Construction Law/Overhead

Advertisement


Question
Dear Sir

If the Engineer instruct a variation and leading to EOT, then the contractor separately submitted the variation claim (prepared by QS) and prolongation cost claim (prepared by claim expert in-house).

In the variation claim HO overhead required to compensate during the EOT period will be covered, and in the prolongation cost claim only site overhead will be covered.

Therefore we not require Hudson formula or any other formula to derive HO overhead, because already covered by the variation claim.

Sometimes the Engineer require actual cost for the prolongation cost and then based on actual data it will be prepared.

Please give your comment.

Br

Sudantha

Answer
Dear Sudantha,

Thanks once again for your question.

The only way for you to be able to say evidently that the HO has been covered in the Variation amount is when you do an analysis and have a resultant figure showing that. You are right, the result of the analysis may show that, yes, it has been covered and as well, it could show that, not all has been absorbed. Please note that, your analysis could be actual or based on Hudson formula and then compare your figure with the HO in the variation to know if it covers the HO.

Kind regards.
Femi

Construction Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


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

©2016 About.com. All rights reserved.