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Reduction of Quantity of RE Wall

6 replies [Last post]
Wed, 2006-11-08 04:34
Edwin kolandasamy
User offline. Last seen 10 years 35 weeks ago. Offline
Joined: 10 Nov 2005
Posts: 7
Groups: GPC Malaysia
Dear All,

Could anyone give me some idea on the case below.
The completed quantity of Reinforced Earth Wall has reduce to half from 75000 sqm(BOQ Quantity) to 35000sqm only? The work is nearly completed to 98%.
We as contractor have written to consultant asking for a increase in unit rate of this item as to recover the loss of profit. It was rejected, reason time barred. Again we wrote proved to the RE that we have not completed the work. Subsequently the engineer said the works was done as per drawing proposed by us. Yes we have submitted the shop drawings or working drawing (draft by an appointed specialist subcontractor in RE wall of India)for approval. It was approved by consultant and client.

We were requested to give reports on the RE Wall panel casting, as on site casting using Concrete Grade 30 was proposed by us. It was approved by Engineer. These casting was closely mointored by the consultant so that we don exceed the required qty.

However our contract is not D&B it just a normal construction of 4 lane road works with bridges, drainage and other road furnitures. Fidic contract.

How shall persue this issue further.

Thanks
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Replies

Sat, 2006-11-18 04:11
#1
Dayanidhi Dhandapany
User offline. Last seen 3 years 35 weeks ago. Offline
Joined: 18 Mar 2003
Posts: 470
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Hi Edwin,

I think you can revise the unit rate, since your contract is of remeasurable type and also the said item exceeds 10% varaition in quantity as per FIDIC. The RE has to agree upon. Write a letter to him, mentioning the contract clause of FIDIC, as per you are eligible to revise the unit rate i believe.

Cheers!!!

Daya
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Mon, 2006-11-13 03:37
#2
Edwin kolandasamy
User offline. Last seen 10 years 35 weeks ago. Offline
Joined: 10 Nov 2005
Posts: 7
Groups: GPC Malaysia
Hi Tahir,

Thanks for your comments.
Here i would like to add that my current contract is BOQ subject to remeasurement.

Futhermore, FIDIC contract has a provision for any increase or decrease in quantity beyond 10% of the BOQ quantity, either party contractor or client may ask for a revision of unit rate of that particular item. It means it is VO addition or VO omission to the contract (in case there is an addition of quantity beyond 10%)
Only on this basis i am trying to get a vo addition as my quantity of RE wall has reduced more than 50%.

I have workout my raw cost plus profit and overhead and simply dividing it using the qty in the BOQ at the tender stage. Upon completion i found out i lost my pofit and overheads as the qty has reduced.

However the Engineer is not in favour.

thanks.

EDWIN.K

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Sat, 2006-11-11 16:15
#3
Tahir Naseem PMP,...
User offline. Last seen 6 years 2 weeks ago. Offline
Joined: 26 Oct 2006
Posts: 85
Groups: GPC Qatar, Petro-Chem / Oil & Gas
Hi King
My point of view is based on unit rate. If there is lumpsum in this case there is nothing loss to the contractor because he got the money of 75000 m3 in place only did the job of 35000 m3.
I am still insist on it that in unit rate contract the claim is valid and can be avail on the two basis i explained.

I hope you will write in detail to prove me wrong.
Thanks & Best regards
Tahir
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Fri, 2006-11-10 11:18
#4
Tommy king
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Joined: 9 Nov 2006
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hi Edwin,

Different point of view from what Tahir mentioned.

Totally support what Charlie said...

No way to claim especialy all detail of work being supervise closely by the consultant .

What your contract said about the quantity in the BOQ ?
Lump Sum or subject to measurement ??

Increase of unit rate is definately not a right choice to move.

From the way you describe seem it involved Negative VO, where there might be some deduction on the original scope.

Putting your preliminary as a bullet to negotiate will be in high risk , imagine you didn’t get what you claim under 75000m3 somemore highlighting to them that your prelim is allow based on 75000m3 . . . You might suffer TWO deeply cut from the client .

cheers....
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Thu, 2006-11-09 18:48
#5
Tahir Naseem PMP,...
User offline. Last seen 6 years 2 weeks ago. Offline
Joined: 26 Oct 2006
Posts: 85
Groups: GPC Qatar, Petro-Chem / Oil & Gas
Dear Aadwin
In my opinion you can claim it on the following basis

1-That preliminary the quantity of RE wall around 75000 M3. You bid on the basis of this quantity and you plan your resources on the basis of this during the bid stage. May i right.
2- the cost of overhead/indirect cost is basically calculated with acertain ratio of direct work cost. But when the contract finalize indirect / overhead cost ( mobilzation of indirect staff / offices setup/ transportation etc.) can not be reduce / increase with the change in direct work qunatum normally. So the profit margin you get from indirect/overhead cost is also reduce but the cost reamin there. so you claculate seprately it and include in your claim.
I think on these bases may be you get some soft reply from client.
Regards
Tahir
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Thu, 2006-11-09 09:14
#6
Charleston-Joseph...
User offline. Last seen 3 years 18 weeks ago. Offline
Joined: 10 Jul 2005
Posts: 1347
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Hi Edwin,

IMHO,

No need.

How can you claim profit on activities you did not work? What is the logic?

You may charge it in your accounts as loss imaginary profit.

So in Malaysia they are still using the profit and loss stattement in closing accounts.

Wish you all the best but it is so adsurd to claim profit on work not done.

It is a nuisance.


cheers,

charlie
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