Dear Alumni of the “Sound Contract Administration” Training Course,

This would be the last Q&A for about another month, as I would be busy with the Spring
2008 Class. Thank you for recommending the Class to your colleagues. It was over-
booked and many could not get places. I am considering advancing the Summer Class to
Mid-June in order to give them an opportunity to attend. If anyone is still interested,
please ask them to register early to avoid disappointment.

Regards,

Prof. Sam.

Prof. Indrawansa Samaratunga PhD, DSc

FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Quantity Surveyor and Registered Arbitrator / Expert
Australian Inst.of Qty.Surveyors-Middle East Representative
PO Box 23461, Dubai, UAE. T +971504588949 F +97143378668

-----Original Message-----
From: mohamed salah [mailto:mohamed_sal67@yahoo.com]
Sent: 12 April 2008 10:57
To: sam99@emirates.net.ae
Subject: Nominated subcontractor

Dear Dr. Sam.

Would you Please to advice me for the following case:
The nominated subcontractor who is recommended by the client enter into a
contract with the main contractor with a contract form which imposed by the
client. This contract does not include any retention clause and the two parties
signed the contract as is. The Main Contractor should have objected to such a
nomination before signing the subcontract. In the contract between the client and
main contractor there is an appendix to tender shows a retention with 10% of the
contract price (including the price sum of nominated subcontractors and
suppliers).As an engineer representative I deducted the 10% retention from the
main contractor interim payment according to the Condition of  Contract and
appendix. Now the main contractor asks to apply the same deduction from the
nominated subcontractor back to back.
My question is: Does the main contractor has the right to deduct the retention
from the nominated subcontractor in the absence of such term in between the tow
parties(main and sub contractor). No.
 
Thank for your continued help.
Regards,
 
Mohamed Salah Eldin
Dear Mr. Sam,
We are facing shortage of concrete / cement product in the local market. Is it possible we can get
EOT for the running jobs due to the above issue? Not under the provisions of the Contract. (We
have to wait and see how local courts would deal with such a claim, if and when a contractor files
such a case in courts).
 
Pls advise
 
Sreekumar Nair

From: Menon, Sunil (TC11)

Sent: Monday, December 03, 2007 2:22 PM
To: 'sam99@eim.ae'
Subject: from Sunil Menon, AIQS
Importance: High

Dear Sir,
 
Please advice me on the following - Fixed unit price equip supply contract, unit prices and
guidance quantity listed in the contract document. No design change / original scope change /
location - project title change, all remain same situation. No binding for variation quantities within
the contract, no reference to the FIDIC norms.
 
We have a Supply contract, without a defined Delta Value % for variations. The contract clause
for variation is calling for a firm unit price till the validity of entire contract duration Should have
asked for a definition of the expression “Contract Duration” before signing the Contract. At
present the contract is running on a prolongation period ( since Feb. 2007 ). The market rate for
the supply items has gone up like anything and the currency fluctuation also effecting our firm
supply price a lot.
 
1. Is there any way to raise a claim for obtaining a revised supply price to the contractor ?
You can raise a claim giving your opinion of the expression “Contract Duration”
to be “Time for Completion” and requesting additional costs for excess supplies
beyond that period, but it is unlikely that the Employer/Engineer would construe
that expression in the same manner. You may have to seek equitable relief in law
after obtaining legal advice from a local lawyer.
2. Is there any chances of getting a loss and expense claim for our overheads since Feb.
2007 ? Yes, if the Employer is responsible for the delay.
3. Is there any chances of terminating / binding this original contract by not accepting
the additional requests ( PMI ) ? You have to first establish what the original scope is.
Thereafter, if you can prove that the additional requests are not necessary or appropriate
to complete the original scope then you can refuse them. If there are no provisions
in the Contract for termination, then you have to get a court order to terminate.

 
Request your valuable comments for the same. 
     
Regards
 
 
 
Sunil Menon, AIQS

----- Original Message -----

From: sini noushad
To: sam99@eim.ae
Date: Sun, 06 Apr 2008 12:25:12 +0000
Subject: RE: Q&A 7
Sir,
I have some doubt regarding PC rate adjustment is made under Lump Sum Contracts.As on
my knowledge,
 
Case 1- No changes in drawings,  ,The BOQ qty for PC RATE item will not be recalculate if
there is no  changes in finishes schedule by drawing or specification .Hence omission 
and addition will be as per BOQ qty.ie Omission 124 x 95 and add 124 x 87.2.this is
applicable If actual qty exceeds the boq qty also.  This qty risk is comes under contractors risk to
complete the work or procure the material as per the contract drawings. No. BOQ quantity is never used for
any calculation in a Lump Sum Contract.
 
Case 2- changes in drawings/schedule. .If there are any changes in finishes shedule or drawings, qty for
deletion and addition as per contract drawings and revised drawings accordingly. Yes.
 
Looking forward your valuable advice on this
 
thanks and regards
sini

-----Original Message-----
From: Chandrasekaran, K S - (TIME) [mailto:csekaran@tcco.com]
Sent: 06 April 2008 17:47
To: sam99@eim.ae
Subject: RE: Q&A 7

Dear Dr.Sam,
Our warm thanks for all the Q&A which are being received via email . We will be certainly
interested in the advance course too as and when you conduct.
I anticipate that this will be during the comming RAMDHAN afternoons.
 
By the by i have a  querry from the answers given by you below.
 
Omit 83 x 95 and add 83 x 87.2 and also adjust the Overheads and profit
accordingly. (This is the way PC rate adjustment is made under Lump Sum
Contracts . Is it true that this rule applies only when there is no "any adjustment in
the BOQ" ? No.
 
If  clause 58.2 of GOC in a lumpsum contract reads as " The contractor shall be
entitled to only the actual cost thereof in lieu of the PC setout in the
corresponding item in the BOQ",  Does the above rule  apply? Yes.
 
 
Thank You.
 
Best Regards,
 
K.S.CHANDRASEKARAN
SENIOR QUANTITY SURVEYOR