Construction Law/SOR item Deletion

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Question
Dear Mr Mike Testro,

I am working as site engineer in main contractor in Hong Kong. The constuction contract for alteration and additional work in the existing building is lump sum contract based on drawing and specification.

The Pricing Document is based on schedule of rates.
I have 2 questions:-

1. The Contract Drawing and Particular Spectification requires Fire damper works which is also stated as an SOR item (2nrs x $1000/nr) in Pricing Document. But we have not done it finally. Could the Employer issue VO to delete the works item for omission in payment valuation? if so or not, why?


2. The Contract drawing and spectification do not require Fire damper work which is stated as an item (2nrs x $1000/nr) in Pricing Document. But we have not done it finally. issue VO Could the Employer to delete the works item for omission in payment valuation? if so or not, why?

Thank you very much.

Rgds
Y T Lee

Answer
Dear Mr Lee
You state that it is a fixed price lump sum contract and then you suggest that the price can be adjusted by way of a VO.
It cannot be BOTH.
Does your contract allow for a VO to add cost to the fixed price lump sum?
If not then you cannot issue a VO to deduct money.
Be careful in any case because if you suddenly deduct money for work not done you will get 10 back for work done but not in the price.
Best regards
Mike Testro

Construction Law

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Mike Testro

Expertise

Anything related to extensions of time and delay analysis.

Experience

45 years in the Construction Industry 15 Years as a consultant delay analyst - I now hold myself to be expert in this field.

Organizations
Society of Construction Law Adjudication Society ex Planning Engineers Organisation

Publications
6 articles on the relevance of the India Contract Act 1872 and its relevance to modern construction in India. Waiting Publication

Education/Credentials
Associate Member of the Institue of Building

Past/Present Clients
Currently employed in India by Punj Lloyd as expert delay analyst. Engaged in ongoing arbitrations and EoT claims. Prior an Indepenent consultant in delay analysis.

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