Comments Are Given in Red Below:-: Subject - Diameter Range in A Concrete Pipe

Comments are given in red below:----- Original Message ----From: chandika dassanayaka
To: sam99@eim.ae
Date: Wed, 09 Mar 2011 12:29:42 -0800 (PST)
Subject: CESMM3 Diameter Range
Dear Prof Sam,

Subject - Diameter Range in a Concrete Pipe
I'm one of your student. I have one problem with CESMM3 Diameter range. According
to definitions page (page 4) part 1.14 in CESMM3 , 300mm dia pipe should go to which
range in Class I.
Range (200 - 300) or (300-600). It is very difficult to understand this English.
It should be 200-300 range. (That is because the diameter 300 does not exceed the
figure shown after the hyphen in this range. If it exceeds then the next range would be
applicable).
Regards,
Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Surveyor, Chartered QS, Chartered Manager, Chartered Builder
Arbitrator / Mediator - London Court of International Arbitration

Arbitrator / Expert - Dubai International Arbitration Centre, UAE
Middle East Representative - Australian Inst. of Qty. Surveyors
PO Box 23461, Dubai, UAE. T +971 50 4588949 F +971 4 3378668
Thank you,
Best Regards,
Chandika
----- Original Message ----From: Abdullah
To: "sam99@eim.ae" <sam99@eim.ae>
Date: Thu, 10 Feb 2011 15:40:51 +0400
Subject: Question
Dear Professor,
I am one of your Alumni,
Can you please explain the following:
1-
Method of building up Star Rates, When and for what purpose are
these rates required? These are required either, to value an item of
work shown in the drawings but not measured in the BOQ of a remeasurement contract or, to value a variation for which an existing
BOQ rate is inapplicable. They are either, built-up from first principles
(i.e. cost/likely cost of resources plus OH&P), or derived from existing
rates. Star Rates is a colloquial expression.
2-
International standard methods of measurement used generally. To

prepare a comprehensive BOQ so that payments can be made without
leaving room for disputes, for the completed original scope of work
and variations, by using rates and prices from such a BOQ. For more
details please see handout of Session 8.
Regards,
Prof. Sam.

Your response will be highly appreciated.

Kind Regards,
Abdullah Hasan
Asst. Head of Department - Planning
-----------------------------------------------------------------------------------------Dear Sir,
I am an alumni of SCA batch.
Now I am finalising variations of the Main Contractor. This contract was procured on a 2 stage tender
process. The blockwork package was awarded to the main contractor only during the stage 2. This
blockwork package contains only light weight blocks. Later normal solid blocks & hollow blocks were
introduced in the project. We asked the contractor to submit a price analysis from first principle. The
contractor is saying that, he already agreed a rate for the light weight blocks & he submitted a calculation
based on % basis ( loss of productivity etc). I am attaching the scanned copy of the calculation submitted by
the main contractor. Their argument is that client already agreed a unit rate with contractor. So to derive the
new rates they will use the agreed rates as a base.
Sir, please give me your comments about assessing this variation.
New rates should be derived from the existing rates. A comprehensive break-down of the existing rates
should be prepared from which the originally specified material costs should be removed and cost of new
materials should be added and any effect on cost of workmanship should be adjusted. Contractors risk
factors priced within the original rates should remain unchanged and the OH&P should be allowed
proportionately.
(No attachments should be sent with this short Q&A queries)
Regards,
Prof. Sam.

Best regards,
George John,
Senior Quantity Surveyor
From: namir yas [mailto:nim_yacine@yahoo.co.uk]

Sent: Saturday, January 22, 2011 3:23 PM
To: sam99@eim.ae
Subject: Query Concerning Contracts Management
Dear Prof. Sam,

Good day!
Please note that I am interested to go deeply in Contracts
Management and planning to eventually change my career. In this
case, I would like to seek for your kind advise of what will be my next
step after the current course. Do you have any good Organization (To
be a member) and Institute (For further study) in your mind where I
can be involved with?
Looking forward to your kind response.
Please see references of Institutions given in Q&A list Jun 08-Q&A-1
previously sent to you. Also consider attending the CA-AC class.
Regards,
Prof. Sam.

Sincerely,
Nameer Yaseen
----- Forwarded Message ---From: "ramlalprk@yahoo.com" <ramlalprk@yahoo.com>
To: sma99@eim.ae
Sent: Sat, January 22, 2011 11:08:43 AM
Subject: Regarding clerification of doubt
Please clear for me the question,
1.If our contract value 105 M and 13M removed partially or fully, after total positive and negative
assessment,
The revised value of the contact is 97M
Professor please clear for me the following,
1. Do I have right to claim Over head? No. If however the 105 M includes any Provisional Sums
and Dayworks exceeding 18.34 M, then you may be able to claim the OH under-recovery.
2. Under which clause we can claim OH Sub-Clause 52.3 in FIDIC 4th Edition.
3.Is any clause state that if activity
removed
is less than 15 percent ,contractor
doesn't have right to claim Office over
Head, is it true It is inferred from 52.3. Also see handout of SCA Session 5 for more details.
Regards,
Prof. Sam.

Thanks professor ,
Ram Lal Pareek
Student
--- Original Message ----From: Jaseer
To: "Prof. Sam" <sam99@eim.ae>
Date: Sun, 02 Jan 2011 11:22:40 +0400
Subject: CA-Advanced class and one clarification related to SCA october class
Dear Prof. Sam

No doubt, I am really getting benefitted from the Q&A you are forwarding and thanking
you very much in this regard.
Further I would like to attend the Contract administration advanced course (CA-AC)
scheduled to be held on 25 February 2011 and 4 march 2011. I hope the course content
will be same as that you forwarded through the flyer for the cancelled class in November.
If you have a revised copy of the flyer for the February class, please forward to me.
Apart from the above I would like to ask a question regarding last SCA class related to
the module Variation and Valuation of varied work. You have explained it very detail
and clear regarding the valuation of these works in the October SCA class. However just
for my better understanding I would like to ask one question that, can you give me a
very simple definition for Varied work and variation separately? So that I can
distinguish between them very easily
Variations are additions to, omissions from or alterations of the original scope of work.
"Varied work" includes Variations as well as other additional work which are named in
FIDIC-4th as "varied work", which are instructed under 17.1, 20.3, 31.2, 49.3 and 65.3
most of which are rectification/searching nature for defects etc. and providing facilities.
Since it is somewhat difficult to call them additions/omissions/alterations of the original
scope, this specific expression is used in FIDIC-4th.
Regards,
Prof. Sam.

Expecting your valuable reply and thanking you very much,

Regards
Jasseer.E.P
Planning Engineer
GECO Mechanical & Electrical Ltd.
-----Original Message----From: thirimadura ariyaratna [mailto:ariyaratnat@yahoo.com]
Sent: Thursday, December 02, 2010 7:00 PM
To: sam99@eim.ae
Subject: Questions
Dear Professor,
Good evening, I am one of your student followed by the Sound Contract
Administration Course and also in between I have attended your SLQS
Seminars.
I am working as a Consultants Q.S. in my project, Contractor has given

the Notice to stop the work due to the delay payment and also he has
submitted his Final Payment Application up to the Notice date.
Now I want to clarify how I should pay for the preliminaries because he
has claimed on his final payment application 30% for the work done
(which is the actual work done on the site) and 75% for the
preliminaries since Contractor has consumed approximately 75% of
original Time for Completion in the site.
When you have enough time, please comment on how to pay preliminaries
for the contractor.
Fixed charges such as mobilization, setting-up, removal, demobilization
etc shall be paid in full. Time related charges such as supervision,
hire/maintenance of equipment/facilities etc should be paid at 75% (i.e.
the proportionate time). Quantity related charges such as testing,
dewatering etc should be paid according to the completion percentage of
the corresponding work activity (i.e the pipelines requiring testing,
excavation in water-logged ground etc.). Additionally, the Contractor is
also entitled to any other preliminaries expenditure that he may have
incurred in anticipation of completing the whole of the works, if it is
not fully compensated by above payments (eg. Unrecovered portion of
depreciation cost of a newly purchased tower crane for the project in
anticipation of recovering say 50% of it but recovered only say 30% and
therefore the unrecovered portion being 20%)
We deal with valuations following terminations, in detail during CA-AC.
Regards,
Prof. Sam.

Thanks and Best Regards,

T.Ariyaratna.
-------------------------------------------------------
Dear Professor Sam,

I seek your clarification on following scenario with regards to SCA session 6, only to
enhance my knowledge.
Time for completion for our project in Abu Dhabi has been expired and contractor has
submitted his claim for the extension of time. Even though the time extension is not yet
approved, there will be entitlement agreed for contractor for extra time and prolongation
costs. Based on that contractor submitted his claim together with prolongation cost.
Amongst others, his head office OH and loss of profit has been calculated as follows.
Contractors Head Office Overhead

Based on the Emden's Formula
Head office OH
Head Office
=
Overhead %
100
Contract Sum (based on original
contract sum)
Original Contract Period
Head office overhead % (Average %
of Contractors Audited Account for
years
2008 and 2009)
Profit for the head office (%)
(Average % of Contractors Audited
Account for years
2008 and 2009
1.77% x7.8%
Contract
Sum
Contract
Period
x Delay
Allocable OH
8,171.
56
= 200,000,00
0.00
=
467days
=
1.77%
7.80%
200,000,00
0.00
467
Contract
Sum
Contract
Period
100
/
day
Contractors Loss of Profit

Based on the Emden's Formula
Loss of Profit =
Average profit %
100
Contract Sum (based on original
contract)
Original Contract Period
The average profit % (Average of
Contractors Audited Account for
years 2008 and 2009
7.80%
100
Delay
Allocable
Overhead
= 200,000,00
0.00
=
467days
=
7.80%
200,000,00
0.00
467
= 33,404
.71
As we learned during SCA session 6 Emden formula is used for both head office OH
and Profit in one formula which is,
/day
h/100 x contract sum/contract period x delay

h = contractors total OH & profit/ total turnover of contractor organization
Is there any modified Emden formula as proposed by contractor and/ or can we consider
the formula proposed by contractor as valid? Will there be double counting issues when
using OH and profit in separate formulas.
seek your comments.
Note - OH&P % as per the signed contract is 10.8%
Comments would run into several pages and out with the scope of this short Q&A
forum. Visit www.slqs-uae.org, go to Journal and read pages 46 50 (Head Office
Overheads Revisited) which may be helpful.
Regards,
Prof. Sam.


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Comments are given in red below:----- Original Message ----From: chandika dassanayaka

Dear Prof Sam,

Arbitrator / Mediator - London Court of International Arbitration

International standard methods of measurement used generally. To

Arbitrator / Mediator - London Court of International Arbitration

Your response will be highly appreciated.

Arbitrator / Mediator - London Court of International Arbitration

From: namir yas [mailto:nim_yacine@yahoo.co.uk]

Dear Prof. Sam,

Arbitrator / Mediator - London Court of International Arbitration

PO Box 23461, Dubai, UAE. T +971 50 4588949 F +971 4 3378668

Arbitrator / Mediator - London Court of International Arbitration

Dear Prof. Sam

Arbitrator / Mediator - London Court of International Arbitration

Expecting your valuable reply and thanking you very much,

I am working as a Consultants Q.S. in my project, Contractor has given

Arbitrator / Mediator - London Court of International Arbitration

Thanks and Best Regards,

Dear Professor Sam,

Contractors Head Office Overhead

Contractors Loss of Profit

h/100 x contract sum/contract period x delay

Arbitrator / Mediator - London Court of International Arbitration

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