to say we mutually agree on other clauses of fidic ...
Thanks and hope to hear from you soon
You are right to be wary.
A letter of award should be a clear description of the three core promises to be contained in the contract when it is issued.
These promises are:
1. What the contractor will build - these must be defined by drawings and specification - a POMI (BOQ) will not be acceptable.
2. When will the work be complete - that is your schedule which must be attached or clearly referenced
3. How much the employer will pay - the total and any stage payments plus the provision for payment if the project is terminated.
Plus a precise reference to the forthcoming conditions of contract.
None of these items are clearly defined in this LOA.
Regarding your 2nd point an "Agreement to Agree" is not a binding agreement.
My clear advice is DO NOT Proceed with the works on the basis of this LOA.
I would suggest that you reply with your own draft LOA and invite him to issue that document.
I hope that helps